Nicholas Piramal Q3 Net Rises 76%

Mumbai, Jan 28: | Updated: Jan 29 2004, 05:30am hrs
Nicholas Piramal India Ltd (NPIL) has registered 76.12 per cent increase in net profit at Rs 37.32 crore for the third quarter ended December 31, 2003 as compared to Rs 21.19 crore in the corresponding period of the previous fiscal. Net sales increased from Rs 219.55 crore to Rs 262.02 crore during the quarter under review registering a growth of 19.34 per cent.

Ajay Piramal, chairman, NPIL, stated, NPILs differentiated business strategy has now taken deep roots. Our performance is an outcome of that.

Our efforts will now be towards making the next big leap-forward to achieve excellence & leadership in the global marketplace, he added.

The board of NPIL has approved the merger of Hyderabad-based Canere Actives & Fine Chemicals Pvt Ltd with the company. Canere is a new API facility, which is all set for USFDA inspection. The Canere facility has capacities to produce 350 tonne of high-end API per annum.

NPIL will pay a total consideration of Rs 116.20 crore consisting of an issue of five per cent cumulative redeemable preference shares aggregating Rs 38.37 crore and debt of Rs 77.83 crore towards the merger of Canere.

During the quarter under review, NPILs domestic formulations business outperformed the market for the seventh consecutive quarter, growing 13.4 per cent against an industry growth rate of 5.1 per cent, according to a company release.

The board of NPIL on Wednesday also approved merger of Sarabhai Piramal Pharmaceuticals Pvt Ltd with NPIL with effect from April 1, 2003. The full operational and integration benefits arising from the merger are expected to flow in 2004-05. NPILs R&D expenditure increased to Rs 19.59 crore for the nine months period ended December 31, 2003 from Rs 11.31 crore in the corresponding period previous fiscal.

During the current fiscal, NPIL has implemented a differentiated exports strategy, which is built on partnership with global innovator companies for long-term custom manufacturing contracts. In line with its exports focus, NPILs exports grew to Rs 28.11 crore in the third quarter.