Also, OPM improved by little over 10 bps YoY to 31.5% on the back of fall in consumption cost (250 bps YoY) and other expenses (120 bps YoY) despite the rise in staff cost (50 bps YoY) as percentage to sales and net of stock adjustments. As a result there was 16% growth in operating profit to Rs 182.19 crore.

During the quarter, the interest income went up (36% YoY) to Rs 41.65 crore and depreciation (8% increase YoY) was at Rs 6.15 core. After which there was 19% growth in PBT to Rs 217.69 crore. After marginal decline in effective tax rate by 60 bps YoY to 32.3% led to 20% growth in Standalone net profit to Rs 147.38 crore. After adjusting for loss in EO net off tax Rs 10.64 crore (against Rs 6.63 crore) there was 18% growth in Net profit after EO to Rs 136.74 crore.

The continued growth of specialty products and vaccines, new product launches coupled with tight expense control helped to improve profits during the quarter. Also, it has launched Synflox vaccine indicative for invasive pneumococcal disease one of the leading cause of childhood mortality in India. For the year 2011, the Company expanded its oncology portfolio by launching Votrient (indicative for treatment of advanced renal cell carcinoma) and Revolade (indicative for Idiopathic thrombocytopenic purpura). Further, branded generics were launched in the metabolic and steifel range of products.

Commenting on the Performance, Dr. Hasit B. Joshipura, Managing Director, Said,

" Growth for the quarter was market competitive driven by a revival in the anti-infective and mass markets segment. Our specialty business continued to register good growth aided by the launch of products from our global pipeline and branded generics. The vaccine business showed a high growth trajectory with the Company continuing to expand its vaccine portfolio"

Standalone Yearly Performance:

Net sales grew by 11% YoY to Rs 2338.03 crore for the year ended December 2011. At operating level margins fell by 300 bps YoY to 32.9% primarily due to rise in consumption cost (290 bps YoY) led to mere 2% growth in operating profit to Rs 782.38 crore. Other income was flat at Rs 18 crore. However, the rise in interest income by 46% to Rs 141.62 crore improved the growth in PBDT to 6% to Rs 942.00 crore. Even after increase in depreciation by 16% to Rs 20.41 crore there was 6% growth in PBT to Rs 921.59 crore. Further, with fall in effective tax rate by 150 bps YoY to 31.5% standalone net profit grew by 9% to Rs 631.36 crore. However, after accounting to loss in EO net of tax Rs 200.76 crore (against Rs 17.69 crore) there was 24% fall in net profit after EO to Rs 430.60 crore.

Consolidated Yearly Performance:

Net sales grew by 11% YoY to Rs 2378.48 crore for the year ended December 2011. However, OPM fell by 300 bps YoY to 33.2% largely on the back of rise in consumption cost (280 bps YoY) led to mere 2% growth in operating profit to Rs 802.45 crore. Other income stood at Rs 0.12 crore. However, Consequent to the rise in interest income by 46% to Rs 145.16 crore and deprecation by 16% to Rs 20.41 crore there was 6% growth in PBT to Rs 927.32 crore. Thanks to the fall in effective tax rate by 150 bps YoY to 32.1% led to 9% growth in consolidated net profit to Rs 629.34 crore. After adjusting to the loss in EO net off tax Rs 200.76 crore (against Rs 17.69 crore) there was 24% fall in Net profit after EO to Rs 428.58 crore.

Other Information:

• The scrip is hovering at Rs 2090 at BSE, India on 17^th February 2012.
• The Board recommended a dividend of Rs 45 per equity share for the year (Rs 40 per Equity share previous year). If approved by the shareholders at the Annual General Meeting, the Dividend will absorb Rs 381 crore. Further, the dividend distribution tax borne by the company will amount to Rs 60 crores.
• Consolidated cash and bank balances are at Rs 2043.06 crore as on 31^st December 2011 compared to Rs 2002.89 crore as on 31^st December 2010.