Neuland Labs Q3 concall highlights –
Massive EBITDA margin improvement YoY due better product mix and greater contribution from commercial CMS operations
Retired debt worth 111 cr in past 9 Months
Recent business momentum likely to sustain over medium to long term
Gross margins in Q3 even higher than Divis’s gross margins despite lower contribution from CDMOs. Management believes, these margins are sustainable
Current RM procurement percentage from China at 25 pc
Capacity utilisation at Unit-1,2 at 80-85 pc. Unit 3 at 60-65 pc.
Unit 3 adding more capacities
Commercial contribution from CMS business at all time high. Likely to be higher going fwd
Current balance sheet,cash flow position at all time high
Company seeing higher enquiries in CDMO space
Quality of CDMO pipeline is healthy
Capex for next year – roughly 100 cr ( maint + expansion )
Company looking to expand R&D facilities in about a couple of years
Disc: invested, biased
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