Conference Call with Dishman Carbogen Management and Analysts on Q4FY20 and Full Year Earnings Performance and Outlook. Listen to the full earnings transcript.
Key Highlights
Total Revenues at Rs 5,121.2 mn in Q4 FY 2020 down by 21.2% YoY
CRAMS revenue decreased 18.4% YoY primarily due to:
- CRAMS Carbogen Amcis AG revenue decreased by 11 %, attributable to higher revenues in the preceding quarters and certain commercial orders expected to be shipped in Q1 FY 2021
- CRAMS India revenue decreased by 29.8% YoY, due to Q4 FY2019 being an exceptional quarter due to exceptionally large commercial orders in that quarter. Most of the orders in FY2020 were evenly spread out throughout the year. -
CRAMS UK – revenue decreased by 46.2% as its business is driven by demand of intermediates and starting materials of non-GMP products by customers, which would be very unevenly spread depending upon the requirement in that particular quarter. For the full year, CRAMS-UK revenue was in line with last year.
EBITDA Margin at 25.8% in Q4 FY20, affected by:
- Higher cost of material incurred in CRAMS India business due to increased cost of procurement from China, also took a one-time provision of certain inventory and forex movement.
- Higher contribution of cholesterol segment, which typically have lower margin vs Vitamin D analogues
- Other operating income included INR 80.3 mil foreign exchange gain on hedging in Q4 FY20 vs INR 290.8 mil gain in Q4 FY19
Adjusted PBT stands at Rs 819.3 mil & adjusted PAT stands at Rs 614.5 mil.
Net debt as on March 31, 2020 stands at USD 100 mil vs USD 120 mil March 31, 2019
Finished goods inventory maintained at a higher level in Carbogen Amcis AG to fulfil the commercial product sales in upcoming quarters
Capital expenditure for FY 2020 was approximately USD 42mn, which includes both growth and maintenance capex
Foreign exchange gains in FY 2020 were Rs. 431.4 mn recorded as part of other operating income versus FX gains of Rs. 1,126.9 mn in FY 2019
In March 2020, two New Chemical Entities (NCEs) of our customers got approval from the regulatory agencies. Carbogen Amcis AG was the development partner for the APIs
We have seen four NCEs getting various regulatory approvals in the last 12 months, where we were the development partner
We continue to have a strong basket of about 20 APIs in Phase III development