Alembic Pharmaceuticals (APLLTD) Q4 13/14 earnings summary

Executive summary

• FY14 revenue grew 23%, profit after tax rose 43%, and return on capital employed increased 827 bps to 39.67%.

• Growth reflected stronger regulated-market formulations, improved product mix, higher capacity use, and lower debt and interest costs.

Financial highlights

• Consolidated revenue from operations was ₹1,863.22 crore; consolidated profit after tax was ₹235.51 crore, versus ₹1,520.34 crore and ₹165.25 crore in FY13.

• Consolidated EBITDA was ₹36,090.72 lakh; operating margin reached 19.34%, up from 16.79% in FY13.

• Consolidated EPS was ₹12.49 versus ₹8.77 in FY13; standalone EPS was ₹12.64 versus ₹8.35.

• Consolidated sales mix: domestic formulations ₹971.35 crore; export formulations ₹541.97 crore; domestic API ₹54.91 crore; export API ₹291.54 crore.

Outlook and guidance

• FY15 plans include 6–8 US product launches, including potential Day-1 launches, and a US marketing network by year-end.

• Formulation capacity is planned to expand from 5 billion to 7 billion tablets/capsules per year; the new capacity may be absorbed within 12 months.

• Plans include 25 domestic branded launches, 10 API launches, and 350 MT of added API capacity in FY15.

• Over the next three years, plans call for 7–9 US launches and an average of 8–10 ANDA filings annually.