The company provides active pharmaceutical ingredients (API) and drug discovery and development services to pharma clients, demand for which has remained strong despite the economy.
Sales in fiscal 2008 rose by 41 per cent to Rs 306.72 crore ($64.8m), with the growth being maintained into the last quarter of the year.
Sucheth Rao Davuluri, CEO of Neuland, said: “The net profit could have been higher if not for the one time expenses that were incurred due to setting up international subsidiaries of Neuland, the higher fuel and power cost (arising from power cuts in the state).
“Our results have been good despite the increasing pressure of pricing and competitiveness in the developed market. Our product portfolio, financial strength, manufacturing and R&D capabilities and demonstration of superior overall performance is reflected in our results and will continue to do so despite the tough market conditions.”
The company’s growth has been maintained despite its reliance on established markets, which it believes is evidnce of its ability to withstand “the global meltdown”.
Neuland generates 85 per cent of its revenues from the US, Japan and Europe, regions that have been badly hit by the downturn, but it believes its business model has allowed it to prosper despite this.
D R Rao, chairman & managing director of Neuland, added: “The financial results is a reflection of our strong business model based on achieving the highest level of reliability, focused plans of being profitable and giving more value to our investors, besides growing our client base across the world.”