Zydus Cadila has posted sales of Rs 318.3 crore, up 12 per cent from Rs 284.2 crore in the same quarter of last year for the quarter ended September 30, 2003. Net profit of Rs. 39.4 crore, was up by 30 per cent y-y from Rs 30.3 crore in Q2 2002-3.
An increase in the net margin to 12.4 per cent compared to 10.6 per cent last year comes inspite of providing for a 50 per cent higher depreciation and 84 per cent higher provision of income tax of Rs.13.2 crore and Rs. 9.5 crore respectively in the second quarter compared to Rs.8.8 crore and Rs.5.1 crore respectively in same quarter last year.
The profit before interest, depreciation and tax (PBIDT) was up by 23 per cent y-y to Rs. 70.2 crore from Rs 57.2 crore last year. The increase in operating margins was mainly contributed by savings in material cost and dividend income of Rs. 10 crore from its 50 per cent owned JV Zydus Altana Healthcare Pvt Ltd. The improved performance comes despite a doubling in the research and development expenditure, compared to the previous quarter last year.
The robust growth comes on the heels of healthy performances in the both the domestic sector and exports. While the domestic sales growth was 8 per cent (against a total market growth of around 5 per cent), the total export growth was up by a whopping 36 per cent compared to the same quarter in 2002-3.
For the half year ended September 30, 2003, the sales revenue was Rs. 608.7 crore up 16 per cent from Rs. 523.4 crore in H1 2002-3. While the domestic sales growth was 14 per cent compared to the corresponding period in 2002-3, the total export growth was 36 per cent.
Net profit of Rs 66.6 crore was up 42 per cent y-y from Rs 47 crore in H1 2002-3. Net margin of 11 per cent compared to 9 per cent last year. This is after making higher depreciation and tax provision of Rs. 26.2 crore and Rs.17 crore compared to Rs. 11.7 crore and Rs. 9.7 crore respectively in previous year.
PBIDT up by 31 per cent y-y to Rs. 130.4 crore, from Rs. 99.4 crore last year. PBIDT margin up to 21 per cent, compared to 19 per cent last year. During the H1 2003-4, the company received Rs. 20 crore dividend from its JV Zydus Altana Healthcare Pvt Ltd.
In the half year period from April to September ’03, several new initiatives were undertaken which would have a far reaching impact on the company’s business.
The company became a ‘Partner of Choice’ for Schering AG which would allow the marketing of select existing and new patented products of Schering AG, Germany, in India beyond 2005. Zydus Cadila will also be manufacturing select products of Schering AG for a period of 10 years. This would be extendable by another five years.
Effective from 30th September 2003, Zydus Cadila now has 100 per cent stake in Alpharma France SAS. The company has been renamed Zydus France SAS and will give Zydus Cadila an arrow head entry into the European pharma market.
The infrastructure for regulatory pipeline has been geared up and the company is ready to file 8 ANDAs by March ’04. The company has filed 10 DMFs and plans to file a total of 16 DMFs by the year end.
A total of 35 new products were launched during the period with the company increasing its presence in the chronic care segments of cardiovascular and CNS. Some of the new launches include Zytanix (cardiovascular) introduced for the first time in India, Zipra and Aridus (anti-depressants), Ultipime (anti-infective) and Alfatam (urology).