Sunday, August 5, 2012

VENUS REMEDIES LIMITED - FIRST QUARTER RESULTS - Q1 FY 2013 - Sales up 12% Profits Flat; - Improving steadily - Impressive number of Patents - Future Very Promising



VENUS REMEDIES LIMITED

FIRST QUARTER RESULTS
Q1 FY 2013

VENUS REMEDIES has declared its results for the first quarter ending June 2012. The results are analysed here under :
HIGH LIGHTS

Net Sales for Q1 FY 12 stands at Rs.112.03 Cr ; down by a marginal -1.27% from Q4 FY 12 (Rs.113.47 Cr); up by 13.31% from Q1 FY 12 (Rs.98.87 Cr); and up proportionately ( Q1 FY 13 x 4  vs FY 12 total) by 11.57% from FY 12 (Rs.401.65 Cr).

Total Income       for Q1 FY 12 stands at Rs.112.57 Cr;        down by a marginal -1.85% from Q4 FY 12 (Rs.114.69 Cr); up by         13.7% from Q1 FY 12 (Rs.99.01 Cr); and up proportionately ( Q1 FY 13 x 4  vs FY 12 total) by   11.13% from FY 12 (Rs.405.19 Cr.). Thus, Net Sales and Total Income Growth YoY and compared to previous year are reasonably Good.

Total Expenditure for Q1 FY 12 stands at Rs.90.62 Cr; down by a marginal          -2.09% from Q4 FY 12 (Rs.    92.56 Cr); up by       17.75% from Q1 FY 12 (Rs. 76.96 Cr); and up proportionately ( Q1 FY 13 x 4  vs FY 12 total) by    12.17% from FY 12 (Rs.323.15 Cr).The Expenditure has gone up mainly under Depreciation, other Expenses and Finance Costs.

Profit from Operations  for Q1 FY 12 stands at Rs.21.95 Cr; down by a marginal -0.83% from Q4 FY 12 (Rs.     22.14 Cr); down by   -0.45% from Q1 FY 12 (Rs. 22.05 Cr); and up proportionately ( Q1 FY 13 x 4  vs FY 12 total) by 7.03% from FY 12 (Rs.       82.04 Cr). Profit from Operations is almost flat despite Growth in sales, because of Growth in expenditure. But, compared to previous year of FY 12, there is reasonable Growth Proportionately.

Net Profit  for Q1 FY 12 stands at Rs.14.05 Cr; down by -9.74% from Q4 FY 12 (Rs.15.56 Cr); up by 3.14 % from Q1 FY 12 (Rs.13.62 Cr); and up proportionately ( Q1 FY 13 x 4  vs FY 12 total) by   12.29% from FY 12 (Rs.50.03 Cr). Net Profit levels are also Flat due to increased expenditure, though, compared to the total of FY 12, there is  improvement.

Diluted EPS for Q1 FY 12 stands at Rs.14.42; compared to Rs.15.97 in Q4 FY 12; Rs.14.92 in Q1 FY 12;

EPS annualized stands at Rs.57.67 – compared to FY 12 EPS of Rs.51.35.On annualized basis, there is good improvement over FY 12.

Paid-up Equity has gone up to Rs.9.74 Cr in Q1 FY 13 compared to Rs.9.13 Cr in Q1 FY 12.
RESULTS TABLE

