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C O M P A N Y U P D A T E
India
Oct 15, 2013 Venus Remedies Rs 207
Sec to r :Pharma Reach ing t he R&D t ipp ing po int
Four-s reports are available on BLOOMBERG, Reuters, Thomson Publishers and Market Publishers
BSE Code 526953 NSE Code VENUSREM CMP (Oct 2’) 207 52W H/L 327/158 Nifty 6,089 Sensex 20,547 Equity Cap (m) 3,791 Face Value 10 Shares (m) 11.44 Free Float 47.5% Market Cap (m) 2,371 3M Avg Vol 12,857
Rs
Consolidated Financials
FY'11 FY'12 FY'13
Sales 3,631 4,098 4698
EBITDA 892 1,028 1201
PAT 462 470 573
EBITDA(%) 24.6 25.1 25.6
PAT(%) 12.7 11.5 13.4
ROE(%) 22.6 17.3 16.7
ROCE(%) 19.1 16.3 15.9
P/E Ratio(x) 3.9 3.4 4.1
EV/EBITDA(x) 4.1 3.6 4.3
EPS (Rs) 50.6 48.3 54.4
Rs mn
43.99
8.58
0.07
15.82
31.54
Shareholding 30 Sep 2013
Promoter
FII
DII
Bodies Corporate
Others
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50
100
150
200
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Oct-12 Dec-12 Mar-13 Jun-13 Sep-13
Venus Remedis Sensex
With more than half of its 25 R&D product portfolio
commercialised and acceleration in global out-
licensing of its research-based products underway,
Venus Remedies (Venus) research programme has
today come of age. The 13 commercialised R&D
products are already generating 27% of the
company’s revenue at a higher EBITDA of ~40%.
Venus has been consistently driving growth at 10-
14% for the past 6 quarters. Now, as it moves
towards its goal to reach Rs 10bn by FY 17, the R&D
contribution is at a tipping point. The flagship product
‘Elores’ is expected to get Market Authorisation (MA)
for EU in a few quarters, whereas other key R&D
products Potentox and Vancoplus continue to
progress in international and domestic market.
Meropenem deal with Mylan for France opens up
lucrative EU Meropenem market
Venus received boost to its in the lucrative $270mn EU
Meropenem market with the signing of a non exclusive
marketing deal with Mylan in France after receiving MA. The
company expects to double its revenue to €10mn from
Meropenem by the end of FY14.
Blockbuster Elores receives patent in Japan
Elores has received patent from the Japanese patent office
opening access to a huge market opportunity in the $10.5bn
Japanese antibiotic market. The company is expected to
launch its blockbuster drug in Japan by the end of 2015.
Elores has already seen impressive response in the Indian
market since its launch and is expected to contribute Rs
150-200cr by FY2017.
Receives PIC/S GMP from Ukraine, to double exports
in FY14
The company received PIC/S GMP for all of its 9 facilities
from Ukraine, one of the largest pharma markets in EU
estimated at $3bn.
Continues to post strong growth and stable margins
The company has posted good growth in Q1 FY14 of 13% Y-
o-Y with revenue of Rs 1,267mn on account of anti-cancer
and export growth. It posted PAT of Rs 153mn, up by 9% Y-
o-Y
Valuations
Venus currently quotes at 4.1x ttm EPS. We believe the
market is completely ignoring the strength of its R&D
products pipeline and success they are getting in new
markets.
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Company Report: Venus Remedies 15 Oct 2013
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Company continues on stable growth path
Particulars (Rs mn) Q1 FY'14 Q1 FY'13 % Chg YoY Q4 FY'13 % Chg QoQ
Net sales 1267 1120 13.0% 1250 1.3%
Other operating income 6 5 4.6% 3 94.8%
Total Operating Income 1272 1126 13.0% 1253 1.5%
Total Expenditure 956 829 15.4% 952 0.4%
Consumption of Raw
Materials 753 652 15.3% 786 -4.2%
(Increase) / Decrease In
Stock In Trade & WIP -3 -30 -90.6% -32 -91.2%
Employees Cost 59 57 3.6% 59 0.5%
Other Expenditure 147 149 -1.1% 140 5.3%
EBITDA 316 297 6.3% 301 5.1%
Depreciation 95 78 22.7% 80 19.1%
EBIT 221 220 0.6% 221 0.0%
Interest & Finance
charges 67 76 -12.3% 62 8.3%
Other Income 8 1 549.2% -4 -337.1%
PBT 162 145 12.1% 156 4.2%
Tax Expense 9 4 115.1% 36 -75.1%
PAT 153 141 9.0% 120 28.1%
Rs mn *Standalone (Source: Capitaline, company reports)
Strong 13% growth in the quarter, in line with expectations
Venus has delivered healthy consistent growth over the last few
quarters in the range of 10-14%. It posted strong 13% revenue
growth Y-o-Y in Q1 FY14. With a solid base of generic injectables
products and strong R&D product portfolio, Venus is expected to
maintain growth momentum over next several years.
