|
Unichem Laboratories Standalone net sales in Q1'FY14 was flat at Rs 262.20 crore on the back of fall in international sales (-5%) and subdued growth from the domestic market (2%). However, margins expanded 110 bps YoY to 19.1% and accordingly Operating profit grew by 6% YoY to Rs 50.86 crore. After the 11% growth in other income to Rs 7.61 crore, PBIDT grew by 7% YoY to Rs 58.47 crore. After effect of the meager interest cost and rise in depreciation (29%), was offset by the lower effective tax rate (down by 370 bps YoY to 23.5%), PAT grew by 9% YoY to Rs 36.10 crore.
Notably, the flat growth in sales during the quarter has come on high base in June 2012 quarter, where in net sales grew by 41% to Rs 263.3 crore and net profit grew by sharp 112% to Rs 33.14 crore.
- Flat Growth in Sales on YoY, But grew by 9% QoQ:
The sales growth was flat at Rs 265.58 crore for the quarter ended June 2013 on the back of sharp fall in business from the International formulations (-14%). Whereas Domestic branded Formulations grew by 4.2 % on YoY while on sequential quarter it grew by 23.5 % during the quarter. The Indian Pharmaceuticals domestic formulation market grew by 7.8% for the quarter ended June 2013 whereas the Unichem grew by 5.9% for the same period. However, the sales grew by 9% to Rs 262.20 crore for the same period.
- Margins Improve – EBIDTA grew by 7%:
The margins expanded by 110 bps YoY to 19.1% on the back of fall in consumption cost (down by 230 bps YoY), other expenses (down by 140 bps YoY) despite the increase in staff cost (270 bps YoY) despite the rise staff cost (up by 270 bps YoY) as percentage to sales and net of stock adjustments. As a result, Operating profit grew by 6% YoY to Rs 50.86 crore. After the 11% growth in other income to Rs 7.61 crore, PBIDT grew by 7% YoY to Rs 58.47 crore.
- Lower tax rate - PAT grew by 9%:
With the meager interest cost (Rs 7.61 crore vis-à-vis Rs 6.85 crore) and after the rise in depreciation (29% YoY to Rs 10.68 crore), PBT grew by 4% YoY to Rs 47.17 crore. Thank to the lower tax rate compared to the corresponding previous quarter (down by 370 bps YoY to 23.5%), PAT grew by 9% YoY to Rs 36.10 crore.
- Revenue Mix – Domestic grew by 2%, International decline by 5%:
The Sales from the domestic business grew by Subdued 2% YoY to Rs 179.61 crore for the quarter ended June 2013. This was due to Sluggish growth in domestic formulation business (4% YoY to Rs 175.60 crore) coupled with sharp fall in domestic API business (down by 47% YoY to Rs 4.01 crore) for the same period. Also, the sales from the International business declined by 5% YoY to Rs 82.60 crore on the back of sharp fall in formulation business (down by 14% YoY to Rs 56.29 crore) despite good growth from API business (22% YoY to Rs 26.30 crore).
Standalone Yearly Performance:
The Sales grew by 25% YoY to Rs 1005.22 crore for the year ended March 2013. Notably, margins expanded by 260 bps YoY to 18.5% and after this operating profit grew by sharp 46% YoY to Rs 185.68 crore. After 50% growth in other income to Rs 14.07 crore, PBIDT grew by 46% YoY to Rs 199.74 crore. With fall in interest cost by 25% YoY to Rs 2.48 crore and after 23% rise in depreciation to Rs 34.82 crore, PBT grew by 54% YoY to Rs 162.45 crore. Further, after the decline in effective tax rate (140 bps YoY to 20.3%) PAT grew by 57% YoY to Rs 129.60 crore.
Other Information:
- The Other income includes forex gain of Rs 5.22 crore in Q1'FY14 compared to Rs 5.59 crore in Q1'FY'13.
Valuation:
- The scrip was down by 3.78% to Rs 160.30 at BSE, India on 22nd July 2013.
|