Monday, June 25, 2012

Venus Remedies LTD - RESULTS FOR - Q4 FY 12 - FY 2012 - SALES GROWING - PROFITS GROWING SLOWLY - IMPRESSIVE PATENTS LIST - FUTURE CAN BE EXCELLENT IF PATENTS RESULT IN GOOD MARKETING


Venus Remedies Limited
NSE Symbol        VENUSREM

Venus Remedies is one of the promising companies in the Pharma sector. Its Results for Q4 FY 12 and for FY 12 are analyzed below with the previous and corresponding periods :
Q4 FY 12 vs Q3 FY 12  vs Q4 FY 11

Net Sales in Q4 FY 12 stands at Rs.114.63 Cr; compared to Rs.95.42 Cr in Q3 FY 12 (up by 20.13%); and compared to Rs.96.46 Cr in Q4 FY 11 (Up by 18.83%).
Materials consumed in Q4 FY 12 stands at Rs.64.65 Cr; compared to Rs.52.86 Cr in Q3 FY 12 (up by 22.31%); and compared to Rs.57 Cr in Q4 FY 11 (Up by 13.41%).
Employee benefits in Q4 FY 12 stands at Rs.6.09 Cr; compared to Rs.6.19 Cr in Q3 FY 12 (down by -1.63%); and compared to Rs.5.66 Cr in Q4 FY 11 (Up by 7.47%).
Depreciation in Q4 FY 12 stands at Rs.2.19 Cr; compared to Rs.2.65 Cr in Q3 FY 12 (down by  -17.16%); and compared to Rs.2.53 Cr in Q4 FY 11 (down by   -13.26%). It is not clear why depreciation is coming down.
Other expenses in Q4 FY 12 stands at Rs.19.9 Cr; compared to Rs.16.81 Cr in Q3 FY 12 (up by 18.36%); and compared to Rs.14.01 Cr in Q4 FY 11 (Up by 42.06%).
Total expenses in Q4 FY 12 stands at Rs.92.84 Cr; compared to Rs.78.21 Cr in Q3 FY 12 (up by  18.71%); and compared to Rs.74.35 Cr in Q4 FY 11 (Up by 24.87%). The more than proportionate increase in total expenses compared to net Sales is mainly due to OTHER EXPENSES.
Profit  from operations in Q4 FY 12 stands at Rs.21.78 Cr; compared to Rs.17.21 Cr in Q3 FY 12 (up by 26.55%); and compared to Rs.22.11 Cr in Q4 FY 11 (down by -1.48%). Due to more than proportionate increase in Expenses, Profit from operations is down compared to the corresponding Quarter, though, it has increased handsomely over the preceding Qttr.
Finance costs in Q4 FY 12 stands at Rs.6.97 Cr; compared to Rs.6.68 Cr in Q3 FY 12 (up by 4.37%); and compared to Rs.5.29 Cr in Q4 FY 11 (Up by 31.86%).
Profit before tax in Q4 FY 12 stands at Rs.15.08 Cr; compared to Rs.        11.04 Cr in Q3 FY 12 (up by 36.55%); and compared to Rs.16.92 Cr in Q4 FY 11 (down by-10.91%). PBT also has fallen compared to corresponding Qtr due to higher expenses and Higher Finance costs; though, the increase is good compared to preceding Qtr.
Tax expense  in Q4 FY 12 stands at Rs.-0.48 Cr; compared to Rs.0.71 Cr in Q3 FY 12 (down by -168.27%); and compared to Rs.3.37 Cr in Q4 FY 11 (down by   -114.35%).
Net Profit in Q4 FY 12 stands at Rs.15.56 Cr; compared to Rs.10.33 Cr in Q3 FY 11 (Up 50.6%); and compared to Rs.13.55 Cr in Q4 FY 11 (Up 14.84%). Lower Tax Expense has pushed up the Net profit handsomely over previous and corresponding Qtrs both.
Basic EPS in Q4 FY 12 stands at Rs.15.97; compared to Rs.11.3 in Q3 FY 12;      and Rs.14.84 in Q4 FY 11.
Public holding (%)in Q4 FY 12 stands at 65.58%

