I attended AGM of Jenburkt Pharma. Missed around first 15 minutes of discussion. Find enclosed key points from Management reply to shareholder’s queries/question. Please note that there could be communication error at my side.
Key points:
Revenue:
Domestic sales Rs 121 Cr, Exports, Rs 20 Cr. Domestic market registered 10% growth in FY24,
In domestic market Top 6 state for company are as under: Karnataka Rs 34 Cr, Maharashtra Rs 25 Cr, Gujarat Rs 10 Cr, UP Rs 9 Cr, MP Rs 7 Cr and TN Rs 5 Cr.
The management also provided details of top 5 products. However, I could not capture the name of brands. Top Brand is Nervejin group which account for Rs 58 Cr, 2 largest brand sales Rs 17 Cr, 3-4 largest brand sales was Rs 13 Cr each. Nervejin group also have multiple products which aggregate to Rs 50 Cr+. The company expects that Powergesic and Zixa has potential to reach more than Rs 50 Cr over medium term.
In FY24, Domestic market growth was mainly driven by Price increase and volume growth. One new product syrup was launched only in March 2024, which has limited impact on FY24 sales, although has improved performance during FY25.
The company would focus on core segment in acute market. While it has aspirations to move in Chronic market, current product portfolio and marketing strength does not make entering in Chronic segment a winning proposition.
The company does not have any exclusive tie up with Hospital as margin are very lower in such arrangement. One key aspect highlighted by management is they would continue to remain bottom line focus.
Also, when asked specifically about slow down domestic growth rate from Double digit during FY13-FY19 to less than inflation during FY24/19, management indicate that they are aware about slow growth. However, recent initiative like Wellness division focus, increased new product launch and revival in export market, they expect growth rate to reach again in double digit in medium term. However, they would not lose their focus on long term profitability.
Wellness division
Company has launched new product family under brand name Zixa under Jenburkt wellness division.
Total sale from wellness division was Rs 0.4 Cr with expense of Rs 2.53 Cr. However, management is optimistic about prospect of wellness division. They also intend to increase OTC product which has insignificant share (0.3% of revenue) in revenue. Wellness product is available in 1990 retail store as on 31 March 2024. Since then, coverage is has increased significantly. The company continue to market wellness division products in Indian Football league and Various marathon in India.
Exports
Exports declined by 21% during FY24. Sri Lanka is largest export market with Sales of Rs 6.9 Cr followed Beirut (not sure About the name) at Rs 6.1 Cr during FY24. Difficult economic condition and higher regulatory approval time were the main reasons for decline in exports sales. While management is confident to get back on growth track in long term, in medium term export market would continue to face challenge.
Higher receivable in export market was mainly due to increased shipping time and higher regulatory approval time. However, most of sales in export market is covered under ECGC group which reduces default risk for the company.
Disclosure: Jenburkt Pharma is among my core holding (1.6% of equity portfolio). I have not done any trade in last 30 days. I may increase/reduce/exit from my investment without informing forum. My view may be positively biased due to my holding. I am not SEBI registered advisor. I am not suggesting any investment action.
| Subscribe To Our Free Newsletter |
