Ind-Swift Labs net up 41%

Our Corporate Bureau

Mumbai, May 22: IND-SWIFT Laboratories has registered a 41 per cent growth in net profit to Rs 4.15 crore for the year ended March 2001 compared to Rs 2.95 crore in the previous year. Turnover rose by 34.3 per cent to Rs 92.30 crore from Rs 68.70 crore during the previous year.

However, operating margin declined to 12.3 per cent from Rs 15.1 per cent last year.

The decline in margins, analysts say, is due to the increase in raw-materials consumption as percentage to net sales. Net margins improved to 4.5 per cent from 4.3 per cent last year, due to the decline in interest cost.

Commenting on the results, Ind-Swift Laboratories’ joint managing director, VK Mehta said: “The launch of new molecules, atorvastatin, pioglitazone and candesartan, have helped the company to post good results.”

Exports accounted for 40 per cent of Ind Swift Labs’ turnover, which was due to the 10 exclusive marketing arrangements with pharma companies in Europe, Latin America and Asia.

Mr Mehta said that Ind Swift Labs is focusing on basic research and innovative manufacturing processes so as to compete in the regulated markets. The R&D team is working on eight new molecules having immense market potential, three of them being clopidogrel, citalopram and simvastatin, he added.

The company has commenced production in its new multi purpose plant in April this year built at a cost of Rs 6 crore as per the USFDA standards.

Funded through internal accruals and term assistance, the plant would generate additional revenue of Rs 25 crore in the current year, Mr Mehta claimed.