RPG Lifeciences Q4 concall highlights –
Business breakdown –
Domestic formulations – 67 pc
International formulations – 18 pc
APIs – 15 pc
Manufacturing facilities – 03 ( 02 Formulations + 01 APIs plant )
Leader in Immunosuppressants in India
Among companies with < 1000 cr sales, RPG Life is no 1 in terms of EBITDA margins, PBT and PAT margins
FY 19- FY 23 highlights –
Sales – 330 to 513 cr
EBITDA- up 3X
Profits- up 6X
Current cash balance of 100cr. Company scouting to acquire brands. No debt on balance sheet
Q4 outcome-
Sales at 118 vs 103 cr, up 14 pc
EBITDA at 18 vs 15 cr, up 20 pc
PAT at 10.5 vs 7.5 cr, up 38 pc
FY23 outcome-
Sales at 512 vs 440 cr, up 17 pc
EBITDA at 107 vs 90 cr, up 19 pc
PAT at 68 vs 51 cr, up 32 pc
Sales breakdown-
Domestic formulation- 337 cr, up 20%
International Formulations-92cr, up 18 pc ( present in UK,Germany, France, Canada, Australia, Africa )
APIs-80 vs 78 cr
Monthly MR productivity now at 5.5 vs 3.5 lakhs in FY 19
Important management comments-
IPM volume growth continues to be flattish, RPG volumes grew 13 pc
Total IPM growth ( Price + Volume + new products ) at 8 pc vs RPG’s total growth of 20 pc ( v v healthy )
New products launched post FY 19 at 28 pc of company sales ( a big achievement )
Rheumatology sales picking up nicely ( launched 2 yrs back )
Intend to spend 100cr towards plant modernisation and capacity enhancement
Also looking to acquire brands in local Mkts
Product mix and scale of operations may help sustain upwards trajectory of EBITDA margins
Q4 is always a seasonally weak qtr due nature of ordering patterns by clients. Qtrly Sales run rate should rebound from Q1 onwards
Company is strong in Immunosuppressant APIs which gives the company the right to win here
Company wants to develop niche, small mkt size APIs
Don’t intend to go head on against large players like DIVIS on any of the APIs
Intend to increase field force by 8-10 pc / year
Next two focus therapies – derma, GI – because immunosuppressants are used in these therapies as well. So the expansion should be easier
Post the fall in stock price in last 2-3 days, looks good to me. Added today. Tracking position
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