Shasun Pharma net doubles

Last Updated: Fri, Aug 03, 2012 20:13 hrs

The net profit of Shasun Pharmaceuticals Ltd doubled in the first quarter ended June 30, 2012, to Rs 13.82 crore from Rs 6.83 crore posted during the same period last year. Total income stood at Rs 265.60 crore as compared with Rs 200.82 crore, an increase of 32.26 per cent.

The company is in the process of raising around $20 million (Rs 100 crore) through external commercial borrowing (ECB) to support its plans to invest around Rs 200 crore in the current fiscal year.

“We have got sanction for the ECB and expect it to come in two tranches,” said S Hariharan, chief financial officer of Shasun Pharmaceuticals Ltd. The rest of the expected investment would mainly come from internal accruals.

During the current year, the company would invest Rs 200 crore in creating new capacities and capabilities to support growth with an aim to achieve Rs 2,000 crore turnover on a consolidated basis in FY15.

The main focus area for the growth will be new active pharmaceutical ingredient (API) products, formulations and contract research and manufacturing services.

The company's new manufacturing plant in Visakhapatnam, for which the works are on, is expected to be commissioned by March, 2013, said S Vimal Kumar, whole-time director, in the AGM held here on Thursday.

Shasun is also investing in backward integration to reduce imports of raw materials for its main product, ibuprofen, said S Abhaya Kumar, managing director of Shasun. In the current year, the company expects to have 20 per cent growth over last year sales, driven by formulations and new API products sales.

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