|
Unichem Laboratories announced the results for the quarter ended December 2013 and held a conference call on 21st January 2014 to discuss the results and future growth strategies. The Key takeaways of the call are as follows.
Highlights of the call:
The Company's standalone revenues grew by 14% YoY to Rs 264.9 crore for the quarter ended December 2013.
The Revenues from Domestic Branded Formulations grew by 9% YoY to 166.4 crore during the quarter. The Revenues from International Formulation business grew by 4% YoY to Rs 61.1 crore for the same period. The Revenues from API business grew by sharp 81% YoY to Rs 35.4 crore for the quarter ended December 31 2013.
In spite the higher NLEM impact and higher material and R&D cost, it is able maintain the margins at the 18% during the quarter.
The Domestic Formulation market on MAT December 2013 is estimated at Rs 73893 crore {with bonus units at full value} by AWACS, reflecting a growth of 6 % over MAT December 2013. Further, for the quarter ended December 2013 {October to December} the Domestic Formulation Market stood at Rs 19028 crore reflecting a growth of 4.9% over quarter ended September 2013.
The Unichem Laboratories revenues is estimated at Rs 756 crore (AWACS MAT December 2013) and growing at 6.5% with a market share of 1.02% (in covered market 2.1%). For the quarter ended December 2013 {October to December} revenues is estimated at Rs 203.4 crore and growing at 12.4 %.
There was expected bounce back in the IPM growth in the Q3 but that has not happened due to the continued NLEM impact. It also indicates that expected trend in Q4 may be the same, and expects modest growth.
In the Q2 pricing policy impact is 5.7 crore and 5 crore for the Q3'FY14. The annualized impact will be 20 crore (Rs 14-15 crore for the current fiscal).
It also indicated that trade related margins issues were settled with retailers and stockists during the quarter. The net-net impact on the current average sale is 68-70 lakh per month.
The anti-infective market is growing at low pace now, but it expects to grow at high single digit to low double digit growth going forward.
In API's, the exports were boosted by the base effect and the previous order backlog. The expansion is going on to overcome the capacity constraints.
The Company has filed 28 ANDA's with USFDA and got approval for 16 ANDA's (2 tentative) as on 31st December 2013. It has launched 10 products in the market and the remaining expected by end of Q4. The US market is expected to be promising going forward.
The off take from the US CRAMS not great but slightly improved from the past two quarters.
The Western European markets the tender business is growing.
The formulation facility expansion will happen in the Goa facility, for API's it is looking for acquiring new capacities.
During the quarter the Company received the full proceeds from sale of Indore SEZ plant to Mylan Laboratories Limited amounting to Rs 160.5 crore.
The company has approved plans and projects relating to API, Biotech (R & D) and Formulations at different stages of implementation to enhance capacities for future growth. The capital expenditure requirements are being met through internal accruals and proceeds from sale of Indore SEZ plant to Mylan Laboratories Limited.
The Capex spent is Rs 50-60 crore for the nine months ended December 2013.
The R&D spend is 5% of Sales for the quarter. The R&D expected to be 4-5% for the FY'15.
The tax rate expected to be 22-23% for the FY'15.
The Company expects 200-300 bps improvement in revenue growth for FY'15. This is expected to be on the back of initiatives taken on the chronic and acute care is expected to show good growth.
The Company Board has recommended interim dividend of 200% i.e, Rs 4 per equity share of FV Rs. 2 each during the quarter.
|