Highlights of the call:

• On Consolidated basis, net sales higher by 18% to Rs 458.75 crore for the quarter ended September 2011. The management insisted that it has posted better than expected top line as there was impact in revenues on the back of shut down of Cephalosporin API manufacturing facility located in Alathur (Chennai).
• The production resumed at the Chennai plant after the Tamilnadu Pollution Control Board (TNPCB) revoked the earlier notice to close the unit.
• The revenues from the Formulation stood at Rs 194 crore for the quarter ended September 2011, contributing 42% to the sales. In addition, revenues from the API business stood at Rs 267 crore.
• The Company gets around 22% of revenues from the Hospira and supplies Penicillin and Carbapenems. Further, it has made the agreement in dollar terms and the rupee depreciation has benefited the Hospira.
• On consolidated basis, the forex loss stood at Rs 75.82 crore for the quarter ended September 2011. Further, it has Rs 80 crore EO income (net of tax) as write back made by the Company from the earlier provisions made for the long over due in the receivables.
• In addition to supplies to Hospira, it also retained the right to supply APIs to one more generic player in each regulated market. It also entered into a long-term agreement with a Japanese pharmaceutical company for supply of a Cephalosporin API. It also has large size contracts with the generic player in the Europe and Pfizer.
• The Management insisted that on favorable competitive landscape products such as Tazobactam-Piperacillin, Meropenem, Imipenem and robust demand from API supplies to Hospira expects good growth in revenues going forward.
• The Company expected to receive approval for the Imipenem from the US regulatory authorities in the quarter ended December 2011. However, it has already received approval for Imipenem from the European regulatory authorities. Further, It insisted that medium term triggers could be the Meropenem, modafinil and Imipenem.

• In the API (Active Pharmaceutical Ingredients) space, cumulative filings of DMFs stood at 86. The break-up of the total filings is 27 in the Cephalosporin space, 46 in NPNC (Non-penicillin, Non-cephalosporin) space and 2 in the Betalactam segment and 11 in the Carbapenems segment.
• The cumulative filings of COS (Certificate of Suitability) for the European market stood at 21 which includes 14 in Cephalosporin space, 6 in NPNC space and 1 in the Betalactam segment.
• It's cumulative ANDA filings stand at 43, includes 8 Para IV FTF (First–To–File) filings. The break-up of the total ANDAs filed is 13 in the Cephalosporin's space and 30 in the NPNC space. Interestingly, The approved ANDAs count rose to 28 (including 6 tentative approvals) as on 30^th September 2011. The break-up of the total ANDAs approved comprises of 11 in Cephalosporin space and 17 in NPNC space.
• In the EU region the cumulative count of Marketing Authorizations (MAs) filed stood at 25. The break-up of the total MA filings is 13 in the Cephalosporin space and 12 in the NPNC space. Further, the cumulative count of Marketing Authorizations (MA) approved stood at 21. The break-up of the total MA approval count is 9 in the Cephalosporin space and 12 in the Oral NPNC space.
• The Debtor days has come down by 40% and roughly to 75 days.
• The Capex expected to be in the range of 250-270 crore for the FY'12 and already incurred Rs 180 crore. Further, it expects the Capex to be Rs 200 crore for the FY'13.
• The Company is going to expand the capacity of API manufacturing facility located at Aurangabad on the back of robust demand for the Carbapenem from Hospira.
• The tax rate expected to be 20% for the FY'12.
• The Company expected to pay the outstanding FCCB's USD 117 million coming up for redemption in February 2012 through dollar denominated debt, mostly through ECB's (External Commercial borrowings). Further, it expects no delay in the repayment of the FCCB's dues.
• It expects the interest out go may increase by 5-6% after the repayment through debt. Further, it insisted it won't raise the funds through the equity and mentioned no direct dilution to repay the FCCB's as earlier mentioned.
• It expects to reach the revenue guidance Rs 2200 crore top line for the FY'12. Further, expects the EBITA margins to be around 23.5% for the FY'12.