CNBC TV 18 hosted Vivek, Partheeban, COO of caplin points today on their show and here are the takeaways.
- 34% EBITA margins attained in Q2 are expected to sustain.
- Aspire to clock 280-300crs from the US business (Caplin Steriles). especially with the new production line commercialized.
- Oncology business has been kick started in LATAM with contract manufacturing. The capex to do this in-house is in progress (Which might aid the margins even further).
- Aspire for a 15-17 percent revenue growth for FY24.
- Comfortable with the cash on books.
- Open to inogranic growth LATAM market, especially Brazil and Mexico.
Link for the full interview.
Base Business Is Doing Well, Focussed On Completion Of Oncology Facility: Caplin Point | CNBC TV18
What’s interesting is that Vivek thinks the EBITDA of 34-35% are manageable. In the earnings concall the management had mentioned that the gross margins of 60% that they attained this quarter might be difficult to sustain, but I think with Caplin sterile picking up pace I think the margins may sustain at these levels.
Disc : Invested and biased
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