Orchid Chemicals & Pharmaceuticals Ltd (Orchid) achieved slightly lower turnover of Rs 163.77 crore during the second quarter ended September 2004 as compared to Rs 163.95 crore in the corresponding second quarter of last fiscal. Its net profit declined sharply to Rs 3.96 crore from Rs 7.30 crore in the similar period of last year. While the company continued to excel operationally in a competitive market in terms of operating margins through a better product mix, the provisions for higher depreciation and interest impacted the net profitability.

However, its gross profit before interest, depreciation and taxation, however, moved up to Rs 42.10 crore from Rs 39.10 crore in the corresponding period of last year.

Commenting on the performance, K Raghavendra Rao, managing director, Orchid said, "This quarter has seen the company cross further milestones in its generics foray with the process of filing DMFs (Drug Master Files) and ANDAs (Abbreviated New Drug Applications) with the USFDA continuing. We expect that the USFDA would inspect our USFDA compliant cephalosporin API and formulation facilities over the coming months."

"The competitive market conditions in the less-regulated markets are effectively managed by a mix of judicious product and market actions. This fiscal would be the last year of dependence on the price-sensitive less regulated markets and a broad-based US generics market thrust is on the anvil from July 2005," he added.

Orchid's total revenues of the half-year ended September 30, 2004 stood at Rs 337.64 crore compared to Rs 338.90 crore of the last corresponding period. Earnings before Interest, Depreciation & Tax (EBIDT) stood at Rs 79.34 crore compared to Rs 72.18 crore during the first half of 2003-'04. Net profit declined to Rs 8.65 crore from Rs 14.87 crore of the corresponding half-year of last fiscal.