Aurobindo Pharma Ltd's consolidated net profit remained flat at Rs 563.45 crore for 2010-11, compared with Rs 563.40 crore a year ago. This is despite a 22.7 per cent increase in sales income to Rs 4,480.98 crore from Rs 3,651.33 crore.
The operating profit was also 16.9 per cent higher at Rs 788.26 crore in the reporting period (compared with Rs 673.84 crore) but the tax expense of Rs 225.12 crore (Rs 191.36 crore) led to a flat net profit.
Chairman Ramprasad Reddy said the company had joined the billion dollar club of Indian pharmaceuticals industry on the back of its strong business and delivery capabilities. “We continue to augment our formulations and active ingredients businesses and create value for our stakeholders,” he said.
Restructuring
The company board, which met here on Monday, decided to constitute a restructuring committee “to explore and evaluate possible growth-linked restructuring options.” This is aimed at further strengthening and providing a focus to its growing volume of active pharmaceutical ingredients (APIs) and formulation business, it said in a filing to the BSE.
Among the options to be considered are spin-off or demerger or any other suitable form aimed at enhancing shareholder value. The restructuring committee, consisting of directors including independent directors, would take all necessary steps and recommend the best options to the board within three months. The board has taken on record the resignation of K Ramachandran as a director.
The company sold its entire stake in Cephazone Pharma LLC, a joint venture of one of its subsidiaries in US. It has also entered into a definitive agreement to divest its 80.5 per cent stake in one of its subsidiaries, Aurobindo Datong Bio Pharma Company Ltd, effective November 30, 2010.
The company board has recommended a dividend of 100 per cent on equity shares of face value of Rs 1. This is in addition to the interim dividend of 100 per cent paid in November 2010 on equity shares of face value of Rs 5. The company had since gone for a sub-division of its equity shares into five shares of Rs 1, with February 11 being the record date for the purpose.
The pharmaceutical products company said that, in the year under review, it had filed 209 abbreviated new drug applications , 464 patents, 154 drug master files, 1,270 formulations dossiers and 1,783 API filings in various regulated markets including the US and European Union.
