Brooks Labs targets to double net profit this fiscal

Mumbai, Sep 5: Brooks Laboratories, which debuted on bourses with a ten per cent premium today (Sep 5), expects to almost double its net profit to Rs 12 crore this fiscal, a top official said.

"Our PAT (profit after tax) was Rs 6.89 crore last year, and we are expecting it somewhere around Rs 12 crore this year," the contract research and manufacturing services company's Managing Director Rajesh Mahajan told PTI.

Mahajan said the company is targeting to increase its turnover to Rs 80 crore in the ongoing fiscal from Rs 53 crore in FY11, and aims at Rs 120 crore by FY13 end, once its new manufacturing facility in Gujarat is commissioned.

The company, which presently manufactures out of a single facility in Himachal Pradesh's Baddi district, will invest the entire Rs 63 crore it raised through the initial public offering in the next 12 months to set up the Gujarat plant, Mahajan said.

The company scrip listed at a 10 per cent premium vis-a-vis its issue price of Rs 100 on the Bombay Stock Exchange (BSE) and surged to Rs 131.10 within minutes.

However, it quickly lost momentum as it began to slide, in line with the market sentiment. At 1115 hours, the share was trading at Rs 86.70, more than 13 per cent lower than the issue price, while the BSE Sensex was down 1.11 per cent at 16,634 points.

Mahajan said Brooks is getting into the export segment and expects to start getting orders from African and South East Asian countries by this fiscal.

The new Gujarat plant will cater to European and North American markets, which have stricter regulations, he added.

PTI