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Taro Pharmaceutical Industries Ltd (TARO) has reported 26.02 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $139.82 million, or $3.42 a share in the quarter, compared with $189 million, or $4.41 a share for the same period last year. Revenue during the quarter dropped 14.69 percent to $220.40 million from $258.34 million in the previous year period. Gross margin for the quarter contracted 698 basis points over the previous year period to 75.93 percent. Total expenses were 41.46 percent of quarterly revenues, up from 32.88 percent for the same period last year. That has resulted in a contraction of 857 basis points in operating margin to 58.54 percent.
Operating income for the quarter was $129.03 million, compared with $173.39 million in the previous year period.
Mr. Abhay Gandhi, Taro’s Interim Chief executive officer stated, “We continue to face challenging headwinds given an increasingly competitive environment, highlighted by new entrants to our base business and pressure from buyer consolidations.” Mr. Gandhi continued, “While these factors are impacting the generic sector as a whole, and not unique to Taro, we believe we are well positioned in the market. We continue to invest in R&D to nurture our pipeline as we consistently look for ways to generate value from our product portfolio. I am encouraged by the continuing increase in generic volumes that we are experiencing throughout the year.”
Operating cash flow improves significantly
Taro Pharmaceutical Industries Ltd has generated cash of $320.46 million from operating activities during the nine month period, up 33.68 percent or $80.74 million, when compared with the last year period. The company has spent $76.09 million cash to meet investing activities during the nine month period as against cash outgo of $187.64 million in the last year period.
The company has spent $269.71 million cash to carry out financing activities during the nine month period as against cash outgo of $5.89 million in the last year period.
Cash and cash equivalents stood at $549.65 million as on Dec. 31, 2016, up 5.05 percent or $26.43 million from $523.21 million on Dec. 31, 2015.
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