Taro Pharmaceutical Industries Ltd (TARO) has reported a 27.81 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $82.98 million, or $2.05 a share in the quarter, compared with $114.95 million, or $2.68 a share for the same period last year. Revenue during the quarter dropped 25.90 percent to $196.41 million from $265.07 million in the previous year period. Gross margin for the quarter contracted 1136 basis points over the previous year period to 73.23 percent. Total expenses were 48.20 percent of quarterly revenues, up from 31.45 percent for the same period last year. That has resulted in a contraction of 1675 basis points in operating margin to 51.80 percent.
Operating income for the quarter was $101.74 million, compared with $181.72 million in the previous year period.
Mr. Abhay Gandhi, Taro’s Interim chief executive officer said, “As is commonly known, and as we have stated for quite some time, the entire generic sector, including Taro, is facing a challenging period. We continue to see a difficult generic pricing environment, particularly in the U.S., driven by intensified competition among manufacturers, new entrants to the market, buying consortium pressures, and higher ANDA approval rate from the FDA.” Mr. Gandhi continued, “Based on our well-balanced portfolio, the continuing focus on R&D investment, our healthy pipeline, and the Company’s strong balance sheet, we believe we are well positioned in our target markets.”
Operating cash flow improves
Taro Pharmaceutical Industries Ltd has generated cash of $437.54 million from operating activities during the year, up 10.73 percent or $42.41 million, when compared with the last year. The company has spent $117.78 million cash to meet investing activities during the year as against cash outgo of $284.73 million in the last year.
The company has spent $294.90 million cash to carry out financing activities during the year as against cash outgo of $15.34 million in the last year period.
Cash and cash equivalents stood at $600.40 million as on Mar. 31, 2017, up 4.10 percent or $23.64 million from $576.76 million on Mar. 31, 2016.
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