Vadodara-based drug major Alembic Pharmaceuticals has posted a 115% rise in net profit for the quarter ended March 31, 2013 at Rs 43.65 crore compared to the corresponding quarter previous fiscal, mainly on the back of increased focus on high margin products.
Net sales during the quarter was up by 11% to Rs 378.36 crore as against Rs 342.30 crore in the year before period. The profit before tax has more than doubled during the quarter at Rs 55.18 crore as against Rs 26.94 crore in the corresponding quarter last year, the company said in a release.
"We have consciously shifted our focus on the formulations business from the active pharmaceutical ingredients (APIs) business. Formulations offer better margins compared to APIs, and that is reflected in our improved EBITDA margins and our profitability. While our API production has not gone down, we are using it for captive consumption," explained R K Baheti, director, finance, Alembic Pharma.
For the year ended March 31, profit after tax was up by 27% at Rs 165.25 crore against Rs 130.14 crores last year. EBIDTA margins stood at 16.57% at Rs 251.96 crore against 14.97% at Rs 219.43 crore during 2011-12. Net sales grew by 4% for full year at Rs 1,526 crore against Rs 1,467.89 crore in the previous fiscal.
The company's Board has recommended a 125% dividend on equity shares at Rs 2.50 per share for 2012-13.
The domestic formulations posted sales of Rs 207.52 crore against Rs 184.47 crore, registering 12% year-on-year (yoy) growth. For the full year, the company posted 13% growth in sales at Rs 886.27 crore against Rs 782.61 crore in previous year. Chronic and acute segments grew by 27% and 3% respectively in the current year.
International generics grew by 54% and clocked sales of Rs 77.66 crore against Rs 50.37 crore in corresponding quarter last year. On full year basis, sales stood at Rs 235.77 crore.
Alembic also made its news formulations facility partially operational during the year and expects to complete the project within the first half of 2013-14. This will enhance capacity of tablets and capsules to 5 billion per annum. The company invested Rs 102 crore in capex in current year of which Rs 87 crore was for the new formulation plant.