Dishman Pharma eyes 15% topline, bottomline growth in FY12

In an interview with CNBC-TV18, VVS Murthy, CFO, Dishman Pharma said the company is expecting 15% top-line and bottom-line growth in FY12. "We are expecting earnings before interest, taxes, depreciation and amortization (EBIDTA) margins around 21-21.5% on consolidated basis in FY12," he added.   

Also read: Dishman Pharma FY11 consol net down on higher costs Below is the transcript of his interview with CNBC-TV18's Latha Venkatesh and Gautam Broker. Also watch the accompanying video. Q: While the sales have done well in Q4 in the standalone from about Rs 352 crore to Rs 419 crore, you cannot say as much about the profits because that has fallen from Rs 99 crore to Rs 74 crore for standalone as well for the consolidated from Rs 171 crore to about Rs 133. That is at the operational levels. Why this fall? There is one entry which is particularly intriguing called purchase of traded goods, which has gone up from Rs 2.5 crore in the year ago quarter to Rs 65 crore in the current quarter, what is this entry all about? A: This year we had opportunity to trade some of the commercially available off-the-shelf (COTS) products, low margins products. We are hiving off COTS from our production list because we have some other high margin products for which we want to use the capacity. About Rs 50 crore turnover has come from this low margin business. That is why our profits are low and at the same time trading goods are high. Q: Do you expect this to be a recurring kind of phenomenon, every quarter you would see a top-line increases? A: No, it may not be there every quarter, but on a full year basis, around Rs 50 crore will be there. Some of the COTS are low margins, but still some profits are there. In those cases, what we are thinking is we want to outsource the product and then sell to the customers. So, we are expecting around Rs 50 crore this year. Q: What more can you share about the restructuring of Carbogen Amcis? You have been able to reduce cost somewhat over there, by when can we expect a betterment in performance in that? A: About 60 people were given notices for retrenchment. By August, we are expecting these people will be out of the system and about USD 8 million benefit will be there in the cost on full year basis. Q: What do you expect to do by way of increased revenues from Carbogen Amcis? You kind of broke even, but what kind of revenue growth can one expect? A: This year we are not projecting any revenue growth, top-line growth in Carbogen Amcis, we are expecting only flat growth. We are focusing more on bottom-line this year. Next year onwards real growth will start. Q: You also have the capacity which you are now outsourced, are you planning to put that to further use? What can you tell us about your overall revenue growth in the current year, domestically? A: We have already identified some products and started manufacturing in place of those products. The sales started in the month of May and June and it will continue, it