Orchid Net Up 8.5 Per Cent To Rs 38.6 Cr In 1999-00

Orchid Chemicals and Pharmaceuticals Ltd has clocked a 8.58 per cent rise in net profit at Rs 38.59 crore in the year ended March 31, 2000, compared with Rs 35.54 crore earned in 1998-99.

Sales were up 7.90 per cent at Rs 359.55 crore against Rs 333.23 crore achieved during the previous financial year.

The company has clocked a net profit of Rs 38.59 crore compared with Rs 35.54 crore earned in financial year 1998-99.

During the year under review, Orchid increased its bulk drug production significantly from 503 million tonne to 583 million tonne.

The board has not declared a final dividend owing to an interim dividend of 40 per cent declared earlier, thus keeping the dividend at the previous year's level.

 

The company earned foreign exchange to the tune of Rs 104 crore during the year taking the cumulative foreign exchange earned during the first six years of operations to Rs 362 crore.

Announcing the company's results, K Raghavendra Rao, managing director, said, "despite continued price pressure during the year, Orchid was able to improve profitability through technological improvements and cost efficiencies."

Orchid's overall performance during the year was affected by a fire accident at its Alathur bulk drugs facility in January 2000, he said. In the course of financial year 1999-2000, Orchid altered its bulk drugs product mix by focussing on profitable value-added products.

In keeping with this strategy, the company acquired the bulk drugs facility of Ajantha Pharma in Aurangabad to support speedier product diversification in terms of other betalactum and non-cephalosporin non-betalactum bulk drugs. The company has also strengthened its international marketing division to handle a wider range of products. Discussions are underway with MNCs for long term supply arrangements.

Orchid Healthcare, the formulations division, achieved a turnover of Rs 21 crore in 1999-2000 in its first full year of operations.

The division has extended its presence to five therapeutic areas: antibiotics, NSAIDs, antihypertensives, osteoporosis drugs and neutraceuticals.