The Hyderabad-based Natco Pharma Ltd effected a turnaround in its operations and posted a marginal profit of Rs 70 lakh in the first half year of the current fiscal. In the first six months the company earned a total revenue of Rs 54 crore as against Rs 34 crore during the first half of the last financial year, registering an increase of 50 per cent in revenues. The revenue for the second quarter, at Rs 30 crore, was up by about 30 per cent as compared to the first quarter, at Rs 23 crore, according to a statement by the company.
The company had earned a net surplus of Rs 500 lakh for the first half and after provisions for the expired export incentives, the half year ended with a net profit of Rs 70 lakh.
There has been a significant increase in exports, which have gone up to Rs 31 crore during the first half as compared to Rs 18 crore of last year, registering an increase of around 72 per cent.
According to the statement, the company's strategy of concentrating on low-volume, high-margin custom synthesized chemical intermediates has paid off and the company expects further improvement in the second half of the current financial year, with a promising order book position. The company expects an increase of around 30 % in gross revenues over that of the financial year 2001-02. The company has bagged a $2 million order from the D&O group for the supply of custom synthesized chemical intermediates.
The company's branded formulations have been well received in the market and it expects to expand its area of operations to more states. The company is also an active player in the branded generic segment. The company's bulk chemical plant at Mekaguda in Mehboobnagar district has been approved by the Therapeutic Goods Administration. The company has also received ISO 14001 certification for its environmental management systems.
A Memorandum of Understanding (MoU) had been signed between a consortium of exporters and the Krishnapatnam Port Co. Ltd (promoted by the Natco group) facilitating guaranteed cargo of exports through the Krishnapatnam port. With this MoU in place , the implementation of the over Rs 1,000 crore port project has gained momentum and the company expects to achieve financial closure for the project shortly. The project is being implemented in collaboration with the Indo-British Consortium, of which Mersey Docks & Harbour Company Ltd of UK is the principal member.