Orchid's net profit rises 59 per cent on Rs 713 crore turnover during '03 -'04

Chennai: The Chennai-based pharma major, Orchid Chemicals & Pharmaceuticals Ltd, closed the fiscal 2003-04 with a turnover and operating income of Rs713.41 crore as compared to Rs.541.42 crore logged the previous year.

Gross profit before interest, depreciation and taxes was Rs150.49 crore compared to Rs109.63 crore last fiscal. After providing for interest of Rs60.67 crore (Rs42.08 crore last fiscal) and depreciation of Rs56.84 crore (Rs40.31 crore last fiscal) the profit before tax of the company was Rs32.98 crore as against the previous year's profit before tax of Rs27.25 crore. Net profit after tax was Rs31.03 crore as against Rs19.54 crore for the last fiscal. The earnings per share (EPS) increased to Rs9.58 compared to Rs6.61 last fiscal.

The company board met on April 25, 2004 to consider and adopt the audited financial results and also recommended a dividend of 40 per cent.

Speaking on the occasion, managing director K Raghavendra Rao, said, “During the fiscal, significant progress has been achieved on each of the identified growth horizons of bulk actives, formulations and drug discovery. Our strategic shift from the less-regulated markets to the high-margin regulated markets has also unfolded well and has started contributing to the revenues. The investments that we had made coupled with Orchid's leadership position in the global bulk actives market has contributed significantly to the growth of the company. Our US generics initiatives will position Orchid as a key player in the business from 2005.“

During the fiscal under review, sale of bulk actives (oral & sterile) accounted for Rs. 624.55 crore as compared to Rs. 500.66 crore registered during the previous fiscal. The formulations business has shown a significant increase in performance. The business has scaled up to achieve a turnover of Rs. 104.41 crore compared to Rs 63.46 crore last year. The highlights of the year were:

  • Robust sales and operating income growth of 32 per cent
  • Impressive growth of 59 per cent in net profit
  • EPS growth of 45 per cent from Rs6.61 last fiscal to Rs9.58
  • USFDA approval for Cefazolin, a key sterile API product (2nd USFDA approval for Orchid)
  • Certificates of Suitability (CoS) from the European Directorate for the Quality of Medicines (EDQM) awarded for 5 key products during the fiscal
  • Orchid's Aurangabad non-ceph API plant granted ISO 14001 and OHSAS 18001 certifications
  • Marketing alliance with Apotex Corp. for distribution of 8 key injectable cephalosporin formulations in the US
  • Approval of Orchid's cephalosporin API and non-cephalosporin formulation facilities in Chennai by the Australian TGA
  • Commissioning of JV manufacturing facilities in China

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