Aurobindo Pharma Ltd has reported good results for the year ended 31st March, 2001 and its Income has crossed the landmark figure of Rs.1000 crores.  Income for the year amounted to Rs. 1007.75 crores (Rs.749.08 crores), an increase of 34.53%. Profit before depreciation, interest and taxes has registered a growth of 16% and stood at Rs.139.89 crores (Rs.120.71 crores).

Aurobindo has changed acccounting policies pertaining to export benefit entitlements, retirement benefits, provisions for claims/debts, pursuant to its goal of adopting US GAAP. The company is availing the guidance of S.R.Batliboi & Co, in this exercise. Consequent to this, the net profit  stood at Rs.68.31 crores (Rs.74.60 crores).

The earnings per share for the year on the increased equity of Rs.20.20 crores (post bonus issue of 1:1 made during the year and post merger ) stood at Rs. 33.82.

The company has strong fundamentals and as at 31st March, 2001, on an equity base of Rs.20.20 crores, the Reserves and Surplus stood at Rs.256.41 crores.

The year saw Aurobindo Pharma making significant gains in exports.  Export income stood at Rs.553 crores, an increase of 50%.

It should be noted that the current year's figures include the financial results of Shri Chakra Remedies Ltd. (SCRL), which was merged with the company during the year and therefore not directly comparable with the previous year's figures. The company has written off overall losses of SCRL amounting to Rs.7.2 crores in its consolidated results.  

Unlike in previous years, export benefit entitlements have not been considered as income and shall be availed of on realisation basis in the future. Also, as per stringent prudent accounting norms, provisions and  write offs have been made for certain claims and debts , although the management considers them as realisable. Consequent to this the profits are lower by Rs.15.21 crores.  In addition to this, the entire expenditure towards research and development, formulation development, product registrations in domestic and international markets have been written off during the year.

During the year the company made significant progress in its path towards becoming a R&D led international pharma company. The world class R&D Centre set up is fully operational now and has a team of renowned scientists.  

Provisional patents have been filed for certain key product processes and Aurobindo is looking at entering the lucrative Western regulated markets.  Further, sequential investments/plant redesigns are planned to make two Indian plants and the US facility fully compliant with US FDA regulations.

The R&D initiative has helped Aurobindo to enter the custom synthesis and  intellectual property business. The company has gained recognition from MNCs for the custom synthesis business and established a good track record during the year.

Aurobindo's joint ventures in USA and China made significant progress and will help the company penetrate these markets. The company is also setting up manufacturing facilities in Brazil to enter the Latin American markets.

The company introduced over 20 new bulk actives in speciality health care areas such as 3rd & 4th generation cephalosporins, cholesterol reducers, antihypertensives, new proton pump inhibitors, new generation penicillins and antivirals. These have helped to futher broaden the product portfolio.

The revamping of the formulation business into four divisions viz. Indus, Argus, Imunus and Genus, and the international operations, proved beneficial and during the first year of revamping itself, the business has grown by 100%. Formulations of several new molecules and dosage forms are being developed to give the company the competitive edge in the domestic  and international markets and this business is expected to grow by 100% in the current year.

The company's cephalosporins and non cephalosporins dosage manufactring facilities have been approved by South African authorities. The approval for the sterile formulation unit constitutes an important milestone in the industry. The company is now pursuing the UK MCA approval which will enable it to enter regulated markets with its planned speciality formulations around the time when the patents go off.

In view of the major growth initiatives to create a platform for the company to penetrate attractive global markets, the Company has restructured management responsibilities.  Mr. P.V.Ramaprasad Reddy, the erst while Managing Director has now been appointed as Chairman of the Company. Mr. K.Nityananda Reddy, erstwhile joint managing director and co-promoter, having indepth experience in manufacturing and commercial areas, has been appointed as the Managing Director of the Company. This new structure will enable Mr.P.V.Ramaprasad Reddy to concentrate fully on the strategies of change being pursued by the company to achieve its goal of becoming a R&D based international pharmaceutical company.