Strides Arcolab has registered a 51.12% jump in net profit to reach Rs 9.40 crore in first quarter (Q1) of the year 2006, as against Rs 6.22 crore recorded in Q1 of 2005.According to an official release issued today, total income of the company went up by 50.94% to Rs 108.33 crore in first quarter (Q1) of 2006 as against Rs 71.77 crore recorded in Q1 of 2005. Operating profit rose 21.20% to Rs 22.69 crore for the Q1 of 2006 as against Rs 18.72 crore a year ago.Arun Kumar, vice chairman and CEO of Strides, said profit after tax was affected by higher tax provisions in the current quarter as compared to tax writebacks in the similar period last year. "The Indian operations recorded strong growth from all its market segments. With the new Cephalosporin plant and the sterile products division reaching critical operating capacities in the last phases of the quarter, the second quarter will see greater contribution from these segments," Kumar said. The board of the company also approved a proposal to raise upto $100 million by way of preferential, rights or such other issue through issue of convertible bonds/GDRs/ADRs/equity shares or such other equity linked instruments or a mix of them. The proceeds from the issue will be used for part financing new production facilities in India and elsewhere apart from using them for acquisition opportunities. Kumar said: "our decision to exit the nonsynergistic specialty chemicals business is in line with our stated philosophy of focusing on our core domain strengths of sterile injectibles and soft capsules and build leadership positions in these domains through both organic and inorganic means." "Despite the adverse impact from the US and Mexican operations, we continue to maintain our guidance issued at the beginning of the year of 35% growth in revenues and profits," Kumar said.
