Strides Arcolab Q2 EBITDA up 60%

Bengaluru-headquartered Strides Arcolab has posted a 60% growth in Ebidta (earnings before interest, depreciation, taxes and ammortisation) at Rs 62.8 crore during the second quarter of the financial year 2015. The company said it was aided by a growth in the emerging markets and the launch of niche products in the US and Europe.

The company recorded consolidated adjusted net profit of Rs 507 crore, while saying there's no comparable figure available for the corresponding quarter last year. The total revenues were up 19% at Rs 292.90 core from Rs 245.70 crore in the corresponding quarter a year ago.

Results for the quarter included a one-time gain of Rs 397.48 crore towards dividend income from non-current investment in wholly-owned subsidiaries.

Commenting on the results, Arun Kumar, Founder and Group CEO, stated: "We continue to see positive results on our calibrated approach to product selection and margin maximisation across our businesses. With our recently-commissioned R&D infrastructure for both the pharma and biotech business, we will achieve a momentum of products filing in the near term. Additionally our announced merger with Shasun, on completion, will accelerate our growth & strategy."

Net sales and other operating income rose by 4% to ~216.79 crore seen in the corresponding quarter a year ago, while other income amounted to ~27.25 crore, compared with ~16.53 crore in Q2FY14.

Meanwhile, the company announced that the board has approved its proposed scheme of amalgamation with Shasun Pharmaceuticals Ltd and it has also successfully closed the acquisition of Bafna domestic business, including Raricap, thus enabling a pan-India presence for the India branded generics business.

The company announced that it has also acquired a majority stake in Fagris Medica, an entry to the CIS markets. It has also received a strategic investment from GMS Holdings of $2.19 crore for a 25.1% stake in Stelis Biopharma. It also saw the Karnataka High Court approving the merger of Stelis Biopharma with Inbiopro.

The company's Singapore unit Strides Pharma Asia Pte Ltd, Singapore received $150 million from Mylan Inc as the full and final settlement against the contingent holdback of upto $250 million.

Strides, meanwhile, has distributed a special dividend of Rs 105 per share.