Pending orders may boost revenues 15-20% in FY17: Mangalam Drugs

EBITDA was up 60 percent at Rs 10.3 crore versus 6.4 crore YoY and EBITDA margins came in at 15.4 percent versus 9.3 percent.Below is the verbatim transcript of Govardhan Dhoot’s interview to Mangalam Maloo and Reema Tendulkar on CNBC-TV18. Mangalam: If you could tell us how FY17 is shaping up for you. You have had a decent quarter in the first quarter. But can you give us some guidance for FY17 because you do have some triggers from the other drugs as well? A: First of all tell me how do you look at my figures of first quarter. What is your take? Mangalam: We look at it on a year-on-year (Y-o-Y) basis. A: Y-o-Y basis and quarter-on-quarter (Q-o-Quarter) basis also I am sure it is very impressive and exciting for us if you have really studied them and definitely you will see even our earnings before interest, taxes, depreciation and amortisation (EBITDA) margins have gone up Q-o-Q and profitability has also gone up. We are looking at full of growth even this year \\'17 and once we start our production in new unit, unit number two by say, November or December we hope to add more revenues to our existing one. Reema: Can we dwelve a little deeper on the company\\'s top line performance. In this quarter on a Y-o-Y basis your revenues have fallen by 3.7 percent. Even in the March quarter your revenues were down 6.5 percent. What explains that and can we expect a turnaround? A: Revenue basically you will see it is a very marginal drop, it is not very significant that we have two attributions for that. One our major raw materials have taken a dip, fallen down. So, that has reflected in the turnover also going down. Plus we are also concentrating on improved margins. So, these are two points which have helped or company to improve our bottom-line and yes topline of course we will make up. It is not a big issue, we have a lot of pending orders. So, we see a good run up to March. Mangalam: Could you also tell us what proportion of your revenues, one, comes from the malaria drugs, secondly, the other active pharmaceutical ingredient (APIs) and other business and thirdly what kind of tenders are you expecting going forward in this fiscal? A: As I have already explained to you earlier also our major revenues come from malaria, 75 to 80 percent and about 10 percent presently are coming from - 10-15 are coming from ARV and the rest from other APIs that we make. Reema: You spoke about pending orders being very good which gives you revenue visibility at least till March. So, could you tell us what would be the quantum of pending orders and secondly what would it take your FY17 revenue growth to? A: FY17 revenue growth will be at least 15-20 percent of what we ended last year. Reema: And on pending orders any way to quantify it? A: I wouldn't like to quantify that but I can only assure you we have good pending orders which will see us through and we will also be able to meet the growth that I just spoke to you about.