Eris Lifesciences (ERIS) Q4 17/18 earnings summary

Executive summary

• FY18 revenue from operations rose 14.2% YoY to ₹8,556 million; acquisitions contributed to growth alongside broad-based performance across therapy areas.

• Strategic acquisitions broadened the portfolio into neurology, psychiatry, women’s health, obesity and maternal nutrition; the business ranked 26th in the Indian pharmaceutical market by revenue.

• Focus remained on chronic and sub-chronic therapies, patient-care initiatives, operational efficiency and expansion into additional high-growth areas.

Financial highlights

• Consolidated revenue from operations was ₹8,556.04 million versus ₹7,494.96 million in FY17; consolidated total revenue reached ₹8,820.12 million.

• Consolidated operating EBITDA was ₹3,220.13 million, up from ₹2,690.68 million; operating EBITDA margin expanded to 37.6% from 35.9%.

• Consolidated profit attributable to owners was ₹2,941.05 million versus ₹2,467.85 million; basic and diluted EPS rose to ₹21.39 from ₹17.95.

• Consolidated operating cash flow was ₹2,346.35 million; cash and cash equivalents closed FY18 at ₹106.08 million.

Outlook and guidance

• Priorities included consolidating existing therapies, lifecycle management and launches, alongside targeted expansion in neurology, dermatology, women’s health and osteoarthritis.

• Further growth avenues included in-licensing, partnerships, new therapeutic areas and products approaching patent expiry; cosmeceuticals remained in the pipeline.

• Guwahati manufacturing capacity was operating at over 80% on a single-shift basis and could scale to three shifts; YPM productivity was identified as an opportunity to improve.