Revenues were Rs 1.7 billion in Q2 FY 07, representing an increase of 16%, from 1.5 billion in Q2 FY 06.
Growth was primarily driven by growth in key brands of Omez, Nise and Reclimet.
Launched 12 new products during the year contributing Rs. 63 million in revenues.
New launches of Omez-D and Razo-D rank among the 10 most successful launches of 2006.
As per ORG IMS August MAT
Company recorded volume growth of 17% as against industry growth of 15%
Company recorded value growth of 16% in line with industry growth.
Custom Pharmaceutical Services (CPS)
Revenues from CPS increased to Rs 1,668 million in Q2 FY 07 from Rs 122 million in Q2 FY 06. Revenues from acquisition in Mexico were Rs. 1,434 million. Excluding the acquisition, revenues increased to Rs. 234 million from Rs. 122 million. This growth was driven by growth in customer base and product portfolio.
Emerging Business
Revenues in the critical care & biotechnology segment at Rs. 227 million, an increase of 12%.
Income Statement Highlights
Gross profits increased to Rs. 8.3 billion in Q2 FY 07 from Rs. 3.0 billion in Q2 FY 06. Gross profit margins on total revenues at 41 % as against 52 % in Q2 FY 06. Revenues from authorized generics contributed 39% to total revenues and earned gross margin which are significantly below company average gross margin.
R&D investments (net) were 2% of total revenues as against 8% in Q2 FY 06. In absolute terms, gross R&D investments increased by 24% to Rs 743 million as against Rs 599 million in Q2 FY06. During the quarter, the Company recognized Rs 341 million under its R&D partnerships as a benefit to the R&D line item as against Rs 155 million in Q2 FY06.
Selling, General & Administration (SG&A) expenses increased by 108% to Rs 3.7 billion. This increase is primarily on account of consolidation of the two acquisitions.
Other expense (net) was Rs 321 million as against other income (net) of Rs 191 million in Q2 FY 06. This is primarily on account of net interest expense of Rs.370 million in Q2 FY 07 as against net interest income of Rs. 184 million in Q2 FY 06.
Amortization was Rs. 402 million as compared to Rs. 76 million in Q2 FY 06. This includes amortization of Rs. 324 million relating to intangibles in betapharm and acquisition in Mexico.
Net income was Rs 2,798 million (14 % of total revenues) as against Rs 890 million (15 % of total revenues) in Q2 FY 06. This translates to a diluted EPS of Rs 18.15 as against Rs 5.81 in Q2 FY 06.
During Q2 FY 07, the Company incurred capital expenditure (net) of Rs 870 million.
