Panacea Biotec reports Excellent Financial Results, Turnover up by 46.6% & Net profit surges by 132.5%

Panacea Biotec today announced its financial results for the first quarter of FY07. The financial results were reviewed by the Audit Committee and approved by the Board of Directors in their meetings held on 20th July 2006.

The Company has registered excellent growth in turnover and net profit during the quarter ended June 2006. The Net Turnover grew by 46.6% to Rs. 2,333.9 Million during the QE 30.06.06 as compared to Rs. 1,592.0 Million during the QE 30.06.05. The Company earned Net Profit of Rs. 497.6 Million with over 132.5% growth during QE 30.06.06 as compared to the corresponding quarter of previous year.

Panacea Biotec recorded all round growth in business with both the vaccines segment and pharmaceutical formulations segment registering phenomenal growth. The vaccine segment registered turnover of Rs. 1,939.9 Million during the QE 30.06.06 up by 56.9% as compared to Rs. 1,236.4 Million during corresponding quarter of previous year. The Pharmaceutical formulations segment also registered a growth of 10.5% registering turnover of Rs. 390.9 Million during the QE 30.06.06 as compared to corresponding quarter of previous year.

Explaining the key growth drivers of Panacea Biotec, Mr. Rajesh Jain, Joint Managing Director said, "Panacea Biotec has consolidated its position in the overall health management space which is evident from the continuous improvement in its financial performance. The Company focuses on niche therapeutic areas and has innovative technologically advanced products, enabling the Company to register excellent growth. The optimum utilization of resources and better capacity utilization has resulted in improvements in profit margins with EBITDA margin of 40% and PBT margin of 33.6%. The Company’s Joint Venture with Chiron Corporation for marketing of pediatric vaccines also grew well registering sales growth of more than 100% with a profit in the current year vs. loss in the corresponding quarter during the previous year’’.

During the QE 30.06.06 the Company’s Profit before Depreciation, Interest & Tax (PBDIT) increased to Rs. 932.3 Million registering growth of 136.6% and the Profit before Tax (PBT) also increased to Rs 785.0 Million registering growth of 140.7% as compared to corresponding quarter of previous year.

"Panacea Biotec has successfully commenced operations at its state of the art pharmaceutical formulations facility at Baddi, Himachal Pradesh. Its fourth R&D Center focusing on Biopharmaceuticals at New Delhi was launched in April 2006. The Company’s state of the art facility for soft gelatin capsules has also been recently inaugurated at Baddi. During the quarter, the Company entered into two collaboration agreements - with National Research & Development Corporation, India for production and marketing of Foot & Mouth Disease (FMD) Vaccine developed by Indian Veterinary Research Institute (IVRI) India and with Netherlands Vaccine Institute (NVI), Netherlands for manufacturing and marketing of Inactivated Polio Vaccine in global markets. In the pharmaceutical formulations segment, the Company launched two new products ‘Softdiclo’ (Rabeprazole 20 mg & Sodium Diclofenac 100 mg) for pain management and ‘Kingcal’ (Calcium Citrate Maleate 250 mg + Vitamin D) in the anti- Osteoporosis segment." said, Mr. Jain, highlighting the key developments during the quarter under review.

Source : Equity Bulls

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