1. Summary Information

 

 

Country

India

Company Name

STRIDES ARCOLAB LIMITED

Principal Name 1

Mr. P M Thampi

Status

Good

Principal Name 2

Mr. P M Thampi

 

 

Registration #

04-008738

Street Address

201, Devavrata, Sector 17, Vashi, Navi Mumbai – 400705, Maharashtra

Established Date

28.06.1990

SIC Code

11-057062

Telephone#

91-22-27892924 / 27893199

Business Style 1

Manufacturing

Fax #

91-22-27892942

Business Style 2

Marketing

Homepage

http://www.stridesarco.com

Product Name 1

Bulk Drugs

# of employees

800 (Approximately)

Product Name 2

Pharmaceuticals

Paid up capital

Rs.577,450,000/-

Product Name 3

--

Shareholders

Shareholding of Promoter and Promoter Group – 28.42%, Public shareholding – 71.58%

Banking

Dena Bank

Public Limited Corp.

YES

Business Period

22 Years

IPO

YES

International Ins.

--

Public Enterprise

YES

Rating

A (57)

Related Company

Relation

Country

Company Name

CEO

Subsidiaries

India

Onco Therapies Limited,

--

Note

-

 

2. Summary Financial Statement

Balance Sheet as of

31.12.2011

(Unit: Indian Rs.)

Assets

Liabilities

Current Assets

7,207,640,000

Current Liabilities

2,221,380,000

Inventories

1,293,080,000

Long-term Liabilities

12,418,560,000

Fixed Assets

3,115,150,000

Other Liabilities

1,490,830,000

Deferred Assets

0,000

Total Liabilities

16,130,770,000

Invest& other Assets

18,575,950,000

Retained Earnings

13,462,740,000

 

 

Net Worth

14,061,050,000

Total Assets

30,191,820,000

Total Liab. & Equity

30,191,820,000

 Total Assets

(Previous Year)

25,503,460,000

 

 

P/L Statement as of

31.12.2011

(Unit: Indian Rs.)

Sales

5,046,380,000

Net Profit

735,620,000

Sales(Previous yr)

7,694,420,000

Net Profit(Prev.yr)

1,055,140,000

 

MIRA INFORM REPORT

 

 

Report Date :

28.03.2012

 

IDENTIFICATION DETAILS

 

Name :

STRIDES ARCOLAB LIMITED

 

 

Registered Office :

201, Devavrata, Sector 17, Vashi, Navi Mumbai – 400705, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

28.06.1990

 

 

Com. Reg. No.:

11-057062

 

 

Capital Investment / Paid-up Capital :

Rs.577.450 millions

 

 

CIN No.:

[Company Identification No.]

L24230MH1990PLC057062

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMS36534B

 

 

PAN No.:

[Permanent Account No.]

AADCS8104P

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturing and marketing of all types of Bulk Drugs, Pharmaceuticals, etc.

 

 

No. of Employees :

800 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (57)

 

RATING

STATUS

PROPOSED CREDIT LINE

 

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Maximum Credit Limit :

USD 56000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and a reputed company having fine track. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

 

 

 

 

 

 

 

 

 

 

LOCATIONS

 

Registered Office :

201, Devavrata, Sector 17, Vashi, Navi Mumbai – 400705, Maharashtra, India

Tel. No.:

91-22-27892924 / 27893199

Fax No.:

91-22-27892942

E-Mail :

kannan.n@stridesarco.com

badree.komandur@stridesarco.com

Website :

http://www.stridesarco.com

 

 

Corporate Office :

Strides House, Bilekahalli, Bannerghatta Road, Bangalore – 560 076, Karnataka, India

Tel. No.:

91-80-26581343/ 44/ 57580738/ 39/ 57580000/ 66580751/ 66580000/ 66580600

Fax No.:

91-80-26583538/ 4330/ 57580700/ 800/ 66580800

E-Mail :

kannan.n@stridesarco.com

strides@satyam.net.in

info@stridesarco.com

 

 

GLOBAL PLANTS :

 

Factory 1 :

Sterile Products Division – I

Bilekahalli, Bannerghatta Road, Bangalore 560 076, India.

 

 

Factory 2 :

Penicillins Facility

Estrada Doutor Lorival Martins Beda,

926 - 968 28110-000- Donana - Campos dos

Goytacazes- Rio de Janeiro- Brazil

 

 

Factory 3 :

Sterile Products Division - II

Plot No. 284-A, Bommasandra Jigani Link Road, Industrial Area, Jigani Village, Jigani, Hobli, Anekal Taluk, Bangalore 562 106, India

 

 

Factory 4 :

Strides Arcolab Polska Sp.Zo.o

ul.Daniszewska 10 03-230 Warszawa NIP-813-34-15-000, Poland.

 

 

Factory 5 :

Oral Dosage Form Facility - III

Plot No. 9-12, Dewan & Sons Indl. Area, Veroor, Palghar, Dist. Thane 401 404

Maharashtra, India.

 

 

Factory 6 :

Onco Therapies Limited

Plot No. 284-B, Bommasandra Jigani Link Road, Industrial Area, Jigani Village, Jigani Hobli, Anekal Taluk, Bangalore 562 106, India

 

 

Factory 7 :

Strides Vital Nigeria Limited

Gate No. 02, Ladipo Oluwole Avenue, Opposite Cocoa warehouse, Off Oba

Akran Road, Ikeja Industrial Area, Ikeja Lagos, Nigeria.

 

 

Factory 8 :

Beta-lactams Facility

Bilekahalli, Bannerghatta Road, Bangalore-560076, Karnataka, India

 

 

Factory 9 :

Beltapharm SpA

20095 Cusano MIL. (MI) - Via Stelvio, 66 Italy.

 

 

Factory 10 :

Penems Facility

Estrada Doutor Lorival Martins Beda, 926 - 968 28110-000- Donana - Campos dos, Goytacazes- Rio de Janeiro- Brazil.

