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May 15, 2012, 05.11 PM IST
Dishman Pharmaceuticals posted a 13.24% topline growth in the fourth quarter of FY12 and reported a consolidated net profit of Rs 312.94 million for the quarter ended 31 March, 2012, up 37.30% from Rs 227.92 million in the corresponding quarter last year.
However, the company reported flat revenues for Q4. In an interview with CNBC-TV18, JR Vyas, MD of Dishman Pharma explained that there is nothing to worry about the flat revenues because the company is currently busy with a very robust R&D project. And it is likely to generate approximately USD 20 million revenues this year and in the next couple of years.
Vyas also expects the contract research business to grow more than USD 15 million in FY13. Although, the company has not fixed any official guidelines for FY13, Vyas expects topline and bottomline growth of 25% in the next fiscal.
Dishman Pharmaceuticals registered total consolidated income of Rs 3.50 billion for the last quarter of FY12, up 0.03% from the same period last year. The company has also posted consolidated net profit of Rs 568.05 million as compared to Rs 800.12 million for the Q4FY12, representing a decrease of 29%.
Below is the edited transcript of the interview on CNBC-TV18. Also watch the accompanying video.
Q: If you can first tell us the break up for the top line? How has the core CRAMS business done and what’s been the contribution from Carbogen Amcis in that?
A: The top line has grown by 13.24% to Rs 1122 crore.
Q: How has Carbogen Amcis done? Has it been a stable quarter, have you seen any kind of growth in that business in dollar terms?
A: The turnover has come down to 73 million CHF, but their losses have come down to 3 million CHF.
Q3: You have reported flat revenues for Q4, revenues have not changed much from the year ago quarter, but your profits have grown. What could be the reason for this?
A: We are right now doing a very robust R&D project, which is likely to generate approximately USD 20 million revenue this year and in the next couple of years.
Q: Are you referring to your contract research business itself. Are you giving us guidance for how much revenues will increase in the contract research business in FY13?
A: In FY13, the contract research business will grow more than USD 15 million.
Q: What were revenues of the contract research business in Q4 and in all of FY12?
A: I don't have Q4 specific number, but over the year, it was roughly USD 16 million.
Q: Have you got more businesses coming in because at the end of Q3 you told us that barring Carbogen Amcis the rest of you contract research business actually fell. Have things turned the corner?
A: It has turned the corner. Even in Carbogen Amcis it is turning and in FY13, Carbogen Amcis is expected to grow significantly in terms of topline and bottomline.
Q: Is there any foreign exchange element at all in the Q4 numbers?
A: No, it was netted off.
Q: How have EBITDA margins panned out? Has there been any kind of improvement. Last quarter, we saw significant improvement. Has that trend been sustained?
A: Yes, on a standalone basis from 17% it has gone to 24.8%, almost 25%. And on a consolidated basis it is 13%, which is the same as last year.
Q: Can you tell us what will be the future growth drivers, will it be supplies to Abbott?
A: Supplies to Abbott and all the three new units, that is Vitamin D3, Oncology and the disinfectors have started contributing from this year. In fact, in the Oncology unit, we have a significant number of enquiries and interest. We are expecting oncology unit to generate very good revenues this year and same with Vitamin D3.
Q: In the marketable molecules business, we saw about 31% growth last time around. How has that delivered this time and at the end of Q3 you had indicated that there was some deferment in orders in the domestic CRAMS business. Has that sort of recovered? What’s the expectation on that?
A: We don't do domestic CRAMS business at all. That is why international CRAMS business has increased. However, the absolute number of marketable molecule has remained same at Rs 170 crore against Rs 178 crore. Percentagewise, it has come down to 34% from 42%.
Q: Can you give us some idea of how much your sales and earnings might grow in all of FY13?
A: We have officially not given any guidelines for FY13. But, we have prepared our budget and it looks pretty robust. On the budget at least, it looks like a 25% growth. But this is not an official guideline.
Q: That 25% is for revenue growth or is for profit bottom line growth?
A: Top line and bottom line both.
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