Orchid Chemicals and Pharmaceuticals' net went up sharply by 349 per cent during the first quarter ended June 2007-08 on account of exchange gain on FCCBs. The company's consolidated net profit went up sharply by 349 per cent to Rs 48.59 crore from Rs 10.83 crore in the corresponding period of last year. The exchange gain on FCCBs of Rs 52.86 crore largely pushed the net profit to present level. The company's consolidated net sales increased by 18.4 per cent to Rs 251.77 crore from Rs 212.65 crore. For the quarter ended June 2007, the earning per share worked out to Rs 7.38 as compared to Rs 1.65 in the last period.
The company has made additional provision for current and deferred tax of Rs 19.09 crore on account of the hefty exchange gain during the quarter and the net impact on the profit after tax is Rs 33.77 crore.
The company's standalone net sales for the quarter reached at Rs 238.20 crore from Rs 201.71 crore in the similar period of last year, representing a growth of 18.1 per cent. The standalone net profit went up to Rs 51.30 crore from Rs 14.59 crore. The operating profit before interest, depreciation and taxation moved up to Rs 115.38 crore, a growth of 96.3 per cent. If we exclude the exchange gain on FCCBs, the operating profit growth worked out to only 6.3 per cent at Rs 62.52 crore.
Commenting on the results, K Raghavendra Rao, managing director, said, "The first quarter of this fiscal was primarily marked by the launch of a key cephalosporin product with generic market exclusivity and the therapeutic expansion into the non-penicillin, non-cephalosporin segment. The quarter also witnessed steady rise in the rate of regulatory filings both for the US and EU markets. With our foray into the niche penicillin injectables segment coupled with a few more key generic launches in the US during the ensuing quarters, we are confident of recording a step-function increase in revenues and profitability during this fiscal. The appreciation of the rupee against the dollar has impacted us more positively than negatively. The turnover would have been higher had the exchange rate remained stable."
The company began its foray into the non-penicillin, non-cephalosporin (NPNC) product segment by launching its first NPNC product Terbinafine in distribution alliance with Actavis in the US. The cumulative count of filings as of the end of the first quarter stood at 45 DMFs and 40 ANDAs. Of the DMFs filed 26 are in the cephalosporin area, 17 in NPNC and 2 in penicillin product segments. Of the ANDAs filed, 27 correspond to cephalosporin, 11 to NPNC and 2 in the penicillin product segments.