Strides Shasun posts first consolidated Q3 after merger
DSIJ Intelligence / 08 Feb 2016
Bangalore based vertically integrated global pharmaceuticals company posted its Q3FY16 results on Monday. This was the first time when both the entities after amalgamation announced their consolidated results for the quarter. Net profit for Q3 stands at Rs 51.86 crore, whereas total sales revenue came in at Rs 1514.6 crore.
Bangalore based vertically integrated global pharmaceuticals company posted its Q3FY16 results on Monday. This was the first time when both the entities after amalgamation announced their consolidated results for the quarter. Net profit for Q3 stands at Rs 51.86 crore, whereas total sales revenue came in at Rs 1514.6 crore.
Strides Shasun’s total consolidated revenue for the quarter in review stands at Rs 1514.6 crore, which includes the sales revenue from Shasun Chemicals also. EBITDA for the quarter was Rs 229.46 crore. Major cost includes raw material which comprises 45 percentage of the total sales revenue. Whereas, employee cost as a percentage to sales revenue was 17 per cent. Margins in Q3 were 15 per cent. Profits for the third quarter stand at Rs 51.86 crore.
"The effect of the amalgamation of Shasun with the company has been reflected in the results of the current quarter. In view of the merger of Shasun and Strides, the figures for the various period during the fiscal year 2015-16 are not comparable with the corresponding periods relating to the fiscal year 2014-15," it is understood.
In the quarter gone by, the company entered into a definitive agreement with Sun Pharmaceuticals to acquire erstwhile Ranbaxy’s Solus care division. Strides also entered into an agreement to acquire seven brands from Johnson & Johnson Group.
Strides Shasun in a filing to the stock exchange also informed about two strategic acquisitions. It would acquire a strategic stake in General Partners Holding of Australia. Strategic acquisition would strengthen product portfolio of the company and also help fast track R&D initiatives.
In another acquisition of Universal Corporation, Kenya, the company will get a strong foothold in the key East African market. According to the company the acquisition would be EPS (earnings per share) accretive immediately.
Arun Kumar, Executive Vice Chairman and MD, stated “Considering the volatile external environment, we had a strong quarter with margins in line with guidance. We believe that we have laid a strong foundation for building the business of size and scale through organic and inorganic strategies.”
Responding to the results the scrip of Strides Shasun closed up with minor gains of 0.16 per cent at Rs 1107.30 on BSE.
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