Strides Arcolab, a specialty pharmaceuticals company with presence in generics, OTC and nutraceuticals has turned the corner during the 15 months period ended December 2004 and it earned a net profit of Rs 44 crore as against a net loss of Rs 27.20 crore during the 18 months period ended September 2003.
During the year, the company has restructured its shareholding in Indian and Latin American subsidiaries. As a result, other income includes Rs 12.4 crore being the profit accruing consequent to such restructuring. The other income increased to Rs 13.92 crore from Rs 2.03 crore, which helped the company to push its bottomline.
The company's net sales for the 15 months period touched to Rs 448.53 crore as against Rs 425.60 crore in the last year of 18 months period. The sales of pharmaceutical division increased to Rs 404.73 crore from Rs 368.49 crore and that of contract research and manufacturing segment amounted to Rs 45.34 crore as against Rs 60.28 crore in the previous period.
The board of directors has also recommended a dividend of 15 per cent i.e. Rs 1.5 per equity share of face value Rs 10 each.
Continued focus on regulated markets has yielded rich dividends. For the full year on a consolidated basis, regulated markets have contributed 25 per cent of total income. Sales from other markets like Japan and Australia have also risen. The Latin American operations have posted impressive performance with sales of US$ 44 million. During the year, the US subsidiary has progressed significantly towards launch of ANDAs with the first being filed in February 2005.
Arun Kumar, Group CEO, Strides Arcolab said: "The company's encouraging performance over the recent quarters is reflective of the strategic thrust in regulated markets and higher supplies to some of our alliance partners in these markets. Our business strategy of growth through the Philosophy of Partnership for leadership in specialty products has received further impetus through new agreements with Mayne Group of Australia, Akorn and Stada achieved during the year. With these tie-ups, we are confident of growing the business further in coming years."
Strides Arcolab Limited, listed on the National Stock Exchange and Bombay Stock exchange, has a global presence in more than 50 countries. The company has manufacturing facilities in India, Brazil, Mexico and USA. It supplies to a number of geographic locations including Latin America, UK, South East Asia, Africa, Australia and Russia. The Indian manufacturing facilities for the regulated markets are approved by all major regulatory bodies like MHRA/EU/TGA and MCC. The US facility is FDA approved.