Jubilant Pharmova (530019) Q4 15/16 earnings summary

Executive summary

• FY16 marked a sharp profitability recovery: consolidated EBITDA rose 76% YoY to ₹12,915 million, with 22.3% margin; PAT was ₹4,315 million versus a ₹578 million loss in FY15.

• Revenue was broadly flat at ₹58,023 million; pharmaceuticals growth offset lower Life Science Ingredients sales. International markets contributed 73% of revenue.

• Growth plans centered on specialized pharmaceutical products, operational efficiency, stronger margins and continued debt reduction.

Financial highlights

• Consolidated revenue from operations was ₹58,023 million versus ₹58,262 million in FY15; total expenses fell to ₹52,491 million from ₹57,803 million.

• EBITDA increased 76% YoY to ₹12,915 million from ₹7,317 million; EBITDA margin was 22.3% versus 12.6%.

• PAT was ₹4,315 million and EPS ₹27.09, versus a ₹578 million loss and EPS of negative ₹3.63 in FY15.

• International revenue was ₹42,595 million, or 73% of total; developed markets contributed ₹35,432 million, or 61%.

• Operating cash flow was ₹10,923 million, compared with ₹7,833 million in FY15.

Outlook and guidance

• FY17 pharmaceuticals growth expected from generics and radiopharmaceutical launches, ROW growth and higher sterile-injectables CMO utilisation.

• Life Science Ingredients margins expected to improve from H2 through plant retrofits that enhance mix, alongside cost-reduction initiatives.

• R&D priorities include differentiated radiopharmaceutical and solid-dose filings and more ROW filings; operating cash flow and debt reduction remain priorities.