Q2FY24 Short Notes:
Vision of the Company:
Strengthening the product pipeline and creating a complete offering in four key therapeutic segments that is pain, cough and cold, gastro, and anti- allergy.
Revenue Potential:
Revenue growth 17% y-o-y. Management confident of Good Revenue Growth next year due to improved demand from all geographies which has increased the order Book
Company recently received key product approvals from USFDA and market authorization from UK MHRA in the pain segment, cough and cold segment, and digestive.
Company planning for 5 product approvals in US and 20 product approvals in Europe year on year.
Currently OTC: Rx proportion is 70:30. In future it will remain in the same range or in the range of 75:25.
Company planning to doubling the supplies to the geographies they are operating with acquisition of the TEVA Plant. So, Teva will contribute to equivalent amount of revenue like existing old Plant.
Revenue contribution to increase from Teva facility Quarter on Quarter. Full Revenue potential from April 2024 onwards.
Margin Potential:
EBITDA and PAT Growth 40% y-o-y.
Improved Margins was result of Cost efficiencies and Reduction in Raw Material and freight Cost. Management believes that same will continue in the next half of the year.
Backward integration on three molecules which form 30% of the overall Revenue. This will help in improvement of the margins. This will kick in from mid to latter part of 2024
Compliances:
USFDA inspection conducted in October 2023 for a wholly owned subsidiary time cap laboratories and was completed with EIR status.
Teva Facility audit by German Authorities with no major observation.
Capital Allocation Strategy:
Company remains debt free with Total Cash of Rs 661 crore. Exploring options of M&A in Europe. Company is presently in Generic area. If Good M& A options come in Branded medicine in India, company will explore it.
R&D spend to be 2% from the present 1.6% of the Total revenue.
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