Marksans Pharma (MARKSANS) Q4 13/14 earnings summary

Executive summary

• FY14 marked sustained profitable growth after the prior-year turnaround: consolidated revenue rose 43.70% YoY to ₹629 crore and PAT rose 56.73% to ₹71.91 crore.

• Performance was supported by product approvals and launches, growth across OTC and prescription medicines, stronger distribution, and contributions from acquired subsidiaries.

• 90% of revenue came from regulated markets; formulations generated all revenue, with IP-led products at 80% and CRAMS at 20%.

Financial highlights

• Consolidated revenue was ₹629.997 crore versus ₹438.422 crore in FY13; consolidated PAT was ₹71.908 crore versus ₹45.884 crore.

• Standalone turnover increased 63.78% to ₹314.945 crore; standalone PAT was ₹55.557 crore versus ₹39.583 crore.

• Consolidated EBITDA increased 64.32% YoY; EBITDA margin reached 19.13%, up 247 bps.

• Standalone finance costs rose 50.14% to ₹15.213 crore, reflecting FCCB foreign-exchange provisioning and bank charges.

• Operating cash flow was ₹64.84 crore consolidated, versus ₹38.56 crore in FY13; cash and bank balances rose to ₹46.95 crore.

Outlook and guidance

• FY15 priorities: expand across Europe with a stronger Germany focus, grow emerging markets, increase US retail reach and customer-wallet share, and pursue further product approvals.

• US revenue contribution was targeted to rise from 15% to 33% over three years; soft-gel products were expected to increase from less than 20% of revenue.

• Management targeted ₹1,000 crore revenue in the coming years and planned to liquidate debt.

• US filings were expected at about half a dozen products annually; filing across geographies was intended to offset approval delays.