Conference Call with Eris Life sciences Management and Analysts on Q1FY21 Performance and Outlook. Listen to the full earnings transcript.
Conference Call with Eris Lifesciences Management and Analysts on Q4FY20 and Full Year Earnings Performance and Outlook. Listen to the full earnings transcript.
Opening Remarks
Ladies and gentlemen, good day, and welcome to Eris Lifesciences Q4 and Full Year FY20 Results Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict.
As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing * then 0 on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Amit Bakshi, Chairman and Managing Director of the company. Thank you, and over to you, sir.
Amit Bakshi
Thank you. Hello, everybody. I hope all of you are keeping well, you're keeping safe. Since most of you are from Bombay, I hope everything is okay from the health part. This is the first call, which we are making in the current COVID era as we call it. Let me just start at the company level, how have we handled the situation. So after the lockdown started, the first thing we wanted to do is, to make sure that the confidence level and the motivation level among the people in the company are well maintained. So we jumped early to buy a health insurance policy, the COVID policy for across the company, covering everybody in the field, which was in addition to what other policy which we had, just to boost in a lot of confidence.
We actually supported the entire fraternity during the lockdown by making sure that wherever we can reach out, we went ahead and provided our healthcare workers and doctors with the PPE kits, N95 masks and everything else, which they needed to fight this battle. So that's about the COVID problem. In the office we had a larger lockdown. Some of us were still coming to the office. Right now, about 30% people are in the office.
We initially faced a lot of difficulties in the distribution side. Thankfully, our Guwahati manufacturing was well-managed because most of the people in Guwahati were staying with us there, the key people. So we had no disruption in the manufacturing side on Guwahati. We had disruption in the secondary and movement of the goods, which in the month of May, actually got quite good. And at the time when we are speaking, we are more or less okay, and have achieved the same kind of supply chain as we left before the COVID.
Coming back to the quarter 4 highlights. Our sales grew by 14.3% year-on-year versus an IPM of 9.7%. Chronic therapy continued to outperform market and Sub-chronic therapies regained momentum. Eris Chronic therapies grew 19.6% year-on-year as the IPM growth of 12.1% and Sub-chronic grew 13.4% versus IPM growth of 7.3%.
In the last quarter, we also added around 97 BEs as we have been telling you earlier that this is what we have in expansion. So all put together, we have added roughly 400 BEs 97 of them were added in the fourth quarter itself. Now again, the strength of Chronic and big brands has shown up. So by the end of quarter 4 and also in existing quarter, we can clearly distinguish between 2 very important things, which in our view will guide the future growth.
One is the Chronic therapy breakup. And second is, within the therapy what kind of brands do you have. So a Chronic therapy with large brands seems to sustain the best during these times. And that's how the trajectory works. So if you see in the quarter 4, at the secondary level, which is the AIOCD data, 65% of Eris revenue comes from Chronic, which grew by around 20% in the fourth quarter.
The Sub-chronic piece, which in our case is generally the vitamins and minerals and nutraceuticals, in the month of March grew by around 7.3% (IPM), but we grew by 13.4%. Here, the reason being that all our brands have been in leading positions, most of our brands have been in the top 5 positions. What we have also learned from various parts of the world where the pandemic has started little earlier than us is that this therapy over a period of time has grown by 30-32%, even after having more than 50% penetration in the developed parts. So this is the therapy, which will outgrow the other therapies in coming times, and we have good brands there. The Acute part, which was around 13% of the revenue, degrew by 5%, while the market grew by 8.8%. So the Acute fall continues and now it is 13% of Eris revenue. We also importantly have made a structural change in the company.
So now we have 4 clusters, 2 clusters in the Chronic, one cluster in CNS and one cluster in Acute. So we've got a lot of focus on Acute and the Acute therapy in our company is inter-twined with the nutraceuticals. So most of the nutraceutical brand which you see are lying in the Acute division. So it is the Acute part of the division which hasn't done well, but the nutraceutical parts in the same division has done well. And we have got special focus in terms of Acute businesses and we are doing a lot of work to basically expand our presence in the nutraceutical markets because we feel for sure that it is the market which will outgrow the industry for the coming year.
So income statement for quarter 4, 15.6% year-on-year revenue growth, 24% year-on-year EBITDA growth and 4% year-on-year growth in net profit. So 4% year-on-year growth in net profit which you see is because of the treasury income. So once we adjust it for treasury and finance cost, it is close to 20% vicinity.
We actually in this year has around 500 crores of cash outflow, which has happened because of the buyback, the dividend, and the loan repayments. And Sachin will give you the breakup and then the buyout of Zomelis which we have done. As far as the other things are concerned, we have one more study, which got published again in the Indian Journal of Human Hypertension, which is called the ABPM India Study.
So now with two back-to-back publication, one, the Indian Heart Study, then the Indian ABPM Study, we have raised our stake in the cardiovascular market. So if you look at our growth in cardiovascular market, which has just been 100 basis point above the market and the market grew by around 12%, and we grew by around 13%. Now we are bringing a very sharp focus on hypertension once again. And IHS, India Heart Study followed by India ABPM Study are going to give us a lot of impetus in our hypertension cardiology portfolio.
And with that, I am now open to questions. You can please ask the questions.
