Value chain of Pharma starts from basic chemicals, then moves all the way to Intermediates, APIs & Formulations. Supriya’s 74% of the revenue is backward integrated i.e. upto basic chemicals. Such chemicals are of commodity nature that’s how they have Gross Profit margin of 70%. So no risk of RM procurement. In fact this business is driven by demand side & not by supply side.
In fact, similar question was asked by someone in recent concal & management answers in the similar manner, you can refer to that as well.
| Subscribe To Our Free Newsletter |
