Dishman Pharma's Net Income was Rs1.2bn (-20% YoY), as Dishman ended a disappointing year at a low note. Revenues were down 12% YoY, mainly
due to 18% decline in Carbogen Amcis sales, as customers (biotech cos) continue to scale back on early stage research projects.
Dishman had a tough FY10, as its high leverage to CRAMS led to earnings coming under pressure as the industry went through a rough phase. The worst now appears behind us. Dishman expects topline growth of 20% and EBITDA margins of 25%+ (c100bps margin expansion) in FY11. Revenue growth likely to be driven by full year supplies to Abbott, recovery at Carbogen (guidance of 10-15% sales growth), higher contract research revenues & its new China plant commencing operations.
Supplies to Abbott back to normal levels, Dishman has received forecasts on offtake for the next 2 years; 2) Restructuring efforts completed at Carbogen, cCHF6m of cost savings from FY11; 3) Setting up a vitamin D3 manufacturing plant in India for cRs250m, FY11 capex of Rs1.5bn; 4) c50% of revenues are Euro denominated - net exposure to Euro at cRs3.5bn.
