Indoco Remedies (INDOCO) Q4 15/16 earnings summary

Executive summary

• FY16 total income reached ₹1,001.63 crore, up 17.1% YoY; PAT rose 0.6% to ₹83.32 crore as higher input and other costs pressured PBT.

• International business contributed 43% of total revenue, up from 37% in FY15; domestic formulations were reshaped with 500 additional medical representatives and a specialty-focused portfolio.

Financial highlights

• Net sales were ₹1,000.40 crore vs ₹853.64 crore; operating profit rose 10.4% to ₹142.9 crore, while PBT declined 7.8% to ₹100.93 crore.

• PAT was ₹83.32 crore vs ₹82.81 crore; basic and diluted EPS was ₹9.04 vs ₹8.99.

• EBITDA before finance cost, depreciation and tax was ₹173.54 crore vs ₹166.93 crore; depreciation and amortisation increased to ₹60.34 crore from ₹47.11 crore.

• Operating revenue growth was 14.6%; other operating income rose ₹22.5 crore, mainly from exchange gains.

Outlook and guidance

• US and EU revenue was expected to accelerate as ANDAs and dossiers are commercialized upon approval; plans include a niche product pipeline, injectables and potential US marketing and distribution operations.

• Domestic strategy prioritizes brand building, new launches and acute/sub-chronic segments; restructuring and added field force aim to improve specialty prescription growth.

• New API capacity at Patalganga was under construction; sterile and solid dosage capacity additions were in planning to meet anticipated demand.