More than 100 year’s old, it is an integrated pharmaceutical company, recognized more popularly as the “Glycodin” company. It has over 90 brands covering antibiotics, antibacterials, cardiovasculars, cough/cold and antihistamines.
For the third quarter ended 31st December 2007, YoY, the net sales was up 40% at Rs.260.62 crore. Of this domestic sales comprised of Rs.173.63 crore and exports were at Rs.91.63 crore. Total expenditure rose by almost 50%. What is noteworthy is that the company spends substantially on R&D. Its R&D bill rose from Rs.6.80 crore last Q3 to Rs.11.20 crore in the current Q3. Its interest bill burgeoned by a whopping 176% at Rs.8.38 crore. Due to this, its PBT actually took a beating; it fell 19% at Rs.19.87 crore.
But then came its knight in the shinning armour! It sold off its surplus land and earned a decent one-time gain of Rs.22.55 crore. And thanks to the land deal, the company managed to show a bumper net profit, which was up 1.67 times at Rs.42.02 crore, which otherwise would have been down by over 20%. There is no doubt that the company needs to work on getting its overall expenditure down or else, there wont be too much surplus land left every time, to bail it out.
The company is now utilizing Rs.29.17 crore from share premium account and Rs.102.58 crore from its general reserve account, against debit to Profit and Loss Account of the balances in the Intangible Assets Account of the company to the tune of Rs.176.83 crore after making due adjustment for Deferred Tax. The effect of the same will now appear in the annual accounts for the year ending on March 31, 2008. This intangible asset mainly represents amount paid for acquiring 24 brands pf non-oncology formulation business of Dabur Pharma.
The company has acquired the API manufacturing facility of Nirayu, located on the outskirts of Vadodara, for a consideration of Rs.17.50 crore and will be used by the company to increase its API business and regulatory filings. It is a USFDA approvable facility. USFDA also successfully inspected the company’s formulation facility at Panvel.
The company is very sound and hopefully, the reduction in the excise duty announced in the Budget 2008-09 would benefit the company to post better results in the coming months. Currently quoted at Rs.46, stay invested.
For the third quarter ended 31st December 2007, YoY, the net sales was up 40% at Rs.260.62 crore. Of this domestic sales comprised of Rs.173.63 crore and exports were at Rs.91.63 crore. Total expenditure rose by almost 50%. What is noteworthy is that the company spends substantially on R&D. Its R&D bill rose from Rs.6.80 crore last Q3 to Rs.11.20 crore in the current Q3. Its interest bill burgeoned by a whopping 176% at Rs.8.38 crore. Due to this, its PBT actually took a beating; it fell 19% at Rs.19.87 crore.
But then came its knight in the shinning armour! It sold off its surplus land and earned a decent one-time gain of Rs.22.55 crore. And thanks to the land deal, the company managed to show a bumper net profit, which was up 1.67 times at Rs.42.02 crore, which otherwise would have been down by over 20%. There is no doubt that the company needs to work on getting its overall expenditure down or else, there wont be too much surplus land left every time, to bail it out.
The company is now utilizing Rs.29.17 crore from share premium account and Rs.102.58 crore from its general reserve account, against debit to Profit and Loss Account of the balances in the Intangible Assets Account of the company to the tune of Rs.176.83 crore after making due adjustment for Deferred Tax. The effect of the same will now appear in the annual accounts for the year ending on March 31, 2008. This intangible asset mainly represents amount paid for acquiring 24 brands pf non-oncology formulation business of Dabur Pharma.
The company has acquired the API manufacturing facility of Nirayu, located on the outskirts of Vadodara, for a consideration of Rs.17.50 crore and will be used by the company to increase its API business and regulatory filings. It is a USFDA approvable facility. USFDA also successfully inspected the company’s formulation facility at Panvel.
The company is very sound and hopefully, the reduction in the excise duty announced in the Budget 2008-09 would benefit the company to post better results in the coming months. Currently quoted at Rs.46, stay invested.
Source: sptulsian.com
