Key Highlights of the meet
- The net sales of the wholly owned subsidiary, Duchem Laboratories for the three months ended 28 February, 2009 were Rs 0.55 crore compared to Rs 1.11 crore in the corresponding pervious period. Net profit stood at Rs 0.22 crore as against of Rs 0.33 crore.
- Other operating income includes service income of Rs 4.07 crore as against Rs 5.20 crore for the corresponding pervious period.
- The growth in net sales contributed by 18% from volumes and 6% from price.
- In the past two years, wholly owned subsidiary of Pfizer has launched more product from the parent stable than the listed company.
- The spike in the consumption cost is mainly due to spike in the Vitamin C price and other raw material price. Vitamin C price has increased from Rs 500 to Rs 2400 per kilogram and now it quoting at Rs 1200-1500.
- Company expects margins to improve from the 3rd quarter as the raw materials prices have started declining in the quarter ending February’09.
- The company has earlier sold four brands of Consumer Healthcare Business to Johnson & Johnson. Excluding the sales of these products in the previous corresponding period, the company reported net sales growth of 27% in the quarter under review.
- The company has launched 7 products for FY’08, including 4 products from parent stable which contributed 4.3% of total sales (i.e. Rs 8 crore).
- Company hasn’t launched any products in the quarter under review and expects to launch new products including products from parent stable in third quarter.
- Other expenditure has gone up due to advertising expenditure and training expenditure.
- Revenue from Champix (patented drug) for year ending November’09 is expected to be around Rs 2.5-3 crore.
- Hitherto, company markets more than 100 products in India. To expand its presence in primary care business mainly in Class II, Class III and Class IV cities, company has added 250 sales force in the quarter taking total sales force count to 1400. Generally, revenue generated per sales employee would be around Rs 0.50-0.60 crore per year and this addition of employees will be completely productive in next 9-12 months.
- Unallocable cash on the books as 28 February 2009 is around Rs 757 crore, of which Rs 600 crore are deposited in banks at 8-8.5% interest and Rs 150 crore to Pfizer companies in different regions at 9.5%. In spite of huge cash in hand, the company has no plans to buy back shares.