Highlights of the Concall

• Advanced Enzyme Technologies revenue was up 38% YoY to Rs 104.3 crore in Q1FY19 against Rs 75.6 crore in Q1FY18. US, India, Asia, Europe and Others geographies grew by 72%, 9%, 38%, 38% and 176% YoY respectively

• US contributed 51% to the top-line followed by India at 41%, Asia (ex- India) at 4% and 2% revenue contribution from Europe and 2% from Others. The company expects Europe's revenue contribution to inch up to 9% in FY19

• Revenue growth was driven by Human Nutrition which was up by 42% to Rs 78.8 crore forming 78% of total revenue while Animal Healthcare grew 23% to Rs 13.4 crore forming13% of revenue and Foods segment grew 20% o Rs 5.5 crore forming 5% of total revenue. This was partially offset by decline in Industrial Processing which fell 16% to Rs 4.1 crore forming 4% of total revenue.

• EBITDA was up 64% at Rs 48.7 crore against Rs 29.7 crore in Q1FY18. EBITDA Margin was at 47% as against 39%. Net Profit rise by 91% at Rs 31.2 crore against Rs 16.3 crore in Q1FY18

• The company expects 13-15% revenue growth in FY19 with 43-44% EBITDA margin and PAT margin of 25-26%.

• Going forward the company sees big opportunity in new palm oil products, revenue for which to start kicking in from FY20

• Benefit of reduction in tax rate in the US (from 39% to 28%) will curtail the overall tax rate to a range of 26-28%.

• Top most account contributed 16% while Top 10 clients contributed around 45% to the overall revenue

• Human Nutrition business is likely to grow in low teens in the near term

• Serratiopeptidase, top product of the company contributes ~25% to the overall revenue