Strides Arcolab, a Rs.2,500 crore pharma major, has posted consolidated net profit of Rs.90.48 crore during the second quarter ended June 2012 from Rs.68.89 crore in the similar period of last year mainly due to exceptional items. The company shown gain of Rs.45.15 crore from exceptional items as against Rs.15.01 crore in the last period. Strides has sold its investment in Ascent Pharmaceuticals Ltd and has accounted a net surplus of Rs.94.61 crore during the quarter under review, which push its net profit by 31.3 per cent. It incurred foreign exchange fluctuation loss of Rs.51.15 crore as compared to gain of Rs.10.49 crore in the same period of last year. In reality, the net profit before exceptional items for the quarter declined by 16.9 per cent to Rs.45.31 crore from Rs.54.51 crore.
The company's consolidated net sales declined by 12.6 per cent to Rs.508.29 crore from Rs.581.25 crore in the corresponding period of last year. Its other operating income also improved sharply by 173 per cent to Rs.42.26 crore from Rs.15.49 crore. The total raw material cost, including purchases and stock adjustment, declined by 16.8 per cent to Rs.239.73 crore from Rs.288.03 crore. Its employees cost also lowered by 16.1 per cent to Rs.63.44 crore from Rs.75.60 crore. Strides earnings before depreciation, interest, taxation and exceptional items declined by 3.7 per cent to Rs.140.16 crore during the second quarter ended June 2012 from Rs.145.44 crore in the same period of last year.
The depreciation provision declined by 24.5 per cent to Rs.25.68 crore from Rs.34.01 crore and its interest cost went up by 7.4 per cent to Rs.50.97 crore from Rs.47.48 crore. Its profit before tax and exceptional items declined marginally to Rs.63.51 crore from Rs.63.95 crore.
The company commercialized 9 new products and entered into Canadian injectable market by setting up 70:30 sales and marketing joint venture with Jamp Pharma. It is planning to launch around 40 products in the next two years. Proparaco invested US$12.5 million in African business to create additional manufacturing infrastructure in Africa. Agila Specialities continues to report positive EBDITA in Brazil. It commercialized 8 products in US during second quarter ended June 2012.
Arun Kumar, vice chairman and group CEO, said, “It has been a pleasing quarter where both pharma and Agila have delivered superior operating results and additionally addressed key shortages in the US injectables market with specific product launches.”
For the first half ended June 2012, Strides consolidated net sales declined by 2.9 per cent to Rs.1,031 crore from Rs.1,061 crore in the corresponding period of last year. The consolidated net profit went up sharply to Rs.732 crore from Rs.110 crore mainly on account of selling of investment in Ascent Pharmaceuticals which generated net surplus of Rs.726.26 crore in the first half under review. Its foreign exchange loss amounted to Rs.76.11 crore as against a gain of Rs.11.25 crore. Further it shown a gain of Rs.0.21 crore on account of changes in fair value of options embedded in FCCBs during the first half as compared to Rs.17.58 crore in the last period. Thus, Strides net profit before exceptional items worked out to Rs.82.30 crore as against Rs.85.77 crore in the corresponding period of last year.