Quarter Ended
30-Jun-12
QoQ % dif
31-Mar-12
YoY % dif
30-Jun-11
Prop.% dif with FY 12
FY12
Net Sales
11203.4
-1.27
11347.1
13.31
9887.1
11.57
40165
ToTal Income
11257.2
-1.85
11469.2
13.7
9900.9
11.13
40519
Total Expenditure
9062.1
-2.09
9255.7
17.75
7695.8
12.17
32315
Profit from Operations
2195.1
-0.83
2213.5
-0.45
2205.1
7.03
8203.5
Net Profit
1404.5
-9.74
1556
3.14
1361.8
12.29
5002.9
Diluted EPS
14.42
-9.71
15.97
-3.35
14.92
349.22
12.84
EPS annualised
57.67
-9.72
63.88
-3.35
59.67
349.23
51.35
Cost of materials
6523.7
0.91
6464.8
4.82
6223.6
11.01
23507
Employee benefits
571
2.35
557.9
4.62
545.8
10.99
2057.8
Depreciation
776.9
26.72
613.1
27.95
607.2
29.12
2406.7
Other expenses
1488
-8.02
1617.8
34.89
1103.1
13.44
5246.9
Total expenses
9062.1
-2.09
9255.7
17.75
7695.8
12.17
32315
Finance Costs
761.5
4.89
726
24.86
609.9
11.72
2726.4
Profit before tax
1446.2
-4.07
1507.6
-9.57
1599.3
4.89
5515.1
Tax Expenses
41.7
-186.16
-48.4
-82.44
237.5
-67.43
512.2
Net Profit
1404.5
-9.74
1556
3.14
1361.8
12.29
5002.9
Face Value  (Rs. )
10
0
10
0
10
10
Paid-up Equity
974.2
0
974.2
6.71
912.9
974.2
Diluted EPS
14.42
-9.71
15.97
-3.35
14.92
12.84
Public Shareholding (%)
65.58
0
65.58
-6.1
69.84
65.58

ANNUAL RESULTS – A COMPARISON

Venus Remedies
Y.E.Mar'12
Y.E.Mar'11
Y.E.Mar'10
Y.E.Mar'09
Y.E.Mar'08
INCOME:
Net Sales
404.92
357.27
311.93
264.51
213.61
Other Income
1.1
0.3
0.12
0.22
0.35
Total Income
406.02
357.57
312.05
264.74
213.96
EXPENSES
Raw Material
232.12
199.86
188.39
158.43
128.8
Employee Expenses
24.4
19.45
17.92
11.24
7.48
Other Expenses
67.87
52.73
37.33
40.31
25.8
Provisions Made
0
0
0
0
0
TOTAL EXPENSES
315.36
268.14
237.45
202.56
157.58
Operating Profit
89.56
89.14
74.48
61.95
56.03
EBITDA
90.66
89.43
74.6
62.18
56.38
Depreciatn
10.11
9.62
11.69
6.41
4.22
Interest
25.61
18.53
13.96
7.64
4.56
Taxes
3.67
12.21
7.9
5.4
5.39
Profit
51.27
49.06
41.05
42.73
42.2
KEY ITEMS
Equity capital
9.74
9.13
8.47
8.45
8.45
Public share Holding (%)
65.58
69.04
74.59
74.53
74.53
EPS (Rs.)
52.62
53.13
48.45
50.55
49.92

As can be seen, Venus has improved its Net sales Gradually over the years but steadily. Profit also has improved though more slowly. Interest, Depreciation, Raw material expenses have all grown during the years. At EBITDA level, the Growth is still very impressive. If Interest income comes down in future, the Profit Growth will be impressive.
OTHER DETAILS

The Company has several Patents to its credit. But the Sales are improving Gradually, Not spectacularly. Likewise, Profitability is also improving steadily.

In the latest quarter also, the company has been successful in obtaining several valuable Patents -  all of which should result in Good Improvement in sales and Profits in future (from  Q2 /Q3 onwards.

The MEDIUM TO LONG TERM Prospects of the company appear to be quite promising.

The current Market price of the share is around Rs.220. On a EPS of Rs.58, the PE is hardly 3.79 – which indicates sufficient Scope for  future price prospects.

During the Quarter-

1. The research Product CSE 1034 wins US Patent, this novel antribiuotic adjuvant entity (AAE) is found effective against a wide range of drug resistant infections including the superbugs like  carbapenemase resistant Matallobetalactamses (MBL) strains.

2. Co. has received its first Patent for a novel antibiotic combination of Carlapenem and aminoglycoside from South Adfrica.

3. Co has established Pre-clinical proof  of concept for its drug – Protein – Polymer – conjugate (DPPC), an innovative solution for alleviating cancer and receptor diseases by a specific and selective targeting.

4. The Co has added another Patent to its kitty for “ vancoplus® from Australia.

Other News about the Company are extracted and placed below in Brief . As we can see from the List, Venus has been producing new formulations / medicines and getting Patents and awards regularly, indicating its competence  in research and Innovation.

