The Hindu Business Line : Strides Q4 sales jump 111 pc

STRIDES Arcolab said it recorded 111 per cent sales growth in its global operations with fourth quarter revenue of Rs 159.2 crore over the Q4 sales figures for the previous fiscal. Its profit and EBITDA at Rs 25.1 crore was a growth of 14 per cent.

Indian operations registered fourth quarter revenue of Rs 93.9 crore or a 55 per cent increase. Profit after tax at Rs 15.3 crore, a growth of 362 per cent.

For the year ended December 31, 2005, the pharmaceutical export major posted 44 per cent annualised growth in its consolidated global revenue with a figure of Rs 532.6 crore.

In comparison, its revenue for 15 months ended December 31, 2004 was Rs 462.4 crore.

Profit after tax and minority interest was Rs 48.6 crore or an annualised growth of 38 per cent. The EBIDTA of Rs 115.9 crore was 36 per cent higher annual growth over the previous fiscal.

For the year ended, the Indian operations recorded revenue of Rs 333.8 crore or 36 per cent annualised growth over last year. Profit after tax at Rs 46.1 crore.

New acquisitions

Strides expects to complete its acquisition of a sterile facility in Poland in early 2006, pending approvals from the Polish Government.

It plans to acquire 60 per cent stake in Venezuelan pharma company Biofarma and signed an LoI with it in the last quarter of 2005.

The transaction is expected to be completed during the current quarter.

It entered Europe in the last quarter of 2005 with the acquisition of Belta Pharma, an Italian semi-solid pharmaceutical company.

Mr Arun Kumar, Vice Chairman and Group CEO, said, "The company has delivered significant growth from all its major businesses and we are strongly positioned for future growth in revenue and profits in the coming years."

Strides' business in the regulated markets continues to grow faster than other segments; in 2005, sales were at Rs 17.35 crore, representing 82 per cent growth over the previous year. The company commenced ANDA (abbreviated new drug application) submissions in the US market and converted significant business of other regulated markets of Europe, Australia and South Africa.

The Latin American venture, Strides Latina, did well, supported by its Brazilian unit, Cellofarm. However, regulatory changes in Mexico marginally dented its operations.

A strong pipeline of products is being developed and submissions are being filed from its local manufacturing operations to offset this, Strides said.