Gufic BioSciences Ltd

Gufic came with good set of nos, with sales growing by 23% and EPS by 15%. They have been doing very well in domestic market, with broad based growth across their keys division. Working capital seems to have normalized to precovid levels. Concall notes below

FY24Q2

• Critical care :

  • Using advance technology, achieved stabilization of a key life-saving antifungal product at room temperature, thereby removing cold chain requirements for storing them

• Sparsh

  • Have touched 1,000+ hospitals with the 92 molecules that were launched across 12 states, will 4 mores states in upcoming quarter. SKUs has increased to 96 molecules

  • PCPM is currently 6-7 lakhs , whenever it reaches 10 lakhs, they add more people in a given region

  • Currently doing 3 cr. monthly revenues and targeting to reach 6-7 cr. run rate by end of FY24

  • Have increased frontline strength from 28 to 42 people

• Ferticare

  • Established reach to 60% of IVF centers and 50% gynecologists

• Healthcare, Stellar and Spark

  • Added ENT specialty to portfolio

  • Polmacoxib is poised to emerge as a leading OTC brand of painkiller

• Exports

  • Received 1 new product approval in Sri Lanka, Chile, Myanmar and Malaysia and approval for an injectable product in Australia

  • 200+ registered products across regulated and semi-regulated markets, 150+ in pipeline

  • Navsari plant will be running at fully utilization by July 2023

• Working capital cycle

  • Collection cycle is CMO division has increased to 120 days

  • In sparsh division, now they are directly billing the hospital with payment cycle of 60-120 days . This is resulting in higher working capital, however there is no margin leakage to distributors and they get access to buying data of hospitals

  • In branded division, receivable days have been coming down (45-50 days)

  • Dual chamber inventory is of ~22 cr.

• Motilal 100 cr. fund raise : 50% will go towards term loan repayment with rest going towards increasing CC limit

Disclosure: same as before