TAKE Solutions Q2 PAT boosted by other income, tax writeback

Shares of Take Solutions, a provider of contract solutions to the healthcare sector, were up 6% after the company reported a sharp increase in revenue due to rupee depreciation and profits jumped due to a tax write-back and a jump in non-operating income.

Sales at the company jumped 10.3% on quarter to Rs 516 cr — partly due to a depreciation in the value of the rupee.

In dollar terms, the sequential growth was nearly half of that — 5.6% — to $73.58 mln.

Total expenses were also up 10.3% on quarter to Rs 455 cr.

The company provides services like clinical trials, regulatory submissions and post-marketing safety.

The company has clients from across the globe, including biopharmaceutical companies and generics manufacturers.

OTHER INCOME, TAX

Despite the growth in expenses keeping pace with that of the revenue, the company was able to report a Rs 6.6 cr (16.3%) sequential jump in pre-tax profit.

This was due largely to a Rs 4.7 cr jump in non-operating (‘other’) income to Rs 13.2 cr.

Net profit increased by Rs 7 cr to Rs 60.2 cr, boosted by a deferred-tax write-back of Rs 2.76 cr in the quarter, against a provision (expense) of Rs 32 lakh in the preceding quarter.

““TAKE recorded a highgrowth rate this quarter and we continue to invest ahead of the growth curve in the right technology and infrastructure,” said MD HR Srinivasan.

“Our 2021 growth strategy is on track and we are seeing a consistent growth trajectory.  We have a healthy cash balance and a strong pipeline of key prospects to complete our expansion in key markets including North America and Europe,” he added.