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>> Orchid Chemicals
Orchid Chemicals Q3FY08 Results Update 8 February 2008 Source: www.keynoteindia.net
The robust earnings growth is in spite of lower EBITDA margin (down 170 bps y-o-y, from 31.2% to 29.5%). Margin impact is due to high raw material prices and escalating staff costs. Earnings growth is therefore attributable to the sharp decline in interest costs, coupled with forex gains of Rs. 3.50Cr. Interest costs declined by 26.2% on account of reduced leverage. Interest coverage ratio improved from 2.2x to 4.2x y-o-y. The company made forex gains of Rs. 3.50Cr. (net of taxes) on account of gains from translation of FCCB loans due to rupee appreciation. Keynote Capitals rates Q3FY08 as good quarter for OCPL in terms of new business developments and continuation of dominant position in the US market, all leading to better revenue and earnings visibility. Keynote Capitals analysts estimate revenue growth and earnings growth at a CAGR of 26.8% and 36.1% respectively over FY08-10. Orchid Chemicals & Pharmaceuticals Ltd. (OCPL) commenced operations in 1994 as a 100% export-oriented undertaking (EOU). It is an integrated manufacturer of active pharmaceutical ingradients (APIs) and finished dosage forms. Tha company has presence in high technology life-saving antibiotics; cephalosporins, betalactams and carbapenems, with core competencies in sterile injectibles (crystalline and lyophilised), both in API and dosage form levels and complex non-penicillin, non-cephalosporin products. The company operates 6 manufacturing facilities, 5 located in India and 1 in China. The facilities are US FDA and UK MHRA approved. Current share price of Orchid Chemicals is Rs. 259.15 Current market capitalisation of Orchid Chemicals is Rs. 1706Cr. ($432 million) |
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