Short Notes on Q3FY24 Results.
- Very poor showing across the board, significant margin compression due to increased freight costs.
- Revenue at 40 Cr, 12% de-growth YoY, EBITDA at 4.72 Cr, 52% degrowth YoY.
- EBITDA margins at 11.81%, down from 21% last year.
- PAT and EPS down ~77% YoY.
- Despite the headwinds in Q3, management expects the business to improve in coming quarters.
Capsules Segment
- Struggled with exports market, a significant factor in poor performance.
- Currency issue, increased logistics and freight costs (due to disruptions in the Red Sea) and deferred
shipments impacted exports. - Raw material pricing remained stable throughout the quarter.
- Outlook for capsules business remains robust, optimistic about its continued growth.
- Outlook for the coming quarters is promising post resolution of logistic issues.
HPMC
- First HPMC line integration completed, and dry runs have successfully concluded.
- Poised to commence commercial production shortly.
- Plan to initiate the installation of the second and third HPMC line in due course of time.
API
- Same status as the last quarter.
- Still in the process of obtaining the final clearances from the Pollution Control Board and the license from the Drug Department.
- “A meeting scheduled for the coming week holds the promise of a favourable resolution.”
- Plan to commence the manufacturing of select intermediates, scaling up to APIs production after receiving the necessary licenses.
Disc. – Invested
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