Driven by exports and anti-cancer segment growth
Exports up 27%
The company has seen good traction in exports which grew 27.3%
YoY to reach Rs 444mn, up from Rs 349mn in Q1FY13. The company
has been making continuous progress in growing its export markets.
It entered 6 new countries last year including Iran, Ethiopia, Costa
Rica, Zimbabwe, Slovakia and Austria. In the last quarter, it entered
2 new countries, Venezuela and Zorba. This extended reach is
helping to grow exports for its R&D as well as generic products.
Exports grew 20% last quarter contributing 31% to its revenue and
continue to remain a key driving force.
Anti-cancer continues to be the pivotal strategic segment for the
company with more than 30 injectibles products in its kitty. Anti-
cancer products sale grew 16.2% YoY to Rs 410mn in the last
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Company Report: Venus Remedies 15 Oct 2013
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Anti-cancer
grew by 16%
quarter compared to Rs 353mn in Q1FY13 and contributed 32% to
revenues in the last quarter.
Institutional sales also grew significantly at 17% Y-o-Y in the last
quarter, reaching Rs 105mn up from Rs 90mn in Q1FY13 with the
Cephalosporin (Inc Carbapenem) segment growing 19% Y-o-Y.
The company is expected to maintain 13-15% growth for next few
quarters as it is adding new export markets and expanding its
product kitty. Recent out-licensed deals are expected to bolster top-
line once it starts exporting its R&D products to regulated countries
through these deals.
Retains profitability
Growing contribution from anti-cancer segment and increase in R&D
products revenue has helped maintain and further improve the
overall profit profile. Despite facing margins pressure in its generics
business due to increasing competition, the company has managed
to more than compensate with increasing R&D products and growing
exports. As a result, the company has maintained strong profitability
profile with 25% EBITDA margins and 12% net margins. EBITDA
grew 6% YoY from Rs 297mn in Q1FY13 to Rs 317mn in Q1FY14. It
posted net profit of Rs 153mn up by 9% YoY compared to Rs 140mn
in Q1FY13.
Key Ratios Q1 FY'14 Q1FY'13 Q4FY'13
EBITDA Margin 24.8% 26.4% 24.0%
Net Margin 12.0% 12.5% 9.5%
Total Expenditure/ Total Operating Income 75.2% 73.6% 76.0%
Raw Material Cost/ Total Operating Income 58.9% 55.3% 60.2%
Staff Cost/ Total Operating Income 4.7% 5.1% 4.7%
Other Expenditure/ Total Operating Income 11.6% 13.2% 11.1%
*Standalone (Source: Capitaline, company reports)
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Company Report: Venus Remedies 15 Oct 2013
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Margins compare favourably with peers
Venus Remedies continued to maintain its margin edge over its mid-
size pharma peers& Injectable peers. The high margin oncology
segment, which contributed around 32% to revenue, and R&D
products, which contributed 27% to total revenue, are key drivers of
strong margins.
As research products contribution to revenue is expected to move
up, margins are expected to increase going forward.
