• Good growth in Sales, Margins Expand: The Sales grew by 19% YoY to Rs 746.76 crore for the quarter ended September 2014. The Sales from the core Pharmaceuticals business grew by 20.4% during the quarter. Notably, Operating Profit Margins expanded by 390 bps YoY to 22.1% on the back of sharp fall in consumptions cost (down by 590 bps YoY) and lower other expenses (decline by 100 bps YoY) despite increase in staff cost (up by 30 bps YoY) as percentage to sales and net of stock adjustments. Eventually, Operating profit grew by strong 45% to Rs 164.94 crore.
• PAT grew by 27% YoY: After 9% fall in other income to Rs 35.70 crore, EBIDTA grew by 31% YoY to Rs 200.64 crore. With higher depreciation (up by 11% YoY to Rs 5.49 crore) and nil EO loss (as against Rs 0.77 crore), PBT grew by 32% YoY to Rs 195.15 crore. However, after the rise in effective tax rate (up by 240 bps YoY to 34.1%), PAT grew by 27% YoY to Rs 128.67 crore.

Standalone Nine Months Performance:

The Sales grew by subdued 6% YoY to Rs 2016.41 crore for the nine months ended September 2014. Also, OPM fell by 200 bps YoY to 19.2% and after this Operating profit was declined by 4% YoY to Rs 386.75 crore. After lower other income (down by 21% YoY to Rs 120.42 crore) and higher depreciation (up by 5% YoY to Rs 14.75 crore), PBT before EO was down by 9% YoY to Rs 492.42 crore. After adjusting for EO gain Rs 17.74 crore in the corresponding previous period, PBT fell by 12% YoY to Rs 492.42 crore. Further, after the higher effective tax rate (up by 300 bps YoY to 34.3%) PAT was down by 16% YoY to Rs 323.50 crore.

Other Information:

The scrip is hovering at Rs 2791 at BSE, India on 07^th November 2014.