We have started getting Orders from Europe and Canada: Mahendra Patel, Lincoln Pharmaceuticals

Mahendra Patel, Managing Director, Lincoln Pharmaceuticals, talks about March quarter numbers, international market and its contribution and demand situation for Vitamin C tablets among others during a candid chat with Swati Khandelwal, Zee Business. Edited Excerpts:

Q: Tell us what is impacting the revenue and profit on a quarter-on-quarter basis? What are the challenges for demand?

A: The numbers you are talking about quarter-on-quarter basis then there is not a big difference and it is almost the same or nearby. But, the pharma business is a bit reasonable business as well as it is year-end. So looking at certain norms, dispatches are less and due to the year ending there is some impact on the business. Every year, it has been a cycle. But, if we have a look at the complete year then turnover wise there is a 10% growth and profit-wise if seen on a consolidated basis then before tax, there is a growth of around 25% and after-tax, there is a 21% growth. So, the overall results are satisfactory. Besides, business-wise things are going to be good and the right things are happening. We are doing good work in domestic markets in terms of numbers, figure wise and product-wise. In the international market, after EU permission, we got a good opportunity to enter into the regulated market and currently, we have orders from Canada and Europe and are also working on those. Before, this year-end, the figures will come out in the business also.

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Q: You have talked about the international market and it has almost 60% contribution to the revenue. You were also entering new markets. So, what revenue contribution should we expect from the international market? What sales did you had from Europe this time?

A: We do not have any sales from Europe in the year that has ended because we took time in the completion of primary registration and procedure. Currently, we have orders with us and are also working on those. So, maybe in the next quarter, we will reflect that order in the dispatches and figures into the sales. Hopefully, its figures will convert into sales from the next quarter. Currently, we have orders from Canada and other countries of Europe and day stock audit happens here and they grant permission without auditing. Accordingly, permission has been granted to us.

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Q: Last time, you spoke that the sale of Vitamin C tablets has increased. So, do you think that the demand is increasing to date and have you increased its production? Also, you talked about the CapEx last time and you were also looking forward to a Brownfield or Greenfield opportunity. What is an update on it?

A: Amid the ongoing Corona pandemic, the demand for the medicine includes Vitamin C along with around 10 other products, like NAMCOLD, Azilin, Soludine gargle among others. So, these ranges of products are moving properly due to the COVID and it also includes Vitamin C. These products were sold regularly even before the COVID but not to such a level. So, if seen percentage wise then there is a growth of around 300-400%. We are also launching a new product for Mucormycosis, the new disease that occurred after COVID. We have developed syrup for it and we will be launching it.