Indoco Remedies Q2 concall summary –

Sales – 482 vs 433 cr
EBITDA – 72 vs 88 cr (margin@ 16 vs 21 pc)
PAT – 35 vs 50 cr

Sales break up –

Domestic formulation @ 228 cr, up 9.5 pc. Ophthalmology and Stomatology did well in Q1. Due late rains, season for Anti- Infectives, Respiratory therapies has been pushed into Q3

International formulations @ 195 cr, up 12 pc. Regulated markets revenues @ 147 cr, rest from emerging markets. Emerging mkts revenues grew by 72 pc @ Rs 47 cr

APIs @ 36 cr, up 95 pc

Contract research and analytics @ 6 cr, up 74 pc

Goa formulations plant inspected by US FDA in 3rd week of Oct. Plant has received 04 observations

Indoco’s rank in IPM @ 32nd position with Mkt share of 0.65 pc

Management is guiding for H2 growth of min 15 pc in Domestic formulations business

There was some overstocking of a few of company’s products in Europe due to COVID. The inventory has now normalised. Expecting good growth from Europe in Q3, Q4. Guiding for 400 cr kind of annual sales from Europe in FY 24

Expect descent margin recovery ( 2-3 percentage points, min ) in H2. Had one time expenses wrt remedial actions at Goa, Site -2 in the second Qtr

Company’s product portfolio in India has a very heavy acute therapy bias

Focussing more on therapies like Opthalmology, Stomatology to reduce dependence on Respiratory and Anti-Infectives

Have realised some profit share on the sale of Brinzolamide ( used to treat high pressure inside the eyes ) in US. Same is likely to continue in Q2 as well. Company makes its API in-house at its API facility

Full FY R&D guidance at 5-5.5 pc of sales

Disc: hold a tracking position, biased, not SEBI registered

Hoping for a descent turn around in H2. That should be a nice tail wind for the stock price

Indoco Remedies Q2 concall summary –

Sales – 482 vs 433 cr
EBITDA – 72 vs 88 cr (margin@ 16 vs 21 pc)
PAT – 35 vs 50 cr

Sales break up –

Domestic formulation @ 228 cr, up 9.5 pc. Ophthalmology and Stomatology did well in Q1. Due late rains, season for Anti- Infectives, Respiratory therapies has been pushed into Q3

International formulations @ 195 cr, up 12 pc. Regulated markets revenues @ 147 cr, rest from emerging markets. Emerging mkts revenues grew by 72 pc @ Rs 47 cr

APIs @ 36 cr, up 95 pc

Contract research and analytics @ 6 cr, up 74 pc

Goa formulations plant inspected by US FDA in 3rd week of Oct. Plant has received 04 observations

Indoco’s rank in IPM @ 32nd position with Mkt share of 0.65 pc

Management is guiding for H2 growth of min 15 pc in Domestic formulations business

There was some overstocking of a few of company’s products in Europe due to COVID. The inventory has now normalised. Expecting good growth from Europe in Q3, Q4. Guiding for 400 cr kind of annual sales from Europe in FY 24

Expect descent margin recovery ( 2-3 percentage points, min ) in H2. Had one time expenses wrt remedial actions at Goa, Site -2 in the second Qtr

Company’s product portfolio in India has a very heavy acute therapy bias

Focussing more on therapies like Opthalmology, Stomatology to reduce dependence on Respiratory and Anti-Infectives

Have realised some profit share on the sale of Brinzolamide ( used to treat high pressure inside the eyes ) in US. Same is likely to continue in Q2 as well. Company makes its API in-house at its API facility

Full FY R&D guidance at 5-5.5 pc of sales

Disc: hold a tracking position, biased, not SEBI registered

Hoping for a descent turn around in H2. That should be a nice tail wind for the stock price

Hello Hitesh bhai, how are you? Do you track WPIL? How would you track companies that depend on government policies for their revenues? Is it suitable to keep investing on them or wait for the elections to happen in 2024?

Really depends to be honest. Based on region, the amount/type of data you share can be restricted/not allowed at all (eg. CCPA, GDPR). The main idea still remains that users can choose to be ‘somewhat’ anonymous, and that nowadays is largely followed by Anonymization of PII (Personal Identifiable Information). The laws in India for this are almost Non-existent (Bajaj Finance and countless banks offering you loans will attest to this), but this will be a challenge in US/EU.

Also, a company like Affle might not just sell the data directly (due to possible legal complication, and the fact that this data is what makes the company more valuable), but can use this same data to augment its own offering and/or sell it as SaaS. What happens is if you’re the First Party Owner of the data, even though you don’t/can’t have PII data with you, the data is still very meaningful once anonymized, as it can still help you with segmenting and profiling cohorts of your users behavior.

For eg., you’ll not be in violation of the laws if you can make the data anonymized, but you can still use the very same data.

“THE PRINCIPLES OF DATA PROTECTION SHOULD THEREFORE NOT APPLY TO ANONYMOUS INFORMATION, NAMELY, INFORMATION WHICH DOES NOT RELATE TO AN IDENTIFIED OR IDENTIFIABLE NATURAL PERSON OR TO PERSONAL DATA RENDERED ANONYMOUS IN SUCH A MANNER THAT THE DATA SUBJECT IS NOT OR NO LONGER IDENTIFIABLE”.

Most of the digital advertising works with cookies, which is actually how advertisers can track you. They can actually track and target you, without actually knowing you (Unless you voluntarily give them data, by something like Lead Generation).

(Also see Cookie Sync if interested in the technical implementation details).

PS. – My first post on ValuePickr, open to feedback
Also, invested and biased.

You can refer to the thread on Tata technologies for the difference.