Financial Information:

For the quarter ended December 2010, Orchid Chemicals & Pharmaceuticals reported 56.62 crore consolidated net profit compared to the net loss of Rs 18.92 crore over corresponding previous period on the back of 37% jump in net sales to Rs 462.46 crore. Operating profit margins expanded by whopping 660 basis points to 26.6% resulting operating profit to increase by 76% to Rs 127.08 crore. Other income is at Rs 0.03 crore compared to no income in the corresponding previous period. With decrease in interest by 50% to Rs 27.11 crore and depreciation by 18% to Rs 32.24 crore, PBT before forex gain turned positive to Rs 67.76 crore compared to negative PBT before forex gain of Rs 20.94 crore in corresponding previous period. After accounting foreign exchange gain on FCCBs Rs 7.84 crore, PBT after forex gain is at Rs 75.61 crore.

• The combination of rise in business from Hospira supply agreement and able to add few other customers led the jump in sales for the quarter ended December 2010.
• For the quarter ended December 2010, API business gained traction registered 203% growth to Rs 339.27 crore. It's on the back of long-term exclusive supply arrangements with Hospira and other majors have aided APIs to take off.
• The company revenue break up is 70% from API's and 30% from formulations. In next two years the share of revenue break-up could be 50-50%, as the company grows both the segments but the formulations will grow at faster pace.
• In Oral cepahalosporin segment - cefadir capsules, cephalexin capsules, cefadroxil capsules, cefprozil tablets and oral suspension & cefuroxime axetil tablets continued to show steady growth. In addition, recently launched products in Non-Penicillin, Non-cephalosporin (NPNC) segment also continued to deliver strong sales.
• In API's space, its cumulative filings of US DMFs stood at 81. The break-up of total filings is 28 in the cephalosporin space, 40 in NPNC space, 2 in the Betalactam segment and 11 in the Carbapenems segment. In addition, cumulative filings of COS (certificate of Suitability) for European market stood at 21, which include 14 from cephalosporin space, 6 from NPNC and 1 from Betalactam segment.
• In formulations space, Cumulative ANDA filings for the US market stood at 39 including the recently filed Aripiprazole ODT. This includes 8 Para IV FTF (First-To-File) filings. Out of these it had already settled with four innovator companies.
• The break-up of the total ANDA filings is 13 in cephalosporins space and 26 in NPNC (Non-Penicillin, Non-cephalosporin) space.
• During the quarter, it has received one tentative approval for ANDA for the Rivastigmine capsules. As on date 21 approvals for its ANDA's. It comprises of 11 in cephalosporin space and 10 in NPNC space.
• During the quarter, tax rate is 26% expected to be at same level for the next quarter. For the full year it will be around 20-25%.
• Capex for the full year is Rs 200 crore, expected to be similar for the FY'12. Most of it could be for the maintenance expenditure.
• Consolidated debt as on 30 December 2010 is Rs 1700 crore. Of which Rs 500 crore are FCCBs and Rs 550 crore is long term loan and Rs 650 crore is short term loans. (FCCB conversion price is at Rs 348).
• Targeting to launch around 100 products in next three years out of which 50 exclusively in the US market.
• Revenues for the year are expected to be US 350 million dollar for the FY'11. Expected to exceed the previous guidance for the full year.
• The company founder stake expected to be increased from 31% to 36% through market purchase in near future.