RPG Lifesciences -
Q2 FY 25 results and concall highlights -
Revenues - 172 vs 153 cr, up 12 pc
EBITDA - 48 vs 39 cr, up 22 pc ( margins @ 27.8 vs 25.5 pc ) - highest ever EBITDA margins
PAT - 31 vs 26 cr, up 19 pc ( this is adjusted PAT - not accounting for 27 cr of transfer charges as the same is going to be nullified in Q3/Q4 post completion of land sale deal )
Segment wise performance in H1 ( Q1 + Q2 ) -
Domestic formulation sales @ 216 vs 196 cr, up 10 pc YoY
International formulation sales @ 66 vs 56 cr, up 16 pc YoY
API sales @ 52 vs 46 cr, up 14 pc YoY
Domestic MR productivity @ Rs 6 lakh/month
H1 growth driven by 10 pc volume growth ( which is an extremely healthy number considering poor volume growth for IPM )
Company has sold its surplus land holdings located near Navi Mumbai for 144 cr
Actively looking for M&A opportunities in both formulations and API spaces in order to utilise the cash on books ( which post the land deal should rise to above 250 cr )
For domestic formulations business, the breakup of in-house : outsourced manufacturing stands @ 70:30
Currently 35 scientists are working in the company’s R&D center at Navi Mumbai. They intend to add a few more in near future. Currently working on expanding their Immuno-supressants portfolio so as to cement their position in this niche therapy area. Also working on a few molecules in the CNS and Cardio therapy areas. In all - working on 12 molecules
Going fwd - company intends to keep clocking gains on EBITDA margins. Although the gains hereafter should be gradual and not as steep as last 4-5 yrs
Wrt acquisition strategy for APIs - looking for small volumes, high complexity, niche molecules so as to avoid competition from bigger players. In the formulations space, looking to acquire brands in the chronic therapies
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation
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