Tag: IOL Chemicals and Pharmaceuticals

IOL Chemicals surges 12% on CDE China nod for antidiabetic drug

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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IOL Chemicals and Pharmaceuticals Ltd shares jumped 12% on Monday after the company announced receiving approval from CDE, China, for its antidiabetic drug Metformin Hydrochloride.

In a filing to the stock exchanges, the company said that its antidiabetic drug ‘Metformin Hydrochloride’ has been approved by the Center for Drug Evaluation (CDE) of the National Medical Products Administration (NMPA) in China.

Through this approval, IOL Chemicals and Pharmaceuticals will be able to export Metformin Hydrochloride to China.

Metformin Hydrochloride is an antidiabetic drug used to control high blood sugar levels in diabetes patients.

After the announcement, the pharma stock gained as much as 12.07% to an intraday high of ₹452.9 apiece on BSE.

The stock has performed marginally lower so far this year, as it dropped 6% on a year-to-date (YTD) basis. However, shares of the company have managed to give healthy double-digit returns of nearly 40% to its investors in the last one year.

The pharma company reported a decline of 4.1% in net profit in the December quarter on a year-on-year (YoY) basis to ₹23.2 crore compared to ₹24.2 crore in the same period last year. Its revenue from operations remained flat at ₹528.8 crore in the quarter versus ₹528.8 crore in the corresponding period of the preceding fiscal.

Its earnings before interest, taxes, depreciation, and amortization (EBITDA) of ₹52.9 crore in the third quarter that ended December 31, 2023, increased by 6.4% to ₹52.9 crore over ₹49.7 crore in the year-ago period.

Shares of IOL Chemicals and Pharmaceuticals were trading 8.13% higher at ₹436.95 apiece on BSE at 2:38 PM. The scrip settled at ₹428.25, up nearly 6% at Monday’s closing.

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IOL Chemicals Q3 net profit dips 4% to ₹23 crore, declares dividend of ₹5 per share

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Pharma major IOL Chemicals and Pharmaceuticals Ltd on Tuesday (February 6) reported a 4.1% year-on-year (YoY) decline in net profit at ₹23.2 crore for the third quarter that ended December 31, 2023.

In the corresponding quarter last year, IOL Chemicals and Pharmaceuticals posted a net profit of ₹24.2 crore, the company said in a regulatory filing. The company’s revenue from operations remained flat at ₹528.8 crore as against ₹528.8 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA increased 6.4% to ₹52.9 crore in the third quarter of this fiscal over ₹49.7 crore in the corresponding period in the previous fiscal.

EBITDA margin stood at 10.0% in the reporting quarter as compared to 9.4% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

The board has declared an interim dividend of ₹5 (50%) per equity share of face value ₹10 each for the financial year 2023-24. The company has fixed February 16, 2024, as the record date to determine the names of the equity shareholders, who shall be entitled to receive the above said interim dividend.

The payment of the interim dividend shall be made to the eligible shareholders within 30 days of the declaration of the dividend, IOL Chemicals and Pharmaceuticals said.

The results came after the close of the market hours. Shares of IOL Chemicals and Pharmaceuticals Ltd ended at ₹443.50, up by ₹6.80, or 1.56% on the BSE.

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IOL Chemicals gets nod to export paracetamol in European market

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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IOL Chemicals and Pharmaceuticals Limited (IOL), a manufacturer of pharmaceutical (APIs) and specialty chemicals, has received the European Directorate for the Quality of Medicines & HealthCare’s (EDQM) Certificate of Suitability (CEP) to export paracetamol in the European market. Paracetamol is utilised commonly in medication prescribed for pain relief and to treat fever.

The certification issued by the EDQM verifies the compliance of pharmaceutical substances and with this backing, IOL will now be able to export paracetamol to the European continent.

The company has started commercial production of the same in 2022 in its Punjab-based facility where it is also backward integrated to produce the key starting material for paracetamol. At present, IOL has a total capacity of 3,600 tonnes to produce paracetamol.

IOL is the world’s largest producer of Ibuprofen API with 33% market share globally. Additionally, it has over 13 APIs in its portfolio, including Metformin, Fenofibrate, Lamotrigine, Clopidogrel Bisulphate, and Pantoprazole.

