Sterling Biotech Limited
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BSE Code:
512299
NSE Code:
STERLINBIO
Business Profile
Business Profile
Sterling Biotech`s (STERLINBIO) principal activity is to manufacture and sell gelatin and di-calcium phosphate. It is a major operating division of the diversified Sandesara group of companies. The company installed capacities producing 10,400 MPTA of gelatin.
The plant located at Baroda has been set up in strategic alliance with Croda International of the UK, a leading multinational and the largest producer of proteins in the world. The gelatins manufactured by the company are used in the pharmaceutical industry in hard and soft shell capsules, vitamin encapsulation, tablet binding and plasma expander in addition to application in food and photographic industries.
Sterling Biotech is the largest manufacturer of pharmaceutical gelatin in Asia. Sterling Biotech currently has a 7.5% share of the global market for pharmaceutical and nutraceutical gelatins. It has more than 70% market share in India. Since manufacture of gelatin is an energy intensive process, Sterling has DG sets producing 8 MW uninterrupted power supply.
Financials
Sterling Biotech registered a 57.77% growth in net profit to Rs 482.86 million for the quarter ended June 2007 from a profit of Rs 306.06 million for the quarter ended June 2006.
Net sales rose 59.1% to Rs 2270.63 million for the quarter ended June 2007 from Rs 1427.13 million for the quarter ended June 2006.
Total income rose 59.78% to Rs 2295.4 million for the quarter ended June 2007 from Rs 1436.6 million for the quarter ended June 2006.
The earnings per share (EPS) of the company stood at Rs 2.14 for the quarter ended June 2007.
Recent Developments
12-MAY-07
On May 12, 2007, the shareholders passed the following, subject to necessary provisions and approvals:1. A special resolution for further issue of equity shares, ADRs, GDRs, ..etc., upto USD 300 million.6. An ordinary resolution to borrow money upto Rs 50,000 million.
30-APR-07
Titanic Investment and Consultants holds 1,276,000 equity shares (representing 0.56% equity capital of the Company) and is now part of the promoters group of the company with effect from March 30, 2007. With this, the shareholding of the promoters group stands at 77,972,694 equity shares of Rs 1 each representing 34.51% of the equity capital of the company.
20-APR-07
The company has issued zero percentage foreign currency convertible bonds (FCCBs) due 2012 aggregating to USD 250 million. The bonds carry a 0% coupon with a yield to maturity of 6.35% per annum and are redeemable in 2012, i.e., after five years and one day from closing date. The bonds are convertible into equity shares of the company at any time after June 18, 2007 at a conversion price of Rs 204.576 per share which represents a premium of 25% to the volume weighted average price. The bonds are expected to be listed on the Singapore Stock Exchange.
29-MAR-07
Sterling Biotech has successfully commissioned its plant for the manufacture of Co Enzyme Q1O (Co Q10) at its Masar plant in Vadodara. The facility is an 100% EOU.
Future Plans
The company plans to borrow funds by way of secured/collateral loans, bonds, securities or other instruments having an aggregate value of about Rs. 15 billion to finance the assets as well as working capital requirements from time to time.