Better profitability supporting the growth
Company
Q1 FY14 Total
Income EBITDA
EBITDA
Margin
Net
Income
Net Income
Margin
Mid-Cap Peers
Ajanta Pharma 2154 580 27% 325 15%
Indoco Remed 1481 245 17% 92 6%
Natco Pharma 1674 482 29% 218 13%
Suven Life 1087 462 43% 298 27%
Average 1599 442 29% 233 15%
Injectable Peers
Strides Arcolab 1508 273 18% 22 1%
Ahlcon Parentera 283 87 31% 50 18%
Parenteral Drug* 1330 50 4% -15 -1%
Claris Life 2022 685 34% 182 9%
Average 1285 273 22% 60 7%
Venus 1266 316 25% 153 12%
(Source: Capitaline, company reports) Rs mn
*Excl Exceptional items
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Company Report: Venus Remedies 15 Oct 2013
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Meropenem to drive exports growth in European markets
To double
revenue from
Meropenem in
one year to
reach €10mn
Expand reach to
15 more
countries
The company has received Marketing authorisation from the
world’s 5th largest pharma market, France, for generic injectable
Meropenem. It has already signed a non-exclusive deal with pharma
giant Mylan to sell Meropenem. It expects to double the existing
revenue from Meropenem from €5mn to €10mn within one year. It
will start exporting Meropenem to France within the next 3-4 months.
After entering the French market, the company has set its eyes on
the lucrative Meropenem EU market of $270mn. It hopes to gain a
larger chunk of this market by entering new regions and signing
similar deals with other major pharma companies.
At present, the company has MA for UK, Austria, Denmark, Finland,
Ireland, Germany, Netherlands, Poland, Slovenia, Slovakia, Sweden,
Portugal, Czech Republic, Cyprus, New Zealand, Mexico, Bosnia &
Herzegovina and Croatia.
Along with this, registration process is already under progress for
countries like Australia, Spain, Switzerland, South Africa, Malaysia
and Gulf Central Committee (GCC).
This off patented generic broad antibiotic drug is used against
diseases with broad range of serious infections caused by single or
multiple susceptible bacteria. Global Meropenem sale is expected to
cross $1bn by the end of CY2013.
The company already sells Meropenem in 35 countries and is
expected to expand its reach to 15 more countries in next quarter.
Among first 8 Indian companies to receive GLP accreditation
Among first 8
pharma
companies to
receive
accreditation
Venus Medical Research Centre, research arm of the company, got
accreditation for Good Laboratory Practices (GLP) and norms on
Organisation for Economic Cooperation and Development (OECD)
principles by National GLP and Compliance Monitoring Authority
(NGCMA). Venus Remedies is the 8th Indian pharma company to
receive this accreditation. This ensures research related data
generated from VMRC lab is acceptable to the registration authorities
of all the OECD member countries such as USA, Japan and various
European countries.
This certainly gives a cutting competitive edge to the company as it
continues to develop strong R&D products pipeline and is actively
looking for strategic partners to expand its reach in global markets.
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Company Report: Venus Remedies 15 Oct 2013
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R&D investments giving growth and profitability
Blockbuster drug, Elores, receives patent from Japan
Elores to drive
strong growth
in future
Elores has received another patent from Japan, the world’s second
largest pharmaceutical market. It is expected to be launched in Japan
by the end of 2015. Elores has received very good response from the
Indian market since its launch and is expected to registered revenue
of Rs 150mn in its maiden year.
Elores is also getting registered with central formularies (a list of
medications in the hospital from which the doctor will select a drug
for patients) of leading hospitals in India. This will enable
practitioners from these institutes to prescribe Elores to their
patients.
Receives PIC/S GMP Certification
To double
exports to
Ukraine to reach
$10mn
Venus received PIC/S GMO certification from Ukraine for all its 9
facilities which further opens up the huge opportunity emanating
from the Ukraine and other PIC/S countries. Venus expects to double
its exports to Ukraine from $5mn to $10mn in this year with the help
of this authorization. Venus already has a stronghold in the Ukraine
with 69 products in anti cancer, Cephalosporin, Carbapenem,
Research products and other specialty injectables segments.
Series of out-licensing deals expected in next few quarters
MA for Elores
for EU will be
turning point
With 25 research products in its portfolio and 15 products already
commercialised, Venus Remedies is at an inflection point. The
company is in the process of striking a strategic out-licensing deal
with a large MNC pharmaceutical firm to globally commercialise its
complete product portfolio. Two of the big 4 consulting firms are
helping to finalize the deal.
The company feels that the Market Authorisation for its flagship
product, Elores, will be the turning point. It has filed for EU Market
Authorization 15 months back which normally takes around 12-24
months. Once MA is received, the company feels their out-licensing
deals will gain momentum towards closure with large MNCs.
