Strides Shasun, a Rs.3,475 crore plus pharma company, has registered impressive growth in net profit during the fourth quarter ended March 2017 despite lower sales. Its consolidated net profit went up by 322 per cent to Rs.99.42 crore from Rs.23.51 crore in the corresponding period of last year. EBDITA moved up by 15 per cent to Rs.213 crore from Rs.186 crore. EPS worked out to Rs.8.93 as against Rs.3.88 in the last year.
The board of directors has recommended equity dividend of 45 per cent for the year 2016-17. Shashank Sinha, Group CEO, said, “W delivered a solid quarter. Key products continue to gain market share driving growth in the base business. New product filing momentum picked up as we nearly doubled R&D investments. Our last four consecutive US FDA audits have been successful with zero 483's. A strong pipeline, compliant manufacturing base and growing market presence are the pillars of our future growth.”
The company's consolidated net sales declined by 3.9 per cent to Rs.888 crore from Rs.924 crore in the similar period of last year. Its other income rose by 162 per cent to Rs.73 crore from Rs.28 crore. Stride's formulation sales improved by 11 per cent to Rs.697 crore, but that of APIs declined by 31 per cent to Rs.152 crore. Its sales in regulated market increased by 37 per cent to Rs.527 crore from Rs.386 crore and that in emerging market also moved up by 37 per cent to Rs.142 crore from Rs.104 crore. However, its institutional business declined by 50 per cent to Rs.103 crore from Rs.207 crore.
For the full year ended March 2017, Strides' consolidated net sales increased by 21.7 per cent to Rs.3,483 crore from Rs.2,862 crore in the previous year and its net profit jump by 111 per cent to Rs.250.11 crore from Rs.118.14 crore. EPS increase to Rs.22.82 from Rs.15.94 in the last year.
Its sales in regulated market increased by 56 per cent to Rs.1,776 crore from Rs.1,140 crore and that in emerging market went up by 65 per cent to Rs.633 crore from Rs.384 crore., Its institutional business, however, declined by 5 per cent to Rs.567 crore from Rs.595 crore. Thus, its formulation sales improved by 40 per cent. Its API sales declined by 27 per cent to Rs.534 crore from Rs.731 crore in the previous year. Its India brands business reported a tepid performance due to a carry forward impact of demonetization in the early half of the quarater.
The company filed 9 products during 2016-17 and its R&D expenditure increased to Rs.136 crore from Rs.76 crore. Currently 32 ANDA filings are awaiting approval from US FDA. The company received 6 new products approvals – tentative approval for efavirenz tablet, two FTF approval for roflumilast tablets and fingolimod capsules, approvals for metronidazole tablet, ranitidine tablet and polyethylene glycol 3350, powder for solution. The company expects another 15-20 new product approvals in US market over the next12 months. Australia business delivered a healthy quarter with commercialisation of 6 new products. Arrow has launched a total of 20 new products in 2016-17 and will continue to expand its product portfolio including new products from generic partners.
The company set to commission its Singapore formulation facility for regulated market in second half of 2017-18. It signed definitive agreements with Vivimed Labs to enter into 50:50 joint ventures for its US FDA formulations facility at Alathur, Chennai.
Strides acquired Perrigo API facility in India during December 2016 for Rs.100 crore. The company exit from the Africa generics manufacturing business during February 2017 including 6 generic facilities in Africa for a cash consideration of US$ 16 million.
Strides shasun
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