Financial Daily from THE HINDU group of publications
Thursday, Jan 22, 2004
Strides Arcolab Q1 sales up 12.4 pc
Bangalore , Jan. 21
STRIDES Arcolab has posted sales of Rs 55.40 crore during the first quarter ended December 2003, registering a 12.4-per cent growth over Rs 49.29 crore it made during the same quarter last year.
Net profit has increased to Rs 3.69 crore against Rs 1.04 crore during the same period. (The company had posted net loss of Rs 27 crore for the 18-month period ended September 2003 but turned the last quarter alone that ended September 2003 positive with a profit of Rs 15 lakh.)
Mr Arun Kumar, Group CEO of the Bangalore-based generics and OTC major, ascribed the "smart turnaround" in the Q1 performance to "corrective measures in our global strategy and significant progress in our US strategy, stabilisation of currency in Brazil".
In the American markets, it changed the product mix to high margin-lower volume business, took corrective measures after the devaluation of the Brazilian currency and turned around its US operations, shifting the focus from nutritionals to OTC and prescription products.
As a result, operating margins have grown to 25.3 per cent against 22.7 per cent in the previous year.
Strategic initiatives that have paid off include the focus on regulated markets and entry into Japanese, South African, European and Australian markets.
Strides Inc's ANDA (abbreviated new drug application) pipeline is now ready for submission during the year.
During the year, the company began shipments to Japan, Australia, South Africa and the UK.
It entered into a joint venture with Ribbon SRL of Italy to manufacture and market cephalosporin formulations for the regulated markets and grant priority access to its Beta-lactum products. The $ 7-million plant is being set up in Bangalore.
As per an arrangement approved by the Mumbai High Court, the company has transferred its Contract Research & Manufacturing Division to its wholly owned subsidiary.
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