Ipca Laboratories announced the financial result for the quarter ended December’08 and held a conference call on 23rd January 2009 to discuss the same as well as future growth plans. The key takeaways from the meet are as follows:
Finance Performance
Total income from operation for the quarter ended December’08 registered a growth of 14% to Rs 313.31 crore. Operating profit margins expanded by 410 bps to 22.7% leading operating profit to grow by 40% to Rs 71.22 crore. Other income declined by 45% to Rs 0.32 crore. Interest outgo rose by 108% to Rs 11.47 crore and depreciation went up by 27% to Rs 10.35 crore, and PBT reported growth of 32% to Rs 49.72. Company incurred forex loss of Rs 19.23 crore compared to forex gain of Rs 10.77 crore resulting PBT after forex gain declined by 37% to Rs 30.49 crore. After accounting taxation of Rs 7.31 crore, the bottom line declined by 40% to Rs 23.18 crore.Other Highlights
- Domestic formulation for the quarter grow by only 2% to Rs 115.57 crore because company stopped tender business as margins on it is very less, compared to Rs 19.54 crore in the corresponding pervious period.
- Formulation exports revenues for the quarter ended December’08 reported growth of 25% to Rs 112.87 crore.
- Domestic API business reported a growth of 67% to Rs 28.57 crore and exports reported growth of 12% to Rs 56.87 crore in the quarter review.
- During the quarter, formulation manufacturing units at Pithampur, M.P. and Unit II- injectable plant at Rampur, Dehradun started commercial production
- Export income for the quarter ended December’08 reported a growth of 20% to Rs 169.74 crore and for nine months ended December
- Over 153 patent application are filed by company till date in India, USA and other countries out of which 30 patents, including 4(four) in USA, are granted till date.
- Company filed total of 11 ANDAs till to date of which 8 got approvals. First shipment sent on the month of September’08. Currently, 4 products were launched and one more products expected to launch soon.
- Expects to US formulation business to touch USD 3 million by FY’09
- Debt on books as on 31st December’08 is Rs 440 crore.
- Currently, company produces 60 API products.
- Expects 40% to 45% growth from Russia operation for FY’10.
- Expects generic business grow by 15% to 18% over next two years.
- Company has sales force of 350 people out side the India.
- Employee count of the company as on the 31st December’08 is around 6000.
- For the nine months ended December’08, the brand Zerodal sales stood at Rs 29 crore compared to Rs 19 crore corresponding pervious period.
- Interest cost rose by 108% in the quarter under review as the company converted most of dollar denominated debt to rupee denominated debt.
- Capex incurred in the current fiscal till now is Rs 59 crore.
- Capex for FY’10 would around Rs 80 crore.