 

 

Warehouse :

Plot No. 62, Sector – 1, Nerul, Navi Mumbai – 400 706, Maharashtra, India   

 

 

Global Offices :

Located at :

 

USA
201 S. Main Street, Ste. 3, Lambertville, NJ 08530

Tel: 00 1 609 773 5000

Fax: 00 1 732 249 0225

Website: www.stridesusa.com

E-mail:info@stridesusa.com

Cameron
BP 1834, Rue Dubois de Saligny, Akwa, Douala, Cameroon

Tel (Office): (+237)343 0435

CELL) :(+237) 79 33 762

Fax : (+237) 343 6420

Website: www.stridesarco.com

 

Australia

151-153, Clarendon Street, South Melbourne, Victoria-3205, Australia

 

South Africa

4, Angus Cresent, Longmeadow East, Modderfontein-1644,

 

 

DIRECTORS

 

AS ON 31.12.2010

 

Name :

Mr. Deepak Vaidya

Designation :

Chairman (Non-Executive)

 

 

Name :

Mr. Arun Kumar

Designation :

Executive Vice Chairman and Managing Director (Executive and Promoter)

Qualification

B.Com., PGDBM

Date of Joining

June 1990

Previous Employment

British Pharmaceutical Laboratories

 

 

Name :

Mr. K.R. Ravishankar

Designation :

Executive Director (Executive and Promoter)

Qualification

B.Sc. (Part)

Date of Joining

June, 1990

Previous Employment

Enterpreneur

 

 

Name :

Mr. Virtanes Saatci

Designation :

Director (Non-Executive)

 

 

Name :

Mr. P M Thampi

Designation :

Director

 

 

Name :

Mr. P M Thampi

Designation :

Director

 

 

Name :

Mr. Venkat S Iyer

Designation :

Director

 

 

Name :

Mr. M.R. Umarji

Designation :

Director (Non-Executive and Independent)

 

 

Name :

Mr. A.K. Nair

Designation :

Director (Non-Executive and Independent)

 

 

Name :

Mr. P.M. Thampi

Designation :

Director (Non-Executive and Independent)

 

 

KEY EXECUTIVES

 

Name :

Mr. Arun Kumar

Designation :

Group CEO

 

 

Name :

Mr. Venkat S Iyer

Designation :

Executive Director and CEO- Agila

 

 

Name :

Mr. T. S. Rangan

Designation :

Group CEO

 

 

Name :

Mr. Adam Levitt

Designation :

CEO Americas Operations

 

 

Name :

Ms. Aloka Sengupta

Designation :

President, Business Development India Operations

 

 

Name :

Mr. Dennis Bastas

Designation :

Founder, Managing Director and CEO-ascent Pharmaheath Limited

 

 

Name :

Mr. Manish Gupta

Designation :

CEO- pharma

 

 

Name :

Mr. Nitin Ghadiyar

Designation :

President – Brands

 

 

Name :

Mr. Sihue B Noronha

Designation :

CEO- Africa

 

 

Name :

Mr. Sridhar S Rao

Designation :

President, Quality Assurance

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 31.12.2011

 

Category of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

3427326

5.87

Bodies Corporate

13166932

22.55

Sub Total

16594258

28.42

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

16594258

28.42

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

6765628

11.59

Financial Institutions / Banks

139029

0.24

Insurance Companies

2889827

4.95

Foreign Institutional Investors

22016060

37.71

Sub Total

31810544

54.49

(2) Non-Institutions

 

 

Bodies Corporate

1516400

2.60

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 Million

2842333

4.87

Individual shareholders holding nominal share capital in excess of Rs.0.100 Million

2211353

3.79

Any Others (Specify)

3405283

5.83

Non Resident Indians

1736447

2.97

Hindu Undivided Families

135233

0.23

Directors and their Relatives and Friends

401500

0.69

Clearing Members

57067

0.10

Foreign Nationals

220000

0.38

Foreign Corporate Bodies

854036

1.46

Trusts

1000

--

Sub Total

9975369

17.09

Total Public shareholding (B)

41785913

71.58

Total (A)+(B)

58380171

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

--

--

(1) Promoter and Promoter Group

--

--

(2) Public

--

--

Sub Total

--

--

Total (A)+(B)+(C)

58380171

--

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing and marketing of all types of Bulk Drugs, Pharmaceuticals, etc.

 

 

Products :

Item Code No.

Product Description

 

30039090

Lamivudine

30039090

Efavirenz

30039090

Nevirapine

 

PRODUCTION STATUS AS ON 31.12.2010

 

Particulars

Unit

Installed Capacity

Actual Production

Soft Gelatin Plant

Softgel Capsules

Numbers in Millions

 

2645

 

--

Hard Gelatin Plant

Capsules

Numbers in Millions

 

450

 

--

Tablet Plant

Tablets

Numbers in Millions

 

2160

 

--

 

 

GENERAL INFORMATION

 

No. of Employees :

800 (Approximately)

 

 

Bankers :

·         Dena Bank, Navi Mumbai, Maharashtra 

·         State Bank of India, Navi Mumbai, Maharashtra 

·         Corporation Bank, Navi Mumbai, Maharashtra 

·         The South Indian Bank, Navi Mumbai, Maharashtra 

·         Corporation Bank, Navi Mumbai, Maharashtra 

·         Canara Bank, Navi Mumbai, Maharashtra 

·         Industrial Development Bank of India, Navi Mumbai, Maharashtra 

 

 

Facilities :

 

Secured Loan

 

Rs. In Millions

31.12.2010

Rs. In Millions

31.12.2009

Long term loans

 

 

a) From banks

3237.230

2947.870

b) From others

0.000

5.060

Short term loans

 

 

a) From banks

3224.130

3027.960

Total

6461.360

5980.890

 

Notes:

a)       Long term loans (other than hire purchase loans) are secured by a pari passu first charge on all movable properties and the immovable properties at certain facilities of the Company. Hire purchase loans from Banks are secured by hypothecation of assets acquired there under.

 

b)       Long term loans (other than hire purchase loans) due within one year Rs.1225.58 Million (Previous year Rs.524.18 Million). Hire purchase loans from banks due within one year Rs.1.58 Million (Previous year Rs.4.78 Million). 

 

c)       Short term loans from banks are working capital loans, which are secured by a pari passu first charge on the Company's immovable property located at Navi Mumbai and the current assets of the Company and by a pari passu second charge of certain other immovable properties.

 

d)       Some of the above loans amounting to Rs.3375 Million (Previous year Rs.1,505 Million) are guaranteed by some of the Directors of the Company in their personal capacities.

 

e)       Short term loans from Banks includes Bills discounted with various Banks for Rs.480.35 Million (Previous year Rs.1044.46 Million)

 

Unsecured Loan

 

Rs. In Millions

31.12.2010

Rs. In Millions

31.12.2009

Long term loans

 

 

a) Foreign currency convertible bonds

 

 

 - Debt Portion of FCCB’s

4381.890

6166.180

 - Fair Value embedded derivatives in FCCB’s

190.950

175.320

b) From Subsidiaries

681.520

0.000

Short term loans

 

 

From Banks

502.840

0.000

From Others

200.000

0.000

Total

5957.200

6341.500

 

Notes:

 

a) Long term loans from Subsidiaries due within one year Rs.480 Million (Previous year Rs.Nil).