Key R&D products continue to progress favorably
All R&D products including Potentox, Vancoplus and Sulbactomax
continued to perform favourably in the last quarter. Among new
launches last year, Trois and Taxedol are performing well in the
market. Trois is expected to do Rs 40-50mn in this year and Taxedol
is expected to clock ~Rs 30mn. Company expects to launch 5 more
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Company Report: Venus Remedies 15 Oct 2013
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R&D products from its R&D pipeline within next 4-5 years.
Potentox : Growing at 25% 3yr CAGR with $4.5bn market
Potentox: Set to
become
blockbuster
product with
target market of
$4.5bn globally
95% success
rate against
MDR bacteria
Potentox has emerged as one of the major breakthroughs for Venus
Remedies from its Anti Microbial Resistance (AMR) based research
efforts over the years. With huge target market of $4.5bn globally, it
presents immense opportunity to become another blockbuster
product after Elores for the company in the coming years.
Potentox is a unique antibiotic adjuvant entity used for treatment of
hospital-acquired and community-acquired pneumonia and Febrile
Neutropenia. It is a super speciality product which combines
Cephalosporin and Aminoglycoside, making it effective against
penicillin and multidrug resistance bacteria.
Need for Potentox
With increasing incidence of penicillin and multidrug resistance
bacteria across the globe, effective treatment for pneumonia using
appropriate antibiotics has became a big challenge for healthcare
professionals. Cost of treatment for pneumonia has gone up with
increasing bacterial resistance towards traditional antibiotics like
penicillin, ampicillin-clavulanate, erythromycin, cefuroxime (Ceftin),
ofloxacin (Floxin), and trimethoprim-sulfanethoxazole. According to
WHO estimates, on average, 30% of adults in developed nations who
have a pneumococcal pneumonia die from the infection.
Significant Breakthrough
Venus Medical Research Center (VMRC) has come up with an
innovative drug which is effective against multidrug resistance and
acts as an instant remedy for Hospital/ Community Acquired
Pneumonia. Potentox demonstrates 95% success rates against these
multi drug resistant bacteria making it a huge success. Clinical tests
for Potentox in India have indicated 20-30% reduction in therapy cost
compared to conventional therapy.
$4.5bn Market Opportunity; safeguarded through patents
The overall global market for hospital acquired bacterial infection was
estimated at around $9bn in 2010 and Potentox is expected to target
almost 50% of this market. The market opportunity has been well
protected by the company by applying and receiving patents in most
of the major global pharma markets.
Received patent from 8 counties, got Mexico patent in last qtr
Potentox has received a 25-year patent from Mexico in last quarter
and is planning to file CTD very soon. Till now, Potentox has received
8 patents from developed countries covering USA, South Africa, New
Zealand, South Korea, Australia, Ukraine, Canada, and Mexico, along
with India. These patents are valid till 2025-2027. Patent for EU
region has also been filed.
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Company Report: Venus Remedies 15 Oct 2013
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Strong positive market response; growing at 25% CAGR
Potentox was launched in India in 2007, and since then it has
received very positive response. Potentox clocked revenue of ~Rs
180mn in FY13, contributing 4% to topline, making it the second
largest R&D product in the company’s portfolio. Potentox has seen
significant traction with strong growth at 25% CAGR for last 3 yrs.
Global roll out – Out licensing deal with South African Pharma
major: Adcock
To take this innovative product global, the company is currently
talking with various major MNC pharmaceutical companies for
strategic tie-ups/out-licensing deals. Recently, it struck a marketing
rights deal with South African pharma major, Adcock, for the South
African market for 15 years where it has patent till 2025. Potentox
has also received MA for the Ukraine market.
South African market opportunity
The company is expected to launch the product in the South African
market by mid of 2015 with the help of Adcock. Adcock is a $2bn
market cap company with 10% share of the private pharmaceutical
market in South Africa and the largest supplier of hospital and critical
care products in South Africa.
With the help of Adcock, the company is expecting to garner about
15% market share of ~$69mn addressable market within 3 years of
launch - nearly $10 million within three years of its launch. This will
further help drive its bottom line as research products give much
better margins (EBITDA - 40%) compared to other products.
Venus Remedies will be producing Potentox in India and selling it to
Adcock to market in South Africa. It will receive royalty along with
licensing fee though this deal.
