"Our perfromance in 2017-18 reflects that we have resumed our growth journey"
It gives me pleasure to review the performance of the Company during the fiscal goneby. A convergence of adverse external realities had decelerated our growth duringFY2016-17. We underwent a number of audits during the year under review and I am pleasedto report that we passed them all validating our competence in this segment that holdsout attractive revenue prospects across the foreseeable future.
I am even more pleased to informed that we reported a turnaround in performance duringthe year under review. We reported a 17.94% growth in revenues a 67.78% growth in EBIDTAa 272.69% growth in PAT indicating conclusively that we have resumed our growth journey.
Operational highlights FY2017-18
The most prominent achievement of FY2017-18 was the successful completion of factoryaudits by UK MHRA in UK (Bell) and US FDA (Time-Cap). These approvals provided us withnecessary clearances to resume our presence in these regulated markets. Although a numberof Indian companies had also faced regulatory hurdles in the past and to this extent wewere not the only ones who were affected I am pleased to state that Marksans was one ofthe quickest in clearing them successfully. This early resolution was the result ofproactive measures taken in standardising critical processes training people infunctional and behavioural aspects and ensuring a rigorous compliance with stringentnorms. A sluggish UK market was one of the reasons behind our underperformance inFY2016-17. A visible improvement in the market during FY2017-18 allowed us to grow ourEurope and the UK formulations revenues by 45.07% and improve EBITDA margins by 1214 bpsy-o-y.
We consolidated our US presence during our first full-year of integrated operationspenetrating deeper and adding a number of customers that helped reinforce revenues by6.32% y-o-y. The US continues to be one of the largest revenue-contributing geographiesfor Marksans generating 40.69% of revenues and supplying products to all major customers.We launched nine products across geographies during the year under review strengtheningour performance and creating revenue engines for the future.
Prepared for tomorrow
At Marksans FY2017-18 marked the beginning of a new growth phase for good reasons.
One the US the UK and Australian geographies remained key Marksans markets withall of them being now empowered with all regulatory approvals we are free to sell ourproducts in these markets.
Two we are among a handful of Indian players with a proprietary marketing presencein the world's largest pharma market the US. By eliminating third-parties from thevalue chain we protected our margins.
Three we strengthened our US product pipeline to be launched in three to fiveyears covering high-growth segments like cardiovascular pain management anti-diabeticcentral nervous system gastroenterology and anti-allergy among others.
Four the UK market post-Brexit began to report a rebound and our recent UK MHRAcertification has brightened our prospects in that country.
Five our state-of-the-art R&D centre in Navi Mumbai focusing on formulationsand novel drug delivery systems addressing the regulated markets became functional under astrong team.
Six we took a number of decisive initiatives in preparing dossiers for regulatedmarkets covering an exciting basket of products by leveraging proprietary R&Dcapabilities.
Seven the combination of the right capacities and capabilities is expected totranslate into sustainable growth.
Eight we repaid long-term loans deleveraged the Balance Sheet and reinvested thesurplus in R&D capacity creation and brownfield expansion.
Nine we are widening our products portfolio in the complex and high-margingenerics segment.
Ten following our strong base in regulated markets we are focusing on emergingmarkets segregated across four groups (South East Asia Middle East Russia/CIS countriesand Africa) deepening our focus in each and filing relevant dossiers. We launched theCNS-Cerebella division in FY2017-18 and ramped our Indian marketing team to derive 10% ofour revenues from this geography by 2022.
Creating a forward-integrated business model
We are proud to state that we are among a few mid and small-sized pharma companies tohave created an integrated business model. Our in-house R&D team is engaged increating and filing dossiers across major markets and helping commercialise these productsthrough front-end companies. This distinctive business model makes it possible to developproducts with low project investments coupled with low intermediation expenses as wemarket directly to customers.
I must thank all our shareholders for their support through a challenging phase. I mustassure that we are on the verge of capitalising on opportunities that continue enhancingvalue for all our stakeholders across the foreseeable future.