Piramal Healthcare announced the financial result for the quarter ended December’08 and held a conference call on 22nd January 2009 to discuss the same as well as future growth plans. The key takeaways from the meet are as follows:
Financial performance
Total income from operation increased by 15% to Rs 832.59 crore for the quarter ended December’08. Operating profit margins zoomed by 350 bps to 19.2% resulting operating profit went up by 40% to Rs 159.78 crore. Other income for the quarter clocked at Rs 0.01 crore compared to Rs 4.02 crore in the corresponding pervious quarter. Interest cost spurted by 115% to Rs 26.11 crore and depreciation went up by 9% to Rs 29.47 crore, and PBT grew by 32% to Rs 104.21 crore. After accounting of forex loss of Rs 35.15 crore, taxation of Rs 7.18 crore and minority interest of Rs 2.01 crore, the bottom line report degrowth of 18% to Rs 59.87 crore.
Other Highlights
- Debt on the books as on 31st December’08 is around Rs 1267.95 crore.
- During the quarter, Healthcare Solutions (Domestic Formulations) division reported growth of 21.9%, with sales of Rs.410.90 crore.
- The Company’s Pharma Solutions (Custom Manufacturing) division grew by 3.6% to Rs.256.14 crore during Q3FY09.
- Pharma Solutions Revenues from facilities in India grew by 45.4% to Rs. 80.55 crore, compared to Rs. 55.41 crore in Q3FY08
- Debt of Rs 5.5 billion raised in the last till December’08 in FY’09.
- Capex for the nine months ended December’08 is around Rs 1.3 billion
- Company gave loan of Rs 75 crore to its subsidiary of Piramal Life sciences for 200 bps more than incurred cost of company. Interest received for this quarter on this loan is Rs 2.5 crore.
- Tax rate would be around 12.5% for FY’09
- Canada business expected to decline and these generally contribute 4% of sales.
- Expects capex for FY’09 is around Rs 1.5 billion.
- Expects to EBIDITA margin to be 20.5%
- Expects domestic formulation sales of Rs 140 core for Q4 FY’09