Sterling Biotech has reported excellent growth for the third quarter ended September 2003. Net sales at Rs 75.57 crore have registered a 47% growth over the third quarter of the previous year. Net profit at Rs 11.02 crore has surged by 187%.

For the nine months period ended September 2003, the company's net sales have risen by 65% to Rs 211.8 crore as against Rs 128.44 crore for the first nine months of the previous year. Net profit, at Rs 31.96 crore, has improved by 82% during the same period. Operating profit at Rs 105.42 crore has registered a growth of 97.34%. Led by better product mix, operating margins have risen to 49.69%, a surge of 821 basis points.

Despite a 75% and a 110% increase in interest and depreciation respectively - on account of the recent expansion, Sterling Biotech's Profit before extraordinary expenses and tax has posted a 113% growth to Rs 49.19 crore for the nine months ended September 2003.

During the last quarter, Sterling Biotech issued GDR of US$14.85 million at a price of US$6.6 per GDR. Each GDR represented six equity shares of face value of Rs 2 each. The GDR was subscribed 101% and the allotment of 1,39,68,270 underlying equity shares (of Rs 2 each) was made on October 1, 2003. So, the company has incurred an extraordinary expenditure of Rs 1.88 crore on account of the GDR issue expenses.

Nitin Sandesara, Chairman, Sterling Biotech said: "The company's rather healthy performance is mainly attributable to the enhanced benefits arising out of the expanded capacity. We are confident that we can sustain this improved performance - our association with leading health care companies in US and Europe has helped make further inroads into the those markets".

Sterling Biotech's gelatin unit has received certification for ISO 14001 by DNV, Netherlands in July 2003. Sterling has been supplying pharmaceutical grade gelatin to some of the leading Pharma companies in the US and Europe. The company has bagged the award from Capexil, Govt. of India, as the largest exporter of gelatin for the last four years.

Sterling Biotech has world-class facilities located at Vadodara, Gujarat, ranking at par with most modern plants in US and Europe. The plant has certifications like ISO 9002 and 14001, HACCP and Kosher. The plant enjoys all regulatory approvals from Europe and US. The pharmaceutical gelatin is used in capsule, for treating arthritis, cartilage related problems, blood plasma expander and bleeding disorder management and in tablets and vitamins.