FY 2012 vs FY 2011  vs FY 2010  vs FY 2009

Net Sales in FY 2012 (on standalone basis) stands at Rs.405.19 Cr; compared to Rs.357.27 Cr in FY 11 (Up by 13.41%); compared to Rs.311.93 Cr in FY 10 (Up by 29.90%); and compared to Rs.264.51 Cr in FY 09 (Up by    53.18%). Thus, Net Sales has been registering gradual and consistent increase over the last 3 years.
Consumption of Raw Materials in FY 2012 (on stand alone basis) stands at Rs.235.07 Cr; compared to Rs.    203.79 Cr in FY 11 (Up by 15.35%); compared to Rs.188.39 Cr in FY 10 (Up by 24.78%); and compared to Rs.166.79 Cr in FY 09 (Up by 40.94%).
Employees Cost  in FY 2012 stands at Rs.20.58 Cr; compared to Rs.20.88 Cr in FY 11 (down by -1.45%); compared to Rs.17.92 Cr in FY 10 (Up by 14.86%); and compared to Rs.11 Cr in FY 09 (Up by  87.09%).
Depreciation in FY 2012 stands at Rs.10.11 Cr; compared to Rs.8.44 Cr in FY 11 (Up by 19.91%); compared to Rs.11.69 Cr in FY 10 (down by       -13.46%); and compared to Rs.4.43 Cr in FY 09 (Up by 128.15%).
Other Expenditure in FY 2012 stands at Rs.67.99 Cr; compared to Rs.54.93 Cr in FY 11 (Up by 23.77%); compared to Rs.37.33 Cr in FY 10 (Up by        82.10%); and compared to Rs.32.16 Cr in FY 09 (Up by  111.38%).
Total Expenditure in FY 2012  stands at Rs.324.72 Cr; compared to Rs.284.13 Cr in FY 11 (Up by 14.28%); compared to Rs.249.14 Cr in FY 10 (Up by 30.34%); and compared to Rs.206.16 Cr in FY 09 (Up by 57.5%).
Profit from Operations in FY 2012 stands at Rs.80.85 Cr; compared to Rs.73.14 Cr in FY 11 (Up by 10.54%); compared to Rs.62.79 Cr in FY 10 (Up by    28.76%); and compared to Rs.58.35 Cr in FY 09 (Up by 38.56%). Total expenses has grown more than proportionately compared to total sales. Therefore, growth in Profit from operation has not been commensurate with Growth in Sales.
Interest in FY 2012 stands at Rs.25.7 Cr; compared to Rs.18.71 Cr in FY 11 (Up by 37.38%); compared to Rs.13.96 Cr in FY 10 (Up by 84.16%); and compared to Rs.9.34 Cr in FY 09 (Up by 175.29%). Interest Costs have grown  much more than proportionately.
Profit before tax in FY 2012 stands at Rs.55.15 Cr; compared to Rs.54.76 Cr in FY 11 (Up by 0.72%); compared to Rs.48.95 Cr in FY 10 (Up by 12.66%); and compared to Rs.49.26 Cr in FY 09 (Up by 11.97%). The Growth in Interest Costs has brought down the PBT considerably.
Tax Expense in FY 2012 stands at Rs.5.12 Cr; compared to Rs.7.28 Cr in FY 11 (down by -29.63%); compared to Rs.7.91 Cr in FY 10 (down by  -35.21%); and compared to Rs.3.73 Cr in FY 09 (Up by 37.5%).
Net Profit   in FY 2012 stands at Rs.50.03 Cr; compared to Rs.47.48 Cr in FY 11 (Up by 5.37%); compared to Rs.41.05 Cr in FY 10 (Up by  21.88%); and compared to Rs.45.53 Cr in FY 09 (Up by 9.88%). Overall, Net Profit growth over last 3 years has not been impressive.
Face Value is Rs.10. per share. Paid-up Equity stands at Rs.9.74 Cr
Reserves in FY 2012  stands at Rs.300.35 Cr; compared to Rs.233.27 Cr in FY 11 (Up by 28.76%); compared to Rs.171.47 Cr in FY 10 (Up by 75.16%); and compared to Rs.134.73 Cr in FY 09 (Up by 122.93%).
Public Shareholding at the end of FY 2012 stands at 65.58%.
Basic EPS in FY 2012 stands at Rs.54.43; compared to Rs.52.01 in FY 11; Rs.48.45 in FY 10; and Rs.53.86 in FY 09. Improvement in annual EPS over last 3 years has not been very impressive. Growth in Sales has been quite good.
PE RATIO : The 52 week high price  is Rs.276 and the 52 week low price is Rs.149 (on FV of Rs.10) and the Last Price is Rs.218.00. The last year Basic EPS was Rs.54.43. Hence, PE Ratio works out to 4.01.
The company has been successful in its research for drugs – and in securing Product Patents. Its future can be excellent – if only, it can succeed on the marketing front as well. But so far, success on marketing front has been SLOW. Given the nature of its Patents, if the marketing efforts succeed, the results could move to a much higher level.
At current PE Ratio, it appears to be a GOOD BUY for medium to long term investors.

