Key takeaways from Q4FY24 Concall from screener:
Financials:
- Total capex for FY '25 expected to be around INR 250 crores.
- Stand-alone tax rate at 25.16%.
- Partnership firm tax rate at 35% for Baba Fine Chemicals.
- Mix of exceptional items affecting the overall tax rate.
- INR 70 crores is the remaining capex for Unit 2 Ankleshwar.
- INR 100 crores capex related to electrolyte additive and related infrastructure.
- INR 50 crores capex towards the captive solar power plant.
- Additional maintenance capex of around INR 30-40 crores for the year.
Revenue and Growth:
- Targeting a revenue growth of 25% for FY '25.
- Achieved all-time high revenue from operations of INR 225 crores in Q4 FY '24.
- Volume growth has been consistent every quarter.
- Adjusted PAT for FY '24 was INR 80.8 crores with adjusted PAT margins of 11.3%.
Business Segments:
- Advanced Pharmaceutical Intermediates business grew by 18% year-on-year and 47% quarter-on-quarter in Q4 FY '24.
- Specialty business grew by 36% during the quarter.
- Commercial operations for battery chemical business started during the quarter.
- Working on developing various levers for the specialty chemical business.
Future Growth and Innovation:
- Strong focus on innovation in manufacturing complex intermediates using cost-effective technologies.
- Received grants for 3 process patents during the quarter to safeguard intellectual property.
- Company aims to have incremental CDMO segment in their portfolio going forward.
- Mix of early-stage and late-stage molecules in CDMO business.
Challenges and Opportunities:
- Faced price pressure in the past year, impacting margins.
- Stabilization of raw material prices expected to improve margins.
- Strong visibility in terms of firm orders and commitments, supporting revenue growth targets.
- Focus on cost-effectiveness and competitiveness to sustain in the generic API market.
Expansion and Utilization:
- Unit 1 operating at 72% capacity.
- Unit 2 inaugurated and commercialized one production block, expecting other blocks to ramp up in the next 3 years.
- Unit 3 dedicated to specialty chemical business, excluding pharma intermediates.
- Expected breakeven at around 30-35% utilization for specific blocks.
Disc: invested
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