Dishman Pharma to repay Rs 100cr debt in FY13

Pharma player Dishman Pharma is looking to cut its debt of Rs 100 crore in FY13. JR Vyas, managing director, Dishman Pharma told CNBC-TV18 that the company would be selling its SEZ land to repay debt.

Meanwhile, the company is hopeful of clocking more than Rs 1,250 crore of consolidated revenues this year. Below is the edited transcript of Vyas’ interview with CNBC-TV18. Also watch the accompanying video. Q: You are increasing your capacity in the vitamin D segment, we understand that you are one of the few suppliers globally for it. Give us a sense in terms of what sort of ramp up have you seen in capacity expansion and what sort of potential do you see for Vitamin D and hence consequently what is your impact on the P&L? A: Vitamin D plant has just been started so there is no question of ramp up. We started the plants two months back and we see more than 10 million euro revenue coming this year, which will ramp up to 20 million euro in FY13. Q: How much are you expecting by way of revenue growth this year? A: Our consolidated budget including vitamin D3 and our subsidiaries, we will ramp up to more than Rs 1,250 crore from current year’s Rs 1,050 crore. Q: To shift focus to Carbogen Amcis because e understand that the operating margins were better in the previous quarter. Just give us a sense in terms of how exactly do you expect Carbogen Amcis to pan out in FY13? A: In FY13 Carbogen Amcis will do extremely well. We have not given any official guidance but I can tell you that we will touch about 90 million CHF, which is a significant rise from 72 million CHF last year. We expect to do in FY14 above 100 million, with a 20 million CHF EBITDA. This year the EBITDA will be around 11 million. Q: Could you give us a break up of your revenues? How much comes from contract research and manufacturing services (CRAMS), how much from marketing molecules, how much from Carbogen Amcis? A: Carbogen Amcis will contribute about 90 million CHF this year. Dishman standalone will do Rs 500 crore and Dishman Netherlands will do around 40 million euros. Q: Could you give us a break up of your revenues? How much comes from Contract research and manufacturing services (CRAMS), how much from marketing molecules, how much from Carbogen Amcis? A: Carbogen Amcis will continue this year about 90 million CHF, Dishman standalone will do Rs 500 crore and Dishman Netherlands will do around 40 million euros. Q: One concerning thing for Dishman Pharma in the past couple of quarters has been incremental increase in your interest costs, give us a sense in terms of what your Gross Net position is at this point in time? What is your plan in scaling down debt levels? A: This year the debt repayment from Dishman alone will be around Rs 100 crore. Carbogen Amcis also will be about 16 million CHF. We are selling our SEZ land where we had invested Rs 100 crore, this money will be utilised in reducing the debt. Q: Could you give more details on the land development plan, how much are you developing, have you got any money already or will you get it from FY14 onwards? A: The SEZ operatives are denotifying. Dishman Infrastructure Company is selling the land. They are in discussion with a number of interested parties. When they will sell the land, first thing they will do is return Rs 100 crore to Dishman Pharmaceuticals. It will be utilised for reduction of debt. Q: What about Abott that has been big client for you, give us a sense in terms of what are you expecting in terms of what are expecting in terms of incremental growth because over FY07 to FY09 there was a CAGR growth of around 36% odd from Abbott, what sort of revenue potential do you see going forward? A: From Abott the Eprosartan will remain at the same level because the product is at the end of its lifespan because it is reaching patent expiry. But Abbott is confident that it will continue to move at the rate of 10% growth post patent expiry because nobody else has filed DMF or is planning to launch Eprosartan. In FY13, we will do about 120 tonne and in FY14 and 160 tonnes of Eprosartan alone.