Windlas Bio –
Q1 FY 25 concall and results updates –
Revenues – 175 vs 145 cr, up 21 pc
EBITDA – 21 vs 17 cr, up 21 pc ( margins @ 12 vs 12 pc )
PAT – 13.5 vs 12 cr, up 12 pc
In Q1, company had to bear additional operating costs and depreciation associated with their Injectables facilities as well as increase in minimum wages across facilities ( an increase of 25 pc in minimum wages )
Expecting the revenues from Injectables to start flowing in from middle of Q3 FY 25
Segment wise revenues –
Generic formulation CMO – 136 vs 110 cr, up 23 pc
Trade generics and institutional – 35 vs 30 cr, up 14 pc
Exports – 4.1 vs 3.8 cr, up 10 pc
Have acquired a basket of market authorisations in Europe in Q1 – should help in the export business
Company supplies generic formulations to 7 out of the top 10 generic companies in India
Share of Chronic + Sub Chronic + Complex Generics @ 65 pc of sales
Manufacturing facilities – A total of 5 manufacturing facilities – all in Dehradun
The Injectables business of the company should generate EBITDA margins of 15-17 pc ( at peak utilisation ) vs company’s existing avg of 12-13 pc
GoI’s schemes like Jan Aushadhi and Aysuhman Bharat are structural tailwinds for company’s trade generics business
Company is following an accelerated depreciation method for their new Injectables plant, hence the bigger hit on PAT. This should moderate going fwd
Excluding the Injectables plant, company’s capacity utilisation is around 65 pc
The peak revenue potential of the Injectables facility is aprox 85-90 cr
Company’s management did sound extremely bullish about the prospects of their Trade Generics business going fwd
The injectables plant shall initially be used for domestic CMO business. Over a period of time, the company however intends to use it for exports – where the margins profile is much better than 15-17 pc band
Have shortlisted a manufacturing facility for acquisition. If everything goes smoothly, should be able to acquire and manufacture from that facility by Q1 FY 26
Govt intends to triple the Jan – Aushadhi Kendras from 8k to 24k inside next 2 yrs
The Injectables facility that the company has built is easily expandable. Company will exercise that option whenever required
Aim to clock revenues of 1000 cr for FY 26
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation
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