• Net sales grew 2.7% to Rs 344.7 crore for Q3FY'15 compared to Q3FY'14 EBITDA margin improved 152 bps on a y-o-y basis to 17.5% while net profit increased 8.3% to Rs 20.6 crore.

• Q3FY'15 net Sales has been flat on a y-o-y basis due to delays in existing product ramp up in both the healthcare and specialty chemicals segments. However, the profitability across segments has improved significantly due to benefits of change in product mix, ongoing cost optimization initiatives and lower raw material prices

• EBITDA margins improved 152 bps on a y-o-y basis. EBITDA growth of 12.4% was recorded despite flat revenues. During 9M FY2015, EBITDA grew by 11.1% with 16.7% margins, an improvement of 112 bps

• Depreciation during the quarter was higher on account of the revision in the useful lives of the fixed assets as per the new Companies Act. Depreciation for Q3FY'15 was higher by Rs. 2 crore

• Finance cost for the quarter was Rs. 19.4 crore compared with Rs. 15.6 crore in Q3FY'14 and Rs. 19.7 crore in Q2FY'15. This y-o-y increase was due to higher INR borrowings in the standalone entity

• Net Profit margin of 6.0% was benefited by deferred tax assets in a healthcare subsidiary

Healthcare Segment

• Total revenue stands at Rs. 234.4 crore up 2.9% y-o-y and 9.1% q-o-q; EBIT margin of 6.4%

• In the API segment, manufacturing volume has shown consistent improvement over the last quarter. The company focused on optimizing capacity utilization and harnessing the robust order book

• Going forward, API business is expected to see improved profitability as benefits of a strong order book and lower raw material prices start to make contribution

• In the finished formulations (FDF) segment, performance improved significantly due to volume growth in the India institutional business as well as brand extensions in the Pain Management and Antibiotics brand formulations

• The FDF business will remain an area of growth with new product launches in the RoW and CIS markets. In the regulated markets new product filing will be the key priority and an area for investment

• Total revenue stands at Rs. 109.3 crore up 10.7% q-o-q but flat y-o-y; EBIT margin of 24.5%

• Margins continue to improve due to strategic portfolio rationalization and ongoing efforts to optimize operating expenses

• In the personal care segment, manufacturing volumes were largely driven by the skin and hair care products. These helped offset the subdued off-take in the older products which have been deferred due to customer specific issues

• In the home care segment, volume for antimicrobials remain muted which was partly offset by increased volume of specialty dyes

• Industrial segment remained flat but photochromics continued to perform well driven by new product offerings. This has also helped profitability due to the continuing change in the product mix in favour of higher value added products

"Q3 FY2015 has been a quarter of stabilizing operations at Vivimed Labs. While the topline has been flat, our ongoing portfolio rationalization and cost optimization efforts have yielded meaningful results. We reported significant profitability improvement with EBITDA margin of 17.5%, an increase of 152 bps over same period last year.

In the API segment, we have a strong order book, both in the generic and CMO businesses, which gives us the confidence to continue the growth momentum. Our formulations business reported strong performance with India institutional volumes picking up and select brand expansions. Specialty Chemicals business continued to be robust with improving profitability levels as we focus on new product launches for existing customers as well as expand our customer base.

We will remain focused on investing in our global R&D capabilities and new product filings to build a strong product pipeline to drive growth in the coming year."