Marksans Pharma (MARKSANS) Q4 14/15 earnings summary

Executive summary

• FY15 delivered profitable growth: consolidated revenue rose 26.46%, EBITDA 55.12% and post-tax profit 52.13% YoY; EBITDA and PAT margins also improved.

• Growth was led by the US and UK, regulated-market sales and niche products; management highlighted US expansion, new product approvals and acquisition-led growth as priorities.

Financial highlights

• Consolidated revenue from operations was ₹7,966.88 million versus ₹6,299.97 million in FY14; consolidated profit after tax was ₹1,093.97 million versus ₹719.08 million.

• EBITDA was ₹188.06 crore, up 55.12%; post-tax profit was ₹109.40 crore, up 52.13%; cash profit was ₹125.53 crore versus ₹87.60 crore.

• Standalone turnover rose 28.78% to ₹4,055.94 million; standalone net profit increased to ₹671.09 million from ₹555.57 million.

• Consolidated operating cash flow was ₹1,545.13 million versus ₹648.39 million; year-end cash and bank balances reached ₹1,852.65 million.

Outlook and guidance

• US revenue growth is expected from scaling approved ANDAs, moving toward front-end sales and increasing soft-gelatin capsule capacity; three to four niche ANDAs were targeted for FY16.

• Time Cap Labs acquisition was projected to potentially lift US revenue to US$100 million by FY18-19; its portfolio generated ~US$30 million across ~50 supplied drugs.

• Plans included expanding in Europe beyond the UK and Germany, targeting emerging markets, growing CRAMS in regulated markets and pursuing acquisitions and licensing opportunities.

• Pipeline included 11 pending US ANDAs, 10 UK/Europe filings, seven Australia filings and 121 emerging-market filings; 350+ emerging-market product approvals had been received.