Vimta Labs Ltd (VLL)

I am trying to get an idea of the numbers that can be contributed by the NFL setup at JNPT. The number of samples is ~ 1 lakh as mentioned in the concall by some participants and not refuted by management.

This number is roughly there substantiated by the RFP floated by FSSAI

Annexure-II screenshot

The FSSAI presser also talks of 9000 samples/month capacity

Now what is the rough/avg charge per sample. Here management is saying the charge is doubled from Rs.5000 – so should we assume Rs.10k/sample?

If that’s the case, does it mean a revenue potential of ~100 Cr from this lab?

On the margin front, it looks like they can maintain or even improve company level margins as guided in diff concalls.

May concall

Oct concall

So if they can maintain the 32% margin post revenue sharing with FSSAI, perhaps they can make an EBITDA of 32 Cr from NFL alone when its fully functional?

It looks like NFL revenues are present in Q4, Q1 and Q2 as well but its not very easy to identify the quantum of it, but if we assume all of it is NFL related – then probably somewhere around 35-40 Cr is probably already coming from NFL for 9 months YoY. Considering they didn’t have accreditation for all, this number should only go up I think. Also seasonality is a big factor in food imports as mentioned by management as well.

Bulk of the Fresh fruit imports seems to happen in Dec quarter going by import data, so there’s a good possibility current quarter and Q4 numbers should be better now that there’s full accreditation towards last week of Oct (Assuming the joint steering committee is setup and volume of samples has increased as guided).

In addition to this, the E&E division has incurred a capex of 25 Cr. Unsure about how quickly they can ramp this up, but if they are able to achieve ~1.5x turns like the rest of the business, this can contribute ~40 Cr to topline as well in a normal year.

Management’s guidance of 500 Cr by FY25 doesn’t seem way off, provided pharma and diagnostics can make up another 60-80 Cr growth.