Eris Lifesciences (ERIS) Q4 18/19 earnings summary

Executive summary

• FY19 revenue from operations rose 15% YoY to ₹9,822m, while operating EBITDA grew 7.2% and operating margin narrowed to 35.1% from 37.6%.

• Earnings were affected by higher employee and other expenses, inventory correction in distribution, and rationalisation of smaller brands; growth in acquired businesses supported revenue.

Financial highlights

• Consolidated revenue from operations was ₹9,821.61m vs ₹8,556.04m; total revenue was ₹10,138.55m vs ₹8,820.12m.

• Operating EBITDA, excluding other income, was ₹3,449m vs ₹3,220m; margin fell to 35.1% from 37.6%, mainly on higher employee and other expenses.

• Consolidated profit attributable to owners was ₹2,907.96m vs ₹2,941.05m; consolidated basic EPS was ₹21.15 vs ₹21.39.

• Consolidated operating cash flow was ₹2,230m vs ₹2,346m; free cash flow was ₹1,875m vs ₹2,201m.

Outlook and guidance

• Strategic priorities: strengthen existing therapy areas and product life cycles, pursue acquisitions and in-licensing, enter high-growth areas, and develop products for upcoming patent expiries.

• Target in-licensing launches of 2–3 products annually; three products were signed in FY19, with two expected to be commercial-ready by Q2 FY20 and one in regulatory approval.

• Soft-gel line commercial manufacturing was expected to begin by Q4 FY20 or Q1 FY21; in-house Renerve production was projected to lift estimated in-house output to 70–80% of estimated revenue.