Orchid Chemicals and Pharmaceuticals, a leading pharmaceutical company headquartered in Chennai, has achieved satisfactory financial performance during the year ended March 2007. The company's stand alone net profit increased by 16.6 per cent to Rs 96.63 crore from Rs 82.90 crore in the previous year. The net sales increased marginally by 5.1 per cent to Rs 934.18 crore from Rs 888.70 crore. The earning per share worked out to Rs 14.70 as against Rs 14.85 due to enhance equity capital in the current period. The Board of Directors maintained the equity dividend at 30 per cent for the year 2006-07.
The operating profit before interest, depreciation and taxation increased by 11.8 per cent to Rs 291.37 crore from Rs 260.60 crore. The company's interest burden went up by 13 per cent to Rs 98.31 crore from Rs 87.01 crore. However, its depreciation provision came down slightly to Rs 82.46 crore from Rs 82.98 crore.
Commenting on the result, K Raghavendra Rao, managing director, Orchid Chemicals & Pharmaceuticals stated that the company continued to derive an increasing share of business from the regulated markets and dosage forms, thus firmly moving up the pharmaceutical value chain further during the year under review. More importantly, the last fiscal has been another landmark year in terms of international regulatory approvals with the UK MHRA approving the oral and sterile cephalosporin API and dosage form plants as well as the betalactam API and dosage form plants, paving the way for a multi-pronged foray into the European markets. In addition, the betalactam API and non-penicillin, non-cephalosporin API plants have undergone US FDA inspections without any 483's. These several approvals augur extremely well for the growth of the regulated market business in the future, Rao observed.
Its API (bulk) business generated sales of Rs 526.84 crore and formulations business registered an overall growth in sales at Rs 407.33 crore largely led by the sustained growth in the US generics business.
The company's cumulative DMF and ANDA filing count stood at 45 and 39 respectively. Of the DMF's filed, 26 are in the cephalosporin space, 17 in the non-penicillin, non-cephalosporin (NPNC) segment and 2 in the penicillin product area. Out of the 39 ANDAs filed, 27 correspond to cephalosporins, 10 to the NPNC products and 2 in the sterile penicillin area. Orchid has received total approvals or 18 of its ANDAs.
Orchid's equity capital stood at Rs 65.82 crore. Its reserves and surplus declined sharply to Rs 435.10 crore from Rs 724.99 crore in the 2005-06. The company adjusted Rs 363.72 crore in respect of issue expenses and the premium payable on redemption of FCCB's in case of non-conversion by the holders of the bonds. The company stated hat the reserves will be reinstated with the premium amount in case of conversion of the bonds by the bond holders. The company issued 1.75 lakh Zero coupon FCCBs aggregating to US$175 million during February 2007.
The company's consolidated net sales increased by 3.4 per cent to Rs 985.44 crore from Rs 953.16 crore in the 2005-06. The consolidated net profit went up sharply by 37.2 per cent to Rs 78.60 crore from Rs 57.30 crore.