ANNOUNCEMENTS TO NSE

22-06-2012          Date of Annual General Meeting is fixed as September 28, 2012. Register of Members and Share Transfer Books shall remain closed from September 24, 2012 to September 28, 2012 .
21-06-2012          Recommended a dividend of 30% i.e. Rs. 3/- per share for the financial year ended March 31, 2012.
12-06-2012 "Venus Remedies bags another patent grant from South Africa".
24-04-2012       "Innovative Solution for alleviating Cancer".         
10-04-2012       "Venus Remedies "Vancoplus®" gets Patent from Australia".
19-03-2012       "Venus's ACHNIL,BioSpectrum Product of the Year 2012".        
06-02-2012       "Venus Remedies to enter Japan market with patent approval for its novel research product 'Vancoplus'".
13-12-2011      "Emerging Company of the year 2011, Venus Remedies Limited".
07-12-2011    "Venus Remedies wins "India Manufacturing Excellence Award 2011".
15-11-2011    "Venus Remedies receives Market Authorisation for Meropenem in UK & New Zealand".
05-10-2011          "Pharmexcil felicitates Venus Remedies with "Patent Award" in Gold Category".
29-08-2011          "Venus Remedies' anti cancer product DOCETAXEL receives market authorisation in Europe".         
26-07-2011          recommended a dividend @ of 30% i.e. Rs. 3/- per share for the financial year ended March 31, 2011
11-07-2011        "Venus launches its patented research product "ACHNIL" in India".
24-05-2011     "Venus Remedies' 'ACHNIL', once-a-day painkiller, gets EU Patent".
11-05-2011          "Venus Remedies Limited wins Gold Medal for TROIS under DST-Lockheed Martin India Innovation Growth Program 2011".
26-04-2011          "Venus Remedies successfully completes Phase I & II Clinical Trials of TUMATREK (VRP1620), cancer detection molecule".
04-04-2011          "Venus Remedies Limited Wins QC-100 TQM (Total Quality Management) Award in Gold Category From Geneva".

What the company says :-
From Chairman’s Statement : we have filed for more than 341 patent applications and we received 75 product patent approvals (from international and domestic regulatory bodies).
Besides this, we have entered into the exclusive marketing of products in select geographies. We have also capitalised on significant industrial opportunities through agreements with reputed pharmaceutical companies.
As a result of all this, today we are enjoying global visibility and respect that I am sure will translate into enhanced returns.
Much of what we expect to achieve has been enshrined in our The Mission 2015:
  • We wish to grow our team from 1,500 to 4,000 members.
  • We wish to graduate every department into an independent profit centre.
  • We wish to generate IPR-led wealth of US$1 billion.

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