Ranvir’s Portfolio

Windlas Biotech –

Company overview, Q4 and FY 24 results and concall highlights –

Its a contract maker of generic formulations for Domestic branded companies, GoI ( Jan Aushadhi Kendras ) and also export generic formulations

Vertical wise revenue split –

Generic Formulations CMO Domestic – 77 pc of sales. Last 5 yrs sales CAGR @ 14 pc
Trade generics + Govt Supplies – 19 pc of sales. Last 5 yrs sales CAGR @ 42 pc
Exports – 4 pc of sales. Last 5 yrs sales CAGR @ 45 pc

Therapy wise revenue split –

Acute therapies – 34 pc of sales
Chronic therapies – 66 pc of sales

Product wise revenue split –

Complex generics – 64 pc
Conventional generics – 36 pc

Focus therapy areas – Respiratory, Anti-Diabetic, GI

No of manufacturing facilities @ 4. All 4 located in and around Dehradun. Dosage forms manufactured – oral solids, chewable, liquid bottles, sachet / powdered products, Injectables. Injectables facility commenced operations in Mar 24

Q4 outcomes –

Sales – 171 vs 141 cr, up 22 pc
EBITDA – 22 vs 16 cr, up 34 pc ( margins @ 13 vs 12 pc )
PAT – 17 vs 11 cr, up 48 pc

FY 24 outcomes –

Sales – 631 vs 513 cr, up 23 pc
EBITDA – 78 vs 60 cr, up 30 pc ( margins @ 12 vs 12 pc )
PAT – 58 vs 43 cr, up 37 pc
CFO > 100 cr for FY 24
Cash on books @ 206 cr as on 31 Mar 24

GoI planning to triple the number of Jan Aushadhi stores to 25k inside next 2 yrs. should act as major catalyst to the Trade generics segment

Company’s CMO – domestic vertical grew by 20 pc in FY 24 – that’s 3X of IPM

As company’s capacity utilisation grows (and specially for injectables segment which is a high margin segment) – company’s EBITDA margins should expand going forward

Guiding for 1000 cr topline in FY 26
Capex guidance for FY 25 @ 20 cr for expansion of Dehradun plant – 2. For FY 26, it should be around 30-35 cr

The Capex spend for the Injectable facility was @ 75 cr

Company’s trade generics segment generates greater EBITDA margins vs CMO for branded companies as the company gets to retain the distribution margins in addition to the manufacturing Margins

Govt’s focus on better quality of generic medicines and crackdown on non-compliant players is a structural tail wind for the company

At peak capacity utilisation, the Injectables facility can do an asset turns of 1.2 times ( so that amounts to 90 odd cr of annual revenues. However, the EBTDA margins here are > 15-16 pc )

Company’s expansion plans for medium – long term will be a mix of organic + inorganic – given the healthy cash flow generation by them

Company’s employee costs are in the 13-14 pc band vs Innova Captab’s 7-8 pc band. Company believes that employee cost is an investment

Company believes that complying with all GMP / Schedule M regulations is not easy for smaller non-compliant players. It does cost significant money and a complete change in operating mindset

Disc: holding, biased, not SEBI registered