Indoco Remedies (INDOCO) Q4 12/13 earnings summary

Executive summary

• FY13 total income rose 10.55% to ₹63,130 lakh; PBT and PAT declined as higher input costs and currency-related finance costs weighed on earnings.

• Domestic formulations grew faster than the industry; international growth was supported by regulated-market exports and expanding partner relationships.

Financial highlights

• Net sales were ₹63,039.62 lakh vs ₹56,877.25 lakh; PBT was ₹4,836.99 lakh vs ₹5,126.57 lakh, and PAT was ₹4,265.85 lakh vs ₹4,634.24 lakh.

• EBITDA was ₹10,598 lakh vs ₹9,539 lakh; operating profit rose 1.0% to ₹60.38 crore, while finance cost increased to ₹21.88 crore, including ₹12.7 crore exchange loss.

• EPS was ₹4.63 vs ₹5.03 post split and bonus; dividend recommended at ₹1.10 per ₹2 share, with ₹1,013.65 lakh proposed payout.

Outlook and guidance

• Domestic formulations expected to sustain above-industry growth, with continued legacy-brand promotion, new launches and a higher chronic-segment contribution.

• US business expected to ramp up after ANDA approvals; Europe is shifting toward supplies under own dossiers and marketing authorizations.

• API business expected to grow faster; AnaCipher analytical services anticipated to expand, with management expressing confidence in growth across business segments.