Neuland Laboratories (NLL), a Rs.486 crore pharma giant from Hyderabad, has registered strong growth in net profit of 67.6 per cent during the second quarter ended September 2016 to Rs.10.39 crore from Rs.6.20 crore in the similar period of last year. Its net sales increased by 16.4 per cent to Rs.144.43 crore from Rs.124.04 crore as it launched Brinzolamide in the US and Vorconazole in Europe. It ramp up CMS business as it achieve significant progress across key projects. Its EBDITA also moved up by 29 per cent to Rs.25.15 crore from Rs.19.50 crore. EPS improved to Rs.11.69 from Rs.6.98 n the last period.
The board of directors approved a proposal to merge Neuland Health Sciences Pvt Ltd (NHSPL) and Neuland Pharma Research Pvt Ltd (NPRPL) with the company. The amalgamation will build a stronger and sustainable business an enhance the potential for future growth and the Scheme of Amalgamation would be beneficial and in the best interests of all stakeholders including shareholders, creditors, customers, suppliers, employees amongst other. The amalgamation scheme will involve 552 equity shares of NLL for every 1000 equity shares of NSHPL and 410 equity shares of NLL for every 100 equity shares of NPRPL.
Sucheth Davuluri, vice-chairman and CEO, said, “We are pleased to announce good set of numbers in Q2FY17 following the trajectory that we set for ourselves in the last couple of quarters. The business shaped up well during this quarter and we also had success across each of our business verticals leading to better profitability and margins. We remain cautiously optimistic of the business going ahead.”
Saharsh Davluluri, joint managing director, said, “We are also happy to announce that the board of directors of Neuland Laboratories along with its holding company (NHSPL) and NPRPL have approved a draft scheme of amalgamation among the three entities. We believe the transaction would help us create a stronger and more sustainable entity that not only reduces some redundant costs, but also unlock value by way of consolidation of businesses, optimization of operations and improved overall capabilities. We certainly feel that the transaction will be value accretive and in the best interest of our shareholders.”
For the first half ended September 2016, Neuland Labs net sales increased by 19.3 per cent to Rs.290.01 crore from Rs.243.17 crore in the corresponding period of last year. Its net profit increased by 48.9 per cent to Rs.20.10 crore from Rs.13.50 crore.