For the quarter ended September 2010, Orchid Chemicals & Pharmaceuticals, Chennai based company reported Rs 24.01 crore net profit compared to the net loss of 13.20 crore over corresponding previous period. Total income from operations increased by 21% to Rs 381.80 crore, which include other operating income (up by 41%) of Rs 13.47 crore. During the quarter, operating profit margins decreased by whopping 780 basis points to 20.4% on the back of rise in consumption cost. Thus, operating profit decreased by 12% to Rs 77.78 crore. With decrease in interest cost by 56% to Rs 25.11 crore , depreciation by 20% to Rs 31.18 crore and EO gain Rs 3.82 crore, PBT was at Rs 27.95 crore.

Highlights of the call are:

• The share of the promoters has increased to 31% as to the date compared to the 15% in March,2008 and recently Ranbaxy sold out its stake of 14%

• Sales break up for Orchid – 25% from Hospira, 15% from western Europe markets, 40% from emerging markets, 10% from formulations in India, 10% from rest of geographies.

• During the quarter, its regulated generics business posted robust earnings; the earlier launched products Oral Cephalosporin's segment and the Non-pencillin Non-cephalosporin (NPNC) segment have maintained their market shares and market positions.

• In API space, its cumulative filings with US DMFs are 83; the break up of total filings is 32 in Cephalosporin, 39 in NPNC, 3 in Betalactam and 9 in Carbapenems segment.

• In Finished Dosage Form (FDF) Space, cumulative ANDA filings for the US market stands at 38, which includes 9 Para IV FTF (First-To-File) filings. The break-up of the total ANDA filings is 13 in Cephalosporin's space and 25 in NPNC space. In the EU region the cumulative count of Marketing Authorizations filings stood at 16.

• During the quarter, it received the final ANDA approval for Levetiracetam Tabs 100 mg. With this total count of ANDAs approved stand at 21.

• Expecting several launches across varied spectrum of markets and product segments line up in generics business in coming quarters, Its going to contribute significantly to revenues

• On Business front, 25% of revenues come from supplying APIs to Hospira as they signed contract for supplying APIs when it sold its Injectable business.

• It is continuously moving away from partnership model to own marketing model for marketing its products.

• Other operating income includes, Revenues from milestones achieved from non-antibiotics, certain R&D tasks and other molecules.

• Tax rate for the full year is at 18%, Capex for FY 12 is around Rs 200 crore.

• During the quarter, Cash in hand is Rs 121.19 crore, Working capital at Rs 510 crore, FCCB loans Rs 610 crore, Rupee debt at Rs 270 crore, Foreign currency loans at Rs 310 crore