Some key features of Potentox
Effective against wide range of gram positive and gram
negative multi drug resistance bacteria
Combats quinolones & aminoglycosides resistance and reduces
treatment time
Reduced incidences of nephrotoxicity and hepatotoxicity
Beneficial pharmaco-economically
We expect more out-licensing deals in coming years for Potentox.
With huge market opportunity for the product and 8 approved
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Company Report: Venus Remedies 15 Oct 2013
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patents in developed countries in place and the EU application in the
pipeline, the product has strong potential to grow.
Vision 2017 – To become Rs 10bn company
Venus Remedies has ambitious plans to become Rs 10bn company by
FY17. To achieve this vision, the company needs to grow at CAGR of
20%. It plans to achieve this growth by expanding its R&D products
revenue over the years and close some of its out-licensing deal with
large pharma MNCs for developed countries.
Risk: 16.9% shares of total share capital are pledged
16.9% shares (1.93mn) of total share capital i.e. 38.56% of
promoter’s shareholding are pledged as of 30th Jun 2013. But as
promoters has increased it’s stake from 34% in Dec 2012 to 44% as
of now, % of pledged shares has came down from 63% to 38%.
These shares are pledged as collateral to raise loan funds for
company’s various long term needs, mainly R&D investment.
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Company Report: Venus Remedies 15 Oct 2013
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Valuation: Heavy discount to peers despite strong performance
Company Price
Market
Cap EV
TTM
Sales
TTM
EBITDA
TTM
PAT P/E
EV/
Sales
EV/
EBITDA
Mid-Cap Peers
Ajanta Pharm* 729 25619 25951 8740 2372 1141 22.5 3.0 10.9
Indoco Reme* 74 6861 8326 6233 928 415 16.5 1.3 9.0
Natco Pharma 684 21457 24854 6566 1682 774 27.7 3.8 14.8
Suven Life 52 6097 7050 2958 865 526 11.6 2.4 8.2
Injectable Peers
Strides Arcolab 855 50606 65414 14868 3869 1474 34.3 4.4 16.9
Ahlcon Parent* 380 2736 2997 1094 288 156 17.5 2.7 10.4
Parenteral Dr 47 1212 5939 3888 42 -791 -1.5 1.5 141.4
Claris Lifescien 182 11606 15528 7719 2624 835 13.9 2.0 5.9
Average 17.8 2.6 27.2
Venus
Remedies* 207 2371 5283 4737 1215 584 4.1 1.1 4.3
Rs mn*Standalone (Source: Capitaline, company reports)
PE Band chart
Strong upside
after MA for
Elores and
momentum gain
for out-licensing
deals
Venus continues to trade at low absolute valuations, and much below
peer averages. It is currently trading at a P/E of 4.1x and EV/EBITDA
of 4.3x. The company has a strong upside in the next few quarters
once it gets MA for Elores, its strong R&D product portfolio and
consistent performance over the years.
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Company Report: Venus Remedies 15 Oct 2013
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Financial Annexure
Profit & Loss Statement
Income Statement FY'08 FY'09 FY'10 FY'11 FY'12E FY'13
Gross Sales 2,165 2,692 3,144 3,637 4,106 4,698
Less : Excise Duty 9 4 4 6 7 12
Revenue from Operations 2,156 2,688 3,140 3,631 4,098 4,686
Decrease/(Increase) in
Stock -48 -82 -62 -39 -92 -103
Raw Materials Consumed 1336 1668 1885 2054 2351 2,726
Manufacturing/Other
expenses 73 107 147 171 174 173
Payments to and provision
for employees 119 141 167 200 248 273
Power & Fuel Cost 19 20 17 27 27 31
Selling and Distribution
Expenses 62 98 153 198 230 289
Administrative & Other
expenses 57 87 91 119 130 97
Miscellaneous Expenses 25 23 14 9 2 0
