Just attended the Vimta concall. Sharing some notes here:
- Growth in pharma and food is encouraging.
- Diagnostics business slightly improved but can do better. Able to do partnerships with local labs.
- Environment testing remains subdued during monsoons, will pickup in next half.
- E&E business showing good response.
- Able to maintain same ebitda margin going forward. Margin improvement is combination of both operating leverage and revenue growth.
- Quite optimistic on H2 to be better than H1.
- NFL, received full accreditation now & expecting samples to gradually ramp up.
- Current utilization is 50-60% in NFL.
- Business performance to be seen exc. JNPT lab building cost which is neutral to both revenue and expense.
- Employee expense continue to be in range of 28-30% going forward.
- JNPT lab is already profit making.
- Still firm on target of 500 Cr revenue by 2025
- Writeoff is usual process, nothing unusual this quarter. Typically remains 1% of revenue.
- Globally outsourcing trend is increasing, funding is coming in mid & small sized pharma companies who depends on outsourcing.
- Pharma may grow very well in coming years.
- E&E business will be first expanded into Hyderabad, later on will move onto city like Pune, Bangalore etc.
- Currently we don’t have testing capacity for testing electric vehicle battery but do have for electric vehicle equipment.
- In pharma 70% business from India and 30% from export. India is more toward generic side while export mainly belongs to preclinical studies for discovery of new molecules.
View – IMHO, overall good result by Vimta and margins are looking strong. Going forward we need to see if they able to maintain this growth and margins.
Disc- Same as before.
Note- May please excuse for any wrong interpretation as call was on handset, please further verify details once the transcript comes.
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