Quarterly Performance
Total income from operation for the quarter ended June 2010 increased by 11% to Rs 187.49 crore. Revenues from domestic formulation business increased by 11% to Rs 147.16 crore and exports formulation business witnessed a fall of 2% to Rs 20.61 crore taking total revenues from formulation business to increase by 9% to Rs 167.77 crore. Revenues API increased by 36% to Rs 18.68 crore. The growth in domestic formulation business is much less than industry growth rate due to sharp fall in the generic-generic business. However, the domestic branded formulation grew by 15.7%.
Operating profit margins contracted by 160 bps to 25.7% on the back sharp increase in the employee cost and other expenditure as percentage to sales, net of stock adjustment by 60 bps to 13.1% and 340 bps to 27.1%. The higher employee cost is due to addition of headcount and increase in the other expenditure due to higher R & D expenses & commissioning of new plants at Baddi and Sikkim. Thus, operating profit growth got restricted to 5% at Rs 48.24 crore. Other income rose by 84% to Rs 1.25 crore and depreciation went up by 26% to Rs 6.58 crore, respectively. Forex gain during the quarter of Rs 0.70 crore as against forex loss of Rs 0.80 crore led PBT to increase by 6% to Rs 43.37 crore. Increase in the effective tax rate by 310 bps to 23.1% restricted net profit growth to 3% at Rs 33.35 crore.
Yearly Performance
For the year ended March 2010, the net sales increased by 5% to Rs 683.84 crore and other income from operations declined by 15% to Rs 6.76 crore totaling income from operations up by 5% to Rs 690.60 crore. Operating profit margins expanded by 280 bps to 26.3% resulting operating profit to increase by 18% to Rs 181.60 crore. Other income from operations increased by 29% to Rs 6.58 crore and PBIDT increase by 18% to RS 188.18 crore. Interest outgo declined by 21% to Rs 0.50 crore and depreciation up by 8% to Rs 21.45 crore led PBT before forex gain/loss to increase by 20% to Rs 166.23 crore. Forex loss of Rs 2.25 crore as against forex gain of Rs 5.41 crore in the corresponding previous period has restricted PBT growth to 14% at Rs 163.98 crore. The effective tax rate increased by 520 bps to 18.5% restricted net profit to grow by 7% to Rs 133.93 crore.
