Conference Call      
          Plethico Pharmaceuticals
The Capex expected to be USD 8-10 million for CY'12


Plethico Pharmaceuticals announced the results for the quarter ended June 2011 and held conference call on 19th August 2011 to discuss the results and its future growth strategies. Key take aways of the call are as follows.

Financial Information:

Plethico Pharmaceuticals consolidated net sales were higher by 29% to Rs 454.31 crore for the quarter ended June 2011. However, OPM fell by 560 basis points to 19% resulting operating profit to witness marginal decline of 1% to Rs 86.40 crore. Other income fell by 55% to Rs 0.26 crore. With incline in interest cost by 5% to Rs 7.15 crore and fall in depreciation by 41% to Rs 2.82 crore, PBT inclined by marginal 1% to Rs 76.68 crore. Further, the decline in tax by 26% to Rs 1.54 crore has facilitated the net profit to grow by 2% to Rs 75.14 crore. After accounting Rs 0.79 crore as EO net off tax compared to Rs 11.59 crore in the corresponding previous period, net profit after EO was up by 19% to Rs 74.36 crore.

Highlights of the Call:
Revenues from the Neutraceuticals business grew by 37% to Rs 203.67 crore for the quarter ended June 2011, contributing 45% to the net sales. In addition, Herbal business grew by 29% to Rs 214.48 crore contributing 47% to the net sales.
Revenues from Allopathic business declined by 5% to Rs 34.33 crore for the quarter ended June 2011, contributing 8% of net sales. However, Revenues from the Contract Manufacturing fell by 24% to Rs 1.83 crore for the same period.
Revenues from the US witnessed robust growth 45% growth to Rs 125.98 crore for the quarter ended June 2011, contributing 28% to the net sales. In addition, Rest of the World (RoW) markets grew by 28% to Rs 264.73 crore for the quarter ended June 2011, contributing 58% to the net sales. Further, revenues from the India grew by 6% to Rs 63.6 crore contributing 14% to the net sales.
Revenues from the neutraceuticals had declined in the Q1 FY 2011, on the back of lower sales of essential pure ingredients in the US. However, Q1 FY 2012 quarter witnessed good growth and has a contribution of USD 5.2 million (against USD 6.5 million in H1 CY'11). Further, the Natrol business also witnessed good growth contributing 30% to the US Sales for the quarter ended June 2011.
The Company is working on the FCCB's front as they're approximately USD 100 million outflow that could potentially happen in October 2012. Further, It has sort out a strategy for the repayment and also reproached RBI for the restructuring of the bonds (as one of the options available).
The Capex expected to be USD 8-10 million for the CY'12, and the investments relates to new brands, brands registration, promotion and labeling. Further, the tax rate expected to be 8% for the CY12.
The Consolidated Debt is at Rs 742.26 crore as of June 30th 2011, compared to Rs 659.63 crore as of June 30th 2010. In addition, Cash and Bank balances at 60 crore as of June 30th 2011, compared to Rs 78.54 crore as of June 30th 2010. Further, the receivable days are at 189 days and it expects to bring down to 155-160 days by the year ended 2011.