However, its Marketing success does not seem to be that praise worthy. Given more energetic Marketing, hopefully, the company could emerge as one of the Front runners in the Indian Pharma sector soon. Its Sales and Profits are no doubt rising gradually – but not commensurate with its Research effort.
NEWS
Date             Headline
26 July 2012      Gets US patent for POTENTOX...
9 July 2012        Introduces “Ready-to-Use” Single Vial Taxedol in India ...
5 June 2012       Venus drug to fight resistant superbugs wins US Patent...
22 May 2012      Bbags another patent grant from South Africamore...
24 April 2012     Comes up with an Innovative Solution for alleviating cancer...
10 April 2012     Venus Remedies “Vancoplus®” gets Patent from Australia...
19 Mar 2012  :  Venus ACHNIL receives BioSpectrum Product of the Year 2012 award...
6 Feb 2012 : To enter Japan market with patent approval for its novel research product ‘Vancoplus’...
14 Dec 2011      Wins “Emerging company of the year 2011” award...
6 Dec 2011        Wins India Manufacturing Excellence Award 2011 ...
15 Nov 2011      Receives Market Authorisation approval for Meropenem in UK & New Zealand...
2 Nov 2011        Venus wins 2011 Spotlight Award for its Annual Report in San Diego, USAmore...
5 Oct 2011  :  Pharmexcil felicitates Venus Remedies with patent award in Gold category.
29 Aug 2011  : Anti cancer product DOCETAXEL receives market authorisation in Europe...
3 Aug 2011 :  NOVEL RESEARCH PRODUCT VANCOPLUS RECEIVES US PATENT...
11 July 2011      Launches patented research product “ACHNIL” in India...
24 May 2011       Venus’ “achnil”, once-a-day painkiller, gets EU patent .
11 May 2011      Wins gold medal for trois under dst- Lockheed more...
26 April 2011     Venus remedies successfully completes phase i & ii clinical trials of...
4 April 2011       Wins QC-100 tqm (total quality management) ...
17 Mar-2011       Spreads its wings in GCC. first Indian company to receive GCC...
24 Feb- 2011     sulbactomax” patent from Mexico strengthens Venus’ presence in Latin America...
2 Feb- 2011       Venus’ anti-cancer drug “gemcitabine” gets UK MHRA approval...
27 Dec 2010      To expand innovations basket with sulbactomax patent from Russia & Ukraine.
8 Dec 2010        Successfully completed phase iii clinical trials of new aminoglycoside molecule.
29 Nov 2010      Bagged vancoplus patent from South Africa & Newzealand...
3 Nov 2010        Becomes first India company to get GMP certification from..
18 Oct 2010       Secures patents from Australia and Ukraine for its research product “potentox”.
28 Sep 2010      Bags compulsory license from Thai government for the….
14 Sep 2010      Research blockbuster “sulbactomax“ gets European union patent...
5 Aug- 2010  :  Grant of another market authorization for its carbapenem injection in Portugal to German arm of  Venus.
20 July 2010      Gets GMP accreditation from Sudan for its seven super specialty injectable manufacturing facilities..
28 June 2010     Enters  Australasia region with grant of patent for potentox from new zealand.
15 June 2010     US-based lockheed martin foundation, Texas university to assist Venus to market ampucare a miraculous wound healing product of the company in US ampucare receives FICCI gold medal for best innovation.
3 May 2010       Ties up with imtech and punjab univ to develop typhoid detection kits revolutionary kit to bring down typhoid detection time from 48 hours to few minutes..
9 April 2010       Receives GMP certification from botswana...
15 Mar 2010      sulbactomax a ceftriaxone sulbactam combination patent granted ...
22 Feb 2010      Venus ‘german arm gets approval to market carbapenem injection in portugal.
4 Feb 2010        ReceivesGMP certification from Ethiopia..
12 Nov 2009      Bags another product patent from South Africa for potentox.
23 Sep 2009      Venus outlicensed “sulbactomax “ to South Korea..
8 Sep 2009        First Indian product patent granted to venus  for potentox..

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