Piramal Healthcare April-June net up 57 pct

MUMBAI (Reuters) - Piramal Healthcare Ltd on Thursday said quarterly net profit rose by more than half aided by growth in its India-based contract drug making business and a rise in its domestic formulations business.

Mumbai-based Piramal has received a license from the government to set up a unit for manufacturing codeine, a narcotic substance and a key input in one of its top selling drugs Phensedyl, Chairman Ajay Piramal said at a media briefing.

"We hope to put up the plant in three years," he said, adding the investment and location details were yet to be decided.

Last year, Piramal Healthcare's profits were hurt due to a shortage of codeine, whose supplies are controlled by the government of India.

The plant will take care of Piramal's annual codeine requirement of 150 tonnes besides supplying to other drug makers, Piramal said.

He also stood by his earlier full-year forecast for earnings of 21 rupees a share and operating profit margin of 20.5 percent on a 16 percent revenue growth.

"We still continue to hold on to our guidance. The growth will be skewed towards the third and fourth quarters," he added at a conference to discuss the company's quarterly results.

Consolidated net profit for April-June rose 57 percent to 681 million rupees, after providing for 208.2 million rupees in notional mark-to-market loss on outstanding foreign currency borrowings and 21.4 million rupees in realised forex losses.

"The results are a bit below our expectations," an analyst covering the firm said, declining to be named. "They will have to grow beyond 16 percent to catch up. It will be interesting to watch the next few quarters."