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Unichem Laboratories Standalone net sales grew by robust 33% in Q2'FY'13 to Rs 261.17 crore on the back of sharp 72% growth in export business coupled with good 19% growth in the domestic business. Also, with 470 bps YoY expansion in margin to 20% led to sharp 74% growth in operating profit to Rs 52.93 crore. However, after 34% fall in other income to Rs 2.19 crore PBIDT grew by 63% YoY to Rs 55.12 crore. After accounting meager interest cost and after 19% increase in depreciation, PBT grew by robust 78% to Rs 46.24 crore. Further, after the fall in effective tax rate (over 210 bps YoY to 24.2%) PAT grew 83% to Rs 35.07 crore.
Domestic Formulation business on track: The 33% growth in net sales for the quarter ended September 2012 was largely driven by sharp 72% growth in International business (32% of sales) to Rs 84.54 crore. Also, the domestic formulation business which was under pressure earlier due to attrition in field force has doing well after the realignment initiatives. Eventually, Revenues from domestic business (67% of sales) grew by 19% YoY to Rs 176.62 crore for the same period.
Sharp growth in EBIDTA: There was 470 bps YoY margin expansion to 20% on the back of sharp fall in other expenses (470 bps YoY) and decline in staff cost (200 bps YoY) despite the rise in consumption cost (210 bps YoY) as percentage to sales and net of stock adjustments during the quarter. As a result, operating profit grew by sharp 74% YoY to Rs 53.93 crore. But with 34% fall in other income to Rs 2.189 crore, PBIDT grew by 63% YoY to Rs 55.12 crore.
Fall in effective tax rate boosts PAT growth: After accounting to the meager interest cost (Rs 0.66 crore vis-à-vis Rs 0.87 crore) and after 19% increase in depreciation to Rs 8.21 crore, PBT grew by 78% YoY to Rs 46.24 crore. Further, after 210 bps fall in effective tax rate to 24.2%, PAT grew by 83% YoY to Rs 35.07 crore.
Revenue Breakup: The 19% growth in domestic business driven by the 20% YoY growth in domestic formulations business to Rs 172.11 crore for the quarter ended September 2012 despite 11% fall in API business to Rs 4.52 crore. Further, The Company expects domestic formulation to grow above the market for FY'13 and as well for FY'14. Also, the sharp 72% growth in international business during the quarter was on the back of 76% growth in international formulation business to Rs 58.11 crore coupled with 65% growth in API business to Rs 26.44 crore.
Half Yearly Performance:
Net sales grew by robust 37% YoY to Rs 524.47 crore for the half-year ended September 2012. Also, margins expanded by 460 bps YoY to 19.4% and accordingly there was 79% growth in operating profit to Rs 102.83 crore. After 35% growth in other income to Rs 6.94 crore, PBIDT grew by 76% to Rs 109.77 crore. Even after the 13% increase in interest cost to Rs 1.52 crore and 21% increase in depreciation to Rs 16.48 crore, PBT grew by robust 93% YoY to Rs 91.77 crore. Further, after 110 bps fall in effective tax rate to 25.7% PAT grew by 96% YoY to Rs 68.22 crore.
Other Information:
- The Scrip was hovering at Rs 195.35 at BSE, India on 23rd October 2012.
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