Eyeing EBITDA over Rs 90 cr next year: Panacea Biotech

A: This is an order that we have got after a gap of almost four years so it’s very strategic as well as it will contribute nicely to our topline and bottomline.

Coming to specifics, in this particular Q4 of ’14-15 we are going to deliver some quantity which will add to our topline and bottomline. However, the major quantities are delivered, close to six million doses in the next financial year that is FY15-16 and then that will be Rs 83 crore in totality. So a part of the sale will go in Q4 of the current financial year and then in the next financial year as well.

Q: How would margin profile change over the next three-four quarters for your company because last quarter was good, there was quite a bit of improvement?

A: Yes, we are looking at overall Rs 90 crore plus EBITDA in this financial year and as we move forward to the next year our order book is already rising. We look at healthy EBITDA in the next financial year, finishing at Rs 90 crore plus in this financial year. So we are looking at good growth because order book is already increasing looking at what we already have from UNICEF, the long-term agreements which are in place for the year ‘15 and ’16.

Q: Rs 90 crore of EBITDA, but how would the bottomline look?

A: In this financial year bottomline will not be positive because of the previous losses that we have. However, going forward we will eliminate that in the next financial year because of higher EBITDA that we will have in the coming year.

Q: The company is in corporate debt restructuring scheme (CDR) at this point in time. How much of debt do you have on books and what are the clauses of the CDR at this point, if you could share that with us.

A: Overall, we are looking at a total long-term loans and short-term loans that we had in the company including the other limits in the country, total it looks like ten year period around Rs 900 crore which is recasted as Rs 1,000 crore including the interest. So we look at Rs 900 crore to Rs 1,000 crore debt on ten year basis.

However, broadly the banks have restructured the consortium of bankers in which we will have two years of moratorium for interest payment on long-term loans as well as some reduction in the interest cost. So the interest cost will go down from 14 percent to 11 percent.Q: You do not have any working capital requirements beyond Rs 900 crore to Rs 1,000 crore of debt that you have. If you do, how will you service that?

A: Currently, we are looking at getting the loans restructured and incase any working capital requirement is done, we would be raising money for growth from the market. Also, we can go back to our bankers and ask for working capital limit as and when needed by the company from time to time, so there are no such restrictions there.

Therefore, by March 15 we have been advised by the bankers that we can always approach them and incase there is a need, the gates are always open.

Q: A question with regards to the debt figures – as per the CDR clauses is there any divestment of non-core assets which Panacea might do?

A: It is very well recommended there as a part of the whole proposal. Panacea has already voluntarily recommended that we will be collecting cash by diverting all our non-core assets and that we will be doing in the next few years.