Strides net profit at Rs 6.32 crores, sales at Rs 275.90 crores

EPP News Bureau - Mumbai

STRIDES Arcolab has reported a net profit of Rs 6.32 crores and sales of Rs 275.90 crores for the 18 month period ended September 2003, according to a press release issued by the company.

On sequential quarter basis, the company reported sales of Rs 64.35 crores for quarter ended September 2003 as against Rs 45.53 crores for quarter ended June 2003, growth of 41 per cent. The net profit for the same period is Rs 1.53 crores as against a net loss of Rs 3.16 crores.

On consolidated basis, the company reported sales of Rs 427.12 crores for the 18-month period ended September 2003. However, the bottom line was severely impacted due to sharp devaluation in Brazilian currency during 2002 and developmental expenses in the US subsidiary that is in investment phase, the release added. As a result, the company reported a net loss of Rs 27.20 crores. The forex impact also resulted in under-utilisation of Latam operations leading to pressure on working capital.

For the year ended March 2002, sales were Rs 273.20 crores and net profit was Rs 10.10 crores. During the period under review, the management of Strides Arcolab has initiated several measures to reduce the impact of currency crisis in Brazilian operations — tight control on inventories and supplies, strong inroads into regulated markets and entry into high potential AIDS-TB-malaria segment. These measures have started yielding results as evident from results for the sequential analysis of last two quarters ended June 2003 and September 2003.

The company recently entered into tie-up with Apsen Pharmacueticals, South Africa and SORM, Japan for development and supply of OTC and prescriptive products. The first shipments for Aspen, Australia and SORM, Japan have commenced during the current month.

The company also entered into joint venture partnership with Ribbon S R L of Italy to manufacture and market Cephalosporin formulations for the regulated markets and grant priority access to its Beta-lactum products. The plant being set up in Bangalore entails an outlay of USD 7 million.