The Board of Directors of Vivimed Labs has approved the sub-division of face value of share of Rs.10 each into Rs.2 each. The scrip touched to its yearly peak level at Rs.485 today as against yearly low level of Rs.175 in June 2015 and currently moving around Rs.460 on BSE.
Recently, Vivimed Labs received approval from Competition Commission of India for the proposed acquisition of certain products in speciality chemicals division of the company by Clariant India Ltd. Other permits and approvals required for the acquisition are awaited and are expected shortly. The company has entered into a binding agreement with Clariant India to sell part of its speciality chemicals business. The business transfer agreement was entered on September 29, 2015 for a consideration of Rs.380 crore.
The company’s consolidated net profit for the first half ended September 2015 increased significantly by 43.3 per cent to Rs.48.05 crore from Rs.33.54 crore in the corresponding period of last year. Its consolidated net sales, however, declined by 1.5 per cent to Rs.674.51 crore from Rs.684.56 crore. The sales of pharma business declined by 2.9 per cent to Rs.478.50 crore from Rs.492.89 crore and that of speciality chemicals business improved marginally to Rs.190.06 crore from Rs.187.29 crore. EPS worked out to Rs.29.65 as against Rs.20.70 in the last period.
The company’s equity capital stood at Rs.16.20 crore and preference share capital at Rs.63.95 crore. Its reserves & surplus amounted to Rs.492.79 crore as compared to Rs.479.09 crore in the corresponding half of last year. Total long term borrowings declined to Rs.330.79 crore from Rs.483.38 crore. However, its short-term borrowings went up to Rs.453.59 crore from Rs.389.38 crore. Inventories increased to Rs.507.58 crore from Rs.431.43 crore.