Aarti Drugs, a Rs.1000 crore plus pharma company, has reported unsatisfactory performance during the first quarter ended June 2015 as its net profit declined by 1.1 per cent to Rs.17.05 crore from Rs.17.24 crore in the corresponding period of last year. Its net sales remained almost stagnant at Rs.263 crore as compared to Rs.260 crore. EPS declined to Rs.7.04 as against Rs.7.12 in the last period.

The company allotted bonus share during 2014-15 in the ratio of 1:1 and its equity capital increased to Rs.24.22 crore from Rs.12.11 crore in the previous year. It paid two interim dividend aggregating to Rs.10 per equity share of Rs.10 each prior to bonus issue and recommended final dividend of Rs.3 per share for the year 2014-15. It recorded gross sales increased to Rs.1,170 crore from Rs.1044 crore in the previous year. It achieved export sales of Rs.412 crore as compared to Rs.396 crore in the previous year.

The company expects to file 8 DMFs (Drug Master Files) during the year 2014-15 with Global regulatory authorities within next 2 years. This would help increase exports to regulated markets with better margins by supply of generic APIs too. It has filed 6 process patents so far and expects to file around 10 process patents for its pipeline APIs at the National & International Level in next 2 years.

ADL has carried out the capital expenditure for constructing new facilities for three antibiotic products (Fluoroquinolones) and its intermediates, and doubling the capacity of one of its major anti-protozoal product. Both these projects shall be commercially operational by the first two quarters of the year 2015-16.

The company has received an import alert for its US FDA approved unit in March 2015 which is responded to the satisfaction of the authority and we expect their feedback soon. Currently Sales to US are less than one per cent of overall sales and hence impact on revenue and margin is minimal.