The Hindu Business Line : Nicholas Piramal net rises 22 pc

It has been a busy second quarter for drug-maker Nicholas Piramal India Ltd (NPIL), with contract manufacturing deals and domestic operations boosting the bottomline. The company posted a 22 per cent increase in net profit after tax and exceptional item at Rs 67.06 crore for the second quarter or three months ended September 30, 2006. This stands compared to a net profit of Rs 54.90 crore for the quarter ended September 30, 2005.

Total income (net of excise) has increased 21 per cent from Rs 366 crore to Rs 442.74 crore .

As projected, contract manufacturing sales out of India by the end of the year would be Rs 60 crore, NPIL's Chairman, Mr Ajay Piramal, told Business Line, after the company's first board meet in Hyderabad. The reason for holding the meet in Hyderabad was because board members wanted to see the company's bulk-drug plant located there, he said.

UK operations

The company's UK operations also showed profits, he pointed out. The integration process of Avecia and the newly acquired manufacturing facility of Pfizer at Morpeth, UK, continue to gain momentum and the combined entity made a profit of Rs 1.6 crore for Q2 FY 07.

The group posted a profit after prior period items of Rs 53.69 crore, as compared to Rs 45.60 crore in the corresponding quarter for the previous year. Total income is Rs 654.83 crore, where as the same was at Rs 383.35 crore for the corresponding quarter for the previous year.

The consolidated results for the current quarter and half year ended September 30, 2006 include the results of NPIL Pharmaceuticals (UK) Ltd, UK, and Torcan Chemical Ltd, Canada, which were acquired in December 2005 and the Morpeth facility acquired from Pfizer in June 2006. The figures, therefore, are not strictly comparable, the company told the Bombay Stock Exchange.

Joint venture

During the quarter, NPIL also acquired the remaining 51 per cent equity in its 49:51 joint venture Boots Piramal Healthcare Private Ltd (BPHL). Subsequently, its marketing rights in the brands Strepsils, Clearasil and Sweetex in India were transferred to Reckitt Benckiser India Ltd and BPHL has become wholly owned subsidiary of the company. It will continue to actively market and distribute OTC products, Saridon, Polycrol and Lacto Calamine. The segment will see some consolidation but no rationalisation, Mr Piramal said. NPIL received a sum of Rs 17.80 crore from Alliance Boots Plc / Reckitt Benckiser India Ltd for the transaction.

The quarter also saw NPIL acquire the balance 40 per cent equity stake in its 60:40 joint venture company NPIL - Dr Phadke Pathology Laboratory and Infertility Center Pvt Ltd for an aggregate consideration of Rs 14 crore. NPIL has also entered into a joint-venture (effective July 01, 2006) to take a 50 per cent stake in DDRC Wellspring Pathlabs Private Ltd for Rs 7 crore.

NPIL shares were marginally up at Rs 246.55 on the BSE.