Conference Call with Galaxy Surfactants Management and Analysts on Q4FY20 and Full Year Earnings Performance and Outlook. Listen to the full earnings transcript.
Conference Call with Glenmark Pharmaceuticals Management and Analysts on Q4FY20 and Full Year Earnings Performance and Outlook. Listen to the full earnings transcript.
Key Highlights from Management
Our growth momentum sustained in the Fourth Quarter despite the COVID-19 pandemic and challenging generic business environment across markets globally. Our India, Europe and Latin America regions performed well during the quarter. Our sustained performance has been due to the continuous efforts of all our employees around the world. Our manufacturing facilities have operated continuously and facilitated the uninterrupted supply of medicines to operating markets
For the Fourth Quarter of FY 2019-20, Glenmark’s consolidated revenue was at Rs. 27,674.89 Mn. as against Rs. 25,634.74 Mn. recording an increase of 7.96 %. Consolidated Net Profit was at Rs. 2203.08 Mn. for the quarter ended March 31, 2019 as compared to Rs. 1,616.62 Mn. in the previous corresponding quarter, registering an increase of 36.28%.
Consolidated EBITDA grew by 27.89% to Rs. 4656.87 Mn. in the quarter ended March 31, 2020 as against Rs. 3,641.31 Mn. in the previous corresponding quarter. For the year ended March 31, 2020, Glenmark’s consolidated revenue was at Rs. 106,409.69 Mn as against Rs. 98,654.69 Mn., recording an increase of 7.86% over the previous corresponding period. Consolidated Net Profit was at Rs. 7759.70 Mn. for the year ended March 31, 2020, as against Rs. 9,249.93 Mn. in the previous year. Consolidated EBITDA for the fiscal year ended March 31, 2020 stood at Rs. 16980.82 Mn. as against Rs. 15,857.99 Mn. in the previous corresponding period.
India Sales from the formulation business in India for the Fourth Quarter of FY 2019-20 was at Rs. 7,647.53 Mn as against Rs. 6677.94 Mn in the previous corresponding quarter, recording growth of 14.52 %.
Glenmark Consumer Care Business
Glenmark Consumer Care business continued to maintain strong growth momentum of 31 % in the quarter of this financial year and the business setting a new milestone of sales of INR 203.8 crore in this financial year.
USA Glenmark Pharmaceuticals Inc
USA registered revenue from the sale of finished dosage formulations of Rs. 7,619.02 Mn for the quarter ended March 31, 2020 as against revenue of Rs. 7696 Mn for the previous corresponding quarter, recording a de-growth of (1 %)
Africa, Asia and CIS Region (ROW)
For the Fourth Quarter of FY 2019-20, revenue from Africa, Asia and CIS region was Rs. 3365.47 Mn as against Rs. 3852.85 Mn for the previous corresponding quarter, recording de-growth of (12.65 %)
Europe
Glenmark Europe’s operations revenue for the Fourth Quarter of FY 2019-20 was at Rs. 4115.68 Mn as against Rs. 3184.07 Mn recording a growth of 29.26 %.
Latin America
Glenmark’s revenue from its Latin American and Caribbean operations was at Rs. 1768.73 Mn for the Fourth Quarter of FY 2019-20, as against Rs. 1204.07 Mn., recording an increase of 46.9 %.
API Business
For the Fourth Quarter of FY 2019-20, external sales for Glenmark Life Sciences was at Rs. 2613.79 Mn as against Rs. 2487.77 Mn., recording growth of 5.07 % over the corresponding period last year. For the entire year, external sales of Glenmark Life Sciences recorded revenue of INR. 10239.17 Mn as against Rs. 9493.11 Mn. in the previous financial year, recording growth of 7.86 % over the corresponding period last year.
Conference Call with Apar Industries Management and Analysts on Q4FY20 and Full Year Earnings Performance and Outlook. Listen to the full earnings transcript.
Key Highlights from Management
Indian economy to contract by 5% in FY21, Q1 FY21 GDP to shrink 25% (CRISIL). Business loss of ~1.5 months due to lockdowns. Delayed tenders, and execution at customers end due to labour issues to impact demand.
Rabale plant, located in city, has permission to operate at only 50% of staff strength. Increased financial distress, credit tightness in the market. Margins to be additionally impacted from pricing pressures due to lower price of crude, gas oils etc.
New and higher value products to drive revenues & margins: HEC, Copper Conductors, CTC for Transformers Industry, newer Railway products, harnesses, pressure tight cables, Medium Voltage Covered Conductor (MVCC) etc. Focus is on exports.
DNA of financial prudence with low leverage & healthy cash levels, cautious order booking with firm eye on creditworthiness and margins. Focus on collections. Major capex has already been incurred, and we have low capex requirements in FY21-FY22.
We have increased the provisions and write-offs for doubtful debts to Rs 29 crore in FY20 from Rs 5 crore in FY19.
Conductor revenue is at Rs 3,624 crore, adjusted EBITDA per MT up 20%.
Higher value products (HEC, Copper Conductors for Railways) share in revenues up at 38% versus 25% in FY19. Sales volume at 1,58,104 MT, down 14% YoY.
EBITDA per MT is at Rs 10,790, up 20% YoY with improved product mix. New orders inflow of Rs 2,617 crore, down 52% YoY with slowdown in Railways tenders and increased sales focus on margin and payment terms. March’2020 order book at Rs. 2,004 crore. New product launch – CTC for Transformers industry
Oils revenue at Rs 2,323 crore, adjusted EBITDA per KL at Rs 2,990.
Total Volumes at 4,03,626 KL, down 6% YoY. Lockdown in March resulted in truncated peak demand period especially for automobile retail sales. Export revenue share 37%, up by 4% YoY. Hamriyah capacity utilisation up at 68% in FY20 versus 62% in FY19. Auto lubes & industrial oils contributed 23% to revenues. EBITDA per KL of Rs 2,990 at a similar level to FY19 (Rs 2,998). Impacted by Rs 18 crore write-offs/ provisions for doubtful debts.
Cables revenue at Rs 1,601 crore, adjusted EBITDA margin over 11%
Export revenues up 59% YoY – 17% revenue share in FY20, up from 10% in FY19. Power cables’ revenue up 4% YoY driven by exports. Lower demand from renewables, but higher from Railways, EPC and Utilities.
Elasto/ E-beam revenue declined marginally with lower demand for solar cables. Good demand from Railways & Defence. Telecom cables declined significantly due to no demand from BSNL and Reliance Jio. EBITDA margin (post adj.) at 11.1%, compared to 11.3% in FY19. New product launch – Medium Voltage Covered Cables (MVCC)
