The Hindu Business Line : Strides Arcolabs back in black

STRIDES Arcolabs reported consolidated net profit of Rs 10.42 crore for the third quarter ended June 2004 against a net loss of Rs 1.7 crore during the corresponding quarter last year.

Its total income showed a 50 per cent growth, at Rs 101.22 crore, compared to Rs 67.4 crore in the previous corresponding quarter. On a sequential basis, net profit grew 25 per cent and income 8 per cent.

The company expects to commission its new R&D centre, STAR (Strides Technology & Research), at Bangalore shortly. The centre will focus on developing proprietary technologies in product formulations, non-infringing process management and Matrix technology in softgels, which has got a US patent and has been licensed. The company, listed on the BSE and the NSE, focuses on generics, OTC and nutraceuticals.

The Group CEO, Mr Arun Kumar, said the World Health Organisation has approved a Strides drug, Lamivudine, for its AIDS control programme worldwide. Many more of its products for AIDS treatment are due to get approval soon.

From Indian operations alone, the company made an income at Rs 62.47 crore for the third quarter. This is a growth of 69 per cent over the corresponding period of the previous year after adjusting the hiving off of CRAM, the contract research and manufacturing unit.

The net profit stood at Rs 10.25 crore compared to a loss of Rs 2.39 crore last year. The operating margins, including exchange gains reflected in other income, rose to 25.5 per cent from 10 per cent.

The foray into regulated markets has paid off, adding new customers and 23 per cent of the total income for the nine-month period on a consolidated basis.

According to Mr Arun Kumar, "The company's encouraging performance over the recent quarters bears testimony to the strategic initiatives that we have taken in the past."