Q4’24 Conference call notes which I took
- Three consecutive quarter for gross margin close to 60%
- Significant improvement in free cash generation & debt reduction
- 2 Significant approvals are USFDA approved
- Revenue growth for first 9 month exceeding guidance of 15% has come at 17%
- Quarter ahead in debt reduction target
- Strategy to letting go products when challenged for price
- Other regulated markets – Won several new approvals in Europe
- Several new businesses are owned in south africa market
- Stelus revenue from 5 Cr. last year to 60 Cr. – Ebita negative during Q3.
- Stelus – Customers added on regular basis. 16 unique customers. MSA for 56 Mn dollars in first 9 months. All contracts 4 yrs. CDMO agreement
- Stelus – First commercial order received. Business for Stelus to be PAT positive from FY25.
- Corporate guarantee – is temporary and all corporate guarantees from Stride towards Stelis will be gone with listing of onesource
- 15 products to be launched per year on average. the timing will be determined by market condition and margins available. Target run-rate is 400 Mn dollars in US without margin erosion
- Getting to 21% EBITA is realistic
- Focus on launching $15-20 Mn products in US
- Biologics piece – 3-5 yrs. vision – A lot of growth going to be coming from Biologics for Stelis; Biologics component on Onesource to have ~50% EBITA margin, the rest ~30% EBITA margins.
- 750 Cr EBITA FY25 despite some EBITA going to one-source
- Expect OneSource to list in 12 months;
- Other regulated markets – Approx. $40 Mn business each quarter. Registration process will be causing delay in achieving higher revenue from ORM.
- Approx. debt reduction feasible to the extent of 300-400 Cr. each year with free cash flow.
Disc – Invested
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