Forex gains boost Strides Arcolab Q4 net to Rs 68.4 cr

Pharma company Strides Arcolab 's consolidated net profit for the fourth quarter jumped to Rs 68.4 crore from Rs 2.3 crore a year ago, helped by strong sales growth and exceptional foreign exchange gains.

Net sales for the October-December quarter were up 50% from a year ago quarter to Rs 686.47 crore.

In the fourth quarter Strides Arcolab had forex gain of Rs 59.84 crore, compared with a forex loss of Rs 4.96 crore in the year ago quarter, the company said on Monday.

For the full year (2011), its net profit surged 83% from a year ago to Rs 225 crore, while revenue was up 46% year-on-year to Rs 2,577 crore.

In 2011, Strides Arcolab had forex gain of Rs 32.55 crore, compared with a gain of Rs 6.32 crore in the year ago quarter.

Its EBITDA margin, however, declined to 20% from 22% during the year.

Among its key business segments, Pharma revenue rose 44% from a year ago to Rs 1,553 crore, while Specialties revenue was up 48% to Rs 1,024 crore for the full year.

In 2011, Strides Arcolab got approvals for 27 products from US Food and Drug Administration, of which 13 were commercialized. It also got approval from US FDA for a new Sterile, Oncology facilities in Bangalore in 2011 and US FDA approval for Brazilian Sterile Penems facility earlier this month.

In January 2012, Strides Arcolab sold its generic pharmaceutical operations in Australia and south East Asia to Watson Pharmaceuticals for 375 million Australian dollars or about Rs 1,900 crore.

The proceeds will be used to repay debt and grow its unit Agila Specialties.

As of February, Strides Arcolab had net debt of Rs 1,200 crore, with debt-equity ratio at less than 0.70.

Strides Arcolab shares closed down about 1% at Rs 534.65 on NSE on Monday.