If the INDIA alliance comes to power, will the centre take a stronger stance on this? Just thinking aloud.

CIPLA Ltd –

Q4 FY 24 results and concall highlights –

Revenues – 6163 vs 5739 cr, up 10 pc YoY
EBITDA – 1316 vs 1174 cr ( up 13 pc YoY, margins @ 21 vs 20 cr )
PAT – 932 vs 522 cr

R&D spends @ 444 cr, @ 7.2 pc of sales

Segment Wise revenue break up –

India – 2417 cr, up 7 pc
North America – 1876 cr, up 11 pc
South Africa – 560 cr, up 26 pc
EMs – 830 cr, up 5 pc
APIs – 190 cr, up 40 pc

Total Debt @ 560 cr
Cash on books @ 8270 cr. Company is open to inorganic growth initiatives

Investments made in FY 24 –

Acquired Actor Pharma in South Africa for 400 cr. It has a portfolio of branded generics and OTC brands in SA

Got into a marketing and distribution partnership with SANOFI to distribute 06 of their CNS brands in India

Acquired OTC brand portfolio of IVIA beauty and Astaberry in India for 130 cr

Company has 21 brands ( branded generics ) in top 300 brands in IPM. These brands have a turnover > 100 cr each

Company has a booming Speciality – InLicensing business with FY 24 sales @ 761 cr. Last 5 yr CAGR here has been @ 39 pc

In addition, company has 5 OTC brands with sales > 100 cr / yr. These are – Omnigel, Nicotex, Prolyte ORS, Cipladyne, Cofsils

North American product pipeline –

Respiratory pipeline – 05 assets filed assets in last 12 months. Going to file 02 more assets in next 12-15 months. Major launches expected in next 12-15 months

Peptides and Complex generics – 12 assets already filed. Going to file 08 more assets in next 1-2 yrs. Multiple launches expected over FY 25-27

505(b)(2) assets – have filed 02 assets. Launches expected in next 1-2 yrs

Company has reached no 1 spot in the prescriptions business in SA

In India, Chronic portfolio’s share is now at 61 pc. Chronic business has a far superior gross margin profile vs Acute business

Company has hit 20 pc mkt share in Lanreotide
( injectable peptide – a 505(b)(2) products )and 13 pc Mkt share in Albuterol ( complex generic – inhaler ) mkt

Guiding for an EBITDA margin band of 24-25 pc for FY 25

30 pc of company’s total revenues come from Respiratory products

Company has set up a manufacturing facility in China. Have got US FDA approval for the same. Have spent aprox 430 cr to set up that facility. Also looking to penetrate / expand into the Chinese market

Company is likely to see 2 more years of strong Revlimid sales ie FY 25, 26

Company’s Pitampur and Goa plants are yet to resolve their USFDA issues ( warning letters ). Once company resolves these regulatory issues, there could be significant bump up in the US business ( company expects Goa resolution and commencement of supplies only towards the end of FY 25 )

R&D expenses to continue to remain in the band of 6-7 pc of revenues

Disc: holding, biased, not SEBI registered

CIPLA Ltd –

Q4 FY 24 results and concall highlights –

Revenues – 6163 vs 5739 cr, up 10 pc YoY
EBITDA – 1316 vs 1174 cr ( up 13 pc YoY, margins @ 21 vs 20 cr )
PAT – 932 vs 522 cr

R&D spends @ 444 cr, @ 7.2 pc of sales

Segment Wise revenue break up –

India – 2417 cr, up 7 pc
North America – 1876 cr, up 11 pc
South Africa – 560 cr, up 26 pc
EMs – 830 cr, up 5 pc
APIs – 190 cr, up 40 pc

Total Debt @ 560 cr
Cash on books @ 8270 cr. Company is open to inorganic growth initiatives

Investments made in FY 24 –

Acquired Actor Pharma in South Africa for 400 cr. It has a portfolio of branded generics and OTC brands in SA

Got into a marketing and distribution partnership with SANOFI to distribute 06 of their CNS brands in India

Acquired OTC brand portfolio of IVIA beauty and Astaberry in India for 130 cr

Company has 21 brands ( branded generics ) in top 300 brands in IPM. These brands have a turnover > 100 cr each

