Dishman Carbogen Amcis Ltd's Q4FY18 consolidated net profit rises 19.51% yoy to Rs51.14cr : Misses Estimates

India Infoline Research Team | May 18, 2018 12:29 IST

The company’s consolidated revenue stood at Rs451.49cr, down 15.49% yoy and 1.81% qoq.

Dishman Carbogen Amcis Ltd Q4FY18

Consolidated Results Q4FY18: (Rs. in cr)

Q4FY18 YoY (%)
Revenue 451.49 [15.5]
EBITDA 121.14 [17.4]
EBITDA Margin (%) 26.8 [63]
Net Profit (adjusted) 51.14 19.5
***EBITDA margin change is bps
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Reco. Price

375

Last updated on

08-May-2018



Dishman Carbogen Amcis reported 15.5% yoy decline in Q4FY18 revenue to Rs451.5cr. EBITDA in Q4FY18 declined by 17.4% yoy to Rs121.1cr. EBITDA margin stood at 26.8% in Q4FY18 vs. 26.4% in Q3FY18 and 27.5% in Q4FY17. Aided by lower tax outgo, PAT grew by 19.5% yoy to Rs51.1cr in Q4FY18.
  • The company has reported decline in revenue from both CRAMS and other business. CRAMS revenue declined by 4.2% yoy and other revenue declined by 14.8% yoy in Q4FY18.
  • CRAMS contributed 74.6% of the total revenue, while rest 25.4% came from other business.
  • EBIT margins of CRAMS segment declined by 504bps yoy to 16.4%.
  • The tax expenses stood at Rs23.7cr in Q4FY18 vs. Rs40.1cr in Q4FY17. The effective tax rate was at 31.7% in Q4FY18 vs. 48.4% in Q4FY17.
  • Material cost as % of sales increased by 146bps, while employee cost as % of sales increased by 488bps in Q4FY18. This was partially offset by 571bps yoy decline in the other expenses as % of sales in Q4FY18.
Concall highlights
  • Old clients are now returning to Dishman, previously these clinets had moved to China.
  • Company expects FY19E revenue growth to be ~7% and expects EBITDA margins to be close to what it reported in FY18.
  • Vitamin-D business has seen decline due to the company’s deliberate effort to reduce low margin cholesterol business.
  • Management has said that demand for legacy product is still stable, but not growing. This business has strong margins.
  • The management has said that the pharma industry is undergoing a consolidation phase in the US and Europe.
  • During Q4FY18, effective tax rate was lower due to the deferred tax reversal.
  • Average dollar realization in Q4FY18 was Rs64.4 vs. Rs67 in Q4FY17.
  • Company has guided FY19E capex to be ~Rs200cr.
  • Company has said that the small biotech industry is the main innovator of the pharma industry and money going in the small biotech funding is a main trigger for its business.

Technical View:

Dishman Carbogen Amcis Ltd ended at Rs. 351.70, up by 11.15 points or 3.27% from its previous closing of Rs. 340.55 on the BSE.
The scrip opened at Rs. 339.40 and touched a high and low of Rs. 352.50 and Rs. 332.30 respectively. A total of 1,04,452 (NSE+BSE) shares were traded on the counter. The stock traded below its 100 DMA.



***Note: This is a NSE Chart

 

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