Arvind Remedies, a Rs.700 crore plus pharma giant from Chennai, has reported strong growth in standalone net profit during the fourth quarter ended March 2013 to Rs.12.41 crore as compared to Rs.0.45 crore in the similar period of last year. The company's EBDITA clocked a growth of 62.8 per cent to Rs.38.49 crore from Rs.23.65 crore. Its net sales also went up by 64.7 per cent to Rs.173.98 crore from Rs.105.61 crore. With excellent profit growth, its earnings per share touched to Rs.2.57 as against Rs.0.09 in the last period.
The board has recommended a dividend of 10 per cent per share, including 2 per cent special dividend on the Silver Jubilee of the company for the year ended March 2013.
Its consolidated net sales for the full year ended March 2013 increased by 50.8 per cent to Rs.704.36 crore from Rs.467.08 crore in the previous year. Its net profit surged by 108 per cent to Rs.43.39 crore from Rs.20.87 crore with EPS of Rs.9 as against Rs.0.43 in the previous year. Its EBDITA moved up 93.3 per cent to Rs.141.28 crore from Rs.73.08 crore.
As against the equity capital of Rs.48.23 crore, its reserves stood at Rs.133 crore, a strong growth of 39.3 per cent. However, its total borrowings went up by 43.4 per cent to Rs.503 crore from Rs.351 crore. Its inventories also grew by almost 40 per cent to Rs.125 crore from Rs.89 crore in the previous year.
The company has decided to demerge the Irangattukottai unit to a wholly owned subsidiary, Arvind Wellness Ltd and fixed the appointed date as April 8, 2013. The civil construction of Kakkalur-2 project for Beta, Cepha and Ayurvedic facilities, is in progress and is expected to be completed by third quarter o the year 2013-14.
Commenting on the financial performance of the company for the quarter and year FY13, Dr Arvind B Shah, managing director and CEO, said, “As a part of our business strategy, we have decided to demerge our Irangattukottai unit into a wholly owned subsidiary, Arvind Wellness Limited (AWL). The new USFDA approvable plant at AWL is one of the best plants in South India, which covers dosage forms like oral solid dosage forms, oral liquid dosage forms, topical preparations, Hard and soft gelatin preparations and Iiquid parentals. We are confident that the plant will soon be fully operational and are expecting it to generate strong volumes for AWL”.
“We are in the process of developing ANDA and are confident to file our first ANDA in a year’s time frame. We foresee tremendous growth opportunities in the area of CRAMS and ANDA which will help us to clock good numbers ahead”