Novartis India, declaring weak profits and sales, admitted that increased price controls on drugs in its category, as well as the divestment of the Animal Health business, have hit company performance.

Total income from operations was down 14.5% to Rs. 164.4 crore compared to the same period last year, but net profits took a deeper hit due to new price controls on products sold, with profits falling to Rs. 13 crore this Q3 compared to Rs. 56 crore in the same period last year. The results are likely to disappoint, as the company stock was trading above key SMAs as investors expected a strong Q3.