BXPHAR declared EPS BDT 3.28 (NPAT BDT1,462mn) in Q3 FY21 against BDT 2.02 (NPAT BDT900mn) in Q3 FY20, implying a c62% yoy earnings growth i.e. BDT562mn increase in NPAT yoy. The main reason for such growth was c11% revenue growth, BDT384mn before-tax gain from the vaccine business, and BDT93mn decrease in finance expenses.
The gain from the vaccine business is the major driver for such substantial growth in earnings. Assuming a 25% corporate tax rate on vaccine income, the post-tax contribution to NPAT from vaccine stood at BDT288mn (EPS BDT0.64) in Q3 FY21. BXPHAR recorded the income from c5mn vaccine dosages (out of total 30mn dosage contact with Serum Institute of India) during Q3 FY21. The earnings from generic pharmaceutical business (the core business operation) are estimated to be BDT2.64, suggesting c31% growth yoy, which is similar to our expectation.
BXPHAR generated c11% yoy growth in revenue in its core business. Consolidated domestic sales, c91% of the total consolidated sales for the quarter, grew by c12% yoy. Export sales, on the other hand, grew by c8% yoy. Please note that the revenue from Nuvista Pharma, the subsidiary of the company, grew by c25% yoy. During the 9M FY21, BXPHAR generated c14% yoy consolidated revenue growth, c15% yoy domestic sales growth, and c2% yoy export sales growth. The rise in generic drug consumption (ivermectin, antibiotics, respiratory drugs, nutraceuticals) due to COVID-19 was the main driver of domestic sales growth whereas the export slowed down due to worldwide lockdowns and low global trades.
Finance expenses decreased by c36% yoy (BDT93mn), which further contributed to the bottom line. The main reasons were c31% yoy decline in net debt (from BDT11.5bn in March 2020 to BDT8.2bn in March 2021) and low-interest rate regime. BXPHAR has incurred the majority of the capex for its Unit 3 facility. As the capex gets lower, the company is paying off the debt it accumulated for the construction of the new facility.