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

Deloitte Centre, Anchorage II, 100/2, Richmond Road, Bangalore – 560025, Karnataka, India

Tel No.:

91-80-66276000

Fax No.:

91-80-66276011

 

 

Wholly Owned Subsidiaries :

Direct Holding

·         Arcolab Limited SA, Switzerland

·         Strides Technology and Research Private Limited, India

·         Agila Specialties Private Limited (formerly Strides Specialties Private Limited), India

·         Starsmore Limited, Cyprus

·         Strides Africa Limited, British Virgin Islands

·         Strides Arcolab International Limited, U.K. (SAIL)

·         Onco Therapies Limited, India (w.e.f. January 01, 2010) (Refer Note 10 above)*

 

Indirect Holding

 

·         Pharma Strides Canada Corporation, Canada

·         Linkace Limited, Cyprus

·         Linkace Investments PTY Limited, Australia (w.e.f. December 14, 2010)

·         Plus Farma ehf, Iceland

·         Farma Plus AS , Norway (w.e.f. July 01, 2010)

·         Strides Specialties (Holdings) Limited, Mauritius

·         Strides Specialties (Holdings) Cyprus Limited (formerly known as Powercoast Limited), Cyprus

·         Strides Pharmaceuticals (Holdings) Limited, Mauritius (w.e.f. January 27, 2010)

·         Strides Pharmaceuticals (Mauritius) Limited, Mauritius (w.e.f. January 27, 2010)

·         Strides Specialty (Cyprus) Limited, Cyprus

·         Co Pharma Limited, U.K. (w.e.f. July 01, 2010)

·         Strides Arcolab Polska Sp.z o.o, Poland

·         Strides Arcolab UK Limited, U.K.

·         Agila Specialties (Malaysia) SDN BHD, Malaysia (w.e.f. September 22, 2010)

·         Agila Especialidades Farmaceuticas Limited, Brazil (w.e.f. June 11, 2010)*

·         Onco Laboratories Limited (formerly Powercliff Limited), Cyprus ( w.e.f. January 01, 2010)*

·         Strides Australia Pty Limited, Australia

·         Strides Inc, USA (w.e.f. December 21, 2010)

·         Strides Farmaceutica Participacoes Limited, Brazil (w.e.f. July 01, 2010)

·         Strides Pharma (Cyprus) Limited, Cyprus

 

 

Other Subsidiaries :

Direct Holding:

 

Strides Inc. USA (up to December 20, 2010)

Onco Therapies Limited, India (up to December 31, 2009)

 

Indirect Holding:

 

·         Ascent Pharmahealth Limited, Australia

·         Ascent Pharmahealth Asia Pte Limited, Singapore

·         Beltapharm S.p.A., Italy

·         Drug Houses of Australia (Asia) Pte. Limited, Singapore

·         Co Pharma Limited, UK (up to June 30, 2010)

·         Formule Naturelle (Pty) Limited , South Africa (up to June 30, 2010)

·         Ascent Pharma Pty Limited (formerly known as Genepharm Pty Limited), Australia

·         Pharmasave Australia Pty Limited, Australia

·         Strides S.A. Pharmaceuticals Pty. Limited, South Africa

·         Inbiopro Solutions Private Limited, India (w.e.f. November 25, 2010)

·         Ascent Pharmacy Services Pty Limited, Australia (w.e.f. January 29, 2010)

·         Ascent Pharmaceuticals Limited (formerly known as Genepharm (New Zealand) Limited), New Zealand

·         African Pharmaceutical Development Company, Cameroon (w.e.f. January 01, 2010)

·         Green Cross Pharma Pte Limited, Singapore (up to 1st January 2010)

·         Ascent Pharmahealth Asia (Hong Kong) Limited (formerly known as Strides Arcolab Hong Kong Limited), Hong Kong

·         Ascent Pharmahealth Asia (Malaysia) SDN BHD (formerly known as Strides Arcolab Malaysia SDN. BHD), Malaysia

·         Ephos - 106 Produtos Hospitalaries Limited Me, Brazil (w.e.f. November 2010)*

·         Ascent Pharmahealth Asia (B) SDN BHD (formerly known as Strides Arcolab SDN BHD, Brunei)

·         Strides CIS Limited, Cyprus (formerly known as Raycom Limited)

·         Strides Vital Nigeria Limited, Nigeria

 

 

Joint Ventures :

·         Akorn Strides LLC, USA

·         Onco Laboratories Limited (formerly Powercliff Limited.)- up to  December 31, 2009

·         Sagent Strides LLC, USA

 

 

Enterprises owned or significantly influenced by key management personnel

and relatives of key management personnel

·         Agnus Global Holdings Private Limited, India

·         Arcolab (India) Private Limited (merged with Agnus Holdings Private Limited w.e.f. March 24, 2010)

·         Atma Projects, India

·         Higher Pharmatech Private Limited, India

·         Caryl Pharma Private Limited (merged with Agnus Holdings Pvt Ltd w.e.f. March 24, 2010)

·         Chayadeep Properties Private Limited, India

·         Agnus Global Holdings Pte Limited, Singapore

·         Agnus Holdings Private Limited, India

·         Fraxis Life Sciences Limited, India

·         Atma Enterprises LLP, India

·         Chayadeep Ventures LLP, India

·         Qualichem Capital LLP, India

·         Agnus Capital LLP, India

·         Triumph Ventures LLP, India

·         Mrs. Deepa Arun Kumar

·         Net Equity Ventures Private Limited (merged with Agnus Holdings Private Limited w.e.f. March 24, 2010)

·         Nous Infosytems Private Limited, India

·         Patsys Consulting Private Limited, India

·         Sequent Scientific Limited, India

·         Sequent Research Limited , India

·         Sequent Global Holdings Limited, Mauritius

·         Sequent Scientific Limited

·         Vedic Elements Private Limited

·         Sequent Antibiotics (P) Limited, India

·         Sequent Oncolytics (P) Limited, India

·         Triumph Fincap Holdings Private Limited, India

·         Agnus IPCO Limited, BVI

·         Santo Finco Ltda, Madeira

·         Strides Italia srl, Italy

·         Keerthapathi Ravishankar - HUF

·         Mrs. K. Saraswathi

·         Mr. G.P. Pillai

·         Mr. Mohana Kumar Pillai

 

