Krebs Biochemicals, Hyderabad-based leading Active Pharmaceuticals Ingredients manufacturer, has made a net profit of Rs 14.87 crore for 2002-03. This is an increase of just 2.75 per cent over the previous year's Rs 14.48 crore. The Board of Directors, meanwhile, recommended a dividend of Rs 8 per share, the company said in a statement.

The company received revenue of Rs 101.50 crore from sales and other incomes of Rs 64.93 lakh. The total income of the company for the year was Rs 102.15 crore, which is an increase of 39.15 per cent over the previous year's turnover of Rs 73.41 crore. During 2002-03, APIs contributed Rs 81.35 crore to the turnover, while other products contributed Rs 20.80 crore.

In spite of an impressive growth in turnover, there was no significant growth in the net profit. This was due to increased provisions towards taxation apart from enhanced expenditure. The company incurred an expenditure of Rs 72.72 crore as against Rs 46.14 crore in the previous year, a rise of 57.58 per cent.

After providing for Rs 4.77 crore towards interest and Rs 5.47 crore towards depreciation, Krebs registered Rs 19.19 crore profit before tax. After providing for taxes, the net profit of the company was Rs 14.87 crore. The company currently has an equity base of Rs 6 crore and earnings per share on this works out to Rs 24.79.

The company was expecting the US FDA approval for its manufacturing facility at Nellore, which manufactures respiratory drugs, ephedrine and pseudoephedrine, during the current fiscal year. The US FDA approval will significantly improve the revenues and profitability of the company because of higher price realisation for its products. It was also expecting significant turnover from its second unit near Visakhapatnam, which was recently restructured. The unit manufactures Lovastatin, Simvastatin (both cholesterol reducing agents) and Vitamin C. The company was also expected to launch new bio-molecules and genetically engineered products in the current fiscal. All these would increase the overall turnover and profitability during 2003-04.

A pioneer in introducing ephedrine and pseudoephedrine through the fermentation technology, the company claims to have established itself as one of the dominant global players in this segment of the pharmaceutical industry. Over the last three years, the statement said, the company had gained tremendously due to the fact that the developed countries were shifting to ephedrine and pseudoephedrine production via the fermentation technology.

Regarding the ongoing controversy over Krebs'involvement in the drug scandal in Kolkota and the DCA raids on its premises, the company statement said an international street drug gang was busted in Kolkata, in whose possession one drum of ephedrine was found that contained the label of Kreb Bio's Nellore factory. “ The sales were executed after 'due diligence'. Nothing wrong with the transaction,” the KBL statement said.
“No files were seized nor was there any obstruction to our business. Business is as normal as ever,” the statement said.