Piramal Healthcare (formerly known as Nicholas Piramal Ltd), has posted lower consolidated net profit of Rs 316.25 crore during the year ended March 2009 as against Rs 333.78 crore in the previous year mainly due to slowdown in the world economy. The company's consolidated net sales increased by 14.4 per cent to Rs 3281 crore from Rs 2867 crore. With fall in profits its earning per share worked out to Rs 15.1 as compared to Rs 15.9 in last year. The board of directors has recommended equity dividend of 210 per cent (Rs 4.20 per share of face value of Rs 2 each.) for the year 2008-09.

Ajay Piramal, chairman, said, "Despite challenging economic conditions, uncertainties, unfavorable foreign exchange rates and significant rise in raw material cost in the first half of 2008-09, the company managed to achieve strong growth in top line. We are now expanding our foreign facilities and we are integrating recently acquired facility in US. Due to economic slowdown our revenues from custom manufacturing declined. Domestic markets and global critical operations will be key growth drivers in the current year."

Piramal Healthcare has incurred a forex loss of Rs 82.11 crore during 2008-09 as against a gain of Rs 5.36 crore in the previous year. "There will be no foreign exchange losses in the future as the company has taken proper measures." Ajay Piramal added. Operating profit grew by 7.5 per cent to Rs 590 crore and operating profit margin for the year was lower at 17.7 per cent as compared to 18.9 per cent in the previous year.

The company's Healthcare Solutions (Domestic Formulations) division reported growth of 24.3 per cent with sales of Rs 1600 crore. "The company now ranked first in the consulting physician and second with the dentists. We launched 42 new products during the year. Our market share has gone up to 4 per cent from 3.6 per cent in the last year Diagnostic business increased by 42 per cent to Rs 170 crore from Rs 120 crore," Pirmal added.

Its Pharma solutions (custom manufacturing) division's sales increased by 5.2 per cent to Rs 1060 crore and the same from Indian facilities went up by 73.8 per cent to Rs 390 crore as compared to Rs 220 crore in the previous year. The company has commissioned a new facility at Ahmedabad dedicated exclusively to formulations development. It implemented expansion program at its Ennore facility and added a new business line of clinical packaging at Morpeth in UK. Its Global critical Care business moved up by 33.7 per cent to Rs 130 crore, with the acquisition of RxElite Inc. in December 2008, from Rs 98.45 crore in last year.

Pirmal Healthcare's standalone net sales increased by 21 per cent to Rs 2333 crore during the year ended March 2009 from Rs 1928 crore in the previous year. However, its standalone net profit declined by 8.7 per cent to Rs 275 crore from RS 301 crore. The company performed well across all therapies and witnessed significant growth particularly in anti-biotic, dermatology, respiratory and cardiovascular therapy segments.