Aurobindo Pharma Limited has registered impressive results for the three month period ended 31^st December, 2001.

During the period, the Company registered a total income of Rs.285.22 crores as against Rs.267.94 crores during the corresponding period in the previous year. 

The Profit before Depreciation, Interest and Tax for the quarter stood at Rs.41.09 crores (Rs.40.33 crores).  After providing Rs.10.50 crores (Rs.8.99 crores) towards Interest, Rs.4.12 crores (Rs.3.54 crores) towards Depreciation and Rs.6.37 crores (Rs.4.50 crores) towards provision for taxation, the Net Profit for the quarter stood at Rs.20.10 crores (Rs.23.30 crores).  The net profit for the 3^rd quarter registered a sharp rise of 38% over that of the second quarter.

Aurobindo Pharma had embarked on a major restructuring  and expansion of its manufacturing facilities which led to closing down of certain units and expansion of facilities at certain locations as well as upgradation of key facilities to conform to USFDA and other international standards.  This restructuring programme is now in its last phase and the benefits are becoming visible in the Company's 3^rd quarter performance.  In the first two quarters of the current year, the company's top line and bottom line had been significantly affected on account of the downtime and consequent loss of production due to the manufacturing facilities taken up for restructuring.

The restructuring and expansion of facilities are being accomplished in record time and will result in immense benefits on account of cost efficiencies and economies of scale.  The Company now has mega manufacturing facilities in both bulk drugs and formulations for both regulated and semi-regulated markets.  In addition, with world-class capabilities in manufacturing and R&D, having filed patents for its non infringing processes in anti-infectives, cns and cvs therapeutics, Aurobindo is poised to file a series of DMFs and ANDAs in the near future.

With the production in the revamped facilities now gathering momentum at a very fast pace, the Company is poised for significant improvement in its 4^th quarter performance and expects to largely offset the depressed performance of the first two quarters and achieve figures which would be well comparable with those achieved last year.

To achieve significant penetration in non-regulated markets, Aurobindo has been widening its portfolio and therapeutic groups, marketing networks and manufacturing establishments in key countries across the world.  The initiatives include joint ventures/subsidiaries in China and Brazil.  The up gradation of unit 5 and construction of a new facility near Visakhapatnam will provide a further competitive edge to the company in its quest to enhance its presence in non-regulated markets.

It is expected that with increased cost efficiencies, higher value added product mix and improved margins, the performance in the current fiscal will ensure that the EPS for the year is expected to surpass the target of Rs.30.

With the completion of restructuring programme now virtually coming to a close, the Company looks forward to entering the new fiscal year with a healthy optimism and has set for itself record breaking targets for each quarter of the next fiscal.  In fact, the Company would start reaping full benefits of restructuring from the first quarter of the next fiscal.

Meanwhile, the Company's R&D is successfully commercialising complex chemistry molecules as well as working on non-infringing processes.  The joint ventures in USA and China are progressing as per schedule.  Product registrations in various countries for anti-virals and other products are going on full throttle.  The domestic formulations business has also progressed well and several new products launched have been well accepted in the market.

With the completion of these projects and the capital expenditure plans, the company can look forward to sustained and healthy growth.  In addition, economies of scale, enhanced presence in non-regulated markets and entry into regulated markets are expected to result in a huge positive impact on both the top line and the bottom line of the company.  Indeed, Aurobindo Pharma is well placed to become an R&D led world-class international pharmaceutical company.