Parabolic Drugs Q2FY11 Net Profit up 163.65% at Rs. 14.29 crore, Sales up 16.23% at Rs. 161.43 crore

Parabolic Drugs Q2FY11 Net Profit up 163.65% at Rs. 14.29 crore, Sales up 16.23% at Rs.161.43 crore (November 8th, 2010)

Parabolic Drugs Ltd., a leading research-led API and API intermediates company, has posted a 163.65% rise in net profit at Rs. 14.29 crore for the second-quarter ended September 30, 2010 (Q2FY11) compared to Rs. 5.42 crore in the corresponding quarter ended September 30, 2009 (Q2FY10). Net sales increased by 16.23% to Rs. 161.43 crore for Q2FY11 as compared to Rs. 138.88 crore in Q2FY10. The company’s EBIDTA increased by 17.81% to Rs. 29.70 crore and the EBITDA margin improved by 57 bps during Q2FY11. On an equity capital of Rs. 61.89 crore, the fully diluted Earnings per Share (EPS) stood at Rs. 2.31.

The Company filed three Drug Master Files (DMFs) during Q2FY11, taking the total number of filings to 20. With the GMP approval, the company also commenced exports to Europe during the quarter. The company also exported its products to UK, Canada, Singapore, Denmark, Germany, Belgium, etc. in wake of better realisations. Besides, the company’s Custom Synthesis and CRAMS Division executed 7 new projects during H1FY11.

The company’s expansion plans are progressing within schedule. The MPII plant for Cephalosporin production at Derabassi, Punjab is expected to be commissioned by December 2010; while the Non-Beta Lactam API manufacturing plant at village Chachrauli is also expected to be commissioned by December-end, 2010.

For the six months period ended September 30, 2010 (H1FY11), the company registered an 88.75% increase in net profit at Rs. 24.82 crore compared to Rs. 13.15 crore in H1FY10. Net sales increased by 18.07% to Rs. 274.34 crore during H1FY11 as compared to Rs. 232.35 crore in H1FY10 while the EBIDTA margin registered an improvement of 208 bps over H1FY10.

Commenting on the performance, Mr. Vineet Gupta, Director, Parabolic Drugs, said, “It is encouraging to note that our diligent investments in creating a global and diversified products company have started yielding results. We have remained focused on evolving client relationships, maintaining globally benchmarked quality standards and establishing presence in a segment that offers huge potential for future growth. With the completion of the second phase of our ambitious expansion Programme by December, 2010, we would not only expand the scale of our operations but at the same time, would create substantial value for our stakeholders”.

The Board of Parabolic Drugs has also been strengthened with the appointment of Mr. Gurpreet Sandhu as a Whole time Director of the Company. Mr. Gurpreet Sandhu, an MBA in Marketing Management & International Business, having over 22 years experience in chemicals and pharmaceuticals industry. He was earlier working as Director & Head Global API Business, with Ranbaxy Laboratories Ltd.

Mr. Nikhil Goel has also joined the Board of the Company as an Independent Director. Currently, he is a Director with Avon Energy Meter Company and brings along an entrepreneurial experience of over a decade.