Caplin Point Laboratories

Concall Notes – Aug 2023

Summary:

Financial Performance:

• Caplin Point Laboratories reported good results for Q1 FY24 with a 13.1% growth in revenue, 19.3% growth in EBITDA, and 20.8% growth in PBT compared to the same quarter last year.
• The company’s liquid assets stand at INR 1,540 crores, including INR 807 crores of cash and cash equivalents.

Expansion and Production Capacity:

• Caplin Steriles’ Phase 2 will become operational in October, increasing production capacity and boosting profitability.
• Caplin Point is investing in API facilities for general and oncology APIs, with completion expected in six months and one year, respectively.
• The company is expanding its presence in Latin America and has received a $4 million order for oncology products in the RoW market.

Market Focus:

• The company is focusing on the US market and plans to establish a front-end presence there, which is expected to improve profitability.
• Caplin Point is investing in R&D for injectables for the US market and has obtained 18 ANDAs.

Employee Engagement and Talent Retention:

• The company is prioritizing employee engagement and is building a hostel for freshers, offering increments, performance bonuses, and attractive ESOPs to retain talent.

Long-Term Growth Strategy:

• Caplin Point is focused on sustainable progress and long-term growth, with plans to become a vertically integrated company in the pharmaceutical formulations and API segments.
• The company is investing in digitalization and automation to improve processes and increase efficiency.

Shareholder Rewards:

• Caplin Point is considering inorganic growth opportunities and will discuss the possibility of rewarding shareholders through special dividends or buybacks.

Future Outlook:

• The company expects strong growth in the next few years and aims to achieve its targets of top-line becoming bottom-line in the future.