Indoco Remedies has posted satisfactory performance during the first quarter ended June 2008. Its net profit increased by 11.5 per cent to Rs 24.60 crore from Rs 22.07 crore in the corresponding period of last year. The net sales increased to Rs 109.49 crore from Rs 100.32 crore, representing a growth of 9.1 per cent. Its domestic sales increased by 10.3 per cent to Rs 85.25 crore and its exports moved up by 16.1 per cent to Rs 24.24 crore.
The company's Baddi plant has been stabilized production output an optimum capacity thus resulting in operating efficiencies. The company has also considerably controlled the expenses which have resulted in maintaining the profitability and EBIDTA margins. The growth in turnover was due to consolidation and growth of existing products in different marketing division. Products hat have contributed to growth are Vepan, Febrex Plus, Oxipod, Cyclopam Sensodent -K/KF, Sensoform, etc.
The company received approval from TGA, Australia for its metformin tables. In New Zealand, the company won a tender for paracetamol tablets, which was earlier awarded to GSK. This tender allows the company to supply the entire requirement of paracetamol tablets for New Zealand through Medsafe for the next 3 years. The company also received 5 new projects from its customer in Germany. The dispatches of these products will commence in the third quarter of the financial year and will keep giving continuous revenues thereafter. Indoco signed a new contract with a customer in South Africa for product & dossier development. The contract covers 2 products, which has a market size of approx. USD 11 million.
The company is now setting up additional production facilities for formulations at Baddi. The commercial production is expected to start during 2009-10. This will help the company cater its requirement of international business from the Goa plant, as well as the existing plant at Baddi.