Indoco Remedies (INDOCO) Q4 14/15 earnings summary

Executive summary

• FY2014-15 total income reached ₹855.38 crore, up 17.3% YoY; PAT rose 43.0% to ₹82.81 crore, supported by lower input costs and an improved product and business mix.

• Domestic and international business both grew, while US ophthalmic launches, sterile-product approvals and the CRO acquisition expanded the international and research platform.

Financial highlights

• Net sales were ₹853.63 crore versus ₹727.71 crore; PBT was ₹109.48 crore versus ₹72.11 crore, up 51.8%.

• EBITDA was ₹166.94 crore versus ₹121.82 crore; PAT was ₹82.81 crore versus ₹57.90 crore.

• Operating profit increased 52.6% to ₹129.4 crore; EPS rose to ₹8.99 from ₹6.28.

• Material consumption fell to 35.2% of net sales from 37.5%; staff cost declined to 16.4% from 18.0%.

Outlook and guidance

• Domestic growth plans focus on brand building, chronic therapies, Tier II/III penetration, marketing realignment and additional field force.

• US and EU business is expected to accelerate as ANDAs and dossiers gain approval and are commercialized; emerging markets remain a focus for active brand promotion.

• Planned capacity investments include an additional pilot plant, a sterile-products vial line and a new API facility to support manufacturing and filing growth.