Whereas, the sales income has grown moderately, raw material consumption has risen by 49 per cent to Rs 5.24 crore. Purchase of finished goods increased by 35.6 per cent to Rs 4.65 crore. Staff cost increased by 22 per cent to Rs 2.68 crore. Total expenditure increased by 15.2 per cent to Rs 18.67 crore. The sharp increase costs reflected led to a severe fall in operating profits and margins. Operating profit declined by 17 per cent to Rs 3.65 crore and margin from 22.5 per cent to 17.5 per cent.

Finally, net profit took a heavy beating by 22 per cent to Rs 2.04 crore.Company sales is made up of formulations, trading of finished goods and bulk drugs. Formulations account for 50 per cent of total sales. Trading accounts for 33 per cent and rest comes from bulk drugs.

The company has a brand in every segment. This restricts the growth of the sales because there are no alternative choices in the case of different symptoms. There are only 16 brands in 13 segments. The company has not introduced any new brands.

However, two of these brands - Duphaston and Duvadilan - are doing very well. Duphaston is used for hormone therapy and Duvadilan is a uterine relaxant. The company also has low presence in anti-biotics, burns, constipation, jaundice, hepatitis and gall stones, indigestion, irritable bowel syndrome, muscle spasm, nasal congestion, iodine therapy, vertigo and vitamins.

Duphar-Interfran is a major player in the vitamin-D3 segment. The managerial squabbles may affect overall decision-making. The company wants to demerge pharma business to a new company called Duphar Pharma India Ltd. Since, pharma business accounts for more than Rs 63 crore in the total sales of Rs 78 crore, its prospects under separated management are bleak.