Indoco Remedies Limited , a prominent player in the pharmaceutical sector, has released its financial results for the first quarter, revealing a mixed picture of growth and challenges. The company also announced a significant regulatory achievement with its sterile drug product manufacturing facility.

Financial Performance

Indoco Remedies reported a consolidated revenue from operations of Rs 429.08 crore for Q1, marking a 12.5% increase from Rs 383.89 crore in the previous quarter. However, despite the revenue growth, the company faced profitability pressures:

• Net Loss: The company recorded a consolidated net loss of Rs 36.35 crore, a significant decline from a profit of Rs 1.82 crore in the same quarter of the previous year.
• EBITDA: Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) stood at Rs 14.80 crore, showing an improvement from Rs 3.50 crore in the previous quarter.
• Loss Before Tax: Indoco reported a loss before tax of Rs 36.66 crore, compared to a profit of Rs 6.97 crore in the corresponding quarter last year.

Segment-wise Performance

The company's revenue was split between domestic and international markets:

Management Commentary

Ms. Aditi Panandikar, Managing Director of Indoco Remedies Ltd., commented on the results: "Our 12.5% revenue growth this quarter over last quarter reflects the resilience of our teams, operational excellence and robust strategy. We are confident of sustaining this momentum and making a turnaround going ahead."

EU GMP Certification

In a separate announcement, Indoco Remedies revealed that it has received the Certificate for EU Good Manufacturing Practices (GMP) Compliance from the European Health Authorities for its sterile drug product manufacturing facility, Goa Plant II. This certification confirms that the site complies with Good Manufacturing Practice requirements, potentially opening up new opportunities in the European market.

Ms. Panandikar stated, "This GMP certification for our sterile drug product manufacturing facility, Goa Plant II is a testament to our relentless efforts to supply quality and affordable medicines across geographies. We remain fully committed to adhering to cGMP standards and consistently delivering quality products to customers and patients worldwide."

Subsidiary Performance

The financial results also highlighted challenges faced by two of Indoco's subsidiaries:

1. FPP Holding LLC incurred a net loss of Rs 3.73 crore during the quarter, with a negative net worth of Rs 28.07 crore.
2. Warren Remedies Private Limited reported a net loss of Rs 5.57 crore, with a negative net worth of Rs 52.03 crore.

The management has conducted impairment assessments for these subsidiaries and currently believes no impairment provision is necessary based on their evaluation of long-term business plans and cash flow forecasts.

Outlook

While Indoco Remedies faces short-term profitability challenges, the company's revenue growth and recent EU GMP certification demonstrate its potential for recovery and expansion. The management's confidence in sustaining growth momentum and achieving a turnaround will be closely watched by investors and industry observers in the coming quarters.

Indoco Remedies Limited has achieved a significant milestone in its pharmaceutical manufacturing capabilities. The company announced that it has received the European Union Good Manufacturing Practice (EU GMP) compliance certificate for its sterile drug manufacturing facility at Goa Plant II.

Key Highlights

• The EU GMP certification was issued by the European Health Authorities.
• The certified facility is located at L32, 33 and 34, Verna Industrial Estate, South Goa-403722.
• This certification confirms that the site complies with Good Manufacturing Practice requirements set by the European Union.

Strategic Importance

The EU GMP certification is a crucial development for Indoco Remedies, as it validates the company's adherence to high-quality manufacturing standards required for pharmaceutical production in the European market. This compliance certificate is expected to strengthen Indoco's position in the global pharmaceutical industry and potentially open up new opportunities in the European market.

Management's Perspective

Ms. Aditi Panandikar, Managing Director of Indoco Remedies Ltd., commented on this achievement: "This GMP certification for our sterile drug product manufacturing facility, Goa Plant II is a testament to our relentless efforts to supply quality and affordable medicines across geographies. We remain fully committed to adhering to cGMP standards and consistently delivering quality products to customers and patients worldwide."

About Indoco Remedies

Indoco Remedies is a fully integrated, research-oriented pharmaceutical company with a strong global presence. Some key facts about the company include:

• Annual turnover of US$ 180.00 million
• Workforce of over 6,000 employees, including more than 400 skilled scientists
• 11 manufacturing facilities (7 for Finished Dosage Forms and 4 for Active Pharmaceutical Ingredients)
• State-of-the-art R&D Centre and a CRO facility
• Approvals from major regulatory authorities, including USFDA and UK-MHRA
• Strong presence in the Indian market with 10 domestic marketing divisions
• International partnerships with large generic companies globally

This EU GMP certification for the Goa Plant II sterile manufacturing facility underscores Indoco Remedies' commitment to maintaining high-quality standards in pharmaceutical production and strengthens its position in the global market.