Shasun Pharmaceuticals, a Rs.1,150 crore plus Chennai based pharma major which is going to amalgamate with Strides Arcolab, has suffered heavy setback during the second quarter ended September 2014. Its consolidated net profit declined to Rs.0.25 crore from Rs.13.34 crore in the similar quarter of last year. EBDITA nosedive to Rs.24.84 crore from Rs.41.32 crore. Its consolidated net sales, however, improved by 7.4 per cent to Rs.306.03 crore from Rs.285.01 crore in the last period.
For the first half, Shasun's consolidated net sales improved 20.8 per cent to Rs.605.80 crore from Rs.501.71 crore. However it incurred a net loss of Rs.4.54 crore as against a net profit of Rs.6.77 crore in the corresponding half of last year.
Its standalone net profits during the second quarter ended September 2014 increased only by 1.2 per cent to Rs.11.68 crore from Rs.11.54 crore. However, its net sales increased by 25.7 per cent to Rs.265.88 crore from Rs.211.57 crore. Its equity capital increased to Rs.12.03 crore from Rs.11.33 crore and EPS worked out to Rs.1.94 as against Rs.2.04 in the last period. Its total R&D expenditure increased to Rs.6.34 crore from Rs.4.33 crore.
S Abhaya Kumar, managing director, said, “I am pleased with the overall improvement of the core business areas such as API and formulations. With the widening of customer base and product offering in the current year, I am confident that UK operations will show better results.”
For the first half ended September 2014, Shasun's net sales improved by 33.3 per cent to Rs.502.86 crore from Rs.377.19 crore in the same period of last year. Its formulations sales improved by 49 per cent to Rs.117.71 crore from Rs.79.26 crore mainly due to focus on regulated markets. The company filed 5 ANDAs during the first half and planning to file 10 ANDAs in current half.
It has incorporated a new company StabilisPharma, Inc in US for OTC marketing. Its API sales improved by 30 per cent to Rs.382.11 crore from Rs.290.77 crore. It is set to file 8 DMFs in current half. Its sales from CRAMS in UK declined to Pound 10.21 million from Pound 14.59 million. It has developed strong pipeline as its 8 products are in phase III, 10 in phase II and 13 in phase I.
The Board has approved the scheme of amalgamation of the company with Strides Arcolab in September 2014 with swap ratio of 5 equity shares of the face value of Rs.10 each fully paid up on Strides Arcolab for every 16 equity shares of the face value of Rs.2 each fully paid up of Shasun Pharmaceuticals. The company is in the process of filing the scheme with the High Courts of Madras and Bombay.
Shasun has allotted 35 lakh equity shares of Rs.2 each at a premium of Rs.108 per share aggregating to Rs.38.50 crore and 71 lakh convertible warrants of Rs.2 each at a premium of Rs.108 per warrant to Sequent Scientific, Mumbai. The warrant will be converted into one equity share of Rs.2 each within 18 months from the date of allotment to Sequent.