FDC - Q1 FY21 (Unaudited – Cons.)
CMP: 340
Total income from operations 308 Cr
344 Cr (-10.51%) YoY | 333 Cr (-7.72%) QoQ
Year ending revenue: 1,344 Cr Vs. 1,089 Cr (23.47%)
Net Profit of 91.7 Cr
56.2 Cr (62.51%) YoY 55.5 Cr (64.53%) QoQ
Year ending Net profit: 239.9 Cr Vs. 170 Cr (40.54%)
EPS (in Rs.) 5.36
3.22 YoY | 3.22 QoQ
Year ending EPS: 13.94 Vs. 9.69
View: Result is improved and strong. YoY revenue decreased but profit significantly up. EBITDA and margin both improved in this quarter.
Business Updates & Highlights:
Q1FY21 EBITDA is around INR 131.5 Cr Vs. 88.2 Cr in Q1FY20 Vs. 67.1 Cr therefore up by 48.9% in YoY and 95.5% in QoQ. EBITDA margin in Q1FY21 was 42.7% Vs. 25.7% in Q1FY20 Vs. 20.1% in QoQ.
Sale of branded formulations in India for Q1FY21 was INR 231.43 crores, a decline of 13.66% over the same quarter last year. Overall sales in India markets accounted for 75.67% of total consolidated sales for the quarter.
Formulation Sales in the Export market were INR 59.26 crores in QIFY21, a decline of 3.01% over Q1 last year and accounted for 19.34% of total consolidated sales. The main contributor is the USA market, accounting to 74.72 % of total Export Formulations Sales. FDC is planning to launch Olopatadine ophthalmic solution 0.1 % in the USA market for increasing presence in Ophthalmic Therapy. 1 ANDA to be filed this year apart from 7 approved ANDA's, all in Ophthalmic.
API Sales in the Export market were INR 15.28 crores in Q1FY21, an increase of 36.36 % over Q1 last year and accounted for 4.99 % of total consolidated sales.
Updates
The Board of directors, at its meeting held on August 07, 2020 have approved a proposal of the Parent Company to buy-back its 21,63,000 fully paid-up equity shares at a price of INR 450 per equity shares from all the eligible equity shareholders of the Parent Company on proportionate basis
Financial
ROE and ROCE is around 12% and 17% respectively and book value per share is around INR 90 and share is currently trading at 3.9x of its book value. Company is currently trading at annualized PE) of around 22 which is very fair as per Industry benchmark. Promoter holding in the company is around 69.2% which is very strong and stable. FIIs and mutual fund hold around 5.7% and 4.7% respectively. The good thing is company is debt free.
Position: Share strong support price is INR 320/300. Long term investor should continue with the company and any correction will give good opportunity to enter.
Share View: Share price high 340 (52 week) and now 336. FDC is a forerunner in manufacturing and marketing of Oral Rehydration Salts CORS) and Ophthalmics. FDC has also set-up globally approved, multi-location manufacturing facilities for Active Pharmaceuticals Ingredients CAPIs) as well as Finished Dosage Forms. These facilities are located at Roha, Waluj and Sinnar in Maharashtra, Vema in Goa and Baddi in Himachal Pradesh. FDC markets more than 300 products in India and exports many of these to over 50 countries.
Opportunities
FDC manufactures Electral oral rehydration salt (ORS) being a leader in this segment. FDC manufactures bulk drugs formulations and food products. FDC's formulation department designs and develops products for various global markets and the highly regulated markets of US and Europe. Till date company has developed over twenty-three APIs of which fourteen have already been commercialized and exported across the world. Company has filed 11 USDMFs and 6 CEPs for APIs. It has its presence in numerous therapeutic segments: anti-infectives, gastrointestinals, ophthalmologicals, vitamins/ minerals/ dietary supplements, cardiac, anti-diabetes, respiratory, gynaecology, dermatology, analgesics and others. FDC’s Zifi, Electral, Enerzal, Vitcofol, Pyrimon, Zocon, Zoxan, Zathrin, Zipod, Zefu, Cotaryl and Mycoderm are leading brands in their respective segments in India. Debt free company with strong promoter holding. Recently announced Buy back at INR 450 will give also boost the share price in short term. FDC is planning