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Fourth Quarter Results
TTK Healthcare (BSE:507747) (NSE:TTKHEALTH), which is a part of TTK Group, posted a decline of 39.6 percent in profits. The profit for the fourth quarter ended March 31, 2013, came in at Rs. 2.24 crore. For the corresponding quarter of the previous financial year, TTK Healthcare posted a net profit of Rs 3.71 crore, according to the filing in BSE. In the fourth quarter, the total income from operations dipped to Rs 85.91 crore compared to Rs 88.07 crore posted during the corresponding period of the previous financial year.
Full Year Results
Net profit for the fiscal 2012-2013 decline 9 percent and came in at Rs 14.20 Crore compared to 15.62 crore in the previous fiscal. Total income from operations for the full year came in at Rs. 382.29 crore compared to Rs 353.74 crore during the same period of the previous financial year. The Board members approved a dividend of Rs 4 per equity share of Rs 10 each for the financial year ending March 31, 2013.
Merger to boost revenues
In a filing, TTK Healthcare stated that the shareholders of TTKPD will receive nine equity shares of Rs 10 each fully paid up of TTK Healthcare, for every two shares of Rs 10 each fully paid-up, which they own in TTKPD on an amalgamation of the companies. The shareholders of TSL will not be entitled for any share allotment as TSL techno is the wholly owned Subsidiary of TTKPD and the value of TSL is already considered as part of the valuation of TTKPD. According to TT Jagannathan, who is the chairman of TTK Healthcare, the merger of TTK Healthcare with the TTK Protective device will enhance the revenues of TTK Healthcare to Rs 500 crore by fiscal 2018. He said that TTK Protective is in the business of manufacturing contraceptives for which distribution was done by TTK Healthcare. Due to this, there were various pricing hurdles. Additionally, it was not easy or proper for a listed company to do business with its unlisted subsidiary, which was wholly owned by the promoters. In such case merger was the viable solution.
Mr K. Vaidyanathan has been appointed as the Executive Directors at TTK Healthcare by the Board of Directors for a further period of 2 years.
About the company
TTK Healthcare, incorporated on 21st May, 1958, primarily does business in five segments- : pharmaceutical business, medical devices, consumer products distribution, foods, and others.