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Indoco Remedies' consolidated net up by 28.3% in Q1

Our Bureau, MumbaiMonday, October 30, 2006, 08:00 Hrs  [IST]

Indoco Remedies achieved better consolidated performance during the first quarter ended September 2006 on account of higher exports and commissioning of Baddi plant. The net profit moved up by 28.3 per cent to Rs 8.24 crore from Rs 6.42 crore and its net sales increased by 37.3 per cent from Rs 72.65 crore from Rs 52.91 crore in the corresponding period of last year. The company's exports registered 67.1 per cent growth at Rs 11.16 crore in the first quarter of 2006-07. Its CRAMS business to UK and Germany shown a strong performance. Out of the total international business, regulatory market contributed 85.4 per cent as against 69.6 per cent for the previous quarter. Its domestic sales increased by 26.1 per cent to Rs 64.76 crore. The earning per share worked out to Rs 6.97 as compared to Rs 5.43 crore. Commenting on the results Suresh Kare, chairman and managing director, said, "Indoco's growth is being driven by its emphasis on backward integration strong marketing network in India, thrust on exports and the opportunities for CRAMS." The company has commissioned its state-of-the-art R&D Centre at Rabale, which is now fully operational, and also commenced production at its newly set up manufacturing facility at Baddi. The present strength is 35 scientists including 10 doctorates. The impact of the operational efficiency of Baddi plant and tax benefits thereof are reflected in the financial results. The newly launched division 'Surge has expanded its operation to Orissa and Mumbai in addition to the existing territories of Kerala, Maharashtra, Andhra Pradesh, Tamil Nadu and Karnataka. The company acquired La Nova Chem (India) Pvt Ltd having an API manufacturing facility at Patalganga, Maharashtra. Though Indoco's consolidated performance improved, its standalone net profit declined sharply by 75.5 per cent to Rs 1.57 crore during the quarter ended September 2006 from Rs 6.42 crore in the corresponding period of last year. However, its net sales improved by 33.7 per cent to Rs 70.74 crore from Rs 52.91 crore.

 
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