Strides Arcolab, a Rs.2,200 crore plus pharma major, has suffered a setback during the fourth quarter ended December 2012 on account of lower sales and lower forex gains. The company's consolidated net profit declined by 10.6 per cent to Rs.61.19 crore from Rs.68.41 crore in the corresponding period of last year. However, its EBDITA improved by 22.3 per cent to Rs.145.47 crore from Rs.119.94 crore as its operating income went up to Rs.35.84 crore from Rs.3.75 crore.
The company's net sales declined by 12.6 per cent to Rs.597 crore from Rs.683 crore. Its licensing income impacted by Rs.48 crore as the company bought back key product portfolios.
Arun Kumar, chairman and Group CEO, said, 2012 has been a satisfying year magnified by operating leverage in both Agila and pharma businesses with continued compliances across all manufacturing facilities globally and a profound regulatory filing programme.”
The company's Agila Specialities division posted revenues of Rs.365 crore during the quarter under review as compared to Rs.285 crore with EBDITA of Rs.115 crore as compared to Rs.70 crore. Its licensing revenues declined sharply to Rs.58 crore from Rs.163 crore as the company bought back key product portfolios. North America contributed 46 per cent to its revenues and Latin America 27 per cent.
Excluding Ascent Australasian operations, the revenues of pharma division increased to Rs.294 crore from Rs.178 crore, with EBDITA of Rs.28 crore as compared to Rs.14 crore during the fourth quarter ended December 2012. The licensing revenues of this division improved to Rs.13 crore from Rs.6 crore in the corresponding quarter of last year.
The company filed 25 products during the fourth quarter and received approval for 5 products. Its cumulative filings reached at 423 and approvals stood at 249 products.
The company's consolidated net sales, for the full year ended December 2012, declined by 12.2 per cent to Rs.2,206 crore from Rs.2,512 crore in the previous year. However, its operating income went up sharply to Rs.102 crore from Rs.38 crore and other income to Rs.58 crore from Rs.32 crore. The EBDITA worked out to Rs.593 crore as compared to Rs.522 crore, a growth of 13.6 per cent. The profit before tax and adjustment moved up by 30.3 per cent to Rs.290.74 crore from Rs.223.22 crore in the previous year.
The net profit increased to Rs.844 crore from Rs.224 crore basically due to divestment in Ascent Pharmaceuticals Ltd and it has shown a surplus of Rs.726.26 crore. Further, it incurred a foreign exchange loss of Rs.63.96 crore as compared to a gain of Rs.32.55 crore in the previous year.
The total revenue of Agila Specialties division improved by 32.3 per cent to Rs.1,365 crore from Rs.1,032 crore and division's EBDITA increased to Rs.459 crore from Rs.261 crore. Its licensing revenues declined to Rs.276 crore from Rs.417 crore. Total revenue of pharma division increased to Rs.926 crore from Rs.716 crore. The licensing revenues declined by 19 crore as the company bought back key range of immunosuppressants which it expects to launch on its own in the US market in Q2 of 2013.
The company entered definitive agreement with Mylan Inc., for sale of Agila Specialties division for a cash consideration of approximately Rs.8,610 crore and potential additional consideration of approximately Rs.1,345 crore. With this definitive agreement, the company will focus on pharma and biotech business as the growth areas.
After the announcement of divestment in Agila Specialties division, Strides Arcolab scrip declined over 6 per cent to Rs.925 on the BSE.