Shaily Engineering Plastic

Shaily Engineering Plastics Ltd –

Q2 FY 25 results and concall highlights –

Revenues – 192 vs 157 cr, up 22 pc
Gross margins @ 46.3 vs 37.9 pc ( up 8.4 pc !!! )
EBITDA – 41 vs 26 cr, up 56 pc ( margins @ 21.5 vs 16.9 pc, up 4.6 pc !!! )
PAT – 22 vs 11 cr ( doubled )

Sharp improvements in gross and EBITDA margins is due to steep improvement in sales in healthcare division which grew by 94 pc in Q2 on a YoY basis

Capacity utilisation across plants @ 42 vs 39 pc

Segment wise revenue breakup –

Consumer – 72 vs 80 pc
Healthcare – 20 vs 12 pc
Industrial – 8 vs 8 pc

Domestic : Exports revenue breakup @ 25:75 vs 27:73 in Q2 FY 24

Expecting healthcare segment revenues to grow to 25 pc of sales inside next 3 yrs ( vs 20 pc currently )

Revenues in consumer segment grew by 10 pc YoY. Have received orders for 2 new products from a big FMCG company in Q2

Have received new business from a marquee customer in the Industrial segment in Q2 ( its an automotive customer ). Revenues in the industrial segment grew by 30 pc YoY in Q2

Company expects their injectable pen volumes to double in H2 vs H1 ( pickup in volumes should start wef Dec 24 )

Teriparatide ( Osteoporosis drug ) launch is expected to first happen in EU wef Q4 FY 25 ( aprox ). US launch has been delayed

Liragludite launch should happen in Q2 or Q3 of FY 26

Semaglutide launch in RoW mkts like India, Brazil, Canada with company’s devices is expected to happen in H2 FY 26. Company is expected to expand their Semaglutide injectors capacity to > 25 million devices by H1 FY 27. Company believes, it should end up having a dominant mkt share in the generic Semaglutide devices in the RoW mkts

To sum up – Between Jan 25 – Mar 26 – company will launch Teriparatide, Liraglutide and Semaglitide in multiple geographies with multiple customers

Company’s capacity on Insulin pens is around 11 million pens. Looking to expand capacity to 25 million pens. This new – added capacity should come on stream in Q1 FY 27

On Tirzepatide – supply of exhibit batches should start in Q4 FY 25. Did not give any visibility on commercial launch

Current capacity of insulin Injectors @ 11 million. Company is adding another 24 million. So the total insulin capacity will reach 35 million. Semaglutide capacity should be another 35 million. All others put together should be another 25 – 30 million. So the total capacity should reach 100 million in next 36 months

Overall spend for all this capacity build up should be around 150-200 cr over next 36 months

Disc: holding, biased, not SEBI registered, not a buy / sell recommendation