Neuland Laboratories announces financial results for third quarter of fiscal year 2014

Neuland Laboratories Ltd., (NSE:NEULANDLAB; BOM:524558) a pharmaceutical manufacturer providing active pharmaceutical ingredients (APIs), complex intermediates and contract manufacturing services to customers located in 85 countries, today announced financial results for the third quarter of fiscal year (FY) 2014, ended December 31, 2013.

"In the third quarter of FY2014, Neuland continued to deliver on its commitment to increase profitability," said Dr. D.R. Rao, Chairman and Managing Director of Neuland Labs. "This partly reflects our focus on growing our higher margin businesses such as our contract manufacturing services, which we believe will serve Neuland well in both the near and longer-term. We also are announcing an upcoming Rights Issue that has been approved by Neuland's Board of Directors. The proceeds are expected to provide resources for investments intended to achieve our strategic business plan and spur additional profitable growth."

Revenues for the third quarter of FY 2014 were $21.15 million (1.308 billion INR*), compared to revenues in the third quarter of FY 2013 of $19.40 million (1.065 billion INR), an increase of 23%.

Neuland reported EBITDA of $3.12 million (193.19 million INR) in the third quarter of FY 2014, compared to EBITDA of $3.22 million (176.56 million INR) in the comparable period in FY 2013, an increase of 9%.

After-tax profits in the third quarter of FY 2014 were $1.11 million (68.23 million INR), compared to after-tax profits of $0.61 million (32.73 million INR) in the third quarter of FY 2013, an increase of more than 108%.

"Our ongoing efforts to shift our product mix to higher margin activities continued to advance this quarter, as we grew our contract manufacturing business, which helped to significantly increase after-tax profits compared to the third quarter of FY2013," said Sucheth R. Davuluri, Chief Executive Officer of Neuland Labs. "We also made further progress in our deleveraging campaign aimed at reducing Neuland's debt. The resulting decrease in interest charges contributed to our increased profitability this quarter. We intend to continue these initiatives in the coming quarters."