Suven Pharmaceuticals Ltd, the Hyderabad-based bulk drugs, contract research and manufacturing services company, has registered a growth of 10.3 per cent at Rs 46.98 crore in turnover for the year 2002-03 as against Rs 42.57 crore in the previous year, according to the unaudited financial results taken on record by the Board on Saturday. At the same time there was a significant fall of 35.81 per cent in net profit at Rs 5.26 crore as against Rs 8.2 crore in the previous year, yielding an EPS of Rs 11.97 (Rs 18.80) on an equity base of Rs 4.4 crore.
In a press release, the company attributed the fall in profit mainly to product mix, which constituted high-volume and low-value products. There was no new commercialisation from contract research and manufacturing services during the year.
According to the press release, the company has embarked upon a massive growth plan aimed at becoming a total solution provider for global life science companies by 2005. While it has invested Rs 8.95 crore towards manufacturing facilities to comply with cGMP standards to meet the regulatory challenges, the company is upgrading its research and development (R&D) facilities. Suven had spent a total of Rs 9.42 crore on R&D, of which Rs 6.50 crore was for capital expenditure and Rs 2.91 crore on revenue expenses.
The company had also increased its strength of its R&D team to 90 scientists from 36 in the previous year. The tax benefit on investment in R&D will increase the deferred tax. The deferred tax for the current year stands at Rs 3.14 crore.