The Hindu : Orchid repeats

Online edition of India's National Newspaper
Friday, May 31, 2002

Business

Business

Orchid repeats

By Our Special Correspondent

CHENNAI MAY 30. Orchid Chemicals and Pharmaceuticals has reported a lower net profit of Rs.6.30 crores (Rs. 35.76 crores) on an improved turnover and operating income of Rs. 425.52 crores (Rs. 371.25 crores) for 2001-02.

The board of directors has decided to maintain the dividend at 40 per cent.

An assortment of factors ranging from price pressures in the global cephalosporin market to slower turnaround in the formulation business and tardy ramp-up of the non-cephalosporin bulk activities have been blamed for the lower net profit during the just ended year.

Further, the provision of Rs. 11.95 crores towards doubtful debts (especially of some sales debtors in China and Far East) and Rs. 7.12 crore for deferred tax have also pulled the net profit down considerably.

Deferred tax liability to the tune of Rs.63.38 crores pertaining to previous years has been adjusted against the reserves as on April 1, 2001.

Consequently, the reserves (excluding revaluation reserves) have come down to Rs. 301.37 crores from Rs. 369.65 crores.

The gross profit is down to Rs.92.62 crores from Rs.98.05 crores in the previous year.

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