Bliss GVS: margins contract, interim dividend solace

Shares of Mumbai-based Bliss GVS Pharma are trading marginally in the green at Rs. 112, post announcement of third quarter results this morning.

India’s largest manufacturer of suppositories and pessaries, Bliss GVS Pharma, selling female contraceptives under the ‘Today’ brand, announced December quarter results with revenue at Rs. 86 crore (up 43% YoY but down 4% QoQ) and EBITDA at Rs. 32 crore (up 56% YoY but down 10% QoQ). On a sequential basis, EBITDA margin contracted from 40.4% in Q2 to 37.8% in Q3, although they were way higher than FY14’s 33.1%. Net profit for Q3 stood at Rs. 18 crore, taking the nine months net profit to Rs. 53.4 crore, a tad lower than FY14’s Rs. 53.9 crore net profit. Thus EPS for Q3 and 9mFY15 stand at Rs. 1.74 and Rs. 5.19 respectively.  

The best part of the results was announced of interim dividend of 20% (20 paise for face value of Re. 1per equity share) for FY15. For FY14, dividend of 50 paise per share was paid. Company’s current market cap is little under Rs. 1,200 crore, which leads to a PE multiple of 16 times, and sales multiple of 4.2 times. Bliss GVS, having an US FDA approved manufacturing facility at Palghar, in Maharashtra, exports its products to 60 African, Latin America and Asian countries, which accounts for ~95% of topline.