 

Associates :

·         Aspen Venezuela CA

·         Aspen Pharma Industrial Farmaceutica, Brazil (formerly known as Cellofarm Limited)

·         Pharmalatina Holdings Limited, Cyprus

·         Solara SA De CV, Mexico

·         Strides Latina, SA, Uruguay

·         Aspen Labs SA De CV, Mexico

 

 

CAPITAL STRUCTURE

 

AS ON 31.12.2010

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

89750000

Equity Shares

Rs.10/- each

Rs.897.500 Millions

620000

Cumulative Redeemable Preference Shares

Rs.1000/- each

Rs.620.000 millions

 

Total

 

Rs. 1517.500 millions

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

57744671

Equity Shares

Rs.10/- each

Rs.577.450 Millions

i) 9,368,875 (Previous year 3,168,875) equity shares of Rs.10 each were allotted to the Promoters and their associate companies on exercising of the Warrants.

ii) 3,387,979 (Previous year 3,374,455) equity shares of Rs.10 each were allotted for consideration other than cash consequent to amalgamation and issue of bonus shares.

 

AS ON 30.05.2011

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

89750000

Equity Shares

Rs.10/- each

Rs.897.500 Millions

620000

Cumulative Redeemable Preference Shares

Rs.1000/- each

Rs.620.000 millions

 

Total

 

Rs.1517.500 millions

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

58380171

 

Equity Shares

Rs.10/- each

Rs.580.802 Millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.12.2010

31.12.2009

31.12.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

577.450

893.760

892.110

2] Share Application Money

0.000

141.50

0.000

3] Reserves & Surplus

13462.740

8209.500

2897.330

4] Employees stock options outstanding account

20.860

34.530

17.890

5] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

14061.050

9279.290

3807.330

LOAN FUNDS

 

 

 

1] Secured Loans

6461.360

5980.890

3737.350

2] Unsecured Loans

5957.200

6341.500

7237.270

TOTAL BORROWING

12418.560

12322.390

10974.620

DEFERRED TAX LIABILITIES

0.000

0.000

58.500

 

 

 

 

TOTAL

26479.610

21601.680

14840.450

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

3115.150

3268.930

1612.630

Capital work-in-progress

375.280

112.140

1454.080

 

 

 

 

INVESTMENT

18200.670

15180.420

9395.800

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

1293.080

955.030
869.710

 

Sundry Debtors

1597.310

2075.270
2084.400

 

Cash & Bank Balances

810.290

313.820
163.820

 

Other Current Assets

145.280

0.000
778.840

 

Loans & Advances

4654.760

3597.850
1176.280

Total Current Assets
8500.720
6941.970
5073.050

Less : CURRENT LIABILITIES & PROVISIONS
 
 
 

 

Sundry Creditors

1920.200

2124.910
1649.580

 

Other Current Liabilities

301.180

81.390
336.380

 

Provisions

1490.830

1695.480
709.150

Total Current Liabilities
3712.210
3901.780
2695.110

Net Current Assets
4788.510
3040.190
2377.940

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

26479.610

21601.680

14840.450

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.12.2010

31.12.2009

31.12.2008

 

SALES

 

 

 

 

 

Income

5046.380

7694.420

5931.380

 

 

Other Income

248.060

131.500

689.950

 

 

TOTAL                                    

5294.440

7825.920

6621.330

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Materials consumed

3015.410

4473.360

3464.850

 

 

(Increase)/Decrease in stock

(78.540)

(119.860)

(44.240)

 

 

Personnel cost

525.510

836.600

631.450

 

 

Operating and other expenses

884.630

1367.010

1215.530

 

 

Reversal of Exchange Fluctuation on Restatement of Hedged investments in earlier years

695.680

0.000

0.000

 

 

Exchange Gain / Loss on FCCB, ECB and forward exchange contracts & certain monetary items

(948.030)

(391.600)

1841.940

 

 

Exchange Gain / Loss on restatement of hedged investments

0.000

0.000

(923.400)

 

 

Changes in fair value of embedded derivatives in FCCBs

15.630

41.120

(452.210)

 

 

Profit on FCCB buyback

0.000

(291.170)

0.000

 

 

Interest reversal on FCCB buyback

0.000

(79.960)

0.000

 

 

Profit on sale of Investment

(94.400)

0.000

0.000

 

 

Provision no longer required for diminution in value of investment

(183.870)

0.000

0.000

 

 

TOTAL                                    

3832.020

5835.500

5733.920

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

1462.420

1990.420

887.410

 

 

 

 

 

Less

FINANCIAL EXPENSES                        

420.770

598.030

654.270

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION

1041.650

1392.390

233.140

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

150.820

226.850

188.770

 

 

 

 

 

 

PROFIT BEFORE TAX

890.830

1165.540

44.370

 

 

 

 

 

Less

TAX                                                                 

155.210

110.400

(16.980)

 

 

 

 

 

 

PROFIT AFTER TAX

735.620

1055.140

61.350

 

 

 

 

 

 

Profit before tax from discontinued Operations

890.830

725.290

0.000

Less

Tax Expenses

155.210

108.940

0.000

 

Net Profit from Continuing Operations   

735.620

616.350

0.000

 

 

 

 

 

 

Profit before tax from Discontinued Operations

0.000

440.250

0.000

Less

Tax Expenses

0.000

1.460

0.000

 

Net Profit From Discontinued Operations 

0.000

438.790

0.000

 

 

 

 

 

 

PROFIT AFTER TAX 

735.620

1055.140

61.350

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

780.600

(47.680)

(109.030)

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Proposed dividend on equity shares

91.590

60.320

0.000

 

 

Tax on proposed equity dividend

14.980

10.250

0.000

 

 

Dividend on preferences shares

0.000

88.490

0.000

 

 

Tax on preference dividends

0.000

15.040

0.000

 

 

Transfer to general reserve

36.780

52.760

0.000

 

 

Reversal of Dividend on Preference Shares and Taxes Thereon, no longer payable

(148.540)

0.000

0.000

 

 

Transfer to Capital Redemption Reserve

491.610

0.000

0.000

 

BALANCE CARRIED TO THE B/S

1029.800

780.600

(47.680)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB Value of Exports of Goods

3277.190

5452.220

4629.040

 

 

Development Income

609.680

834.010

745.630

 

 

Interest

322.850

9.780

17.550

 

 

Local sales (proceeds received / receivable in Foreign Currency)

0.000

3.440

386.850

 

 

Share of Profit on Sale of Product

97.920

0.000

0.000

 

 

Other Income

149.970

0.000

0.000

 

TOTAL EARNINGS

4457.610

6299.450

5779.070

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

612.690

1373.390

1093.500

 

 

Capital Goods

185.550

129.080

432.620

 

 

Others

6.450

225.860

23.670

 

TOTAL IMPORTS

804.690

1728.330

1549.790

 

 

 

 

 

 

Earnings Per Share (Rs.)

