HomeHealthcare NewsSee real benefits of US sales flow in next two years, says Sequent Scientific

See real benefits of US sales flow in next two years, says Sequent Scientific

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By CNBC-TV18 May 25, 2018, 10:12:15 AM IST (Updated)

Sequent Scientific has posted a good fourth quarter. Margins have expanded to 13 percent and revenue growth too has been above estimates. The company posted a profit of more than Rs 400 crores boosted by an exceptional inflow of about Rs 390 crores.


Manish Gupta, CEO of the company feels the key drivers that aided the performance in the last financial year were commercialization of APIs in the US as the first FDA approved facility in India in the veterinary space, integration of various acquisitions and gaining traction across geographies that includes Europe, Turkey and Latin America.

“We look at financial year 2019 with great confidence because in the fourth quarter, we started commercializing in the US and the real benefit will flow through in FY19 and FY20,” said Gupta, adding that this will also have a big impact on the margins because so far the company was carrying the costs of regulated market.

The margins will improve by 150-200 basis points on account of sweating of assets, and as they build up business in all geographies, he said.

Gupta said that Europe is traditionally a single-digit growth market but the company has been growing by leveraging various acquisitions.

The company is a pure animal health company now after divesting women’s health business and human API business.

The year on year revenues for the quarter were up 16.2 percent and EBITDA was up 29.7 percent, while margins came in at 13 percent compared to 11.6 percent a year ago.

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