Press release for Mar’18:
March quarter has shown good demand growth in API market, with a value growth of
around 16.8 %,whereas consolidated sales grew by 10.6 %. Volume growth of about 8 %
in API market was a major contributing factor for revenue growth along with increase
in selling prices.
Consolidated EBITDA for the quarter ended Mar’18 is 57.38 crores, up by 18.2% and
Consolidated Profit after tax for the quarter ended Mar’18 is 23.99 crores, up by 9.2 %.
Operating margins are very good due to lower raw material costs and better operational
efficiency. Company will be focusing on reduction of inventories in coming quarter to
further reduce working capital. Company successfully completed share buyback in Mar
quarter and still was able to reduce Debt/Equity ratio to 1.19 as of Mar’18.
Company will be submitting final response to USFDA by the end of Jun’18 quarter for
the latest re-inspection, which took place in Dec’17. Europe and Southeast Asia will
continue to be key growth drivers for the company in exports. Company started with
the commercial operations in its recently commissioned multipurpose facility in
Tarapur, which is ultimately intended for the API exports to European markets. As of
date, Company also resumed the production of all the three products that were affected
in the unfortunate accident, which occurred in the neighboring plant of Novaphene
Specialities Pvt. Ltd in the month of Mar’18
Disclosure - Currently forms around 0.5% of my portfolio, holding since June 2015. Will look to double stake around 510 level. Fy2020 should be a good year for the company. Market Cap to Sales at 1 provides some comfort to valuation.