The Hindu Business Line : Growth across segments boosts NPIL net 70%

Mumbai, Jan. 18 Growth across domestic formulations, custom manufacturing and the pathology lab businesses helped Nicholas Piramal India Ltd register a 70 per cent growth in its net profit for the quarter ended December 31, 2007.

The company has posted a net profit of Rs 73.82 crore for the quarter ended December 31, 2007 against Rs 43.30 crore in the same quarter of the previous year. Its total income increased to Rs 492.18 crore (Rs 408.04 crore).

Revenues from the custom manufacturing deals that NPIL had entered into in the past stood at Rs 341 crore for the quarter, Mr Ajay Piramal, NPIL Chairman, told Business Line. This segment grew by 7.2 per cent; domestic formulations or the sale of finished medicines in the local market grew at 15.6 per cent, driven by the dermatology, over-the-counter and opthamology medicines, he said. The pathology business clocked revenues of Rs 32 crore for the quarter, an 89 per cent growth, and looks to close the year at Rs 125 crore, he said.

Looking ahead, he said, concerns remain over the rupee and the pending pharmaceutical policy that would outline the number of drugs that would come under price control.

Research plans

The company is on schedule with its plan to demerge its research entity, and the different regulatory processes would be through by February.

The new entity is set to get listed by May/June, he said. At present, the research spend is Rs 75 crore, while the research spend supporting the custom manufacturing (CM) business is Rs 125 crore.

Going ahead, after the new entity is listed, he said, the research spending on the generics business will come down to about Rs 50 crore.

On the global operations, Mr Piramal said that the company’s operations in the UK were being restructured, with products and people being reorganised. The company has four different sites in the market.

Consolidated numbers

Meanwhile, the Group posted a consolidated net profit of Rs 72.76 crore for the quarter ended December 31, 2007, compared with Rs 55.55 crore for the quarter ended December 31, 2006. Total income has increased to Rs 736.35 crore (Rs 649.70 crore).

NPIL shares closed down 5.63 per cent on the BSE on Friday at Rs 330.35.