Concall Notes - Jun 2024
Capex:
- Total capex planned is ₹600 crores.
- Already incurred ₹180 crores in the current year.
- Remaining amount to be spent in the next 7 to 8 months.
- Panchla facility at peak capacity can generate revenue of ₹400 crores.
Acquisition - Nerbe:
- Strategic acquisition of Nerbe in FY '24.
- Acquisition aimed at capitalizing on growing opportunities in the international market.
- Integration of Nerbe to expand in the European market leveraging its distribution network.
- Acquisition unlocks new avenues of growth and propels business to greater heights overseas.
Revenue Performance:
- Stand-alone revenue from operations in Q4 FY '24 was ₹87 crores, highest ever quarterly revenue.
- Stand-alone revenue for FY '24 stood at ₹277 crores, lower by 2% from the previous year.
- Consolidated revenue from operations for FY '24 stood at ₹296 crores.
- Revenue from export for FY '24 was ₹83 crores and domestic at ₹194 crores.
- Export sales contributed around 30% and domestic sales around 70% for FY '24.
Margins:
- Stand-alone EBITDA for Q4 FY '24 stood at ₹34 crores.
- Stand-alone EBITDA for FY '24 stood at ₹103 crores.
- EBITDA margin for Q4 FY '24 stood at 39.1%.
- Adjusted EBITDA for Q4 FY '24 stood at ₹38 crores.
- Adjusted EBITDA for FY '24 stood at ₹110 crores with margins at 40%.
- Stand-alone profit after tax for FY '24 was ₹51 crores with PAT margin of 18.5%.
Industry & Market Outlook:
- Labware industry experienced a decline of 18-20% in CY '23.
- Tarsons aims to outperform the industry growth.
- Optimistic about the improving demand scenario.
- Expectation of gradual improvement in the industry.
- Industry trends showing signs of rebound.
Customer Engagement & Market Strategy:
- Engage with distributors and end customers in international markets.
- Participate in international exhibitions to engage with partners.
- Leveraging relationships with distributors to drive sales.
- Strong focus on building brand presence in Europe through Nerbe acquisition.
Challenges & Opportunities:
- Geopolitical tensions impacting global supply chain.
- Logistics and supply chain disruptions affecting operations.
- Focus on leveraging synergies and enhancing cross-selling opportunities.
- Confidence in maintaining excellence despite external challenges.
- Opportunities for growth in the international market.
Domestic Business & Growth Strategy:
- Positive outlook for domestic business growth.
- Optimistic about returning to industry level growth.
- Focus on customer relationships and product quality.
- Tarsons positioned to penetrate the cell culture market effectively.
- Continued efforts to drive growth and expand market presence.
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