Kerala Ayurveda Pharmacy Ltd (KAPL), one of India's leading Ayurveda companies, received setback during the quarter and half year ended September 2006 due to higher interest and staff cost. Its net loss for the quarter increased to Rs 8.33 lakh from Rs 4.11 lakh in the corresponding period of last year. However, its net sales increased to Rs 347.34 lakh from Rs 266.40 lakh.
During the quarter, the company received Rs 2.98 crore towards issue off 4.98 lakh equity shares off Rs 10 each at a premium of Rs 50 per share on a preferential basis. Consequent to the preferential issue, the equity share capital has increased to Rs 8.06 crore from Rs 7.56 crore. The amount of Rs 2.98 crore has been utilized for building a new facility and part funding the discharge of consideration for acquisition of stake in Ayurvedagram Heritage Wellness Centre (AHWC).
Ramesh Vangal, chairman, Katra Group & Kerala Ayurveda, said, "We now have a clear plan in place for the business both here in India, as well as, globally in US and Europe. This will ensure that we participate and play in the growing wellness piece of the business. Globally, thus growing value. The results are the reflection of he operational strategy which is being executed with speed as we build a new brand of Ayurveda."
The consolidated net sales of the company and its subsidiaries viz., AyuInc. USA, Ayu Natural Medicine Clinic, USA, Ayurvedic Academy Inc, USA and AHWC reached at Rs 5.40 crore and its net profit amounted to Rs 0.27 crore during the second quarter ended September 2006.
For the first half ended September 2006, the company's net loss increased to Rs 34.40 lakh from Rs 8.99 lakh in the similar period of last year. Its net sales increased to Rs 6.36 crore from Rs 5.28 crore, registering a growth of 20.5 per cent. Its interest burden went up to Rs 77.18 lakh from Rs 48.88 lakh in the last half ended September 2005.