Marksans Pharma (MARKSANS) Q4 07/08 earnings summary

Executive summary

• FY08 consolidated turnover reached Rs 2,639.41m vs Rs 2,419.94m; PBT rose to Rs 205.13m from Rs 93.29m, with PAT of Rs 157.19m.

• Growth included the Bell business only from its 18 Jan 2008 acquisition date, limiting comparability with FY07.

Financial highlights

• Standalone turnover was Rs 2,429.84m vs Rs 2,398.87m, up 1.29%; standalone net profit was Rs 149.27m vs Rs 69.26m.

• Consolidated cost of sales was Rs 2,001.81m vs Rs 1,967.40m; administration, selling and distribution expenses rose to Rs 315.78m from Rs 295.51m.

• Standalone other income fell to Rs 63.94m from Rs 105.03m; exchange gain was Rs 38.54m vs Rs 27.78m.

• Consolidated net profit after tax was Rs 157.19m, with Rs 3.00m attributed to minority interest.

Outlook and guidance

• Outlook described as encouraging, supported by integrated R&D, API and formulations operations, wider regulated-market coverage and expansion into therapeutic segments.

• Priorities included rapid ANDA, MA, DMF and COS filings; CRAMS expansion; commercialization of an API pipeline exceeding 10 products; and further acquisitions and licensing.