Unichem Labs Q3FY16's net up 9 times; stock zooms 8 per cent

Integrated specialty pharmaceuticals company Unichem Laboratories came out with a superb set of Q3FY16 numbers on Saturday. Q3FY16 saw company's profit jump 9 folds to Rs 20.54 crore, aided by a robust,  formulation sales growth in US markets.

Unichem Lab’s revenue from operations increased by 15 per cent on a Y-O-Y basis (year on year) to Rs 306.26 crore compared to Rs 265.85 crore attained in the same quarter of the previous fiscal, aided by a strong growth witnessed in the key markets like US. The company’s EBITDA for the quarter stood at Rs 34.1 crore as compared to Rs 8.44 crore in the same period last fiscal, reflecting a three fold growth in operational numbers. Company’s other expenses as a percentage to its total revenue decreased by 400 basis points, thus helping in improving the operational efficiency of the company. Margins for the quarter in review improved by 800 basis points to 11 per cent from 3 per cent in the corresponding quarter of the previous fiscal. Profit after tax for the December quarter was Rs 20.54 crore as compared to Rs 2.06 crore in the previous fiscal, replicating a growth of 900 per cent on a yearly basis.

Domestic market remained a key priority as 63 per cent of the total revenues generated for the quarter in review came from the Indian operations, whereas the rest 37 per cent was contributed by the global operations: especially the US markets.

Revenues from domestic formulation stood at Rs 188.9 crore as against Rs 158.1 crore in the same period last year showing a strong growth of 19.5 per cent. Revenues from international formulations showed a growth of 22.6 per cent to Rs 93.8 crore. Revenue from API (Active Pharmaceuticals Ingredient) decreased by 25 per cent Y-O-Y to Rs 21.2 crore from Rs 28.3 crore in FY15.

Sequentially revenues remained flat. Whereas, EBITDA saw a slight decline by close to 1 per cent Q-O-Q. PAT saw pressure as it declined by 11 per cent to Rs 20.54 crore from Rs 23.09 crore in the last quarter.

However, on a 9MFY16 basis (nine month) revenue stood at Rs 920.9 crore as against Rs 834.9 crore recorded in the same period of previous year, showing a growth of 10.3 per cent. EBITDA shot up by more than 30 per cent for the nine-month period. Profits increased by 38 per cent in the nine-month period.

Cumulative filings of ANDAs (abbreviated new drug applications) stood at 35 of which 20 ANDAs are approved including 1 tentative approval. As and when these filings get the regulatory go ahead it will be a revenue booster for the company.

Responding to the positive set of Q3 numbers Unichem Lab’s scrip jumped 8 per cent in early trade to hit an intra-day high of Rs 248.95 on NSE. The stock has been on a correction mode as it has declined by more than 18 per cent in the past 3 months.