Jubilant Pharmova (530019) Q4 16/17 earnings summary

Executive summary

• FY17 delivered record revenue and profits, supported by differentiated specialty injectables; strong operating cash flow funded debt reduction and strategic growth plans.

• Revenue from operations reached ₹60,063 million, up 2% YoY; international revenue was ₹42,468 million, or 71% of total.

Financial highlights

• Consolidated EBITDA rose 9% YoY to a record ₹13,701 million; net profit was ₹5,746 million and profit attributable to shareholders was ₹5,757 million, up 47%.

• Profit before tax increased to ₹7,376 million from ₹5,422 million; finance costs fell 8% to ₹3,411 million and depreciation and amortisation fell to ₹2,914 million from ₹3,467 million.

• Net cash from operating activities was ₹12,685 million, compared with ₹10,989 million in FY16.

• Materials costs declined 6% to ₹19,995 million, while employee costs rose 9% to ₹12,309 million and other expenditure increased 7% to ₹9,521 million.

Outlook and guidance

• FY18 revenue and profitability were expected to improve, led by momentum in Specialty Pharmaceuticals-Injectables and Life Science Ingredients.

• Pharmaceuticals growth drivers included existing products, new launches, sterile injectable CMO and Allergy Therapy Products ramp-up, plus generics launches and capacity expansion.

• Life Science Ingredients outlook reflected better demand, a firm price environment, capacity expansion and new products; Drug Discovery Solutions growth was expected from new customers and milestone revenue.

• Continued debt reduction and improvement in key financial ratios remained priorities; strategic investments were planned without increasing debt levels.