Quarterly Performance:

For the quarter ended September 2010, Net sales increased by 15% to Rs 200.08 crore and other operating income improved by 43% to Rs 1.96 crore led the total income from operations by 16% to Rs 202 crore. The domestic formulation business grew at 14.8% to Rs 157.32 crore, while international formulation business grew at 31% to Rs 29.43 crore compared to the corresponding quarter previous year, especially branded generics has 19% growth, where as generic-generic business has shown degrowth of 40%. Domestic API business de-grew by 12.3% to Rs 3.93 crore, while international API business grew by mere 1% to Rs 9.38 crore.

Operating profit margins contracted by 170 bps to 24.9% on the back of rise in employee cost as percentage to sales, net of stock adjustments by 220 bps and other expenditure by 350 bps. The company has added 700 employees compared to the corresponding quarter previous year out of which 500 are in to sales, 100 are into Marketing and 100 are in to R&D. Thus, Operating profit rose by 9% to Rs 50.25 crore.

Other income rose by 38% to Rs 2 crore and interest cost decreased by 44% to Rs 0.17 crore. Depreciation went up by 27% to Rs 6.70 crore and restricted the PBT before forex loss to Rs 45.38 crore for the quarter ended September 2010. Forex loss of Rs 0.65 crore and increase in tax rate by 250 basis points to 22.4% restricted the growth in net profit to mere 2% to Rs 34.71 crore.

Half yearly Performance:

Income from operation for the half year ended September'10 posted growth of 13% to Rs 690.60 crore. However, Operating profit margins contracted by 160 bps to 25.3% restricted operating profit to grow by 7% to Rs 98.49 crore on the back of rise in employee cost and increase in other expenses on the back of higher R&D expenditure. Domestic formulation business grew at 12.8%, while international formulation business grew at 15.3%, especially domestic branded formulation grew at 17.4% compared to the corresponding quarter previous year. Other income increased to Rs 3.26 crore from Rs 2.13 crore in the corresponding pervious period, respectively. After accounting Interest of Rs 0.42 crore and Depreciation of Rs 13.28 crore, PBT before forex is at Rs 88.04 crore. Forex gain of Rs 0.05 crore for the half year ended September 2010. The increase in tax rate by 280 basis points to 22.7% limited the growth in net profit to mere 3% to Rs 68.05 crore.

Yearly Performance:

For the year ended March 2010, Net sales increased by 5% to 683.84 crore and other operating income decreased by 15% to Rs 6.76 crore restricted total operating income to grow by 5% to Rs 690.60 crore. Operating profit margins expanded by 290 bps to 26.3% led operating profit to increase by 18% to Rs 181.71 crore. Other income increased by 29% to Rs 6.58 crore. After accounting of an interest of Rs 0.51 crore and depreciation of Rs 21.47 crore, PBT before forex loss for the year ended March'2010 is at Rs 166.31 crore. Forex loss of Rs 2.25 crore and increase in tax rate by 530 basis points to 18.3% restricted the net profit to grow by 7% to Rs 133.95 crore.

Other Information:

• The Board of Directors declared an Interim Dividend of Rs. 1.20/- (60%) per equity share of Rs. 2/- (post split face value) for the FY 2011.
• Its key brands Losar group products has grown at 22.4% for the August 2010 to Rs 145 crore, Ampoxin group products has degrown at 3.3% for the August 2010 to Rs 78 crore.
• National Pharmaceutical Pricing Authority (NPPA), the country's drug price regulator axed the prices of Sunpharma, Cipla and Unichem's combination drug Zetroplus --, the impact on revenues is Rs 40 lakhs for the quarter which is insignificant.
• The company allotted and issued 2,300 equity shares of Rs. 5/- each pursuant to the exercise of the stock options by the eligible employees under the Employee Stock Option Scheme - 2008 of the Company.
• The scrip is hovering on BSE at Rs 547