Elder Pharma sees 21% growth in domestic formulations ahead

Elder Pharmaceuticals reported a Q4 consolidated net profit of Rs 17.4 crore versus Rs 16.8 crore YoY. Its consolidated net sales were up at Rs 303 crore versus Rs 190 crore YoY.

In an interview with CNBC-TV18, Alok Saxena, Director (International), Elder Pharmaceuticals spoke about the performance of the company. The company is expecting the domestic formulation business to report growth of 20-21% ahead.

Below is the verbatim transcript of Saxena's interview with Sonia Shenoy and Seema Modi of CNBC-TV18. Also watch the accompanying video.

Q: Can you just first outline your Q4 results for us. I believe on the net sale side Rs 220 crore versus Rs 190 crore approximately?

A: Yes. That is on a standalone basis. The consolidated is almost Rs 304 crore against Rs 192 because we have already started consolidating our revenues from NutraHealth and Bulgaria. So, our consolidated number is actually Rs 302 crore.

Q: Could you also tell us more about your margins what kind of operating profit performance have you done this time around and your net profits as well?

A: Our profit after tax is almost Rs 17 crore. On consolidated numbers it is a growth of almost 10%. Our EBITDA margins post the consolidation is about Rs 52 crore which is a growth of almost 57%. The early quarter was standalone consolidated numbers.

Q: What kind of growth have you seen in the domestic formulation business this quarter around and what growth can you maintain in the next couple of quarters?

A: We are seeing a growth between 18 to 20% and going forward we are looking at growth of between 20 to 21%.

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Q: What about the launches that you have planned for at the end of FY11 and also as you go through Q1 of FY12? Last time you spoke you told us you have around 12 to 14 API launches. Can you just give us an update on that?

A: Yes. Actually they are not 12 to 14 API launches but they are 12 to 14 formulation launches. I just want to clarify that formulations are the product which we are actually launching into the domestic formulation business and it is not API. We are looking at products in various categories.

I would just like to mention brands of ours in women healthcare have done phenomenally well. In fact brands like Shelcal have shown growth by over 30 to 35% for us in the last quarters.

Q: In the niche therapeutic business you have sort of picked up in terms of performance. What kind of delivery could you do in terms of products? What products are doing well according to you and what kind of traction can you maintain in this particular segment?

A: Our biggest brand Shelcal is doing well. As we go forward we are looking at growing in domestic formulation market. One of the variants which we have launched is Shelcal K and Shelcal HD which is the high density Shelcal and contains higher doses of vitamin B which is specifically targeted to certain markets have shown a growth of almost 40% to 50%.

Q: So what can you target for us in terms of a growth in revenues in FY12? Last time, you indicated about Rs 1,000 crore as a guidance for FY12. With the launch of your new products you think you could beat that on the upside and what about your profit performance too?

A: If you look at our consolidated numbers, we will be definitely meeting those numbers. If you ask me to give some guidance on profit - we have already made our projection. We are looking at EBITDA margins which could probably be in the range of about, a growth of almost 20% over last year.