Q1FY19 Result: Caplin Point reports stable results

Caplin Point Laboratories reported stable quarterly earnings with strong topline and tepid bottomline.

The total revenue for the quarter rose by 18.6 per cent yoy to Rs. 146 crore in Q1FY19 as compared to Rs. 124 crore in Q1FY18.

The EBITDA for the quarter rose by 14.4 per cent yoy and 9.3 per cent qoq to Rs.54 crore in Q1FY19. The EBITDA for the quarter contracted by 140 bps to 37.1 per cent in Q1FY19 as against 38.5 per cent in Q1FY18.

The net profit for the quarter rose by 2.9 per cent yoy to Rs. 37 crore in Q1FY19 as compared Rs. 36 crore in the same period the previous year. Further, the company has decided to enhance its Chinese market presence with Joint venture with one of the major Chinese pharma company Jointown Pharmaceuticals with 39 per cent equity stake. In addition, the company has also decided to invest in its step-down subsidiary in El Salvador in Debt or ordinary capital in Farma America S.A de C.V, a subsidiary of Caplin Point Far East Limited. The investment will be upto US$7 million in shares or debt through Caplin Point Far East.

The stock is trading down 8 per cent at Rs415 per share.