Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Dishman Pharma & chemicals (DISH)
Pharmaceuticals
Higher interest costs shave off profit. PBT excluding MTM forex loss was at Rs118
mn, down qoq and 33% lower than our estimate due to higher interest costs. While
sales and EBITDA (adjusted for forex) were in line with our estimates, we remain
concerned as (1) fixed assets are up by Rs1 bn in 1HFY12 despite poor capacity
utilization, (2) debt/equity is at 1X, (3) Interest costs constitute 32% of EBITDA, (4) no
clarity in strategy regarding Chinese investment, which is now being divested, and (5)
no pick-up seen in CRAMS business from India. We reduce our FY2012E PAT due to the
forex impact and maintain FY2013E EPS at Rs9. Maintain REDUCE with PT at Rs55 (6X
FY2013E EPS). We need to see sustainability in the core business of CRAMS from India
before turning positive and believe the Carbogen Amcis recovery might take longer due
to macro trends and exposure to pre-clinical contract research business.
Sales at Rs2.7 bn, in line with our estimate
Sales increased 27% yoy and 13% qoq to touch Rs2.7 bn this quarter, in line with our estimate.
However, CRAMS business from India fell yoy and qoq, lower than our estimates. Carbogen Amcis
sales were flat yoy in Swiss Francs, however, up qoq as the business has seen significant de-growth
since 2HFY11. In the MM segment, (1) Vitamin D business reported sales of Euro5 mn, in line with
our estimate of Euro6 mn while (2) India business registered strong sales of US$15 mn, double
qoq versus our estimate of US$10 mn.
EBITDA ex-forex loss was at Rs470 mn, in line with our estimate
EBITDA (adjusted for MTM translational forex loss of Rs187 mn on forex debt) at Rs470 mn was
down 4% qoq, and largely in line with our estimate of Rs462 mn with EBITDA margin at 17.5%
versus our estimate of 17.3%. Gross margin dipped qoq and yoy to 63.7%, 130 bps lower than
our estimate due to poor product mix and muter sales from high-margin CRAMS business from
India. However, strict control on personnel costs, flat yoy, and other expenses, up 17% yoy, led to
EBITDA margin being in line with our estimate despite lower gross margin. Although EBITDA
adjusted for forex was in line, adjusted PAT was 33% lower than our estimates despite lower tax
rate due to higher interest cost. Interest cost at Rs150 mn constituted 32% of EBITDA.
We lower our FY2012E PAT due to forex, leave our FY2012-13E operational estimates unchanged
We estimate a better 2HFY12E on account of delivery of supplies for non-Solvay business from
India and factor in PAT ex-forex at Rs415 mn, nearly double of Rs216 mn in 1HFY12. We leave our
operational estimates unchanged for FY2012-13E. We expect PAT ex-forex to increase by 12% to
Rs728 mn in FY2013E from RsRs432 mn in FY2012E with sales growth at 13% in FY2012-13E and
margin at 19-20%.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Dishman Pharma & chemicals (DISH)
Pharmaceuticals
Higher interest costs shave off profit. PBT excluding MTM forex loss was at Rs118
mn, down qoq and 33% lower than our estimate due to higher interest costs. While
sales and EBITDA (adjusted for forex) were in line with our estimates, we remain
concerned as (1) fixed assets are up by Rs1 bn in 1HFY12 despite poor capacity
utilization, (2) debt/equity is at 1X, (3) Interest costs constitute 32% of EBITDA, (4) no
clarity in strategy regarding Chinese investment, which is now being divested, and (5)
no pick-up seen in CRAMS business from India. We reduce our FY2012E PAT due to the
forex impact and maintain FY2013E EPS at Rs9. Maintain REDUCE with PT at Rs55 (6X
FY2013E EPS). We need to see sustainability in the core business of CRAMS from India
before turning positive and believe the Carbogen Amcis recovery might take longer due
to macro trends and exposure to pre-clinical contract research business.
Sales at Rs2.7 bn, in line with our estimate
Sales increased 27% yoy and 13% qoq to touch Rs2.7 bn this quarter, in line with our estimate.
However, CRAMS business from India fell yoy and qoq, lower than our estimates. Carbogen Amcis
sales were flat yoy in Swiss Francs, however, up qoq as the business has seen significant de-growth
since 2HFY11. In the MM segment, (1) Vitamin D business reported sales of Euro5 mn, in line with
our estimate of Euro6 mn while (2) India business registered strong sales of US$15 mn, double
qoq versus our estimate of US$10 mn.
EBITDA ex-forex loss was at Rs470 mn, in line with our estimate
EBITDA (adjusted for MTM translational forex loss of Rs187 mn on forex debt) at Rs470 mn was
down 4% qoq, and largely in line with our estimate of Rs462 mn with EBITDA margin at 17.5%
versus our estimate of 17.3%. Gross margin dipped qoq and yoy to 63.7%, 130 bps lower than
our estimate due to poor product mix and muter sales from high-margin CRAMS business from
India. However, strict control on personnel costs, flat yoy, and other expenses, up 17% yoy, led to
EBITDA margin being in line with our estimate despite lower gross margin. Although EBITDA
adjusted for forex was in line, adjusted PAT was 33% lower than our estimates despite lower tax
rate due to higher interest cost. Interest cost at Rs150 mn constituted 32% of EBITDA.
We lower our FY2012E PAT due to forex, leave our FY2012-13E operational estimates unchanged
We estimate a better 2HFY12E on account of delivery of supplies for non-Solvay business from
India and factor in PAT ex-forex at Rs415 mn, nearly double of Rs216 mn in 1HFY12. We leave our
operational estimates unchanged for FY2012-13E. We expect PAT ex-forex to increase by 12% to
Rs728 mn in FY2013E from RsRs432 mn in FY2012E with sales growth at 13% in FY2012-13E and
margin at 19-20%.
No comments:
Post a Comment