Taro Pharmaceutical Industries Ltd (TARO) has reported a 7.27 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $123.66 million, or $3 a share in the quarter, compared with $133.35 million, or $3.11 a share for the same period last year.
Revenue during the quarter grew 7.89 percent to $228.79 million from $212.06 million in the previous year period. Gross margin for the quarter contracted 209 basis points over the previous year period to 77.49 percent. Total expenses were 38.13 percent of quarterly revenues, down from 41.06 percent for the same period last year. This has led to an improvement of 293 basis points in operating margin to 61.87 percent.
Operating income for the quarter was $141.56 million, compared with $124.98 million in the previous year period.
Mr. Kal Sundaram, Taro's chief executive officer stated, "We are pleased with our sales and operating performance in the face of increasing competitive intensity and pricing pressure. Our new product sales have met, and in some cases, exceeded our expectations, helping to off-set the decline in sales arising from the price erosion of existing products. We continue to focus on building our R&D pipeline to deliver sustained long-term performance."
Operating cash flow improves significantly
Taro Pharmaceutical Industries Ltd has generated cash of $192.68 million from operating activities during the first half, up 48.99 percent or $63.35 million, when compared with the last year period.
The company has spent $162.63 million cash to meet investing activities during the first six months as against cash outgo of $120.27 million in the last year period.
The company has spent $240.62 million cash to carry out financing activities during the first six months as against cash outgo of $0.45 million in the last year period.
Cash and cash equivalents stood at $365.64 million as on Sep. 30, 2016, down 25.03 percent or $122.06 million from $487.70 million on Sep. 30, 2015.
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