Shasun Chemicals and Drugs, a Chennai-based Rs 838 crore pharma company, has suffered heavy setback in its consolidation operations during the first quarter ended June 2008, basically due to exchange loss arising on account of reinstatement of dollar denominated assets and liabilities and phenomenal increase in input prices.
The company incurred heavy consolidated loss of Rs 31.53 crore as against the net profit of Rs 4.88 crore. Its consolidated net sales also declined by 22.4 per cent to Rs 155.11 crore from Rs 199.93 crore. The sales of UK-based subsidiary were lower due to some dispatches, which got shifted to Q2 due to delayed arrival of raw materials.
Dr S Devendra, the company director, has stated that promoter families have tremendous faith in the future of the company in light of fresh initiatives in finished dosage, biotech and CRAMS businesses in addition to cost optimization initiatives in UK. The promoter families are increasing their shareholding in the company.
The company's standalone net sales have increased by 6.6 per cent to Rs 103.23 crore from RS 96.80 crore. However, it incurred a standalone net loss of Rs 8.54 crore as compared to a net profit of Rs 1.66 crore in the preceding period.