Supriya Lifesciences –

Q2 FY 25 results and concall highlights –

Revenues – 166 vs 140 cr, up 19 pc
EBITDA – 65 vs 32 cr, up 104 pc ( margins @ 39 vs 23 pc !!! )
PAT – 46 vs 24 cr, up 93 pc ( margins @ 28 vs 17 pc !!! )

Region wise sales breakup –

Asia – 32 pc
Europe – 38 pc
LATAM – 19 pc
North America – 5 pc
Others – 6 pc

Therapy wise sales breakup –

Analgesic + Anesthetics – 55 pc
Anti-Histamines – 9 pc
Vitamins – 12 pc
Anti-Asthmatics – 9 pc
Anti-Allergic – 5 pc
Anti-Hypertensive – 2 pc

Company is currently exporting to 128 countries worldwide

Company has a Niche Portfolio of 32 APIs

Company is the largest exporter of – Chlorpeniramine Maleate ( anti-allergic), Ketamine Hydrochloride ( anaesthetic ) and Salbutamol Sulphate ( anti- asthmatic ) from India

Total reactor capacity @ 600 KL/Day. Company has 04 manufacturing blocks ( Blocks – A,B,C,D ) – segregated therapy wise. Block E is under construction

15 of company’s products have a high degree of backward integration ( ie backward integrated right upto the KSM stage ) and derive 75 pc of company’s revenues. Company is in the process of integrating 3 more products

Company expects its new Ambernath facility to commence commercial production – sometime in Q3. This will greatly enhance company’s manufacturing capacity to aprox 1020 KL ( including the 340 KL expansion underway at Lote Parshuram ie new Block E ). This facility ( @ Ambernath ) will cater 80 KL of APIs manufacturing and to CMO of formulations. They r setting up large lines for bottling, tablets, capsules and Injectables at Ambernath

Company has been awarded a 10 yr CMO by a European player – DSM Fermenich. Supplies should start in H2. Have another 2-3 opportunities which are in final stages of discussion. Expecting positive outcomes on these before end of Q2

Aim to cross 1000 cr revenues mark in FY 27 ( company believes this is a conservative estimate )

Expecting H2 to be better than H1 in terms to topline. Absolute EBITDA and PAT should also be higher in H2

Expect to reach full capacity utilisation on the expanded capacity of 1020 KL by end of FY 27

Disc: holding, biased, not SEBI registered

Poonawalla Fincorp and IDFC First Bank | Parimal Ade

Very well stated video. To inform the investors is paramount. They cant wait until results to disclose.

I remember something like this that Tata Motors did really well.

During Covid, there was a severe shortage of chips for electronic components in cars. Internationally, the supply was at a 6 months lag to the demand. In those times, Suzuki stopped adding many electronic components silently from its model and replacing them with analogue for some models. Example of speedometers turning analogue in some models of budget cars.

In such times, Tata Motors released a press release, wherein it clearly stated that lack of supply of chips would constrain production of its cars and will lead to lower capacity utilisation and thus, lower production and results.

THAT was my first taste of true corporate governance and its strength. I took the hint and exited the stock by some amount to invest it in other stocks for few quarters.

Poonawalla, if had trustworthy coporate governance, it would have come up and told us the issues of risk when the management was change. But it hide and kept investors under blanket, which is no doubt, unacceptable.

However, giving them a chance is a personal choice. I wanted to share my experience.