Abhaya Kumar, managing director, Shasun Pharmaceuticals Ltd says that capacity debottlenecking and higher customer demand contributed to 40% y-o-y growth. He also says that the company expects 25% growth in EPS of the company in FY13.
Below is the edited transcript of his interview. Also watch the accompanying video.
Q: What factors contributed to 40% y-o-y growth for the company?
A: Capacity debottlenecking and higher customer demand which we were able to meet on time led to this growth.
Q: Did the deal from the US to supply API drugs boost your income?
A: Yes, the US deal boosted our income; in addition to that, there has been a growth in supply of MCE molecule in the UK which resulted in good profits and healthy operations.
Q: What EPS are you looking at in FY13?
A: You can expect at least 25% growth in EPS.
Q: What would lead to 25% growth; there is a buzz in the market that another sole supplier deal for a particular drug in the US has just receive USFDA approval. If you could throw some light on any such opportunities which could rise for Shashun Pharma in near future?
A: Shasun has the highest number of phase III molecules in the pipeline and drugs approval rate in the US is also increasing. So, we have more opportunities of getting into supplier position for MCE molecules.
Q: Your debt equity has improved; can you update us on debt figures?
A: Debt-equity was around 3.78 in the beginning of the year, but at the end of FY12 we are at 1.54.
Q: What is your debt target for FY13?
A: Debt will be 1.4 in FY13 because we are investing Rs 250 crore in various projects, for that we are raising some debt and internal accruals. Going forward debt to equity ratio will be less than 1.
Q: What can we expect from the US in terms of growth in FY13?
A: From the UK operations the growth will be around 10-15%, and we expect the overall growth of 30% in top-line for the company.
Shasun Pharma stock price
On November 17, 2015, Shasun Pharmaceuticals closed at Rs 428.85, up Rs 0.00, or 0.00 percent. The 52-week high of the share was Rs 432.05 and the 52-week low was Rs 209.80.
The company's trailing 12-month (TTM) EPS was at Rs 6.65 per share as per the quarter ended September 2015. The stock's price-to-earnings (P/E) ratio was 64.49. The latest book value of the company is Rs 58.85 per share. At current value, the price-to-book value of the company is 7.29.
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