Brooks Labs eyes nearly 2-fold growth in profits
Brooks Labs eyes nearly 2-fold growth in profits
Mumbai: Brooks Laboratories, which made its debut on the bourses today with a 10% premium against its issue price, expects to almost double its net profit to ₹ 12 crore this fiscal, a top official has said.
“Our PAT (profit after tax) was ₹ 6.89 crore last year and we are expecting it somewhere around ₹ 12 crore this year," the contract research and manufacturing services company’s managing director, Rajesh Mahajan, told the agency.
Mahajan said the company is targeting an increase in its turnover to ₹ 80 crore in the ongoing fiscal from ₹ 53 crore in fiscal year 2011 and a further jump to ₹ 120 crore by fiscal year 2013-end, once its new manufacturing facility in Gujarat is commissioned.
The company, which presently has a single manufacturing facility in Himachal Pradesh’s Baddi district, will invest the entire ₹ 63 crore it raised through the initial public offer (IPO) over the next 12 months to set up the Gujarat plant, Mahajan said.
The company opened at a 10% premium vis-a-vis its issue price of ₹ 100 on the Bombay Stock Exchange (BSE) this morning and surged to ₹ 131.10 within minutes of the opening bell.
However, it quickly lost momentum amid a bearish trend in the broader market and was trading at ₹ 86.70, more than 13% lower than its issue price, on the BSE at 11:15 am. The BSE benchmark Sensex was down 1.11% at 16,634 points at the time.
Mahajan said Brooks is looking to export its products to overseas markets and expects to start getting orders from African and South-East Asian countries this fiscal.
The new Gujarat plant will cater to the European and North American markets, which have stricter regulations, he added.
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