Date:11/03/2008 URL: http://www.thehindubusinessline.com/2008/03/11/stories/2008031151090200.htm

Back Strides Arcolab converts debentures to equity

Our Bureau

Bangalore, March 10

Strides Arcolab Ltd has informed the Bombay Stock Exchange that the company has converted its FCDs (fully convertible debentures) to two companies into equity by allotting 40 lakh fully paid equity shares of Rs 10 each at Rs 400 per share.

The paid-up equity share capital of the company has increased from over Rs 35 crore to a little over Rs 39 crore.

The Bangalore-based generic pharmaceuticals company said it has made the preferential allotment to Dobliss Holdings Ltd (31,11,440 shares) and Blissup Holdings Ltd (8,88,560 shares). The board has approved the introduction of a new ESOP (employees’ stock option) scheme for 2008 for issuance of up to 1.5 lakh options subject to applicable statutory/regulatory requirements.

RS 51.6-CR LOSS

The company posted net loss of Rs 51.65 crore for January-December 2007 (against a net profit of Rs 36.18 crore for the previous fiscal) owing to losses in the US operations and a surging rupee. Net sales was Rs 725.61 crore (Rs 455.08 crore).

The EBT (earnings before tax) guidance for the first quarter in 2008 would be in the range of Rs 48-56 crore. A new global management team has been put in place.

Mr Arun Kumar, Vice-Chairman and MD, said, “2007 has been a challenging year for Strides led by losses in its US operations and a strong Indian currency.

“Nonetheless, the company’s strategic pathways have been clearly defined. Our renewed focus on operational efficiency poises the company for solid future earnings over the next few years.”

As a consequence of one-off write-downs after discontinuing its US operations and sale of non-core specialty chemicals business, the company made a loss of Rs 50.1 crore including gains from the Aspen transaction for oncology business.

Global revenue on consolidated basis grew to Rs 864.8 crore (Rs 760.2 crore) for the year ended December 31, 2007.