>DISHMAN PHARMACEUTICALS (KR CHOKSEY)

Robust segmental growth led the numbers to improve!!

Topline below our expectation: The Q4FY09 numbers of Dishman Pharma was below our expectation whereas the FY09 numbers were in line with our expectation. The company reported a sales growth of 21.4% to Rs 293.7 crore against Rs 241.9 crore during the same quarter last year. The growth in the revenue was mainly driven by good performance recorded in its segments. The CRAMs segment which contributes most of the company’s revenue grew by nearly 29% y-o-y whereas marketable molecule which constitutes around 25% of its revenue showed an impressive growth of 56%.

Healthy performance at the Operating level: The company carried forward its impressive topline performance to its operating level also. The operating profit of the company grew by nearly 66% to Rs 74.8 crore against Rs 45.0 crore during the same quarter last year. The growth in operating profit is mainly driven by decrease in other expenses and good performance across its segment. The operating margin of the company has seen a spurt of 684 bps y-o-y.

Bottom Line below our expectation: The net profit of the company for the quarter has increased by 21.7% y-o-y to Rs48.7 crore whereas on q-o-q basis the company has recorded a growth of 40%. The net profit margin of the company has shown a marginal growth of 5 bps y-o-y and 421 bps q-o-q.

To see full report: DISHMAN PHARMACEUTICALS