Key Highlights of the call
- Net sales for the year ended November’08 on consolidated basis registered marginal growth of 1% to Rs 681.70 crore and net profit declined by 12% to Rs 299.58 crore.
- 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 11% in the quarter under review.
- Excluding sales of products sold to J&J, the net sales for the year rose by 12% and net profit grew by 26%. The rise in 12% is contributed by 4% in price and 8% in volume.
- Duchem Laboratories, a wholly own subsidiary registered 1% dip in the net sales to Rs 3.99 crore for the quarter ended November’08 and net profit declined by 20% to Rs 0.86 crore.
- The company has launched 6 products for FY’08 which contributed 4% of total sales.
- Margins in the quarter are under pressure due to spike in the Vitamin C prices from Rs 500 to Rs 1250 per kg. The company expects margins of the next two quarters will also be under pressure.
- Cash on books as on 30th November’08 is around Rs 543 crore. Other than this company also gave loans amounting of Rs 150 crore to Pfizer companies in different regions
- Company is looking for an acquisition opportunity.
- Balance Sheet components as on 30th November 2008: Fixed Assets: Rs 83 crore, inventory: Rs 124 crore, debtors: Rs 60 crore.
- Company plans to launch few branded products from the parent’s stable in second half of 2009.