Balaxi Pharmaceuticals (BALAXI) Q4 19/20 earnings summary

Executive summary

• FY20 marked the first full year under new management and with India sourcing conducted through the business; revenue rose to INR 4,563 lakh from INR 1,360 lakh YoY.

• An asset-light international wholesale model spans pharmaceuticals, FMCG and builders’ hardware across Angola, the Dominican Republic and Guatemala.

Financial highlights

• Standalone revenue was INR 4,563.24 lakh vs INR 1,359.54 lakh; PBT INR 926.56 lakh vs INR 243.93 lakh; PAT INR 649.58 lakh vs INR 196.59 lakh.

• Consolidated PBT was INR 887.38 lakh vs INR 243.93 lakh; PAT INR 610.40 lakh vs INR 196.59 lakh.

• Consolidated EBITDA was INR 888.13 lakh vs INR 244.29 lakh; basic and diluted EPS were INR 8.12 vs INR 6.47.

• Other income was INR 281.13 lakh, including INR 173.21 lakh from MEIS licenses and INR 56.03 lakh in foreign-exchange gain.

• Standalone operating cash flow was negative INR 1,437 lakh, with receivables increasing INR 2,575 lakh during the year.

Outlook and guidance

• FY21 revenue from expanded sourcing and distribution was expected to be substantially higher than FY20; comparisons are not direct because hardware sourcing had been limited to India in FY20.

• New FMCG launches in Angola and pharmaceutical launches in the Dominican Republic and Guatemala were expected to support organic growth over FY20.

• Growth plans include adding product registrations and therapeutic categories, expanding into Central American and Central African markets, and pursuing branding and modern-trade initiatives.