Strides Arcolab, a Rs 1,300 crore Bangalore based pharma major, has posted impressive performance during the first quarter ended March 2010. Its consolidated net profit has taken quantum jump of 280 per cent to Rs 39.83 crore from Rs 10.48 crore in the corresponding period of last year. The earnings before interest, depreciation, taxation and adjustments moved up by 73.1 per cent to Rs 85.89 crore from Rs 49.62 crore. The company's consolidated net sales increased by 31.4 per cent to Rs 373.55 crore from Rs 284.26 crore. With strong improvement in bottom line, its earnings per share improved to Rs 9.43 for the quarter under review from Rs 2.40 in the last period.
Strides' pharmaceuticals sales increased by 32 per cent to Rs 259 crore from Rs 196 crore and that of specialties went up by 27 per cent to Rs 123 crore from Rs 96 crore in the first quarter of 2009. It received US FDA approval for six ANDAs and total approvals reached at 38. It filed four ANDAs in the quarter ended March 2010 and its total filings reached at 129.
Arun Kumar, Group CEO said, “I am pleased with the continued scale-up in growth momentum driven by both Specialty and Pharma business backed by strong licensing income during the quarter, which is also the first quarter post reorganization.”
The company has shown exceptional items in respect of gain on exchange fluctuation and profit on FCCB buyback of Rs 6.26 crore as against expenditure of Rs 9.08 crore in the similar period of last year. Its interest cost went up by 33.8 per cent to Rs 25.97 crore from Rs 19.41 crore. Further, it provided significant higher amount for taxation of Rs 7.14 crore for the quarter ended March 2010 as against Rs 0.82 crore in the last period.
Strides' equity capital increased to Rs 43.21 crore from Rs 40.05 crore as the company allotted 13,524 equity shares of Rs 10 each fully paid, to the minority share holders of Grandix Pharmaceuticals ltd and Grandix Laboratories Ltd in January 2010. Further, it has allotted 29.80 lakh shares at premium of Rs 81.15 per equity share upon conversion pf equal number of Warrants which was alloted in April 2009 to Promoter Group Company & relatives of promoters.
Recently, Strides has redeemed FCCBs of US$ 34 million which were due for repayment in accordance with the terms of issue of the bonds. Further, the company is planning to purchase 50 per cent stake of Aspen Pharmacare Holdings Ltd in Onco Therapies Ltd, India and Onco Laboratories Ltd, Cyprus. Stride also entered into an understanding with Aspen to acquire a facility in Campos, Brazil with related products and IP's for a consideration of approximately US$ 75 million.