Neuland Laboratories has recorded a growth of 152 per cent in its net profit to Rs 8.06 crore for the 4th quarter ended March 2009. The company achieved net sales of Rs 85.58 crore as against Rs 64.19 crore in the corresponding period of last year, a growth of 33 per cent.
The operating profit of the company grew by 5 per cent during this quarter at Rs 6.18 crore as against Rs 5.88 crore in the corresponding period of the previous fiscal.
For the financial year ended March 2009, Neuland's net profit has gone up by 4 per cent to Rs 11.79 crore as compared to Rs 11.35 crore in the previous year. Neuland reported sales of Rs 306.72 crore during this fiscal as against Rs 217.70 crore in the previous fiscal a growth of 41.per cent. The operating profit during this period was Rs 22.71 crore as against Rs 16.80 crore during the given period in the previous fiscal, a growth of 35 per cent.
Dr D R Rao, chairman & managing director, Neuland Laboratories said, "The financial results is a reflection of our strong business model based on achieving the highest level of reliability, focused plans of being profitable and giving more value to our investors, besides growing our client base across the world. Despite the pricing pressures and global environment we have achieved a growth of over 35 per cent in our operating profit and 38.74 per cent in our turnover during the financial year 2008-09. Withstanding the global meltdown approximately 85 per cent of the company's revenues came from markets of North America, Europe and Japan."
The board of Neuland Laboratories announced that Sucheth Rao who has been the COO of Neuland will now be the CEO of the company. The board also announced the appointment of Saharsh Rao Davuluri as a director on the board of the company. He has also been promoted from vice president - corporate planning and development to president - contract research. He will drive the company's contract research business as well as other new initiatives of the company. He will be responsible for growth and expansion of this business.
Riding on the growth the company announced its thrust on contract research and contract manufacturing services and the Japanese market. The last financial saw Neuland increasing its market share and moving towards achieving a leadership position in all major APIs manufactured by the company in each of its markets and successfully executing opportunities in contract research.
Sucheth Rao Davuluri, CEO, said, "The net profit could have been higher if not for the one time expenses that were incurred due to setting up international subsidiaries of Neuland, the higher fuel and power cost (arising from power cuts in the state) Our results have been good despite the increasing pressure of pricing and competitiveness in the developed market. Our product portfolio, financial strength, manufacturing and R&D capabilities and demonstration of superior overall performance is reflected in our results and will continue to do so despite the tough market conditions. Going forward we are committed towards becoming a reliable global player as our business plan and strategies are on track."