Financial Information:

Vivimed consolidated net sales grew by sharp 110% YoY in Q4'FY 12 to Rs 251.06 crore. The growth in sales was driven by sharp jump in sales from core Pharma business (411% due to Uquifa acquisition) despite deceleration in Specialty chemicals (6%). Also, margins improved by over 70 bps YoY to 18.7% and after this operating profit grew by 117% to Rs 47.18 crore. However, after increase in interest cost by 15% to Rs 8.10 crore and depreciation by sharp 277%, PBT grew by excellent 131% to Rs 25.62 crore. Further, after accounting to Rs 3.33 crore as provision for taxation (against tax credit of Rs 1.07 crore) there was robust 83% growth in net profit to Rs 22.30 crore.

Highlights of the Call:

• Revenues from Core Pharmaceuticals business (68% of sales) witnessed 411% jump to Rs 170.59 crore for the quarter ended March 2012. However, the revenues from Specialty chemicals declined by 6% YoY to Rs 81.37 crore for the same period.

• For the Full year, net sales were at Rs 668.31 crore (up by sharp 61%), EBIDTA was at Rs 132.98 crore (up by 56%) and net profit was at Rs 63.14 crore (grew by 29%).

• The revenues from API's stood at Rs 140 crore for FY'12.

• The Company has acquired Uqifa in November 2011 and Uquifa numbers included in Q4'FY 12 and FY'12 (4 months sales during the year). Importantly, Uqifa had 3 US FDA approved facilities i.e. 2 in Spain and 1 in Mexico. Also, there was lot of approvals in pipeline with the regulatory authorities. Notably, with the backward integration it expected to be key growth driver for Vivimed Labs going forward.

• The slowdown in specialty chemicals business is due to sluggish growth from ISP alliance.

• It is increasingly focusing on the branded formulations going forward.

• The Company is next exporter and hedges around 20-30% of the revenues.

• The Capex was Rs 140 crore for FY'12. Notably, the company invested Rs 50 crore for the land acquisitions for the SEZ and Rs 80 crore in productive assets at various facilities.

• The Company had raised around USD 7.5 million as FCCBs and USD 12.5 million as term loan for its expansion plans from IFC.

• The projects include expansions in existing sites in Bidar, Karnataka; Bonthapally, Andhra Pradesh and Greenfield projects in Choutuppal, Andhra Pradesh and in an SEZ in Srikakulam, Andhra Pradesh.

• Recently, it had raised around USD 45 million debt and USD 25 million for Uqifa acquisition and remaining for the expansion plans.

• The Consolidated debt increased to Rs 570.15 crore as on 31^st March 2012 compared to Rs 306.98 crore as on 31^st March 2011.

• The margins were slightly down during the year due to the impact of acquisitions (Uquifa margins were at 14-15%). However, it expects improvement in the margins going forward.

• In the specialty space, it is looking at existing areas as well as Inorganic growth. In Pharma space it plans to focus on expanding in regulatory markets and domestic markets.

• The board of directors has recommended a dividend of Rs 3 per equity share (30%) for the financial year ended 31^st March 2012.