Jubilant Pharmova (530019) Q4 14/15 earnings summary

Executive summary

• FY15 revenue was ₹58,262 million, broadly flat YoY; EBITDA fell to ₹7,317 million and reported net loss was ₹578 million. Normalised loss was ₹97 million.

• Results reflected the Spokane FDA warning letter and voluntary shutdown, Symtet unabsorbed costs, and lower Advanced Intermediates volumes and margins amid China anti-dumping duties.

• Radiopharmaceuticals and Nutritional Products grew strongly, while the two principal segments contributed 46% of revenue from Pharmaceuticals and 54% from Life Science Ingredients.

Financial highlights

• Revenue from operations was ₹58,262 million vs ₹58,034 million in FY14; price improvement of 6% supported revenue.

• EBITDA was ₹7,317 million vs ₹10,266 million; reported PAT was a loss of ₹578 million vs profit of ₹1,090 million.

• Adjusted for exceptional items, normalised PAT was a loss of ₹97 million vs profit of ₹3,235 million in FY14; FY15 EPS was (₹3.63), normalised EPS (₹0.61).

• International revenue was ₹41,367 million, 71% of total; domestic revenue was ₹16,895 million and grew 12% YoY.

• Exceptional items included ₹251 million MTM book loss, ₹419 million interest-swap income, ₹448 million FCMITDA amortisation, ₹51 million goodwill impairment, ₹640 million asset-disposal loss and ₹490 million FX gain.

Outlook and guidance

• FY16 Pharmaceuticals growth expected from new markets and launches in Solid Dosage Formulations, higher API volumes, CMO normalisation and continued Radiopharmaceuticals strength.

• Life Science Ingredients growth expected from higher Nutritional Products and Fine Ingredients volumes; improved profitability anticipated across key businesses.

• Balance-sheet strengthening and prudent capex remain priorities; management consolidation is intended to sharpen segment focus and operating performance.

• Higher market prices for some Nutritional Products and Acetyls were expected to support margin improvement in coming quarters.