Buoyed by the contract manufacturing business, Shasun Pharmaceuticals’ first quarter net profit has doubled to Rs 13.6 crore over the same period last year. Consolidated net sales grew 30 per cent to Rs 249 crore.

“There has been an overall growth in the CRAMS (contract research and manufacturing services) business. This constitutes over 50 per cent of our consolidated business,” said S. Hariharan, CFO.

Shasun does contract manufacturing of active pharmaceutical ingredients (API) and formulations for global pharma companies.

“Margins were also helped by our ability to manage costs. We tapped energy from biomass replacing furnace oil to generate steam. We also reduced power costs by buying wind energy from mills in Tamil Nadu,” said Hariharan.

The company’s board recommended 20 per cent final dividend – that is, Rs 0.40 a share on face value of Rs 2 a share for the financial year 2011-12.

The board had also declared an interim dividend of 100 per cent that is, Rs 2 a share, in March. This raises the total dividend to Rs 2.40 a share.

Shasun is building an API plant in Visakhapatnam which will be ready by March. The company, however, does not expect significant revenues from this plant till 2015-16, said Vimal Kumar, Whole-time Director, addressing shareholders at the company’s AGM. It is investing in Visakhapatnam as its plants in Puducherry and Cuddalore have reached peak capacity.

> swetha.kannan@thehindu.co.in

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