Indoco Remedies (INDOCO) Q4 11/12 earnings summary

Executive summary

• FY12 total income rose 18% to ₹57,103 lakh; PBT fell 9.4% to ₹5,127 lakh and PAT fell 9.4% to ₹4,634 lakh as finance and administrative costs increased.

• Domestic business grew 11.0% and international business 28.9%; EBITDA margin was 17.03%, versus 16.09% in FY11.

• Growth priorities included expanding regulated-market filings, developing the API business, scaling R&D, and using commercial alliances to widen international reach.

Financial highlights

• Total income reached ₹57,103.56 lakh versus ₹48,394.62 lakh; net revenue from operations was ₹56,877.25 lakh versus ₹48,106.67 lakh.

• EBITDA was ₹9,539 lakh versus ₹7,706 lakh; operating profit declined 5.2% to ₹5,980 lakh.

• PBT was ₹5,126.57 lakh versus ₹5,658.45 lakh; PAT was ₹4,634.24 lakh versus ₹5,111.78 lakh.

• Basic EPS was ₹37.72 on the pre-split basis; adjusted for the bonus and share split, EPS was ₹5.03 versus ₹5.55.

• Operating cash flow was ₹5,897 lakh; capital expenditure cash outflow was ₹6,597 lakh.

Outlook and guidance

• Domestic growth plans centered on new launches, broader geographic reach, focused promotion, and the new Indoco CND division in cardiology and diabetology.

• International priorities included US launches through Watson, own EU dossier registrations, expanding ophthalmic customers, and Aspen-supported emerging-market growth.

• API expansion at Patalganga and R&D-centre expansion were planned to support rising captive and external demand and a larger development pipeline.

• The stated generic opportunity was $170 billion of drugs expected to go off patent by 2015; no quantified earnings or revenue guidance was given.