I read the con call transcript for Q3FY23 & below are the notes for the same.
EBITDA margins are at 26%, Gross Margins at 47% & management is confident of maintaining the same at 23-24% going forward. The increase in EBITDA margins are mostly due to favourable product mix wherein 10-12 molecules were commercialized in the last 2.5 years & operation leverage kickin in.
Order book stands at 1.8 USD Bn. Management is confident of delivering 20% growth for the year with continued improvement in margins & returns.
Share of non agricultural enquires rose to 25% of the total. Product mix continues to evolve & management is guiding for higher share of non agri commercialization in the coming years.
Capex guidance for the next year is 800-850 crores (which includes some spillover capex of the current year as well). The ongoing & next year capex should increase capacities by 25-28%.
Currently, 17-18% of revenues are from products that were introduced in the last 3 years. (This is a good data check point to keep in mind)
Currently, there are total of 15 plants out of which 3-4 plants are dedicated and the rest are MPP. Also, 2 new plants are expected to come in stream by FY25.
Overall, the commentary was very bullish with no signs of growth witnessed for their products. However, the management still guides for 20% growth in future years as well.
Disc : Invested & Biased.
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