Company has a booming Speciality – InLicensing business with FY 24 sales @ 761 cr. Last 5 yr CAGR here has been @ 39 pc

In addition, company has 5 OTC brands with sales > 100 cr / yr. These are – Omnigel, Nicotex, Prolyte ORS, Cipladyne, Cofsils

North American product pipeline –

Respiratory pipeline – 05 assets filed assets in last 12 months. Going to file 02 more assets in next 12-15 months. Major launches expected in next 12-15 months

Peptides and Complex generics – 12 assets already filed. Going to file 08 more assets in next 1-2 yrs. Multiple launches expected over FY 25-27

505(b)(2) assets – have filed 02 assets. Launches expected in next 1-2 yrs

Company has reached no 1 spot in the prescriptions business in SA

In India, Chronic portfolio’s share is now at 61 pc. Chronic business has a far superior gross margin profile vs Acute business

Company has hit 20 pc mkt share in Lanreotide
( injectable peptide – a 505(b)(2) products )and 13 pc Mkt share in Albuterol ( complex generic – inhaler ) mkt

Guiding for an EBITDA margin band of 24-25 pc for FY 25

30 pc of company’s total revenues come from Respiratory products

Company has set up a manufacturing facility in China. Have got US FDA approval for the same. Have spent aprox 430 cr to set up that facility. Also looking to penetrate / expand into the Chinese market

Company is likely to see 2 more years of strong Revlimid sales ie FY 25, 26

Company’s Pitampur and Goa plants are yet to resolve their USFDA issues ( warning letters ). Once company resolves these regulatory issues, there could be significant bump up in the US business ( company expects Goa resolution and commencement of supplies only towards the end of FY 25 )

R&D expenses to continue to remain in the band of 6-7 pc of revenues

Disc: holding, biased, not SEBI registered

Concall Highlights Q42024:
Debt.: December 2024 will be net debt free company. Now net debt is 290cr. Cost of borrowing is less then 10%. QIP of 500cr will be used to retire debt and general corporate purpose.

Company can use Lease Rental Discounting (LRD) if required for future data centre projects. Data centres can also be used for LRD.

Real estate:* projects were successful and get better price then projected. Tail wind in sector due to RERA and other reform. Continue to focus on sector 63A.

Company will launch two more projects, land is available. 2.5 million sq. foot.
After those project, 6.57 million sq. foot will be balance. Delhi land parcel and other miscellaneous land parcel company not touching.

Data centre: Become major player in data centre in North India. Agreement with TCIL to provide cloud services with co-location. 21 MW will be operational by December 2024. 7 MW extra will be operational at punchkula site, with server.

With server revenue can go 5 times, rates are at same level in market or little cheaper. Pilot is 1/2 MW. Server cos is 30 cr. for 1/2 MW for client. If company spend 20 rs extra. company can get 120 rs in year. Opex from 15 lacs can go to 25 to 30 lacs.

Land and building is invested. 26 cr per MW. 90 lacs/MW/Month. 75 Lacs/MW/Month is EBIDTA. Pay back is 3 years.

Anant Raj have advantage to competitors for data centre is timeline. Others will require 3 to 4 years to reach where Anant Raj is currently.

300 MW have timeline of 4 years. EBIDTA may change as it is linked to inflation, up or down. When competitor kick in it will change. Anant Raj have edge due to land/building.

Indian data will be in India as per law. Demand will be going to higher phenomenally.

Contract for data centre is 10 to 15 years. 500 CAPEX for data centre for this year. Company will be using internal accruals.

Maintenance CAPEX will be after 10 years for battery.

**Investor Presentation:
https://www.bseindia.com/xml-data/corpfiling/AttachHis/e5e45961-b63c-4120-a5bc-2366e641e73e.pdf

Earning Call transcript:
https://www.bseindia.com/xml-data/corpfiling/AttachHis/e5e45961-b63c-4120-a5bc-2366e641e73e.pdf

Disclosure: Invested

Hi @visuarchie ,
One small correction,
12 month price change formula for NUVAMA(FV427) will be “=(FV422/FV271)-1” instead of “=(FV422/FV272)-1”. Thanks.