Fem Care sees better yr ahead post stake sale to Dabur

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Fem Care sees better yr ahead post stake sale to Dabur

A Ramnathkar, Joint MD of Fem Care Pharma said the company’s margins and profits were up as the summers normally upped its sales. Also, she said, the company has introduced new products. Dabur India acquired a substantial stake in the company and Ramnathkar sees a better year ahead.

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Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » ALSO READ See latest News about Fem Care Pharma See previous management interviews See what other Experts & Brokerages are saying about Fem Care Pharma BSE | NSE 01/01/70 Are Mutual Funds betting on ?

Fem Care Pharma , a manufacturer of consumer and dermatological products, operates in three segments including fairness bleaches, hair removing creams, liquid soaps and other cosmetic products. The company's FY09 sales were up 15% at Rs 107.5 crore verus Rs 93.5 crore and it's net profit stood at Rs 10.65 crore versus  8.01 crore. Commenting on the results Sunita A Ramnathkar, Joint MD of Fem Care Pharma, said the company's margins and profits were up as the summers normally upped its sales. Also, she said, the company has introduced new products.

Dabur India acquired a substantial stake in the company and Ramnathkar sees a better year ahead.

Here is a verbatim transcript of the exclusive interview with Sunita A Ramnathkar on CNBC-TV18. Also watch the accompanying video.

Q: As an FMCG (Fast Moving Consumer Goods) product the company has weathered the storm very well, it's sales are up 15% for FY09 and margins a tad higher at 14.9 It's net profit also came in a good 20% or 25% higher at Rs 10.5 crore versus Rs 8 crore. Is this a run rate that can be maintained in FY10 as well? Can the sales growth be better?

A: Better because we are bringing up new products and we are stabilising on the old products. Thankfully nobody has stopped bleaching and everything seems to go well for us.

Q: Our CNBC-TV18 Boston Consumer Confidence index saw pretty negative numbers for the month of May, it was actually a contraction of 5.8% odd and there were indications that discretionary spend was pretty slow. What's your outlook on that front? Do you sense the concerns have been overdone and over the next couple of months do you sense it will be pretty positive?

A: I do not know about the other FMCG products but our season is summer; people bleach in summer, they remove hair in summer because it's the swimming months and a lot of soap is also used in summer. So summer has been our good month and we has very good sales in April-May-June otherwise also. In every year our sales have been highest during the summer. So summer is our season, I do not know about the other FMCG products.

Q: Let's look at the other two parts of your business - pharma and speciality chemicals? How is business panning out over there? There was an EBIT (Earnings Before Interest & Tax) loss in the speciality chemicals business. What percentage of your business comes from speciality chemicals and how is it growing?

A: Very little. Speciality chemicals hardly contribute to 5-10% of our business and as speciality chemicals are generally exported, we had a very good export market which has taken a hit. So speciality chemicals is a tad down. Pharma has been good; in fact pharma has grown and I have nothing to complain about because it's a steady growth. As it is it contributed to only 20% of our business, so pharma is okay but OTC (Over the Counter) is the major jump.

Q: You have Dabur India acquiring a substantial stake in your company. With that kind of support would there be a seminal leap in your sales either in FY10 or in FY11?