Jubilant Pharmova (530019) Q4 13/14 earnings summary

Executive summary

• FY2014 consolidated revenue grew 12% YoY to ₹58,034 million; EBITDA was ₹10,267 million and reported PAT ₹1,090 million.

• Normalised PAT, excluding ₹2,145 million of exceptional items, was ₹3,235 million; international revenue represented 75% of total.

• Life Science Ingredients drove growth, while Pharmaceuticals faced lower CMO profitability amid regulatory issues; guidance called for stronger growth in both segments.

Financial highlights

• Revenue from operations rose 12% to ₹58,034 million from ₹51,660 million; volume growth contributed 6%.

• EBITDA was ₹10,267 million versus ₹10,858 million; EBITDA margin was 17.7%.

• Reported PAT was ₹1,090 million versus ₹1,527 million; normalised PAT was ₹3,235 million versus ₹3,449 million.

• Basic EPS was ₹6.85; normalised EPS was ₹20.31, excluding ₹2,145 million of exceptional items.

• International revenue grew 13% YoY to ₹43,261 million, 75% of revenue; regulated markets contributed 60% of revenue and grew 8%.

Outlook and guidance

• Expected strong growth momentum in both segments, supported by launches, better pricing and capacity utilisation.

• Pharmaceuticals outlook depended on Montreal warning-letter resolution, Spokane compliance progress, generic launches, improved pricing and expected Ruby-Fill launch subject to approval.

• Life Science Ingredients growth expected from higher utilisation, better pricing and entry into new geographies; capital spending to remain prudent, with debt reduction and stronger cash balances as priorities.