15.69

25.46

0.69

 

QUARTERLY RESULTS

 

PARTICULARS

31.03.2011

30.06.2011

30.09.2011

31.12.2011

 

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Net Sales

1279.430

2009.260

1969.840

1979.230

Total Expenditure

1067.610

1617.490

1914.770

1542.150

PBIDT (Excl OI)

211.820

391.770

55.070

437.080

Other Income

0.000

0.000

0.000

454.080

Operating Profit

211.820

391.770

55.070

891.160

Interest

183.600

209.220

208.380

174.680

Exceptional Items

172.270

53.960

(508.540)

946.230

PBDT

200.490

236.510

(661.850)

1662.710

Depreciation

38.560

40.440

40.100

57.050

Profit Before Tax

161.930

196.080

(701.950)

1605.650

Tax

34.500

50.000

(50.000)

48.000

Provisions and contingencies

0.000

0.000

0.000

0.000

Profit After Tax

127.430

146.080

(651.950)

1557.650

Extraordinary Items

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

Net Profit

127.430

146.080

(651.950)

1557.650

 

KEY RATIOS

 

PARTICULARS

 

 

31.12.2010

31.12.2009

31.12.2008

PAT / Total Income

(%)
13.89

13.45
0.92

 

 
 

 
 

Net Profit Margin

(PBT/Sales)

(%)
17.65

15.15
0.74

 

 
 

 
 

Return on Total Assets

(PBT/Total Assets}

(%)
7.67

11.41
0.66

 

 
 

 
 

Return on Investment (ROI)

(PBT/Networth)

 
0.06

0.13
0.01

 

 
 

 
 

Debt Equity Ratio

(Total Liability/Networth)

 
1.15

1.75
3.63

 

 
 

 
 

Current Ratio

(Current Asset/Current Liability)

 
2.29

1.78
1.88

 

 

LOCAL AGENCY FURTHER INFORMATION

 

The Details of Sundry Creditors:

Rs. In Millions

Particulars

31.12.2010

31.12.2009

31.12.2008

Sundry Creditors

 

 

 

- Dues to Micro/Small Enterprises

13.670

10.820

2.420

- Dues to Others

1906.530

2114.090

1647.160

Total

1920.200

2124.910

1649.580

 

TURNOVER AND PROFITS

 

On a Standalone basis, the total income during the year stood at Rs.5294 Million as against Rs.4879 Million in the previous year. The Standalone net profit is Rs.736 Million as against a net profit of Rs.616 Million for the previous year.

BUSINESS OVERVIEW

 

2010 was a game changing year for them as they saw the fructification of many of their plans in their goal to become a global sterile powerhouse. Their partnership with Pfizer and entry into the biologics space has strengthened and consolidated their position in the specialty segment. Ray of Life, their critical care offering for the domestic market, has also made significant progress with a wide range of high quality Oncology products at an affordable price for Indian consumers.

 

The Company re-branded its specialties division, Strides Specialties Private Limited as Agila Specialties Private

Limited. The name 'Agila' was chosen to reflect the brand ethos of the Company's specialised product offering which is smart, agile, determined and pragmatic. 'Agila' carves out a new identity to the specialties division in the rapidly changing segment of the healthcare industry.

 

The Company had a very stable year of operation post restructuring of its business into two divisions viz. Pharma

and Specialties.

 

The Key Business highlights of 2010 include:

 

Specialties

·         Performance boosted by new product launches in regulated markets and additional revenue generated by new facilities

 

·         Significant ramp up in capacity utilization

 

·         Acquisition of Penem and Penicillin facility in Campos, Brazil

 

·         Acquisition of complete ownership in Oncology business

 

·         16 new product launches in regulated market, 5 in USA and 11 in other regulated markets

 

Merger and Business Restructuring Update

 

The Company has successfully completed consolidation of its operations into two different business verticals viz

Specialties Business, Pharmaceutical Business pursuant to the Scheme of Amalgamation sanctioned by the Hon'ble High Court of Mumbai, Chennai and Karnataka and pursuant to the hive-off of Specialties and Research and Development business of the Company to Agila Specialties Private Limited, a wholly owned subsidiary of the Company.

 

Medgene Pharmaceuticals Private Limited, a wholly owned subsidiary of the Company merged with Agila Specialties Private Limited in the Specialties Vertical pursuant to the Order of the Hon'ble High Court of Karnataka passed on February 6, 2010.

 

JOINT VENTURES

 

During the year, the Company restructured its US operations and identified Strides Inc, USA as a holding entity for all its investments in US. Consequently, the interest of the Company in Akorn-Strides LLC, USA (a 50:50 JV between the Company and Akorn Inc., USA) and Sagent-Strides LLC, USA (a 50:50 JV between SAIL, UK and Sagent Inc., USA) have been consolidated under Strides Inc.

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

GLOBAL PHARMACEUTICAL MARKET

 

The global pharmaceutical market grew 7% to USD 837.2 Billion in FY2009 and is expected to have registered 4-5% growth in FY2010.

 

GLOBAL PHARMACEUTICAL TRENDS IN FY2010

 

·         Generic drugs segment i.e., therapeutic equivalents of patented or innovative drugs, continued to evolve, as a number of branded products lost their patent protection during the year

 

·         Increased focus on specialty-driven therapies, especially HIV therapies, oncology products, and biologics

 

·         High volume sales of antipsychotics, lipid regulators, proton pump inhibitors and antidepressants

 

·         Fewer products won regulatory approval, with approvals being received for diseases like acute coronary syndrome, diabetes, rheumatoid arthritis, cancer and meningitis

 

·         Shift in growth from regulated markets to pharmerging markets

 

·         Higher government investments and increased private sector funding on healthcare

 

·         Globally, the manufacturing capacity for injectable products was limited during the year, particularly for lyophilised products

 

·         Partnerships between Western and Indian drug makers

 

·         The global injectable market stood at USD 200 Billion in the year FY2009

 

PHARMA TRENDS 2011 AND BEYOND

 

The growth of generics has outpaced the growth of branded products the world over. Drugs with sales of more than USD 120 Billion are expected to go off patent in the next 3 years, which will increase the demand of generics and lower their prices. Its sales are expected to skyrocket to more than USD 30 Billion in FY2011 all over the world, especially in the  major regulated markets.

