Cadila Helathcare, a Rs.4,450 crore plus pharma major from Ahmedabad, has managed to generate higher consolidated net profit during the first quarter ended June 2011 on account of lower interest and tax burden. Its consolidated net profit increased by 15.4 per cent to Rs.229.82 crore from Rs.199.18 crore in the corresponding period of last year. The EBDITA increased only by 2.8 per cent to Rs.308.70 crore from Rs.300.22 crore. The earnings per share worked out to Rs.11.22 as against Rs.9.73 in the last period. Cadila scrip touched to its 52-week peak level at Rs.383.50 today, but declined sharply and closed at Rs.338.25 after the announcement of financial working.
The company's consolidated net sales increased by 11.3 per cent to Rs.1,174 crore from Rs.1,055 crore in the similar period of last year. The company launched 20 new products in domestic formulation market. Its formulation business in Europe increased by 22 per cent and that in Brazil and Japan moved up by 21 per cent and 29 per cent respectively. Its other income from operations declined by 7.6 per cent to Rs.72.18 crore from Rs.78.09 crore. Its employees cost increased by 24 per cent to Rs.161.47 crore from Rs.130.17 crore.
Zydus Pharmaceuticals USA Inc., through its subsidiary Zynesher Pharmaceutical USA LLC entered into an agreement to acquire the assets of the US based Nesher Pharmaceuticals Inc. Through this acquisition the company aims to gain access to a difficult-to-develop product pipeline, expertise and infrastructure that will add value to its operations in the US. The company received US FDA approval for its IND application of ZYGK1, a potent and orally administered small molecule glucokinase activator. It will now initiate phase I trials for ZYGK1. The company's 50:50 joint venture, Bayer Zydus Pharma, with Bayer Schering Pharma has commenced commercial operations in India during the quarter.
The company's standalone net sales improved marginally by 2.3 per cent to Rs.566.91 crore from Rs.554.23 crore in the first quarter of last year. Its standalone net profit declined by 23 per cent to Rs.152.93 crore from Rs.198.64 crore despite lower interest and tax provision. Its interest burden declined by 52.2 per cent to Rs.6.87 crore from Rs.14.37 crore and tax provision declined to Rs.14.30 crore from Rs.19.10 crore.