TLPL has been created after merger of Litaka Pharma with Care Unipac Pvt. Ltd. Litaka was already a listed company with 2 manufacturing facilities in Pune.
Company has been making tablets and liquids, doing CRAM for companies like; Novartis, Pfizer, Wockhardt etc. and also selling formulations in domestic as well as export market. Care Unipac has its manufacturing facility in Vasai with similar line of business. Post Merger, TLPL has 3 manufacturing facilities.
Financial Performance:
Quarter Ended Nine Month Ended Year Ended
31.12.06 31.12.05 31.12.06 31.12.05 31.03.06
(cr.) (cr.) (cr.) (cr.) (cr.)
Sales 54.29 25.35 150.42 65.70 162.15
Net Profit 4.08 0.54 10.29 1.56 9.56
Equity 10.64 9.55 10.64 9.55 9.55
Promoter's Stake 63.70%.
Trailing 3 Quarters:
Q3FY07 Q2FY07 Q1FY07
(cr.) (cr.) (cr.)
Sales 54.29 51.18 44.94
Net Profit 4.08 3.32 2.88
Post merger, performance of the company has improved significantly as marketing strength has doubled and there is considerable increase in the range of products available for promotion. Company has wider and stronger market base and also it has led to elimination and duplication of sales promotional expenses. Due to synergy in operations, company is benefitting by economies in production as well. For 05-06, company achieved sales of Rs. 162 crs. with NP of 9.56 cs. on equity of 9.55 crs. which gave EPS of 10 on Rs. 10/- F.V.
Future Outlook:
Year Ended
31.03.07 31.03.08 31.03.09
(crs.) (crs.) (crs.)
Sales 210.00 290.00 410.00
Net Profit 18.50 24.50 42.00
Equity 10.64 12.00 12.00
EPS 8.70 10.20 17.50
52 week High: Rs. 68/-.
Company has been performing exceedingly well in current year:
1) Sales in 9 months are 151 crs. which are 90% of entire sales achieved in 05-06.
2) NP in 9 months is higher than entire NP of 05-06.
3) Q3 sales are up (YOY basis) by nearly 120% and NP has zoomed by (YOY basis) 650%.
Significant Developments:
1) Torrent Pharma has started outsourcing nearly 5 cr. tablets per month from the company.
2) Herbalife (billion dollar giant in the field of Nutraceuticals) has been sourcing its entire requirement for India from TLPL. Recently, Herbalife inked an agreement worth Rs. 80-100 crs. for Calendar Year 2007. It will enable the company to cross Rs. 300 cr. turnover mark in 07-08.
3) A 300 dollar million dollar Malaysia Pharma Company has also started buying from TLPL. Once this company is satisifed with TLPL, it may translate into business worth Rs. 50-100 crs. p.a.
4) Novartis is likely to get from WHO a big order worth Rs. 50 crs. for T.B. Drugs. This order will come to TLPL only.
A new plant in Baddy has been set up. This plant will not only enable increased turnover but, will also enjoy excise, income tax benefits etc. which will give boost to company's profits. This plant will start commercial production in April '07.
Company will continue CRAM for various pharma companies which gets it annual revenue of nearly 100 crs. Now, company is putting big thrust on exports and increasing its own brand sales in domestic market. Company is targetting to grow its own sales at 50% CAGR for next 2-3 years. This move will help the company to increase its profits in a much higher proportion.
Valuations:
TLPL is at a take-off stage. To meet requirements of increased business, company is likely to place shares at Rs. 75-85 to an FII. Hence, we have presumed small equity dilution for next year.
Stock is available at 4.83 x FY07E EPS. Moreover, P.E. Ratio for FY08 and FY09 Earnings works out to just 4.12 and 2.40. Company will declare dividend for 06-07. If TLPL gets discounting of 12, its share price should be as under:
1) Rs. 105/- based upon FY07E Earnings.
2) Rs. 123/- based upon FY08E Earnings.
3) Rs. 210/- based upon FY09E Earnings.
Investors are likely to get minimum 60% appreciation in next 3-4 months. Medium term investors can gain 150% in less than 18 months. Buying in large lots recommended. Share Price had gone upto Rs. 68/- recently and has now bottomed out.
It gives me great pleasure to inform you that the Company has successfully concluded Financial Year 2005-06 by achieving turnover of over Rs.150 cr and net profit of Rs.9.68 cr. It is rather unfortunate thatwe are unable to meet personally and therefore I would like to share some of the important achievements of the Company in the recent past and the future plans.At the Annual General Meeting I have briefed the Members present about the developments which took place in your Company during the last year. I would like to take this opportunity to summarize the same for you.
POST MERGER After Amalgamation of your Company with CareUnipac Pvt. Ltd., the accumulated losses of theCompany has been wiped out and now the networth of your Company is positive.