 

The global market for APIs is being transformed as biologic ingredients are increasingly being used in drugs. Biologic ingredients are set to grow 12-15% per year to reach USD 12 Billion by FY2011. Injectables, oncology, biosimilars, anti-diabetic drugs and cardiovascular medicines, especially anti-hypertensive drugs, are expected to see the fastest growth in FY2011

 

Patents of Oncology Injectables, currently worth USD 8.3 Billion, are set to expire by FY2015. Scarcity value in the Injectables space is leading to consolidation. Stricter regulations will be implemented soon, especially in the arena of pricing, as pricing pressure is not expected to ease in the near future.

 

Hence, the key growth and sustainability factors summed up are

 

·         Faster drug development

·         Cutting down costs

·         High growth in emerging markets

·         Regulatory Compliance

·         Entry of Biosimilars

·         Mergers and Acquisitions

·         Big Pharma Convergence

 

GLOBAL PHARMA INDUSTRY CHALLENGES

 

·         Increasing competition in generic segment

·         Declining research and development (R&D) productivity i.e., the number of commercial launches of new innovative drugs

·         Shrinking average patent life

·         Pricing is today one of the most important issues in the pharma world. Rising cost of new product development, spiraling healthcare budgets and mounting governmental pressure to reduce drug prices have forced companies to produce cheaper generic drugs

 

OVERVIEW

 

The Company is primarily involved in two businesses, the pharmaceutical business and the specialised sterile products business branded as Agila. The pharmaceutical business is further divided into two product lines, manufacturing and branded generics. The pharmaceutical business offers a wide range of products across several major therapeutic categories, including anti-biotics, oncology, anti-bacterials, HIV/AIDS and malaria drugs. Agila develops and manufacture sterile products across many therapeutic areas and formats. The Company has one of the largest lyophilisation (freeze-drying) capacities in the world.

 

FINANCE REVIEW

 

The Company, during the year 2008, had early adopted Accounting Standard (AS) 30 'Financial Instruments: Recognition and Measurement' and consequential limited revisions to other applicable Accounting Standards as

have been announced by ICAI. Accordingly the Company changed the designation and measurement principles for all significant assets and liabilities including FCCBs and ECBs.

 

Pursuant to the notification dated February 11, 2011 issued by The Institute of Chartered Accountants of India regarding certain accounting treatment under AS 30, which clarified that in case of conflict between mandatory Accounting Standards as notified under the Companies Act,1956 and AS 30, provisions of mandatory Accounting Standards shall prevail over. Consequently, the Company has reversed net exchange gain of Rs. 695.68 million recognized till December 31, 2009 on restatement of certain US Dollar denominated investments that was designated as fair value hedge since such restatement is not in accordance with AS 13 "Accounting for Investment".

 

UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED DECEMBER 31, 2011

 

(Rs. In Millions)

 

 

3 Months

3 Months

12 Months

 

Particulars

ended

ended

ended

S.

No.

 

31.12.2011

30.09.2011

31.12.2011

1

(a) Net Sales / Income from Operations

6864.728

7693.147

25245.192

 

(b) Other Operating Income

117.393

104.167

524.188

 

Total Income

6982.121

7797.314

25769.380

2

Expenditure

 

 

 

 

(a) (Increase) / decrease in stock in trade and work in progress

(239.526)

126.964

(512.544)

 

(b) Consumption of materials

2265.220

1999.665

6940.840

 

(c) Purchase of traded goods

1296.155

1967.035

6209.335

 

(d) Employee cost

809.566

808.193

3027.351

 

(e) Depreciation

2,979.51

221.572

1043.012

 

(f) Other Expenditure

1761.338

1278.347

4928.652

 

Total Expenditure

6190.704

6401.776

21636.646

3

Profit from Operations before Other Income, Interest & Exceptional Items (1-2)

791.417

1395.538

4132.734

4

Other Income

0.059

1.975

2.142

5

Profit before Interest & Exceptional Items (3+4)

791.476

1397.513

4134.876

6

Interest

506.843

491.093

1902.681

7

Profit after Interest but before Exceptional Items (5-6)

284.633

906.420

2232.195

8

Exceptional Items

 

 

 

 

- (Loss) on Sale/ (Write off) of investments (Net)

(19.636)

-

(19.636)

 

- Exchange Fluctuation Gain / (Loss) - (Net)

598.385

(385.458)

325.464

 

- (Loss)/gain on account of (increase)/decrease in fair value of options embedded in FCCBs

3.678

9.395

188.855

9

Profit from ordinary activities before tax (7+8)

867.060

530.357

2726.878

10

Tax Expense

141.377

62.044

386.799

11

Net Profit from ordinary activities after tax (9-10)

725.683

468.313

2340.079

12

Extraordinary Item

-

-

-

13

Net Profit for the year/period (11-12)

725.683

468.313

2340.079

 

Share of Minority Interest

41.556

3.632

95.307

14

Consolidated Profit after Minority Interest

684.127

464.681

2244.772

15

Paid-up Equity Share Capital (Face value of Rs. 10/-each)

583.802

583.742

583.802

16

Reserves excluding revaluation reserves

 

 

 

17

Earnings per share (EPS)

 

 

 

 

Basic and diluted EPS after extra-ordinary items for the period (Rs. Per share)

 

 

 

 

(a) Basic EPS

11.79

7.99

38.65

 

(b) Diluted EPS

11.74

7.96

38.32

18

Aggregate of Public shareholding :

 

 

 

 

(a) Number of shares

41,785,913

41,779,913

41,785,913

 

(b) Percentage of shareholding

71.58%

71.57%

71.58%

19

Promoters and Promoter group shareholding :

 

 

 

 

(a) Pledged / Encumbered

 

 

 

 

- Number of shares

11,559,985

10,328,285

11,559,985

 

- Percentage of shareholding (as a % of the total shareholding of promoter

 

 

 

 

and promoter group)

69.66%

62.24%

69.66%

 

- Percentage of shareholding (as a % of the total shareholding of the company)

19.80%

17.69%

19.80%

 

(b) Non Pledged / Non Encumbered

 

 

 

 

- Number of shares

5,034,273

6,265,973

5,034,273

 

- Percentage of shareholding (as a % of the total shareholding of promoter

 

