Marksans Pharma (MARKSANS) Q4 05/06 earnings summary

Executive summary

• FY 2005-06 sales rose 18.47% to Rs 2,918.55 million; net profit increased to Rs 228.84 million from Rs 204.06 million.

• Integration of the formulations and API businesses supported expansion across the pharmaceutical value chain and a stronger push into regulated and international markets.

Financial highlights

• Standalone turnover was Rs 29,185.45 lakh, up 18.47% YoY; profit before depreciation, tax and non-recurring items was Rs 3,936.18 lakh versus Rs 3,180.81 lakh.

• Standalone PBT was Rs 3,132.20 lakh versus Rs 2,486.33 lakh; PAT was Rs 2,288.43 lakh versus Rs 2,040.56 lakh.

• Consolidated sales were Rs 2,974.07 million versus Rs 2,528.96 million; consolidated PAT was Rs 228.91 million versus Rs 205.59 million.

• R&D expenditure increased to Rs 500.41 lakh from Rs 467.32 lakh; selling and administration expenses rose to Rs 160.30 million from Rs 131.06 million.

Outlook and guidance

• Five products developed in FY 2005-06 were planned for launch within a year; filings in progress included 3 ANDAs, 4 DMFs and 3 COSs.

• Eight biopharmaceutical products were under development; GCSF and EGF cream had Indian regulatory approval and were expected to launch in FY 2006-07.

• Priorities included US FDA benchmarking of API facilities, regulated-market filings, CRAMS, niche therapies, product licensing and expansion into new global markets.