SYNERGY IN OPERATIONS Your Company has reached an arrangement withTwilight Mercantiles Ltd. Mumbai based Pharma Company for joint marketing of each others' products in each others' territories. Your Company will enjoy the benefits of synergy since marketing efforts will get a big boost with increase in the marketing strength Synergy - Marketing staff of both Companies have already started promoting each others' products in extended geographical areas
The End Results would be: Newer products and newer territories Export potential in over 40 Countries. 600 StrongFieldForce and servicing one lac Doctors. Better distribution (1000 stockists will ensure availability Strong presence throughout India. Strong financial resource base.
To take advantage of marketing infra-structure, it was decided to change the name of the Company as TWILIGHT LITAKA PHARMA LIMITED. The Members have in the Extra Ordinary General Meeting held on 17th June, 2006 accorded their approval to the said change. Subsequently, theRegistrar of Companies accorded their approval and with effect from 4th July, 2006 the name of the Company has been changed from LiTaka Pharmaceuticals Ltd., to TWILIGHT LITAKA PHARMA LIMITED.
CHANGE IN SHARE CAPITAL In pursuance of the Scheme of Amalgamation, your Company was required to allot 11,72,32,500 Equity Shares to the Shareholders of Care Unipac Pvt. Ltd. Hence the authorized Share Capital was increased from Rs.20,00,00,000/- to Rs.21,50,00,000/-. After the completion of all the relevant formalities the Directors of your Company, on 22nd June, 2006 allotted 11,72,32,500 Equity Shares to the Shareholders of Care Unipac Pvt. Ltd. Subsequent to this allotment, the Paid-up Share Capital has been increased from Rs.9,54,87,850/- to Rs.21,28,12,850/-.
REDUCTION IN SHARE CAPITAL The Members are also aware that in the Extra Ordinary General Meeting held on 4 March, 2006, the Shareholders have accorded their consent for reduction of Share Capital by reducing the face value from Rs.10/- to Rs.5/-. Your Company has already filedPetition in the Hon'ble BombayHigh Court, for its approval to the said Scheme of Reduction of Share Capital. ThePetition is at a final stage and we expect that the Court will approve the said Scheme shortly. After the approval is received and the necessary listing formalities are completed, the Company will give effect to the capital reduction scheme and thereafter the paid-up equity capital of your Company will stand reduced to Rs.10,64,06,425 divided into 2,12,81,285 Equity Shares of Rs.5/- each fully paid.
PERFORMANCE OF THE COMPANY From the Annual Report for the Financial Year 2005-06, you must have noticed that Company's overall performance has improved. The turnover of your Company increased to Rs.157 cr and the Company has earned Profit after Tax of Rs.9.68 cr. Registration of products in export markets in about 40 countries has started materializing which has given a big boost to the export turnover. The direct exports have increased from Rs.3 cr to Rs.8 cr in 05-06 and are expected to reach Rs.18 cr in the current year. Your Company's arrangement of marketing operations with Twilight Mercantiles Ltd., growth in Contract Manufacturing and sourcing of Export Orders has reaped rich dividend. It is expected that your Company will grow at over 40% in the current Financial Year in all segments, namely, Contract Manufacturing, Domestic and Exports.
ENHANCEMENT IN THE MANUFACTURING CAPACITY You are aware that at present your Company is having threeWHO-GMPapproved manufacturing facilities in Maharashtra with adequate capacities to achieve Rs.500 cr turnover. In addition to this Twilight Group is setting up one more manufacturing unit at Himachal Pradesh which will be dedicated for the manufacturing operations of your Company. Your Company will enjoy huge benefits due to excise exemptions after the production commences at Baddi, Himachal Pradesh.
FIRST QUARTER UNAUDITED FINANCIAL RESULTS First Quarter unaudited Financial Results of the current fiscal has been very encouraging. The Company achieved turnover of over Rs.42 cr and has earned a net profit of Rs.2.89 cr. The Management is confident that the Company will maintain the same pace of growth throughout the year. Now your Company has wiped out all accumulated losses and as such as per the Company Law provisions, your Company is entitled to declare dividend. Accordingly, your Company may enter on the list of dividend paying companies after its financial position is consolidated.
IMPROVED EARNING PER SHARE As on 31.03.2006 on the basis of increased paid up capital, the basic and diluted EPS, of Rs.10/- is Rs.4.49 as compared to Rs.0.79 as on 31.03.2005. It is to be noted that after giving effect to the Scheme of Reduction of Share Capital EPS will be Rs.10.01. In conclusion I can assure you that the potential of your Company is extremely good. Amalgamation and Reduction of Share Capital have improved the net worth of the Company and have wiped out the accumulated losses. The marketing arrangement with Twilight Group will have long term positive impact on the overall performance.Your Company, after merger, is ranked in the top 100 in the Country's pharmaceutical formulations market. I am confident with continued excellence in performance, your company will position itself amongst the first 50 pharma companies within next couple of years. I express my sincere thanks to you for the support extended to the Management, particularly when the Company was passing through rough weather. I am thankful to all of you for the patience you have shown and for the belief in us. I am sure that this will pay rich dividend in the future.
With warm regards,
GOPAL RAMOURTI Chairman of theA.G.M. held on 3 August, 2006
Twilight Litaka Pharma rose 2.90% to Rs 47.85, on inaugurating a new factory at Baddi, Himachal Pradesh.
