Ranvir’s Portfolio

RPG Lifesciences Q4 & FY 24 concall highlights-

Sales breakup-

Domestic formulations-67 pc (mostly branded )
Intl formulations-18 pc (both generics & branded)
APIs-15 pc

Company- strong in Immunosuppressants in India(Azathioprine)

Manufacturing facilities-03
Employees -1200

FY 23 –

Sales – 512 vs 440 cr
EBITDA – 103 vs 87 cr
EBITDA margins – 21 vs 20.3 pc
PBT – 91 vs 73 cr
Cashflows – 115 vs 70 cr

Q4 ( a seasonally weak Qtr )-

Sales – 118 vs 103 cr
EBITDA – 18 vs 15 cr
PAT – 10 vs 7 cr

FY 23 segment wise performance –

Domestic Formulations-20 pc sales growth led by legacy brands

Intl Formulations-18 pc sales growth, led by new products and markets

APIs- muted growth of 2 pc

New product (launched after FY 19) contribution in FY 23 at 28 pc

Strengthening presence in Rheumatology and Oncology

Naprosyn ( pain reliever ) becomes company’s 50 cr+ brand

Monthly revenues per MR at 5.5 lakh vs 5 lakh vs 4.2 lakh in FY 23,22,21

Sales expiries at 1.5 vs 2.1 vs 2.4 pc in FY 23,22,21

Broad business strategy –

Build Immunosuppressants portfolio

Focus on Niche, low competition, complex products

Expand in Myanmar, Vietnam, SriLanka, Egypt, Thailand, Sudan and South Africa

Build long lasting relations with leading big and generic Pharma companies for API supplies

For FY 23, Domestic formulations volumes grew 13 pc !!!

This is way way above the volume growth of IPM

Rest of the growth came from price hikes and new products

Company is debt free. Cash surplus @ 115 cr – to be deployed for M&As

Q4 API growth was tepid because of Inventory adjustment by one of their top customers

Rheumatology now contributes 15 pc of sales (launched a few yrs ago)

Have identified 9-10 products for Intl formulations and API business and R&D on the same is on

Legacy products contribute to 67 pc of domestic business. Launched 8-9 line extension for these products

Immunosuppressants are mostly used in Nephrology and Rheumatology

Monoclonal Anti-Bodies is a new promising area of growth.Current contribution at 7pc

Expect even better traction in Intl Formulation business in 1-2 yrs time as R&D efforts fructify. Similar expectations wrt APIs

Capex – Spending aprox 100 cr on two of their plants. Will lead to capacity expansion by 40-50 pc for APIs and 15-20 pc for Domestic formulations

WRT APIs- company is strong in Immunosuppressant salts

Plus the company intends to carefully select new APIs for development as competing with larger players like DIVIS is not an option

Company intends to export formulations of all four commonly used Immunosuppressant molecules in all strengths and forms

Aim to increase MRs by 8-10 pc/ yr

New areas where company intends to expand in domestic Mkt is in Derma and Gastroenterology but only in high end specialist products. Won’t be entering mass products

Can enter both these segments as Immunosuppressants are already used here

My take –

Largely a branded Pharma company available at inexpensive valuations

Holding, Biased

Not a recommendation