 

 

 

and promoter group)

30.34%

37.76%

30.34%

 

- Percentage of shareholding (as a % of the total share capital of the Company)

8.62%

10.74%

8.62%

 

 

STATEMENT OF ASSETS AND LIABILITIES AS AT

(Rs. in Millions)

Particulars

31-Dec-11

 

 

Audited

SOURCES OF FUNDS

 

A. Share Capital

583.802

B. Employees stock options outstanding account

27.590

C. Reserves and surplus

13103.376

D. Minority Interest

464.569

E. Loan funds

25664.122

F. Deferred Tax Liability (Net)

934.92

Total

39936.951

APPLICATION OF FUNDS

 

A. Fixed assets (Net)

15573.777

B. Goodwill on Consolidation

19825.936

C. Investments

-

D. Deferred Tax Asset (Net)

220.308

E. Current assets

 

- Inventories

4799.313

- Sundry Debtors

5384.440

- Unbilled Debtors

1596.913

- Cash and bank balances

2597.243

- Loans and advances

4543.353

F. Current Liabilities & Provisions

 

- Current liabilities

(11996.054)

- Provisions

(2709.269)

Net Current Assets (E-F)

4215.939

G. Miscellaneous Expenditure (To the extent not written off or Adjusted)

100.991

Total

39936.951

 

Notes:

 

1.       Pursuant to the provision of clause 41 of the listing agreement, the Company has opted to publish only the consolidated results. The standalone results of the Company can be viewed on the Company's website www.stridesarco.com, or on the websites of BSE (www.bseindia.com) or NSE (www.nseindia.com).

 

2.       The above audited results of the Company has been reviewed by the Audit Committee and taken on record by the Board of Directors at their meeting held on February 27, 2012.

 

3.       The Statutory Auditors have carried out audit of the above consolidated results.

 

4.       The previous period's figures have been regrouped/reclassified wherever necessary to conform to current period's classification.

 

5.       Figures for the quarter ended December 31, 2011 and December 31,2010 are the balancing figures between (a) the audited figures of the respective financial year end and (b) the published year to date figures up to the third quarter of the respective financial years which have been reclassified as per the classification followed in the respective year ends.

 

6.       Consequent to the approval of Scheme of Arrangement during the year ending December 31, 2009 by the Hon'ble High Courts of Judicature ('the Scheme'), the Company has utilised the Reserve for Business Restructure (BRR) as mentioned below. In the year 2009, as per the Scheme, investments in a subsidiary had been fair valued and the resultant surplus over the previously carried book values, amounting to Rs.5856.200 Millions had been credited to BRR.

 

7.       During the year, 410,500, 75,000 & 150,000 equity shares were allotted by the Company on exercising equal number of options under Strides Arcolab ESOP 2008, ESOP 2008 (Directors) & 2006 Schemes respectively. Further, 189,500, 500,000 options were granted to eligible employees of the Company under the ESOP 2008 Scheme and ESOP 2006 Scheme respectively. During the year, the ESOP scheme titled "Strides Arcolab ESOP 2011" (ESOP 2011) was approved by the shareholders on May 30, 2011. 1,500,000 options are covered under the scheme for 1,500,000 shares. No options were granted under this scheme in the current year.

 

8.       As part of realignment, following were done during the year

 

a)       Starsmore Ltd. has been renamed as Agila Specialties Ltd.

b)       Linkace Ltd. has been renamed as Strides Pharma Ltd.

c)       Strides Specialty Cyprus Ltd. has been renamed as Strides Pharma International Ltd.

d)       Strides Specialties (Holdings) Cyprus ltd. has been transferred from Strides Specialties (Holdings) Ltd. To Agila Specialties Ltd.

e)       Onco Laboratories Ltd. has been transferred from Agila Specialties Ltd. to Strides Specialties (Holdings) Cyprus ltd.

f)         Onco Therapies Ltd. has been transferred from Strides Arcolab Limited to Agila Specialties Private Ltd.

g)       Strides Arcolab Polska Sp. Z.o.o. has been transferred from Strides Pharma Ltd. To Agila Specialties Ltd.

h)       Farma Plus AS has been transferred from Plus Farma EHF to Agila Specialties Ltd.

i)         Strides Pharma International Ltd. has been transferred from Strides Specialties (Holdings) Cyprus ltd. To Strides Arcolab Ltd.

j)         Strides Vital Nigeria Ltd. has been transferred from Strides Africa BVI to Strides Pharma Ltd. and then to Strides Pharma (Cyprus) Ltd.

 

1.       During the year, the Group completed a Scheme of Implemntation to acquire a majority of the minority shares of Ascent Pharmahealth Limited (APH). Subsequent to current year end, investment in APH has been sold for a consideration of AUD 3,750 Lakhs (INR 20000.000 Millions).

 

2.       The legal formalities of acquisition in respect of two subsidiaries, Ephos - 106 Produtos Hospitalares Ltda Me, Brazil and Agila Especialidades Farmaceuticas Ltda, Brazil has been completed during the first quarter of the year and hence the entities were consolidated w.e.f January 1, 2011.

 

3.       Exchange fluctuation gain/loss (net) included under Exceptional Items comprises the unrealized gains/losses arising out of the restatement of FCCB's, Borrowings in foreign currency, intra group loans and certain foreign currency denominated monetary items.

 

4.       Information on Standalone Results : -

 

 

5.       The Company's operations fall within a single business segment viz. "Pharmaceutical Products" and as such there is no reportable segment information as per Accounting Standard 17 issued under the relevant provision of the Companies Act, 1956.

 

6.       Investor grievances received and disposed off during the quarter ended Dec 31, 2011 : a) Pending complaints at the beginning of the quarter - Nil   b) No. of Complaints received - 16 c) Complaints disposed - 16  d) Complaints unresolved – Nil

 

7.       The Board of Directors have recommended an equity dividend of Rs.2.00 per share for the year ended December 31, 2011.

