Orchid Chemicals & Pharmaceuticals Ltd. (Orchid) has achieved a turnover and operating income of Rs 128.28 crore for the quarter ended December 31, 2002 as against Rs 95.72 crore registered during the corresponding third quarter of last fiscal. This represents an increase of 34 per cent. Gross profit before interest, depreciation and extraordinary items stood at Rs 25.59 crore as against Rs 21.69 crore during the corresponding quarter of last year representing a growth of 18 per cent. Profit before tax was Rs 5.56 crore as against Rs 3.78 crore of the corresponding Q3 of last fiscal registering a growth of 47 per cent. Net profit after deferred tax was Rs 3.72 crore compared to Rs 2.25 crore of the corresponding Q3 last fiscal representing a growth of 65 per cent.
The company's turnover and operating income for the nine months ended December 31, 2002 stood at Rs 346.45 crore as compared to Rs 278.35 crore registered during the corresponding period of last fiscal. Gross profit before interest, depreciation and extraordinary items stood at Rs 70.14 crore compared to Rs 69.11 crore during the corresponding period of the previous year. Profit before tax stood at Rs 13.31 crore as compared to Rs 15.46 crore during the corresponding period of the previous fiscal. Net profit after deferred tax for the nine months ended December 31, 2002 was Rs 9.52 crore compared to Rs 10.43 crore registered during the same period of the last fiscal.
"This fiscal year is marked by a number of strategic initiatives with long term beneficial impact. New joint ventures in China for manufacture of cephalosporins and in the US for drug discovery, acquisition of a domestic chronic therapy business and physical presence in high volume and high growth markets of Russia and Brazil as well as successful US FDA inspection of our facility for our flagship product support a major transformation of Orchid's business profile. These initiatives and the foray into the regulated markets based on progressive approvals by US FDA would be future business drivers. We are in the meantime, poised to post significant growth this fiscal", said K Raghavendra Rao, Managing Director, in a press communiqué.
There has been an overall growth of the formulations business during the last few quarters. Increased emphasis on new markets (both domestic and export) coupled with the introduction of first mover products have been the primary drivers of growth. Orchid has also entered into co-marketing agreements with several leading Indian pharma companies offering its distinctive cephalosporin formulations to them. These arrangements have started generating revenues. The overall formulations business has more than doubled compared to last year.
Orchid recently acquired the assets, brands and business, including plant of Chennai-based formulations company Mano Pharmaceuticals (including its sister company Sali Healthcare) in an all cash deal of Rs 26 crore. Mano has strong brand equity in the chronic therapy segments of domestic formulations market and this acquisition will mark Orchid's foray into these important therapeutic segments.
"The newly acquired speciality formulations business will be operated as Mano Pharma, division of Orchid. With a strong product basket in high growth therapy segments of anti-diabetic, neuro-psychiatry and cardiovascular drugs as well as nutraceuticals we are confident that we will be able to strengthen our domestic formulations business further", added Rao.
Orchid recently converted the foreign currency convertible bonds (FCCB) that were issued to IFC to equity shares. These FCCBs were converted into 43,82,727 equity shares of Rs 10/- each at a premium of Rs 210/- per share. IFC had invested USD 20 million in May 2001 in the form of FCCBs. Post conversion IFC now holds 13.5% stake in Orchid.