Total Expenses 1,643 2,063 2,413 2,739 3,070 3,485
EBITDA 512 625 728 892 1,028 1.201
Depreciation 50 68 125 181 250 331
EBIT 462 558 603 711 778 870
Other Income 19 3 2 4 5 4
Financial Expenses 48 84 141 189 275 246
Profit before tax and
Exceptional Items 433 477 464 526 508 628
Exceptional Items
-
-
-
-
-
-
Profit before tax 433 477 464 526 508 628
Tax 75 37 68 64 38 55
Profit after tax before
minority interest 358 440 396 462 470 573
Reported net profit 358 440 396 462 470 573
(Rs mn), consolidated financials
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Company Report: Venus Remedies 15 Oct 2013
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Balance Sheet
(Rs Mn) FY'08 FY'09 FY'10 FY'11 FY'12 FY'13
Shareholder's Equity
Share Capital 84.7 84.7 84.7 133.2 97.4 105
Common Equity 84.7 84.7 84.7 133.2 97.4 105
Reserves and Surplus 783.7 1,258.8 1,626.4 2,235.6 2,888.5 3,638
Money received against share
warrants 21.6 42.3 - - 90.2 48
Total equity capital 890.0 1,385.9 1,711.2 2,368.8 3,076.1 3,791
Liabilities
Non-Current Liabilities
Long Term Borrowings 384.0 582.4 607.0 880.0 991.2 1,291
Other Long Term Liabilities 2.8 3.0 - 1.9 2.4 5
Long Term Provisions 50.2 50.0 - 19.4 25.0 29
Deferred Tax Liability 41.8 59.9 75.7 92.4 116.4 147
sub-total 478.9 695.3 682.7 993.6 1,135.0 1,472
Current Liabilities
Short-Term Borrowings 676.0 836.0 988.0 631.6 832.4 957
Trade Payables 47.0 79.2 48.7 70.3 125.5 188
Other Current Liabilities 45.4 45.8 34.8 400.6 434.3 582
Short-Term Provisions 106.2 91.6 131.8 142.7 139.9 186
Total Liabilities and Owner's Equity 2,243.5 3,133.8 3,597.1 4,607.7 5,743.2 7,175
Non Current Assets
Intangible Assets 93.3 434.7 835.7 1,234.5 1,729.8 1,999
Net Fixed Assets 1,080.2 1,242.1 1,460.6 1,746.5 1,879.3 2,057
Capital Work in Progress 14.0 8.4 7.3 104.1 177.8 437
Total Fixed Assets 1,094.2 1,250.5 1,467.9 1,850.6 2,057.1 2,494
Long-term Loans and Advances 423.0 417.5 108.0 139.0 260.0 427
Total Long Term Assets 1,610.5 2,102.8 2,411.7 3,224.1 4,046.9 4,920
Current Assets
Inventory 277.8 445.8 619.4 754.2 968.2 1,280
Trade Receivables 168.7 329.7 283.0 357.4 401.0 471
Cash and cash equivalents 11.2 15.9 23.9 31.2 29.4 64
Other Current Assets - - - 2.0 - -
Short term Loans and Advances 174.7 238.2 260.1 238.7 297.6 441
Total Current Assets 632.4 1,029.6 1,186.4 1,383.4 1,696.3 2,256
Total Assets 2,242.8 3,132.3 3,598.0 4,607.6 5,743.2 7,176
(Rs mn)
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Company Report: Venus Remedies 15 Oct 2013
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Cash Flow Statement
Cash Flow Statement FY'08 FY'09 FY'10 FY'11 FY'12 FY’13
Net Profit/(Loss) before Tax 433 477 464 526 509 628
Depreciation 50 52 125 182 113 331
Deferred Employee
Compensations 4 2 2 0 0
Expenses Amortised 15 14 13 9 140
Adjustment of excess mat
Transferred to gen reserve 0 0 -15 53 38 67
Adjustment for FBT -2 -3 25 4 9 11
Operating Cash flow before
Wcap 500 541 613 774 809 1036
Adjustments for increase
/decrease in Current Assets -275 -275 -148 -327 -352 -819
Decrease / Increase in Current
Liabilities/ Provisions -33 -72 -123 -73 -39 305
Extraordinary Items -2 -4 0 0 0
Cash Generated from Operations 190 189 342 373 417 521
Direct Taxes Paid 0 0 0 0 0
Operating Cash flow- A 190 189 342 373 417 521
Purchase/Sale of Fixed Assets
(net) -743 -570 -512 -820 -873 -783
Decrease in Capital Work-in-
Progress (including capital
advances) 403 6 0 -144 -77 -258
Interest received 1 0 0 0 0
Cash from Investing activities-
B -338 -564 -512 -964 -951 -1039
Proceeds from Issue of Share
