Good set of results from the company, operational income grew by 11%, EBITDA margins zoom to 38% leading a PBT increase of 46% YOY. Revenue split is shown below:
- Domestic business de-grew by 1% (company was losing market share in their derma division, now they have lost a bit of market share in cardiology)
- US business continues to ramp up very well with 39% YOY growth
- Africa institutional business de-grew by 28% whereas the Africa branded business grew by 36% offsetting losses from the institutional business
- Asia branded business de-grew by 1% YOY.
The very high EBITDA margins is because of lower R&D spend (4% of revenues) and improvement in gross margins (to 78%). Such high gross margins are surprising given that close to 30% of revenues now come from the US market (any suggestions?). Receivables were kept under control leading to healthy cashflow generation.
Company announced a dividend of 9.5/share and a buyback at 1850/share. Buyback quantum represents 0.84% of equity shares. Last year buyback was for 0.87% of equity at a price of 1300/share.
Disclosure: Invested (position size here)