Concord Biotech (CONCORDBIO) Q4 19/20 earnings summary

Executive summary

• FY20 revenue from operations was Rs 51,232.98 lakh; profit for the year was Rs 16,896.35 lakh, versus Rs 11,838.96 lakh in FY19.

• API operations continued steady growth, formulation sales began picking up, and international registrations and approvals opened further formulation opportunities.

Financial highlights

• Revenue from operations rose from Rs 43,601.15 lakh in FY19 to Rs 51,232.98 lakh in FY20; other income was Rs 3,136.67 lakh versus Rs 1,744.03 lakh.

• Profit before tax was Rs 21,348.96 lakh, compared with Rs 17,791.91 lakh; profit for the year was Rs 16,896.35 lakh, compared with Rs 11,838.96 lakh.

• Total comprehensive income was Rs 16,864.53 lakh versus Rs 11,852.55 lakh; basic and diluted EPS was Rs 177.66 versus Rs 124.48.

• Operating cash flow was Rs 15,494.27 lakh; investing cash outflow was Rs 11,377.83 lakh and financing cash outflow was Rs 4,251.53 lakh.

• Other income included Rs 2,340.07 lakh net gain on sale of investments; other expenses included Rs 1,098.54 lakh loss on fair value of investments.

Outlook and guidance

• API facilities expansion was delayed by COVID-19 and expected to be completed in Q1 2021; output from the unit is intended to meet growing API demand.

• API growth remained steady, formulation sales were picking up, and international registrations and approvals were beginning to create new formulation opportunities.

• At the reporting date, continued product sales and operating facilities, strategic safety stocks, and expected operating cash generation supported the stated ability to service debt during FY21.