Cohance Lifesciences (COHANCE) Q4 19/20 earnings summary

Executive summary

• FY20 was the first full year following the demerger; revenue from operations was ₹833.79 crore and standalone PAT was ₹269.26 crore. FY19 figures cover only six months and are not comparable.

• Growth came from CDMO, Specialty Chemicals and Contract Technical Services; expansion priorities include formulations and moving CDMO services further up the pharmaceutical value chain.

Financial highlights

• Revenue from operations rose to ₹833.79 crore from ₹377.83 crore in the six-month FY19 period; total income was ₹851.91 crore.

• Standalone PAT was ₹269.26 crore; consolidated PAT was ₹317.00 crore, including ₹48.21 crore share of profit from Rising Pharma, described as unrealized.

• Standalone EPS was ₹21.22; consolidated EPS was ₹24.91. Prior-period EPS was ₹8.59 for six months and is not directly comparable.

• Exports were ₹794.27 crore, representing 95% of revenue from operations.

Outlook and guidance

• FY21 topline growth target was 10–15%; deliveries on existing projects could be delayed by one to two months due to labor and logistics disruptions.

• FY21 EBITDA margin guidance was 45%+; a reasonable development pipeline supported management’s growth outlook.

• Formulations pipeline plans: add 6 products, file 2–3 ANDAs in FY21 and target commercialization of 2–3 products in FY22; management aims for four commercial formulations by FY21-end.

• Two specialty molecules were expected to commercialize in FY21, each with potential annual revenue of ₹50 crore at optimum volumes; scaling depends on customer product traction.