Highlights of the Call:

The standalone revenue from operations grew by 3% YoY to Rs 278.2 crore for the quarter ended September 2014 and net profit fell by 38% YoY to Rs 22.3 crore for the same period.

The subdued growth in Sales was on the back of robust 24% growth in International business to Rs 78.9 crore despite the 4% decline in domestic formulation business to Rs 166.6 crore for the same period. Also, The Revenues from API business (Excluding captive consumption for formulation business) grew by subdued to 2% YoY to Rs 29.5 crore during the quarter.

The Domestic Formulation market on MAT September, 2014 is estimated at Rs.80565 crore {with bonus units at full value} by AWACS, reflecting a growth of 9.1% over MAT September 2013. Further, for six months ended September 30, 2014 the Domestic Formulation Market stood at Rs 42,440 crore reflecting a growth of 10.9 % over six months ended September 30, 2013.

Unichem Laboratories Limited's revenue is estimated at Rs 815 crore (AWACS MAT Sept, 2014) and growing at 10.7% with a market share of over 1% (in covered market approx 2%). For six months ended September 30, 2014 revenue is estimated at Rs 417 crore and growing at 12%.

It filed 1 DMF during the quarter. The Cumulative filings of DMFs stand at 36 as on 30^th September 2014. The Cumulative filings of ANDAs stood at 33 of which 17 ANDAs are approved (Including 2 tentative approvals). It has launched 12 products up to the end of September 2014 quarter.

The USA Subsidiary (Unichem Pharmaceuticals USA Inc) continues to show a robust sales growth, by growing over 100% on both quarterly and six monthly basis as compared to corresponding periods of previous year. It reported a profit of USD 0.36 Million for the quarter ended September 30, 2014

The Domestic portfolio grew at 13% as against 12.3% of IPM (AWACS) during the quarter. The Domestic Acute portfolio showed a robust growth of 26% as against 11.7% of IPM during the quarter. The domestic chronic portfolio showed a growth of 4% as against 13.7% of IPM during the quarter.

The growth of Domestic portfolio for H1 stood at 12% as against 10.9% of IPM (AWACS). The Domestic Acute portfolio showed a healthy growth of 25.5% as against 10.2% of IPM for the same period.

The Domestic Chronic portfolio showed a growth of 3.4% as against 12.8% of IPM for the six months period ended September 30, 2014.

The Non NLEM Portfolio showed a growth of 15.1% as against 14.1% of Represented Market (AWACS) for the quarter ended September 2014. The NLEM portfolio showed a growth of 5.3% as against 4.5% of Represented Market (AWACS) during the quarter.

The Market share of Serta (Therapy- CNS) increases by ~4.5% and improves its rank to #1 in Sertraline (Solids) segment (MAT Sept'14). The Market share of Ampoxin (Therapy- Anti Infective) improves by ~3.5% and moves up to rank #1 (MAT Sept'14).

There is Rs 10 crore of impact due to the change in distribution model to C&F (Carry & Forward) in UP (3 distributors) and Pune (one distributor) during the quarter.

With this conversation, 75% (earlier 55%) coming from the C&F and 25% coming from distributors models during the quarter. It expects to convert the remaining distributors to the C&F by the end of current fiscal.

The NLEM impact from Losar (~26% lower than last quarter) and Tricor (~27% lower than last quarter) prices is coming from the June 2014. The impact for the cardio-diabetic business due to these is Rs 8.5 crore during the quarter. This eventually impacted the growth during the quarter. However, it is realigned field force to push the product, witnessing some positive signs.

The secondary growth is much higher than the industry growth in domestic market during the quarter.

The formulation exports to the US market grew well during the quarter. Also, Other emerging markets also showing robust growth and grew by more than 20% during the quarter. It is hopeful that this will continue in coming quarters as well.

The Europe business has still been challenging during the quarter. There is no new business for contractual business here, but before H2 some new contractual business may start going forward.

The divalproex sodium (Depakote ER) product already launched the product and doing well. There is no major price increase during the quarter.

The Goa formulation plant is inspected by the US FDA last month and no major findings.

It has 2750 manpower working in the field as on 30^th September 2014.