Jubilant Pharmova (530019) Q4 11/12 earnings summary

Executive summary

• FY12 consolidated revenue grew 25% to ₹43,031 million and EBITDA rose 57% to ₹8,930 million, with EBITDA margin at 20.9%.

• Reported PAT was ₹146 million; normalized PAT was ₹3,633 million after adjusting for ₹3,487 million of exceptional items, mainly goodwill impairment and unrealized FX losses.

• Pharmaceuticals contributed 51% of revenue and over 60% of operating profits; international business generated 70% of revenue.

Financial highlights

• Consolidated income from operations increased 24% YoY to ₹42,782 million; total income rose 25% to ₹43,227 million.

• EBITDA increased to ₹8,930 million from ₹5,679 million; excluding ₹249 million of one-time other income, operating profit was ₹8,681 million, with a 20.3% margin.

• Profit before tax and exceptional items rose 64% to ₹4,628 million; normalized PAT grew 34% to ₹3,633 million, with normalized EPS of ₹22.83.

• Exceptional items totaled ₹3,487 million, including ₹1,506 million goodwill impairment, ₹1,212 million unrealized mark-to-market FX loss and ₹405 million FCMITDA amortization.

Outlook and guidance

• FY13 revenue growth guidance was 20–22%, with EBITDA margins expected to remain sustainable at current levels.

• Targeted revenue CAGR above 20% over the next 3 years, with operating profit growth expected to outpace revenue through operating leverage and efficiencies.

• Priorities include harvesting recent investments, maximizing operating and free cash flow, and reducing consolidated net debt; targeted debt/equity below 1 and debt/EBITDA below 2.5x.

• New products launched in the prior 5 years were expected to grow from 8% of sales to over 25% within 3 years.