Company Update Dr. Reddy's Lab - Myiris.com - Personal finance ...

Key Financials – Quarterly
Elder Pharma Confluence: Pharma; Pre-conference note
Company Description
Elder Pharma was incorporated in 1983. The company is engaged into manufacturing and
marketing of prescription pharmaceutical brands, surgical and medical devices. Elder is one
the leading companies in the pharmaceutical formulation market in India. It holds market
leader position in three therapeutic segments - Women’s Healthcare, Wound Care and
Nutraceuticals. It entered into alliances with foreign companies for manufacture and sale of
their products under license from them.
In the domestic space, company’s large part of revenues comes from Shelcal brand in
women healthcare segment. This brand contributes ~17% to its topline and women’s
healthcare portfolio contributes 23% of the domestic sales. Anti Infectives contribute ~12%
to total sales; the key brands in this space are Cefixime and Formic. Company has made
two major acquisitions Biomeda (Bulgaria) and Brunel Healthcare (Brunel). Brunel’s
acquisition has MHRA approved manufacturing facility. Glucosamine is a major API
manufactured at this facility. Elder has raised the stake in Biomeda to 92.2%. Further
company is intending to inject CAPEX of ~$5mn for up-gradation of facilities and making
the plant EU compliant.
Rs mn Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 YoY (%) QoQ (%)
Net Sales 2107 2515 3027 2997 3311 57.2 10.5
Other Operating Income 2 2 5 3 4 82.6 27.3
Other Income 12 19 9 22 22 85.7 1.8
Total Income 2121 2536 3040 3022 3337 57.4 10.4
Total Expenditure 1704 2080 2529 2486 2780 63.2 11.8
as % of sales 80.9 82.7 83.5 83.0 84.0
Consumption of RM 1036 1304 1497 1503 1657 60.0 10.3
as % of sales 49.2 51.8 49.4 50.1 50.1
Employee Cost 284 281 479 433 468 64.7 8.2
as % of sales 13.5 11.2 15.8 14.4 14.1
Other expenditure 384 495 553 551 655 70.6 18.8
as % of sales 18.2 19.7 18.3 18.4 19.8
EBITDA 417 456 511 535 557 33.6 4.1
Adj. EBITDA 431 456 524 544 572 32.8 5.1
Interest 149 176 214 195 212 42.3 8.9
PBDT 268 280 297 340 345 28.8 1.3
Depreciation 75 80 90 87 91 21.0 3.9
PBT 193 200 207 253 254 31.9 0.4
Tax 58 43 34 53 62 7.8 17.0
Reported Profit 135 157 173 200 192 42.1 (3.9)
Extra-ordinary Items -11 -11 -11 -8 -12 10.8 57.7
RPAT 147 168 184 208 205 39.7 (1.6)
EPS 7.2 7.71 8.45 9.79 9.42 30.8 (3.8)
Margins (%) (bps) (bps)
EBIDTA 19.8 18.1 16.9 17.9 16.8 -296 -103
Adj. EBITDA 20.5 18.1 17.3 18.2 17.3 -317 -88
EBIT 16.2 14.9 13.9 15.0 14.1 -215 -86
EBT 2.7 1.7 1.1 1.8 1.9 -86 10
PAT 7.0 6.7 6.1 6.9 6.2 -77 -76
Effective Tax rate 29.8 21.3 16.4 20.9 24.4 -544 345
Emkay Research 17 November 2011 20