FDC Q2 highlights -
Sales - 486 vs 445 cr
EBITDA - 76 vs 67 cr, up 13 pc (margins @ 16 vs 15 pc) Margins in Q1 were 23 pc
PAT - 70 vs 52 cr ( other income @ 27 vs 13 cr )
Sales breakdown -
India formulation sales @ 391 vs 369 cr
Export formulation sales @ 76 vs 57 cr
API sales @ 19 vs 18 cr
Board approved buyback of 31 lakh shares @ Rs 500/share - that amounts to a buyback amount of Rs 150 cr - a significant amount
Last 5 yr growth data -
Sales growth @ 13 pc CAGR
India formulations sales growth @ 13 pc CAGR
Intl formulations sales growth @ 17 pc CAGR
API sales growth @ 11 pc CAGR
India business -
4800+ MRs
9 brands with sales > 50 cr
6 brands with no 1 rank in molecule category
Electral has annual sales > 400 cr
ZIFI (Cefixime-anti bacterial) has annual sales > 300 cr
Enerzal has annual sales approaching 200 cr
ZIFI-X - Ceftriaxone injection - (cephalosporin antibiotic injectable ) launched in Jun 23 - doing well
In H1, price growth is around 4.9 pc with new product growth at 0.9 pc. Legacy portfolio’s volume growth has been flat. Company finally seeing volume growth in Oct 23
Have filed 2 ANDAs in H1
Company focussing on expanding in East India where it was traditionally weak. Making descent inroads in Bihar, Orrisa, WB
Also investing behind Nutraceuticals and Derma portfolio
Certain one off expenditures in Q2 led to suppression of EBITDA margins vs Q1. However, Q1 is always the strongest Qtr with best margins for FDC Ltd
Export business momentum remains strong, expected to remain strong
Export business is already profitable, capable of funding its own growth ( minus the R&D expenses )
To focus on Opthal business wrt US mkts as the company is strong in this particular therapy
Company has 6-7 brands that generate sales > 50 cr ( except for the top 3 brands ). These are the brands where the company intends to extract higher growth and make them into 100 cr + brands
Hence the company intends to not go for aggressive new launches. Focus shall be to grow above mentioned brands into bigger ones
However, company intends to launch brand extension of the a/m brands
Henceforth, the company intends to conduct half yearly concalls
Mum-Mum infant formula is a very promising brand and company intends to grow this aggressively
Regular maint capex @ 50 cr/ yr
Disc: holding, biased, not SEBI registered
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