RESULT Q2FY24 Concall
- EBITDA margin for Q2FY24 stood at 38.3%. This was impacted on account of lower revenue growth and GP margin leading to a negative operating leverage rate, increase in the cost on account of manpower and marketing expenses, which we believe are investments to fuel future growth opportunities
- Commercial production of cell culture and other products is anticipated to start in Q1FY25.
- Radiation & Isotope Technology for this purpose. This strategic move aims to reduce our dependence on a single source in West Bengal.
- Revenue breakup- export sales contributed around 35% and domestic sales contributed around 65%.
- BIS certification issue- raw material supply is getting a lot of problems because of the implementation of one of the concepts called BIS. And the government, obviously, is not allowing all kinds of imports without having that kind of certification.
- Ramp up of new capex- we expect to scale up in 4 to 5 years, completely ramp up to 100% of available capacities.
- Asset turn- 0.7x on 550 cr capex = 350-400cr revenue potential.
- Revenue potential- the existing capacity and the upcoming capacity, we can touch a revenue of about INR700 crores to INR800 crores.
- There would still be a lot of space for future capex.
- 500cr guidance- INR500 crores in FY ’25 looks highly unlikely at this point of time. no new guidance now.
- ESG issue- in some countries, the government banned or limited the usage of plastic because it’s not ESG friendly.
- GST notice- 66lakh
- Inorganic acquisition, which we are looking for in Europe and U.S. kind of countries.
- I dont see anything good happening in the next few quarters, operating deleverage is going to play, so I am exiting with 14% loss.
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