Krebs Biochemicals & Industries Ltd, (formerly known as Krebs Biochemicals Ltd) has suffer setback during the year ended March 2004 mainly on account of slowdown in the movement of anti asthmatic segment drugs, namely ephedrine and pseudoephedrine, increase in the raw material costs (Molasses) and drop in the sales price of some of its products. Its net profit declined by 9.1 per cent to Rs 13.51 crore from Rs 14.87 crore in the previous year. The earning per share worked out to Rs 22.52 as against Rs 24.79. The company declared equity dividend of 80 per cent.
The company's sales declined slightly to 101.24 crore from Rs 101.50 crore in the previous year. The profit before interest, depreciation and taxation moved up by 4.5 per cent to Rs 30.75 crore from Rs 29.42 crore. However, higher interest and depreciation provisions put pressure on profit before tax, which declined to Rs 18.33 crore from Rs 19.19 crore. The company is engaged in manufacture of active pharmaceutical ingredients with its product portfolio comprising of Statins (lifestyle drugs), neutraceuticals and anti-asthmatic groups and has pioneered in the fermentation technology.
With the substantial restructuring of the plant at Unit II at Kothapalli (Visakhapatnam), the turnover has increased significantly from Rs 32.45 crore in the previous year to Rs 49.90 crore in the current year, a company release said.
Having consolidated in the current line of activity, the company has initiated steps to diversify into other activities. In this direction the company has identified bio fuels and it's down stream products to catalyze the growth. The company has also diversified into food products by setting up of stackable potato chips unit with a capacity of 1800 MT per annum. The commercial operations will commence in the 2nd Quarter of the current financial Year (2004-05).
"The company is aiming to achieve a turnover of Rs 200 crore in the current year 2004-05 with a net profit of Rs 30 crores. With all the major expansion & diversification projects coming to fruition during the 1st quarter of current year, these targets are quite achievable," A Veerendra Kumar, company secretary, said.