Dishman pharma : profit rises 41% - 39 cr

AHMEDABAD:

Growth in contract research and manufacturing services (CRAMS) business, saw the Ahmedabad-based Dishman Pharmaceuticals and Chemicals post a 41.4% jump in its consolidated net profit for the first quarter ended June 30, 2009.

Talking to ET NOW, Dishman chairman JR Vyas said: “Even though the topline was flat, the company’s bottomline surged due to good returns from the CRAMS business.” The company had focused on the potential of the CRAMS business, and in June, created a new position to head it. Nicholas Green, who was earlier the president of US-based Codexis Pharmaceuticals, was appointed president of the CRAMS business.

The Rs 1,000-crore company earned 50% of its revenue from Europe during the first quarter of 2009 and 40% from the US and Japan (20% each). While the consolidated profit after tax rose to Rs 39.2 crore from Rs 27.7 crore, the company’s turnover dropped 3% to Rs 227.7 crore from Rs 235.9 crore in the previous year. Dishman’s Switzerland-based subsidiary Carbogen Amcis saw sales surging to Rs 114.9 crore for the first quarter ended on June 30, 2009, compared with Rs 93.7 crore for the same period in the previous year.

The EBITDA stood at Rs 33.1 crore for the first quarter against Rs 12.4 crore last year. Mr Vyas said, Carbogen’s performance contributed to its profit. Foreign exchange fluctuations saw the company provide Rs 31 crore towards forex losses in the second quarter of 2008-09.

However, in the subsequent quarter, the company managed a forex gain of Rs 4.9 crore. The current quarter’s profits include forex gain of Rs 15.1 crore, compared to the previous year’s forex losses Rs 16.45 crore.

On the company’s recent foray into the generics contract research manufacturing and services (generic CRAMS), Mr Vyas said there was no pricing pressure, as his company’s majority revenue did not come from the generics contract business. Dishman does contract manufacturing and contract research for innovator pharma companies. Mr Vyas said, usually pricing pressures were felt by companies who are into generic formulation.

In the previous financial year, Dishman’s consolidated turnover stood Rs 1,062.36 crore, registering a growth of 32%. The pharma major has 16 subsidiaries, three joint ventures and one associate company.

On Friday, Dishman’s share opened at Rs 194.50, scaled up to Rs 200.80, before closing at Rs 184.20, down 1.8% on BSE.