Can anyone please explain me what are the different components of the earning of Ugro, got confused after watching this management interview.

UGRO Capital Q1 Results Post Strategy: कैसे रहे कंपनी के नतीजे, कहां दिखा दवाब तो कहां आई तेजी?

@vikrantmehta888

I wish I had a crystal ball and can gaze into it and answer precisely how long bull markets will last. We are in the midst of one of those very strong bull markets and usually these tend to last longer than people expect. These kind of markets tend to digest bad news in their stride and after brief corrections, tend to go up.

Having said that, as mentioned earlier also I think we are in the frothy phase of markets. But in the last parabolic phase of markets if one gets into the right kind of stocks and gets out in time, a lot of money can be made.

Personally I have found that being company and stock specific has worked for me very well over the last few years, and hence I try not to speculate too much about where markets are headed…

At some point the big bad correction will come, but I would love to face correction when my portfolio NAV is say for example 150 rather than 100… Idea should be to make the most of bull markets and be ready to give up some gains during bear markets. Try to be approximately right than precisely wrong.

Notes from Annual report FY 24
• 3 manufacturing facilities, 95% inhouse production and backward integration leading to cost competitiveness. Roughly 25% of raw material supplies are from China
• High quality and reliable products with no product rejections in 15 years
• Diverse product portfolio 32 API (30 veterinary, 2 human). In FY 24 expanded portfolio by 6 new products and more are under development.
• Market share ranging from 15% to 50% in key products
• Suppliers to 5 of global top 10 animal healthcare companies; No single customer more than 6% of revenue
• Initiated CEP filings for Triclabendazole (already approved), Flunixin Meglumine and Marbofloxacin with EDQM (in 2022)

• Revenue split – 90% Animal APIs, 3% Human APIs, 3% Intermediates and 4% Finished dosages
• Geographic split of revenue – 34% Asia, 26% India, 22% Europe, 16% USA, 2% RoW
• Capex – Ongoing greenfield capex at Tarapur at capex cost of Rs 160 crs (increasing capacity by 50%)
  • Will drive next phase of exponential growth
  • c. Rs 45 crs invested so far for civil construction – mostly complete. Machinery will be installed in phases over next 12-15 months
  • If demand recovery continues, can consider outsourcing some manufacturing to capitalize on growth opportunities until new facility comes up
  • 1st phase of capex to complete by FY 25 end (it was Q2 FY 25 as per last update in Jun’24)
• How was FY 24? Early part of FY 24 had significant challenges – subdued demand, high customer inventory and currency volatility in key markets like Egypt, Pakistan and Turkey.
  • Inventory destocking phase, which had been a significant headwind, came to an end and led to recover in demand (particularly from Asia) as the year progressed.
  • Price realizations were lower compared to previous years.
  • Reduction in raw material costs helped in in normalized margin levels.
• Outlook on industry? Promising driven by rising prevalence of zoonotic diseases, expanding animal populations, and humanization of pets – leading to higher expenditure on healthcare
• R&D expense increased 44% YoY @ c. 1.5% of topline
• Trying to navigate regulatory challenges in US which typically takes 2-3 years, Europe is faster
• Promoters’ remuneration (Rahul and Rajesh) c. 3.8 crs ~ 10% of FY 24 net profits

Hello,

In the below tracker, I have started tracking important company goals for Aurion. These goals are referred to as ‘monitorables’ in the tracker.I will update this document regularly to reflect the current status of these goals.

Here’s a snapshot of what the tracker includes:

• Company Ticker: For identifying the company
• Monitorable Description: Description of the goal or metric being tracked
• Date of Announcement: When the monitorable was announced
• Deadline: Target date for achieving the monitorable
• Status: Current progress (e.g., Not Fulfilled, Pending)
• Verification Link: A link to see where I got the information about the goal.

I hope this information makes it easier to observe how well companies are progressing towards their stated goals.

Screenshot of the tracker below:

Full tracker attached below:
Tracking Company Monitorables-5.xlsx (135.9 KB)

Post Script: DM if you want me to track the monitorables for any specific company.