Jubilant Pharmova (530019) Q4 10/11 earnings summary

Executive summary

• FY11 marked the first full-year presentation focused on pharmaceuticals and life sciences after the Agri and Performance Polymers demerger; results are not strictly comparable with FY10.

• Consolidated revenue was ₹34,334 million, EBITDA ₹5,672 million, net profit ₹2,297 million and basic EPS ₹14.42; reported revenue grew 1%, or 7% excluding the prior-year H1N1 opportunity.

• Products drove performance with 9% revenue growth and volume growth above 15%; Services was weaker amid the absence of H1N1 revenue and pressure on clinical research activity.

Financial highlights

• Consolidated net sales were ₹34,334 million versus ₹37,911 million in FY10; FY10 included businesses later demerged and a one-time H1N1 opportunity.

• Consolidated EBITDA was ₹5,672 million; profit before tax was ₹2,406 million and profit after tax after minority interest was ₹2,297 million, versus ₹4,215 million in FY10.

• International markets contributed 69% of consolidated sales at ₹23,691 million; regulated markets contributed ₹17,995 million, or 52% of sales.

• Standalone revenue was ₹22,009 million, up 8% on an adjusted comparison; EBITDA was ₹4,507 million and PAT ₹2,796 million.

Outlook and guidance

• FY12 capex plan was ₹5 billion, expected to generate over ₹12 billion of revenue at current prices and full capacity utilisation.

• Vision 2014 priorities: capacity expansion, innovation-led launches, geographic growth and vertical integration; targets include higher operating profit, improved capital returns and contained debt.

• Growth plans included over 50 API launches in three years, more than 40 Generics launches and over 70 new dosage-form launches across markets over three years.

• Services realignment, improved CMO capacity utilisation and cost alignment were expected to support recovery and margin improvement.