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Better R&D income led to jump in profits: Dishman Pharma
Managing director of Dishman Pharma tells CNBC-TV18 that higher earnings from its contract revenue business is what led to the surge in third quarter profits.
Managing director of Dishman Pharma , JR Vyas tells CNBC-TV18 that higher earnings from its contract revenue business is what led to the surge in profits. "We had a very good quarter in terms of research income in this quarter and that has taken our EBITDA margins to more than 20%," he said.
Though sales for the third quarter came in below expectations, Dishman Pharma's profit figures surprised on the upside, jumping to Rs 16.7 crore as against Rs 2 crore year-on-year.
Below is an edited transcript of his interview with Latha Venkatesh and Gautam Broker. Also watch the accompanying video.
Q: Your earnings are a pleasant surprise because the street wasn't expecting Rs 16.7 crore profits. Can you take us through what went right?
A: Basically this quarter has been good. We had a better EBITDA even as high as 35% at the stand alone and 20% at the consolidated level as compared to 13% in the previous quarter.
Q: What was the EBITDA margin in Q3? We were expecting somewhere around 16%.
A: We are at more than 20%.
Q: So what's actually led to this improvement in EBITDA margins and are you expecting to sustain?
A: Better R&D income has contributed to this. We had a very good quarter in terms of research income in this quarter.
Q: So basically you are speaking about the contract research income?
A: Yes.
Q: How much did it grow by? What was the contribution?
A: CRAMS income was Rs 169 crore.
Q: Can you just take us through the interest costs as well as what was your EBITDA?
A: On consolidated basis our earnings was Rs 42.39 crore at the rate of 15.97%.
