Drug major Novartis India said on Wednesday that its net profit for the first quarter ended June 30, 2013 declined by 48.69 per cent to Rs 13.8 crore on account of rupee depreciation and slowdown in sales due to notification of new drug policy.
The company had posted a net profit of Rs 26.9 crore during the same period of previous fiscal year.
Net sales of the company, however, rose to Rs 219.03 crore for the first quarter, as against Rs 215.30 crore in the same period of previous fiscal year, Novartis India said in a filing to the BSE.
"Financial results for the quarter were adversely impacted by significant rupee depreciation and slowdown in sales due to reduction in trade stocks after notification of the new drug Price Control Order in May 2013," it added.
The expanded scope of drug price control order is likely to have a significant impact on both revenue and profitability of the company, it added.
"Necessary steps are being taken to reduce the adverse impact," the company said.
Shares in Novartis, on Wednesday, ended at Rs 471.20 on the BSE, down 1.93 per cent from the previous close.
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