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Suven Lifesciences: Profits Decline due to Higher tax outgo in the quarter - Views on News from Equitymaster
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  • Sep 22, 2017 - Suven Lifesciences: Profits Decline due to Higher tax outgo in the quarter

Suven Lifesciences: Profits Decline due to Higher tax outgo in the quarter
Sep 22, 2017

Suven Lifesciences has announced its June quarter (1QFY18) results. The company has reported a sales growth of 3.2% YoY, while net profits decline by 9.2% YoY. Here is our analysis of the results.

Performance summary
  • Net sales were up 3.2% YoY during the quarter. Revenues from CRAMS business increased to Rs 1.33 billion from Rs 1.27 billion YoY. Other services contributed Rs 77 million as compared to Rs 55 million YoY.
  • Operating margins increased slightly by 50 basis points, and stood at 32.6% for the quarter.
  • Net profits declined by 9.2% mainly on account of higher tax outgo.

    Financial performance: A snapshot
    (Rs m) 1QFY17 1QFY18 Change
    Net sales 1,332 1,374 3.2%
    Other operating income 0 36  
    Expenditure 898 957 6.6%
    Operating profit (EBDITA) 434 453 4.3%
    EBDITA margin (%) 32.6% 32.1%  
    Other income 45 56.2 25.0%
    Interest (net) 16 12.7 -20.4%
    Depreciation 48 51.9 8.1%
    Profit before tax 415 444 7.0%
    Exceptional Items 0 0  
    Tax 90 149 66.1%
    Minority Interest 0 0  
    Profit after tax/(loss) 326 296 -9.2%
    Net profit margin (%) 24.5% 21.5%  
    No. of shares (m)   127  
    Diluted earnings per share (Rs)   9.49  
    Price to earnings ratio (x)*   19.33  
    *based on trailing 12 months earnings

    Business Mix
    (Rs m) 1QFY17 1QFY18 Change
    Manufacturing (CRAMS) 1,277 1,333 4.4%
    Services 56 77 38.6%
    Total Sales 1,332 1,410 5.8%
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