Suven Life Sciences aims to clock 22-25 percent revenue growth in FY14.
Venkat Jasti, CEO, Suven Life Sciences is hopeful that the company will report growth of 22-25 percent in FY14 revenues. The company saw a jump of 26 percent in FY13 revenues.
“We will be having around same percentage of growth as far as the revenue is concerned. The growth in profit after tax (PAT) will be 30-40 percent for FY14,” he said in an interview to CNBC-TV18.
The company reported a standalone sales of Rs 74.70 crore and a net profit of Rs 8.63 crore for the quarter ended Mar '13
Below is the verbatim transcript of Venkat Jasti’s interview on CNBC-TV18
Q: There is about 26 percent growth in your revenues for FY13. What will be the outlook for FY14 and is there any kind of guidance that you can give?
A: We will be having around same percentage of growth as far as the revenue is concerned, like 22-25 percent. The growth in PAT will be 30-40 percent for FY14.
Q: The contract research and manufacturing services (CRAMS) manufacturing space, there the revenue growth has been quite muted and quite a bit of your revenue growth is led by services. What is your outlook for CRAMS?
A: In our case compared to the regular vanilla CRAMS, we are into the innovation supply chain for innovators. It looks good even though in the contract research we say in terms of services but it is actually a contract research leading to some kind of a manufacturing and supply. So, it is a combination of service and CRAMS put together. On that our margins are much higher than the average CRAMS.
Q: Your profit growth expectation is much higher than your revenue growth expectation. Where are you expecting this improvement in margin or which segment are you expecting a lot of traction?
A: We are into the contract research for the innovator companies. One of the molecule has moved into phase III, in that molecule we are going to supply the intermediate for the phase III molecule where the value addition is much higher than the regular ones. Hence, we expect the growth of 42-45 percent in the bottom-line for the next year.