Each year I have the privilege of writing to you about Dishman Pharmaceuticals CompanyLimited to recognise our accomplishments address our challenges and share with you ouroutlook and plans for the future. And each year I am more excited about the pace andscale of change that the Company is undertaking to fulfil our unwavering focus on servingour clients.
Our business strategy of the previous year is yielding results. Our top 10 customersnow contribute 40% to our revenues from the earlier 60-70% due to new customer additions.Our India order book is healthy due to repeat orders and there is a steady stream of newcustomers.
OUR BUSINESS SEGMENTS
Under CRAMS our key driver continues to be the H\PO facility for oncology at BavlaAhmedabad. Under CARBOGEN AMC\S the business outlook remains robust.
A current development order book of CHF 80 million to be executed over next 12 monthsaugurs well for our growth. We have several products in the pipeline to be launched in thenext couple of years by our US and European customers. Our products will help us increaseour shipment to US which currently contributes 33% to total sales.
DELIVERING COMPLEX SOLUTIONS
We continue to be a truly global and end-to-end integrated CRAMS player and a preferredoutsourcing partner. We specialise in servicing customers across the key advanced marketsof U.S. Europe and Asia through a wide range of research competencies and manufacturingcapacities. Through the "ONE COMPANY TWO BRANDS" strategy we continue todeliver complex solutions suiting the diverse needs of our global customers.
CARBOGEN AMC\S continues to be the front-end interface of the Company engagingcustomers from the early stages of research and clinical trials. We continue to hand holdour customers through their entire drug development cycle. On the other hand our customerderive further value from Dishman India by seamlessly getting scaled up towards the Asiancost base large-scale commercial production through our manufacturing capabilities inIndia and China. We take comfort from CARBOGEN AMCIS and Dishman's ability to securelarge-ticket deals from major companies.
OUR FINANCIAL SCORECARD
Our financial performance has improved significantly and we have been growing at ahealthy pace. During the year under review we achieved consolidated revenues of Rs.1596.05 crore compared to Rs. 157519 crore in the previous year. Our CRAMS businesscontributed Rs. 111176 crore or 7118% to the total revenue whereas Rs. 450.09 crore or28.82% was contributed by the Marketable Molecules business. We recorded a higher EBITDAof Rs. 41032 crore up by 30.83% vis-a-vis Rs. 313.62 crore earlier. Profit After Taxwitnessed a healthy growth at Rs. 17111 crore higher by 42.58% compared to Rs. 11981crore in FY2015. Going forwardwe are confident of sustaining this profitability expansionthrough our product portfolio and adding new customers.
OPTIMUM CAPACITY UTILISATION
We have achieved efficient capacity utilisation at our manufacturing facilities by wayof an enhanced product mix. This has been achieved through a keen focus on niche andcomplex products and resulted in better operating margins. Our HiPo unit is also betterutilised and moving close to full capacity for the two operating cells and we are nowevaluating options to add capacity by operationalising the two non-active cells fordebottlenecking and making line enhancements. In the year ahead we will continue tobetter utilise our capacities and to sharpen our capabilities in making use of existingmanufacturing facilities as multi-purpose blocks. This will result in efficient capacityrealisation improved order-book conversion and add greater stability to our growth.
Going ahead our key emphasis will continue to be on efficient capacity utilisation ofour assets by way of an enhanced product mix through a keen focus on niche and complexproducts resulting into better operating margins.
As we continue to enhance and implement our strategies to do that we willsimultaneously advance our strategic framework for long-term shareholder value creation.
Janmejay R. Vyas
Chairman & Managing Director