The 100 listed Indian pharmaceutical companies have registered a net sales growth of 18.9 per cent to Rs.1,42,732 crore during 2012-13 from Rs.1,20,014 crore in the previous year and posted a strong growth in earnings before depreciation, interest, tax and adjustment (EBDITA) of 21.3 per cent to Rs.32,744 crore from Rs.27,002 crore, despite stiff competition, economic slowdown in major markets, volatile exchange rates, FCCBs burden and quality problems. The loss of patent exclusivity and new product launches assisted well for Indian pharma players.
The Pharmabiz study of 100 listed pharmaceutical companies showed that the net profit after forex and other adjustments moved up significantly by 79.4 per cent to Rs.16,901 crore during 2012-13 from Rs.9,419 crore in the previous year and these companies announced higher returns to their investors in the form of dividend. The net profit margin improved to 11.8 per cent from 7.9 per cent and EBDITA margin surged to 22.9 per cent from 22.5 per cent. The study is based on audited/ unaudited financial performance declared by companies. Further, the study has taken consolidated amounts wherever the figures were available for two years. Surya Pharmaceutical, a Rs.1,600 crore size company in 2011-12, is currently passing through difficult phase. It has not published its results so far and omitted from the study.
The other operating income of 100 companies increased by 5.7 per cent to Rs.2,241 crore from Rs.2,120 crore and their other income moved up by 9.6 per cent to Rs.2,451 crore. Thus, their total income improved by 18.5 per cent to Rs.1,47,424 crore from Rs.1,24,371 crore.
The total raw material cost, including increase/ decrease in stock and purchases, increased by 15.8 per cent to Rs.60,585 crore from Rs.52,332 crore. The raw material cost worked out to 42.3 per cent of net sales as against 43.6 per cent in the previous year. The staff cost of Pharmabiz 100 companies increased by 20 per cent to Rs.20,479 crore from Rs.17,063 crore and these companies have spend over 14 per cent of their net sales on employees for both the years. The other expenditure including marketing, repairs, maintenance, power & fuel, brokerage and commission, legal and professional fees, regulatory filing fees, etc increased by 20.2 per cent to Rs.33,616 crore and this constituted almost 24 per cent of there net sales.
The depreciation provision of 100 companies increased by 10.8 per cent to Rs.5,196 crore from Rs.4,691 crore and their interest burden went up only by six per cent to Rs.4,313 crore from Rs.4,069 crore. Thus, the profit before tax and adjustments touched to Rs.23,235 crore from Rs.18,241 crore, registering a solid growth of 27.4 per cent. The taxation provision increased sharply by 66.8 per cent to Rs.5,464 crore from Rs.3,275 crore With higher provision for taxation, the profit before adjustments registered a growth of 18.7 per cent to Rs.17,770 crore from Rs.14,968 crore.
The forex loss of 100 companies increased slightly by 3.7 per cent to Rs.565 crore from Rs.545 crore in the previous year. The other adjustments worked out to Rs.304 crore as compared to Rs.5,005 crore in the 2011-12 as Ranbaxy Laboratories has provided Rs.3,735 crore for settlement provision as against nil in 2012-13. Further, Sun Pharm, Aurobindo, Wockhardt and GSK has shown adjustments over Rs.300 crore in the previous year and the aggregate loss due to adjustment worked out to Rs.5,005 crore in the previous year. During 2012-13, Sun Pharma has provided Rs.584 crore towards potential damages in respect of patent infringement litigation related to generic Protonix. Further, its provision for minority interest stood at Rs.486 crore. Similarly, Strides Arcolab has sold its investment in Ascent Pharmaceuticals and provided Rs.726 crore in 2012-13 as gain.
There was no change in the sales ranking of top ten companies during 2012-13 with Ranbaxy Laboratories on top, followed by Dr Reddy's Laboratories, Sun Pharmaceutical, Lupin, Cipla, Cadila Healthcare, Aurobindo Pharma, Wockhardt, Jubilant Life Sciences and Glenmark Pharmaceuticals. Vivimed Labs and Unichem Laboratories entered the list with net sales over Rs.1,000 crore during the year 2012-13. Ind-Swift's net sales for the 15 months period ended June 2012 increased to Rs.1,583 crore from Rs.864 crore and that of Pfizer current year sales amounted to Rs.947 crore as against Rs.1017 crore on account of spin off the animal health business.
The Pharmabiz study included 11 listed multinational companies (MNCs) viz., Ranbaxy Laboratories, GlaxoSmithKline Pharma, Abbott India, Sanofi India, Pfizer, Novartis India, Wyeth, Merck, Fresenius Kabi Oncology, AstraZeneca Pharma and Fulford (India). MNCs aggregate net sales increased by 15.8 per cent to Rs.22,215 crore from Rs.19,188 crore with major contributions from Ranbaxy of Rs.12,253 crore (55 per cent). Excluding Ranbaxy, the net sales of 10 MNCs increased only by eight per cent to Rs.9,962 crore from Rs.9,218 crore and EBDITA moved up marginally by 3.4 per cent to Rs.2,459 crore from Rs.2,379 crore.
The Phrmabiz study is dominated by first 30 companies with net sales of above 1,000 crore, which contributed Rs.1,16,804 crore to aggregate sales or almost 82 per cent as against 80 per cent in the 2011-12. Similarly, the net sales contribution of 20 companies with net sales between Rs.500 crore and Rs.999 crore worked out to Rs.14,480 crore with contribution of 10.2 per cent to aggregate net sales of 100 companies as against 11 per cent in the previous year. The sales of other 50 companies, with net sales below Rs.500 crore, reached at Rs.11,448 crore as against Rs.11,364 crore and these companies contribution stood at eight per cent in the aggregate net sales.
The EBDITA of 30 companies with net sales of above Rs.1,000 crore improved by 24.1 per cent to Rs.28,777 crore during 2012-13 from Rs.23,181 crore in the previous year. The EBDITA of Lupin and Wockhardt have taken quantum jump of over 50 per cent during 2012-12 to Rs.2,298 crore and Rs.2,142 crore respectively. Sun Pharmaceutical, Aurobindo Pharma, Vivimed Labs and Unichem Laboratories registered strong EBDITA growth of over 40 per cent. However, Cadila, GlaxoSmithKline Pharma (GSK), Biocon and Elder Pharmaceutical recorded EBDITA growth of single digit only. The major companies like Plethico Pharma, Ind-Swift, Orchid Chemicals and Pharma and Ind-Swift Laboratories failed to generate positive growth in EBDITA.
The equity capital of 100 companies remained almost same at Rs.2,861 crore during 2012-13. There reserves and surplus increased by 16.7 per cent to Rs.97,903 crore from Rs.83,881 crore. (Few companies have not published Reserves & Surplus figures). Several companies recommended handsome dividends to stakeholders during 2012-13. Piramal Enterprises recommended dividend of 875 per cent, Divi's Laboratories 750 per cent, Sun Pharmaceutical and GSK 500 per cent each, Torrent Pharma 460 per cent, Sanofi India 330 per cent, Pfizer 325 per cent and Jubilant Life 300 per cent.
Considering the investments in research and development, expiration of patents, higher ANDAs approval and filings of Drug Master Files (DMFs) in highly regulated markets is likely to give upper hand to Indian pharmaceutical companies in the near future despite stiff competition. Though the quality and legal problems may put pressure on overall working of leading companies, the new product launches at affordable price and exports to the tune of over 50 per cent may augur well.
Financial Highlights of 100 Pharma Cos