Highlights of the call:

The sales grew by moderate 10% YoY to Rs 290.99 crore for the quarter ended June 2014 and PAT fell by 16% YoY to Rs 30.20 crore for the same period. The growth in Sales was primarily driven by robust 22% growth in Exports business to Rs 103 crore despite the subdued 4% growth in domestic business to Rs 187.99 crore.

The domestic formulation business grew by 2.5% to Rs 180 crore for the quarter ended June 2014. However, The Revenues from International Formulation Business grew by robust 33% to Rs 74.65 crore for the quarter ended June 2014. Also, The Revenues from API business (Excluding captive consumption for formulation business) grew by 12% to Rs 33.82 crore for the same period.

The volume growth is 6.2% as against market volume growth is 3.8%, price growth is 1% as against market price growth is 1.6% and new product growth is 3.5% during the quarter.

The Unichem Pharmaceuticals USA Inc., the 100% US Subsidiary clocked net sales of USD 4.67 Million for the quarter ended June 30, 2014 (corresponding period of the previous year: USD 2.23 Million) showcasing a robust growth of 109.4 %. The subsidiary turned profitable, having reported a Net Profit of USD 0.02 Million for quarter ended June 30, 2014 (corresponding period of the previous year: Net Loss of USD 0.21 Million)

It filed 2 ANDA's with US FDA during the quarter taking the total filings to 33 as on 30th June 2014. It has received 17 approvals (2 tentative) as on date. Also, the Cumulative filings of DMFs stand at 35 as on date.

The Company launched 10 products in the US market. It has 2 more products expected to launch in the current quarter of which shipment already started.

The Domestic Formulation market on MAT June 2014 is estimated at Rs 77,529 crore {with bonus units at full value} by AWACS, reflecting a growth of 6.7% over MAT June 2013. Further, for the quarter ended June 30, 2014 the Domestic Formulation Market stood at Rs 20065 crore reflecting a growth of 8.8 % over quarter ended June 30, 2013.

The Unichem Laboratories Limited's domestic revenue is estimated at Rs 799 crore (AWACS MAT June, 2014) and growing at 8.9% with a market share of over 1% (in covered market over 2%). For the quarter ended June 30, 2014 revenue is estimated at Rs 202 crore and growing at 10.5%.

During the quarter, The Company Domestic portfolio grew at 10.7% as against 8.8% of IPM. Further, the Domestic Acute portfolio showed a robust growth of 24.5% as against 7.7% of IPM for the same period. However, Domestic Chronic portfolio showed a growth of 2.8% as against 11.5% of IPM during the quarter.

The Acute portfolio which restructured last year is showing the results. Further, the monsoon setting in the Q2 will be much better than Q1.

The Chronic also added few verticals last year looks to be good. The Company expected to add 150 more MR's in the Q3'FY15 which budgeted last year. This expected to result better growth for chronic portfolio.

The Non NLEM Portfolio showed a healthy growth of 12.2% as against 7.7% of Represented Market (MAT May' 14). However, the NLEM portfolio de-grew by -7.9% as against -10.3% of Represented Market (MAT May '14).

The impact due to the DPCO 2013 is Rs 21 crore on annualized basis for the last fiscal. The new NLEM impact expected to be lower than last year on the Company. The any NLEM price hikes expected to factor in the Q2&Q3.

It has done with 95% domestic business restructuring. The remaining restructuring in distribution expected to complete by Q3. After all the internal corrections and supply chain corrections, it expected to produce desired results. Further, it expects domestic business to grow much better than Industry going forward.

The European business grew by 9.5% during the quarter. This growth expected to grow going forward.

The EU commission decided to impose fine on Niche/Unichem (Jointly and severally) contending that it had acted in breach of EU Antitrust rules. The EU reached this conclusion because its subsidiary Niche Generics agreed to settle financially crippling patent litigation with Laboratories at the beginning of 2005. However, this has been challenged in EU courts recently.