Indoco Remedies (INDOCO) Q4 13/14 earnings summary

Executive summary

• FY13-14 total income rose 15.44% to ₹729.46 crore; domestic and international businesses grew 13.4% and 16.3%, respectively.

• Profit before tax increased 49.08% to ₹72.11 crore and net profit rose to ₹57.90 crore, primarily on lower input and other costs.

• Formulations contributed 93% of revenue and APIs 7%; domestic and international businesses contributed 64% and 36%, respectively.

Financial highlights

• Gross revenue from operations was ₹740.45 crore versus ₹641.63 crore; net revenue was ₹727.71 crore versus ₹630.39 crore.

• EBITDA was ₹134.50 crore versus ₹105.36 crore; PBT was ₹72.11 crore versus ₹48.37 crore, and PAT was ₹57.90 crore versus ₹42.66 crore.

• Basic and diluted EPS was ₹6.28 versus ₹4.63; the figures are reported before and after extraordinary items alike.

• Material consumption fell to 37.5% of net sales from 41.9%, while staff costs rose to 18.0% from 17.2% and other expenses to 27.2% from 24.7%.

Outlook and guidance

• Domestic growth priorities include brand building, chronic-segment expansion, new launches, and deeper penetration in Tier II and Tier III towns.

• International growth plans center on alliances, own dossiers and Marketing Authorizations in Europe, and regular commercialization of US ANDAs.

• Development priorities include complex generics, non-infringing API and finished-dose processes, Para IV filings, NDDS and 505(b)(2) submissions.