Novartis India Q3FY13 Result Analysis
DSIJ Intelligence / 24 Jan 2013
For Q3FY13, Novartis India has posted muted results.
For Q3FY13, Novartis India has posted muted results. The topline remained almost flat growing by mere 5.05% on a YoY basis to stand at Rs 233.54 crore as against Rs 222.32 crore for Q3FY12. The bottomline witnessed a de-growth of 24.83% on a YoY basis to stand at Rs 29 crore as against Rs 38.35 crore for Q3FY12. There is a serious erosion of margins for the company in the present quarter. On a YoY basis, the EBITDA margins and the net profit margins went down by 703 basis points and 483 basis points respectively for Q3FY12, which is not an encouraging sign at all.
| Particulars (Rs/Cr) | Q3FY13 | Q3FY12 | % Chg |
|---|---|---|---|
| Net Sales | 233.54 | 222.32 | 5.05 |
| EBITDA | 23.35 | 37.85 | -38.31 |
| Net Profit | 29 | 38.35 | -24.38 |
| EBITDA Margin (%) | 10 | 17.03 | -7.03 |
| Net Profit Margin (%) | 12.42 | 17.25 | -4.83 |
Now let us go through the segmental analysis. The core business of the company, that is pharmaceuticals, has posted revenue of Rs 161.82 crore up from Rs 153.25 crore during Q3FY12. The generics segment witnessed a growth of 10.56% on a YoY basis for Q3FY13. The only segment that has witnessed de-growth is the OTC segment which went down by 5.53% on a YoY basis for Q3FY13. The animal health segment in the same quarter has witnessed highest growth of 14.71% on a YoY basis.
| Segmental Revenue (Rs/Cr) | % of Total Sales | ||||
|---|---|---|---|---|---|
| Particulars | Q3FY13 | Q3FY12 | % Chg | Q3FY13 | Q3FY12 |
| Pharmaceuticals | 161.82 | 153.25 | 5.59 | 69.29 | 68.93 |
| Generics | 15.71 | 14.21 | 10.56 | 6.73 | 6.39 |
| OTC | 32.3 | 34.19 | -5.53 | 13.83 | 15.38 |
| Animal Health | 23.71 | 20.67 | 14.71 | 10.15 | 9.3 |
| Total | 233.54 | 222.32 | 5.05 | ||
There is very little data that is available on the public domain of the company. We would have liked to ask the company about the higher interest outgo that stands at Rs 0.46 crore for Q3FY13 as against the mere Rs 0.06 crore for Q3FY12. We also wished to know about the product pipeline and the company’s plan going forward. But call made to the company went unanswered. At this juncture we feel that one must look forward for other attractive options in the pharmaceutical space and wait for the opportune time to invest in this company.
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