Indoco Remedies (INDOCO) Q4 08/09 earnings summary

Executive summary

• FY09 turnover reached Rs 355.26 crore; PBT was Rs 33.14 crore and PAT Rs 31.44 crore, despite domestic sales pressure from tighter credit controls.

• International business exceeded Rs 100 crore and contributed 27% of revenue; formulation exports grew 23.9% to Rs 94.81 crore.

• Comparisons with FY08 require caution: the prior period covered 9 months versus 12 months in FY09.

Financial highlights

• Sales and operations were Rs 355.26 crore versus Rs 271.89 crore in the prior 9-month period; net sales were Rs 350.63 crore.

• PBT was Rs 33.14 crore versus Rs 32.04 crore; PAT was Rs 31.44 crore versus Rs 30.10 crore.

• Profit before interest, depreciation, extraordinary items and tax was Rs 50.15 crore versus Rs 45.27 crore; interest was Rs 5.85 crore and depreciation Rs 11.16 crore.

• Basic EPS was Rs 25.59 versus Rs 24.50; gross sales before excise were Rs 355.26 crore.

• Raw material cost was Rs 149.57 crore and staff cost Rs 47.94 crore; both comparisons are against the prior 9-month period.

Outlook and guidance

• International business was targeted to exceed 40% of revenue within 2–3 years, supported by new geographies and existing European customers.

• Management anticipated international business could reach 50% of revenue in future, supported by vertical integration, own dossiers and regulated-market expansion.

• Focus remained on expanding API and formulation businesses domestically and internationally, with capacity growth and global partnerships.

• The first own-name ANDA was nearing filing in early FY10; ophthalmic products were being developed for US and European markets.