Marksans Pharma (MARKSANS) Q4 11/12 earnings summary

Executive summary

• FY12 standalone revenue was ₹15,459.13 lakh; net loss widened to ₹18,106.62 lakh, primarily reflecting asset impairment and investment diminution. Consolidated revenue rose to ₹35,554.87 lakh, while consolidated net loss narrowed to ₹17,883.97 lakh.

• Formulations were the sole standalone business after the API division sale in the prior year; export revenue increased, while domestic revenue declined.

Financial highlights

• Standalone revenue from operations was ₹15,459.13 lakh versus ₹15,469.77 lakh in FY11; profit before tax was a loss of ₹18,290.30 lakh versus a loss of ₹13,272.60 lakh.

• Standalone net loss was ₹18,106.62 lakh versus ₹13,757.24 lakh in FY11; basic EPS was (₹4.92) and diluted EPS (₹4.70), versus (₹5.92) for both in FY11.

• Consolidated revenue was ₹35,554.87 lakh versus ₹30,457.81 lakh; consolidated net loss after minority interest was ₹17,883.97 lakh versus ₹22,324.45 lakh.

• Standalone other expenses rose to ₹17,105.90 lakh, including ₹9,477.27 lakh impairment and ₹4,686 lakh investment diminution; finance costs increased to ₹4,908.76 lakh, including FX losses on FCCBs.

Outlook and guidance

• Management expected satisfactory performance in coming years, citing formulation growth, export reach, low-cost manufacturing, global regulatory approvals and R&D/dossier capabilities.

• R&D priorities included developing new generic products and filing ANDAs and dossiers in the US, Europe and emerging markets; dossier filings had begun for Russia and CIS markets.