Orchid Dec quarter PAT vaults 400%

Earnings before interest,depreciation and tax (EBITDA) grew 78 per cent to Rs 134.95-crore as compared to Rs 75.90-crore during the corresponding quarter last year.

“Our business has arrived at a strong earnings platform that will see sustainable robust growth from here on.

This is despite transferring our injectable formulations business to Hospira. We have firmed up supply arrangements and have put in place a model that enables robust revenue growth with stable margins going forward,” Orchid Chemicals & Pharmaceuticals’ Chairman & Managing Director,K Raghavendra Rao,told reporters here.

“We are confident of registering strong double-digit growth coupled with more than proportionate profitability year-on-year going forward,” Rao said.

The company expects to double its US business in the next two years and is looking to buy brands in the non-antibiotic area,he said.

The company’s API (Active Pharmaceutical Ingredients) division registered revenues of Rs 339.27-crore in the December quarter,as compared to Rs 111.8-crore during the corresponding period last fiscal.

“The long-term exclusive API supply arrangements with Hospira and other majors have aided an increased off-take,” Rao said,adding,”with a healthy products pipeline and anticipated regulatory approvals,the business will gain traction in the further quarters.”

The company’s formulations segment achieved a sale of Rs 91.85-crore in the December quarter,as compared to Rs 198.86-crore during the corresponding quarter of the last fiscal.

“Strong product pipelines of over 110 products under development or approval process will be commercialised over the next few years,” Rao said.