The inauguration was done on Saturday (28 April 2007). A bout 4,960 shares changed hands in the counter on BSE.
The scrip of Twilight Litaka was at a high of Rs 63.50 in 22 January 2007, but was unable to sustain it and drifted to a low of Rs 40.10 by 28 March 2007. Thereafter, the scrip managed to reach Rs 48.10 by 18 April 2007.
The trigger for the current price rise is that the plant was likely to add Rs 80 crore to the group's topline while excise and other tax savings, are expected to add substantially to the company's bottom line.
The new integrated plant allows Twilight Litaka to manufacture all products in the nutraceutical and pharmaceutical range, at a single location. The company has three manufacturing plants: one for dietary food supplements, one for pharmaceutical tablets and capsules and the third for pharmaceutical liquids.
Twilight Litaka manufactures drugs and formulations in the form of tablets, capsules, ointment and liquids. The company’s products cover the major therapeutic segments like analgesics – anti inflammatory, anti-asthmatic, antibiotics, anti-bacterials.
Twilight Litaka exports its products to over 30 countries across Africa, South America, South East and Central Asia.
In addition to the above activities, Twilight Litaka utilises its facilities for contract manufacturing on a principal-to-principal or, on a loan- license basis for several large companies like Novartis, Wockhardt, Cipla, Pfizer, Lupin and Serum.
Twilight Litaka posted a net profit of Rs 4.08 crore in the December 2006 quarter (Rs 3.33 crore). Sales rose to Rs 53 crore (51.19).
Joined: 26/May/2008
Location: India
Online Status: Offline
Posts: 721
Posted: 14/Jun/2008 at 12:05pm
Here's a report on Twilight from Money Today by Mudar Patherya:
For
years we have fed on the bulk drug manufacturing story with deep
research capabilities serving as a back-end to international giants.
Twilight Litaka Pharma comes as a small twist; it is engaged in the
manufacture of formulations serving the needs of national and global
labels.
Prima facie the numbers look compelling. In 2006-7, the
company reported a top line of around Rs 202 crore, EBITDA of Rs 26.72
crore and a post-tax profit of Rs 14.09 crore. Then in the first nine
months of 2007-8, the company outperformed its previous year’s numbers:
a top line of Rs 214.7 crore, EBITDA of Rs 28.20 crore and net profit
of Rs 15.61 crore. All this on an equity of Rs 10.64 crore.
Just how did it manage that? First the contextual environment.
Until
November 2006, India’s pharma industry grew by around 7% annually. Then
something happened; the trend line rose in response to a number of
factors—increased income, greater medical awareness and deeper
insurance inroads. For overall 2006-7, growth was around 14% (the
sector did a lot of catching up after the tipping point in November
2006) and in 2007-8 around 15%. Twilight Litaka is one of the little
boats that have bobbed up following the rising of the industry waters
due to the following:
• 50% of its income was derived from
contract research and manufacture, reflected in enduring relationships
with large MNCs and Indian companies. As the industry expanded,
Twilight Litaka’s business grew
• The company acquired 17 brands from Sami Labs, so as the industry grew, payback accelerated
•
The company capitalised on economies of presence (nationwide), products
(complementary) and plants (four in all) with catalytic effect The
result is that Twilight Litaka’s top line grew nearly 50% year-on-year
in the past few years. Here’s why this growth will sustain.
• Twilight Litaka has a portfolio of 200 dosage forms (80 brands)
• Its therapeutic footprint extends across relevant and growing segments.
• Its 1,200-strong field strength is expected to double in two years; number of dosage forms sold could rise from 45 to 75
• Its factories are aligned with WHO standards and produce a number of registered products
What
cues are stockpickers likely to pick up in the coming months? A
proposed placement of equity to liquidate long-term debt. Expansion
into more states and a wider portfolio to sustain top line growth.
Selective therapeutic presence to strengthen the bottom line. Result:
top line growth to Rs 375 crore in 2008-9 and Rs 475 crore in 2009-10
with no major margins compromise. Which is fair for a company with a
market capitalisation of only Rs 120 crore.
Consider another
contextual reality. India presently accounts for a little more than 1%
of the global prescriptions market of $650 billion compared with 16% of
the world’s population. As this number corrects...
"History does not tell you the probability of future financial things happening" - Warren Buffett
Joined: 11/Feb/2008
Location: India
Online Status: Offline
Posts: 42
Posted: 29/Nov/2008 at 12:17pm
Twilight Litaka usually does contract manufacturing for major pharma companies.I heard from very reliable sources that this company is not having a transparent management.Their modus operandi is they usually takes orders from XYZ Pharma for 10 lakhs pills (example) and manufacture 11 lakh pills ( 10% reject) this 10% reject they sell it on their own in XYZ Pharma brand name.The management taks the full profits on this.
A big operator from Mumbai entered this stock.It makes rounds every few months with news of it getting FDA Approval for its Loratodine drug.Its a junk stock with a new avatar or a story to fool investors.
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