The company’s product portfolio includes APIs- Ibuprofen, Metformin, Fenofibrate, Clopidogrel, Lamotrigine, Pantoprazole, Paracetamol and specialty chemicals such as Ethyl Acetate, Iso Butyl Benzene, Mono Chloro Acetic Acid and Acetyl Chloride. It is the world’s largest producer of the Ibuprofen with an installed capacity of 12,000 TPA and having backward integrated manufacturing facility. The company has DSIR approved R&D, which is fully equipped to validate existing processes.

The Central and the state government approved Effluent Treatment Plant (ETP) and it had been set up with Zero Liquid Discharge (ZLD) system along with 17 MW captive Co-Generation plant for self -reliance.

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IOL Chemicals and Pharma board approves investment of $2.1 million in Uspharma

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Pharma major IOL Chemicals and Pharmaceuticals Ltd (IOLCP) on Thursday said the Board of Directors has approved an investment of $ 2.1 million in USpharma Ltd.

The company said the investment will be subject to compliance with Foreign Exchange Management (Overseas Investment) Rules, 2022, and Foreign Exchange Management (Overseas Investment) Regulations, 2022.

USpharma Ltd is a USA-based company that develops novel drug delivery technologies.

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The company is the world’s largest manufacturer of Ibuprofen as well as the second largest manufacturer of Iso-Butyl Benzene (IBB). Ibuprofen is used to treat a range of aches and pains, including back pain, period pain, and toothache.

The company reported a net profit of Rs 34.9 crore for the quarter that ended June. The total income stood at Rs 570.2 crore against Rs Rs 524.2 crore a year earlier. The company’s EBITDA stood at Rs 61.2 crore as compared to Rs 115.9 crore YoY.

IOLCP is one of the leading players in the pharmaceutical sector in the country.

Shares of IOL Chemicals and Pharmaceuticals Ltd ended at Rs 364.75, up by Rs 1.50, or 0.41 percent on the BSE.

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RoDTEP scheme: IOL Chemicals expects pharma to be included

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The government, in a bid to give boost to exports, has notified the rates and guidelines for the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. Under the RoDTEP, various central and state duties, taxes, levies imposed on input products, among others, are refunded to eligible exporters. The RoDTEP rates notified are in the range of 0.3-4.3 percent. These rates will apply to 8,555 tariff lines. Under the RoDTEP scheme, marine, agriculture, leather, gems/jewellery, etc. are covered. Similar support will be given to apparel and made-up exports under the RoSCTL scheme.

The pharmaceutical and chemical sectors have been left out of this scheme. Sanjay Chaturvedi, CEO of IOL Chemicals and Pharmaceuticals, is positive that the pharma sector will also be included in the scheme. “It is a matter of time before pharma and chemical segment gets taken into the scheme. We are expecting some kind of announcement in the next couple of days or probably by the end of this week,” he said.

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The company reported its earnings for June-ended quarter. “On the pharma side, the revenues are down primarily because of loss of exports. There was a lot of overstocking by the consumers last year and demand was soft. On top of that, the pricing has fallen a little bit. Because of the freight rates going up 2-3 times over the last six months or so, a lot of customers are deferring their orders so our orderbook continues to be strong but customers are essentially delaying the offtake,” he said.

Domestic business for the company continues to be very strong both on the chemicals as well as pharmaceuticals side.

“Normally, we would be about 30-32 percent in exports and the balance would be domestic. However, right now, it is about 20 percent in exports and the balance is domestic,” he said.

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Chemical business continues to show strong performance. “We have enhanced the capacity of ethyl acetate and that should give us about 8-10 percent further bump in terms of volumes. The pricing of ethyl acetate is governed by the raw material prices. So the volatility that we see in acetyl acid worldwide is being reflected in the ethyl acetate prices as well. Acetyl acid prices are up about 20 percent over the last couple of months and we are able to successfully pass on that cost increase to our customers,” he explained.

In terms of Ibuprofen, he mentioned that the prices have come down from the high levels that they were at. “I think the pricing has bottomed out. We don’t expect it to go any lower,” he said.

For the full interview, watch the accompanying video.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow