A few points from the FDC AGM yesterday whatever I could recollect (E & OE):
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Domestic growth – Low growth in FY24 result of NLEM price reduction, especially on Zifi range of products.
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Rs.250 crore odd amount lying in capital WIP – a) For new Corporate Office. All the teams sitting scattered at various places and be brought together which will improve efficiencies. b) Also, there is capex for ophthalmic ear and nasal drop business. It has already gone live by now.
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Capex – Annual maintenance capex is Rs.70 – 90 crores across all facilities, no other plans for major capex as of now
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Growth break up in FY24 – (Something like volume growth – 0.3 %, Price growth – 6.4 %, New product introduction – 1.1 % = Total 7.7 %)
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Prescription base increased from 58 % in FY23 to 60 % in FY24
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Filings in USA – Current no. of Approved ANDAs – 8, new ANDA filed during the year – 1, plan to submit 2 more before Q3 this year
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Not impacted by recent fixed dose combination ban in India
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Ad spend – Has increased in recent years but Increases are limited to Electral and Enerzal brands
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FY25 – Price hike not expected due to NLEM portfolio, have shifted strategy to volume and new product introductions. Results are already visible from April onwards
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Capex – New ophthalmic line is commissioned this year
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Capacity Utilization – across locations is around 70 to 75 % currently
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Top 10 brands – Contribution in FY24 was 64 %, in FY23 it was 66 %
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ORS – Market is expanding, growth is higher in liquid. Enerzal is no.1 brand as per IQVIA
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Buyback – Will decide what is the most suitable mode of capital allocation (given that buybacks have become less tax efficient now)
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No plans to monetize land
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No comment on holding quarterly concall
(Disc.: Holding)
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