Jubilant Pharmova (530019) Q4 17/18 earnings summary

Executive summary

• FY18 delivered record revenue and profitability, led by Specialty Pharmaceuticals and Life Science Ingredients; consolidated revenue rose 26% YoY to ₹75,578 million.

• Operating cash flow remained strong; debt repayment and lower net debt strengthened the balance sheet while investment plans target further growth.

Financial highlights

• Consolidated revenue was ₹75,578 million, up 26% YoY; international revenue was ₹54,169 million, or 72% of total.

• EBITDA including other income reached ₹15,584 million, up 14% YoY; profit before tax rose 16% to ₹8,591 million.

• Profit attributable to shareholders increased 12% to ₹6,428 million; consolidated EPS was ₹41.25 versus ₹36.93 in FY17.

• Consolidated operating cash flow was ₹13,032 million; depreciation, amortisation and impairment expense rose to ₹4,150 million from ₹2,914 million.

Outlook and guidance

• FY19 outlook was positive, with expected growth in Specialty Pharmaceuticals and Life Science Ingredients from new products, capacity, contracts and improved demand.

• FY19 planned capital expenditure was ₹5,500 million; R&D investment was ₹3,000 million, including ₹1,500 million for product development.

• Specialty Pharmaceuticals growth drivers include Triad’s full-year contribution at break-even profitability, new radiopharmaceutical products, sterile injectables orders and capacity, and allergy product expansion.

• Generics growth was expected from new launches and markets; Life Science Ingredients growth from demand, ongoing capacity investments, de-bottlenecking and product launches.