 

FIXED ASSETS

 

·         Freehold Land

·         Leased Hold Land

·         Buildings

·         Furniture and Fixtures

·         Office Equipment and Computers

·         Plant and Machinery

·         Motor Vehicles

·         Registration and Brands

·         Software Licences

 

PRESS RELEASE

 

Audited Financial Results Year Ended December 31. 2011

 

• Exceeds Guidance

 

• Superior EPS of Rs.38.65. 48% Growth over 2010 (Rs.26.11)

 

 

CONSOLIDATED

STANDALONE

Revenue

Rs.25.770 Millions

Rs.76.600 Millions

 

Up by 46%

Up by 37%

 

(Rs.17660.000 Millions in 2010)

(Rs.5610.000 Millions in 2010)

EBIDTA

Rs.5180.000 Millions

Rs.166 Millions

 

Up by 31%

Up by 31%

 

(Rs.3960.000 Millions in 2010)

(Rs.1260.000 Millions in 2010)

PBT

Rs.2730.000 Millions

Rs.1260.000 Millions

 

Up by 46%

Up by 42%

 

(Rs.186 Millions in 2010)

(Rs.890.000 Millions in 2010)

PAT

Rs.2250.000 Millions

Rs.1180.000 Millions

 

Up by 83%

Up by 60%

 

(Rs.1220.000 Millions in 2010)

(Rs.740.000 Millions in 2010)

EPS

Rs.386.500

Rs.203.000

 

Up by 48%

Up by 29%

 

(Rs.261.110 in 2010)

(Rs.156.900 in 2010)

 

 

Recommends dividend of Rs.2.00 per share for the year ended December 31, 2011. Bangalore, February 27, 2012: Strides Arcolab (Strides) today announced its financial results for the year ended December 31, 2011 which exceeded the guidance and delivered a superior EPS.

 

"Our results showcase our commitment to deliver value to our stakeholders through superior financial performance", said Arun Kumar, Vice Chairman and Group CEO, Strides Arcolab Limited. He further added that "with significant plant and product approvals, Year 2011 has been testimonial to our focus and vigour in compliance in a challenging regulatory landscape"

 

DIVISION-WISE PERFORMANCE FOR THE YEAR 2011

Rs. in Millions

2010

Division

2011

Revenue

Growth %

Revenue

Revenue EBITDA

%

Revenue

Revenue EBITDA

%

691

2240.000

32%

Specialties

10240.000

2700.000

26%

48%

1075

1720.000

16%

Pharma

15530.000

2400.000

16%

44%

1766

3960.000

22%

Total

25770.000

5180.000

20%

46%

 

* Consolidated Revenues include R&D/Licensing Income of Rs.5280.000 millions in 2011 against Rs.3620.000 millions in 2010

 

Operations Overview

 

AGILA (Specialties)

 

  • Agila represents 40% of the group revenue and 52% of the group EBITDA

 

  • Margins at 26% against guidance of 28 - 30%, impacted due to first year of front ended operations in Brazil.

 

  • Adjusted for Brazil front ended operations, Agila margins at 32%.

 

  • Continuous US FDA compliance for facilities with 2 new facilities in Bangalore receiving approvals

 

  • Performance boosted by new products launches during the year

 

  • US Joint Venture with Sagent consolidated its position in market place

 

PHARMA

 

  • Pharma business represents 60% of the group revenue and 48% of the group EBITDA
  • EBITDA margins at 16%, betters guidance
  • Successful Regulatory audits - US FDA, UK MHRA and WHO
  • India manufacturing business - IP products and ATM business post source change, contributed to the growth
  • Australasia business – delivered solid growth. Revenue and EBITDA growth at 44% and 38% respectively over 2010
  • African business – Stable business despite political turmoil and civil unrest
  • India brands –Revenue growth of 20% over 2010. Reserve brand at Rs.340.000 millions, grown by 45%. Expanded operations to 10 States

 

Regulatory Compliance update

 

Plant Approvals

 

  • US FDA approval for new Sterile facility at Bangalore
  • US FDA approval for new Oncology facility at Bangalore
  • US FDA approval for Brazilian Sterile Penems facility in Feb 2012
  • European approval for Oral Oncology facility at Bangalore
  • Total US FDA approved facilities at 7 (seven), 6 Injectables and 1 Oral.
  • Continued US FDA post approval inspection closure of Specialties Division – 1
  • Continued US FDA post approval inspection closure at Oral dosage facility, Bangalore

 

Product Filings/- approvals

 

US Market

 

Pharma

Specialties

Total

 

Year 2011

Till date

Year 2011

Till date

Year 2011

Till date

Filings

2

39

29

144

31

183

Approvals

2

22

25

62*

27

84

Tentative approvals /PEPFAR

1

17

3

4

4

21

Commercialized

0

3

13

33*

13

36

 

* 25 products not commercialized. With increased approved capacities in place, the Company expects to launch most of the approved products in 2012.

 

  • 76 product filings (cumulative: 314) in established markets (other than US) during the year, with 43 approvals (cumulative: 160)
  • 115 product filings (cumulative: 1541) in emerging markets during the year, with 91 approvals (cumulative: 1084)

 

KEY FINANCIAL PARAMETERS

 

Particulars

Dec'11 (audited)

Dec'10 (audited)

Feb ' 12 (Management A/Cs)

EBITDA Margin

20%

22%

 

Debt (Rs. In Millions)

2,5660.000

2,0100.000

2,2500.000

Cash and cash equivalents (Rs. In Millions)

2600.000

3400.000

1,0500.000

Net Debt

2,306

1,670

1,200

Debt /Equity (Net of Cash)

1.67

1.30

Less than 0.70

Interest / Revenue

7%

9%

 

Revenue to Net FA

2.50

2.06

 

Effective tax rate

14%

24%

 

 

Significant post balance sheet event

 

Sale of Generic pharmaceutical operations in Australia and South East Asia

 

  • Business acquired by Watson Pharmaceuticals for AUD 375 Million (approx Rs19000.000 millions)
  • Simultaneous signing / closing on January 24, 2012.
  • Strides had significantly increased the value of Ascent since initial Investment in 2008.
  • Consideration to be used primarily for debt reduction and Agila growth capital

 

Guidance for 2012

Given the unpredictable environment in which we operate, with particular reference to our injectables business, which is dependent on regulatory approvals of key products, the company has decided to defer guidance.

 

About Strides Arcolab

 

Strides Arcolab, listed on the Bombay Stock Exchange Limited (532531) and National Stock Exchange of India Limited (STAR), is a global pharmaceutical company headquartered in Bangalore, India that develops and manufactures a wide range of IP-led niche pharmaceutical products with an emphasis on sterile injectables.

 

The company has 13 manufacturing facilities across 5 countries with presence in more than 75 countries in developed and emerging markets. Manufacturing is ably supported by a 350- scientist strong global R&D Centre located in Bangalore.

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.50.92

UK Pound

1

Rs.81.21

Euro

1

Rs.67.85

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

6

--RESERVES

1~10

7

--CREDIT LINES

1~10

6

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

57

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.