@Mahesh
I haven’t gone through the numbers as of now. This is a new sector for me so trying to understand the sector and other factors influencing the company. Thanks for pointing it out though.

@karu_lamborghi_

I was listing the possible things that can go wrong and it includes hedging risk also and in case of sharp depreciation of rupee against $ it might not go away in few quarters as hedges taken are more than double the size of current operation and must be spread over years….if you check forex losses trend over last few years then you will find over last 3 years company suffered cumulative losses of more than 100 cr. due to forex fluctuations……however, as you have rightly put, even I don’t assign much importance to forex issues since its a pure business hedge but since we are here searching what factors can go wrong then it could include forex also.

Rgds.

@Mahesh Foreign currency risk even though always present shouldn’t be a big factor. All exporters face such risks and their effect lasts at most for a couple of quarters and it evens out over the longer term so i don’t assign a lot of importance to it. If the management doesn’t have motives of making money from forex i would not feel rupee dollar rate to be a major risk going forward. A better idea would be understanding business risks playing out in the normal business operations

Sure. I will ask these questions. I myself need to review the annual report thoroughly for preparing my own questions.

@rupeshtatiya

Hi Rupesh,

Rgdg. your queries……

(1) Since Syngene has only recently came out with its IPO so risk factors are very well documented in RHP — you can refer that.
If you ask me then the biggest risk factor is not meeting the delivery schedules of customers is the biggest risk factor to me. NMEs are very sensitive contracts where if you falter on even one thing then customer suffers alot — even more than you –so margin of error is minimal in such contracts. This ofcourse I am talking about commercial manufacturing……having said these, it is because of this factor that inspections and checks are most stringent while catering to this segment and unless customer is working with you since last many years (in many cases decade) and is fully satisfied of your capability and integrity that he will enter into contract with you.
Second biggest risk factor is any mismanagement during CAPEX i.e., any delay or something, especially Mangalore plant once work starts there next year.

(2) Name of the molecules as well as many customers might not be talked in detail because of NDAs signed by the company because of confidentiality issues involved in the sector. If you have researched PIIND before then you must very well know this.
As far as what company is actually doing, as said before, RHP is filed only before two months and there is no point in discussing entire thing again here. Still from RHP if you don’t understand anything then here that can be explained lucidly.

Feel free to get back in case of any further query.

Rgds.