Capital 0 0 0 48 6 8
proceed from share capital(share
premium) -26 198 0 175 166 72
Proceeds from Long Term
Borrowing( Net) 133 160 25 731 112 300
Proceeds from Short term
Borrowing( Net) 22 20 153 -357 201 124
Proceeds from share warrants
48 48
Cash from Financing activities-
C 129 379 178 598 533 552
Change in Cash= A+B+C -19 5 8 7 -2 34
Opening Balance 30 11 13 24 31 29
Closing Balance 11 16 21 31 29 63
(Rs mn)
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Company Report: Venus Remedies 15 Oct 2013
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Ratios
Ratios FY'09 FY'10 FY'11 FY'12 FY'13
EPS 51.5 46.5 50.6 48.2 54.4
CEPS 57.5 61.3 70.6 72.7 85.7
DPS 3.0 3.0 3.0 3.0 3.0
Valuation Ratios
P/E Ratio 2.9 5.5 4.0 5.6 4.1
EV/EBITDA 4.3 5.2 3.7 4.4 4.3
EV/Sales 1.0 1.2 0.9 1.1 1.1
Profitability
EBITDA margin 23.3% 23.2% 24.6% 25.1% 25.6%
Pretax margin 17.7% 14.8% 14.5% 12.4% 13.4%
Net margin 16.4% 12.6% 12.7% 11.5% 12.2%
Return on avg. Equity 38.6% 25.5% 22.7% 17.3% 16.7%
Return on avg. Capital
employed 24.5% 20.4% 19.1% 16.3% 15.9%
Growth Ratios
Revenue growth 24.7% 16.8% 15.6% 12.9% 14.3%
EBITDA growth 22.0% 16.3% 22.6% 15.2% 18.2%
Net profit growth 10.0% -2.7% 16.8% 1.7% 23.8%
Activity/Turnover Ratios
Fixed Asset turnover (x) 2.3 2.3 2.3 2.3 2.4
Working Cap turnover (x) 4.9 4.1 3.8 3.6 3.3
Inventory turnover (x) 4.7 3.6 3.3 3.0 2.6
Inventory Days 77.9 100.9 110.9 121.7 111.2
Receivables turnover (x) 10.8 10.3 11.3 10.8 10.7
Receivable Days 33.8 35.6 32.2 33.8 33.8
Payables turnover (x) 25.1 28.5 34.5 24.0 17.4
Payables Days 14.5 12.8 10.6 15.2 12.9
Liquidity Ratios
Current Ratio 1.0 1.0 1.1 1.1 1.2
Solvency
Debt Equity 1.0 0.9 0.6 0.6 0.6
Leverage Ratio 2.3 2.1 1.9 1.9 1.9
Net Debt / EBITDA 2.3 2.2 1.7 1.8 1.8
Interest Coverage 6.1 4.3 3.8 2.8 3.5
Page 15
Company Report: Venus Remedies 15 Oct 2013
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About Four-S Services
Founded in 2002, Four-S Services is a financial boutique providing Research, Financial
Consulting and Investment Banking services. We have executed more than 100+
mandates across diverse range of industries for Indian as well as global companies,
investment firms and private equity and venture capital firms.
Our clients value our focused, actionable advice which is based on deep domain
expertise in Education, Financial Services, Media & Entertainment, Healthcare,
Consumer Goods, Automotive, Energy, Logistics and Manufacturing. For further
information on the company please visit www.four-s.com
Disclaimer
The information contained herein has been obtained from sources believed to be
reliable but is not necessarily complete and its accuracy cannot be guaranteed. No
representation, warranty, guarantee or undertaking, express or implied, is made as to
the fairness, accuracy or completeness of any information, projections or opinions
contained in this document. Four-S Services Pvt. Ltd. will not accept any liability
whatsoever, with respect to the use of this document or its contents. This Company
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not constitute or form part of any offer or solicitation of any offer to buy or sell any
securities. This document shall not form the basis of and should not be relied upon in
connection with any contract or commitment whatsoever. This document is not to be
reported or copied or made available to others.
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For further details/clarifications please contact:
Alok Somwanshi Seema Shukla
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