December 2, 2024
Despite deregulated prices, Searle swings to a loss
Price increases were not enough to compensate for increases in operating costs, despite a gross profit margin expansion
December 2, 2024
The deregulation of prices may have resulted in a significant increase in revenues for The Searle Company, but losses widened as costs continued to skyrocket for the company.
The company reported a 14% year-over-year increase in revenue, reaching Rs29.4 billion in the financial year ending June 30, 2024, up from Rs26.2 billion in the previous financial year. This growth was primarily driven by price increases following the deregulation of non-essential drugs and a one-time price hike for essential medications. Despite the revenue boost, Searle posted a significant loss of Rs2.3 billion for the year, translating to a loss of Rs4.46 per share. This marks a substantial decline from the previous year's loss of Rs0.6 billion.
On a positive note, gross margins improved to 47.4% from 41.3% in fiscal 2023, reflecting the impact of price adjustments and operational efficiencies. The company's export business contributed 11% to total sales, with products now reaching 12 countries.
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