Strides Arcolab posted better performance during the second quarter ended June 2005 and its net profit moved up by 33 per cent to Rs 13.8 crore. The earning per share improved to Rs 3.98 from Rs 3.08 in the corresponding period of last year. The company recorded a modest growth of 30 per cent to Rs 131.2 crore in revenue during the Q2.

The growth in the R&D income is the key revenue driver for the quarter consequent to signing of product development and supply agreements with various global pharmaceutical companies announced in the last couple of quarters.

The revenues from the global disease management group including the products of anti- retrovirals and anti TB group was 18 per cent of sales against 2 per cent in corresponding quarter previous year.

The Income from regulated markets grew from 29 per cent in the previous quarter to 36 per cent in the current quarter.

Decline in revenue from specialty chemicals division due to decrease in shipments in the quarter which resulted in poorer capacity utilization. Sales from dosage forms from India affected due to closure of 2 manufacturing sites for GMP and FDA renovation. Both the sites will be partly operational in the third quarter of 2005 and the company will have full effect in Q4'05, informed a company release.