Highlights of Conference Call
- Revenues from Women Healthcare segment were up by 19% to Rs 34.76 crore and boosted the total revenues in the quarter ended December 09.
- Shelcal CT which was launched in the month of April 2008 took leadership position in Women health care products and has generated 80-85% of the revenues in this segment. Revenues from this drug in domestic market stood at Rs 8 crore. The company expects Rs 10 – 15 crore of revenues from this drug by the end of FY09.
- Women’s Healthcare continues to remain the lead value creator with winning brands Shelcal and Carnitor.
- Elder has 4 marketing teams consisting of 2000 representatives of which 800 each are designated to Women’s Healthcare and Wound care business divisions and 300 representatives for the antibiotics mass market.
- Domestic operations registered marginal growth of 5% to Rs 144.31 crore and contributed 92% of total sales for the quarter under review.
- R & D centre in Nerul has earned recognition from the Department of Scientific & Industrial Research, Ministry of Science & Technology.
- Paonta Sahin facility construction has completed and become operational at 30% load presently.
- Company is expanding its production capacity of Selaqui facility which is currently running at 75% load.
- Langa Road facility is expected to be commissioned by end of October’09 and company is aiming for USFDA and WHO approvals for this plant.
- The company’s Bulgarian operations were completed and expect revenues flow from this plant by Q1FY10.
- The company is maintaining Debt to equity ratio below 1 in the quarter under review.
- The gross margins of the company in the domestic market are around 55-60% and that of International business is around 50-55%. In the International business, gross margins on formulations are around 42-45% and that of API’s were around 15-18%.
- The contribution of Fairone for the nine months ended December 08 is around Rs 25 crore. The company expects the contribution for the whole fiscal to be around Rs 35-40 crore.
- The company foresees the women health care segment to fare well in the next quarter and expects the de growth in API’s and distribution of FMCG to continue in the last quarter of FY09. However, the company expresses that all the three segments will improve in FY10.
- The company has started operations in Ghana Facility and expects to bring 3 products relating to cough & cold category and Personal Hygiene by June 09.
- In the first year of operations, the company expects USD 2-2.5 million of revenues from this facility.
- The debt on books as on December 08 is Rs 350 crore, of which Rs 120 crore is long term debt, which includes Rs 60 crore of forex loan.
- The average cost of debt of the company is around 13-13.5%. With the interest rates coming down, the company expects the financing cost to come down.
- As per the plant requirements, the company projects capex towards Maintenance and modernization of Rs 30 crore for next two years each.
- A large amount of the Company’s manufacturing facilities have been shifted to the excise free zones in Uttaranchal where the Company has set up three plants. Around 55-60% of the company’s domestic production was excise free and with the Langa Road facility which was coming up; the total excise free production of the company will reach around 70-75%.
- With in the prevailing tough scenario, the company aims to maintain same growth rate in the coming quarters.
- The company acquired 100% stake in three Bulgarian pharma companies through its wholly owned Bulgarian subsidiary Elder Biomeda EAD. Biomeda will generate around 7-10 million Euros for the entire year.