Yet another low in price took place today and it is very concerning to see the continuous fall. While we can suspect the usual theories (someone is unloading etc…because volumes are steady)…I am curious to know more on what is eating up the price, especially at a time, when the interest rates can start reducing in a gradual manner, from here on

Windlas Bio –

Q1 FY 25 concall and results updates –

Revenues – 175 vs 145 cr, up 21 pc
EBITDA – 21 vs 17 cr, up 21 pc ( margins @ 12 vs 12 pc )
PAT – 13.5 vs 12 cr, up 12 pc

In Q1, company had to bear additional operating costs and depreciation associated with their Injectables facilities as well as increase in minimum wages across facilities ( an increase of 25 pc in minimum wages )

Expecting the revenues from Injectables to start flowing in from middle of Q3 FY 25

Segment wise revenues –

Generic formulation CMO – 136 vs 110 cr, up 23 pc
Trade generics and institutional – 35 vs 30 cr, up 14 pc
Exports – 4.1 vs 3.8 cr, up 10 pc

Have acquired a basket of market authorisations in Europe in Q1 – should help in the export business

Company supplies generic formulations to 7 out of the top 10 generic companies in India

Share of Chronic + Sub Chronic + Complex Generics @ 65 pc of sales

Manufacturing facilities – A total of 5 manufacturing facilities – all in Dehradun

The Injectables business of the company should generate EBITDA margins of 15-17 pc ( at peak utilisation ) vs company’s existing avg of 12-13 pc

GoI’s schemes like Jan Aushadhi and Aysuhman Bharat are structural tailwinds for company’s trade generics business

Company is following an accelerated depreciation method for their new Injectables plant, hence the bigger hit on PAT. This should moderate going fwd

Excluding the Injectables plant, company’s capacity utilisation is around 65 pc

The peak revenue potential of the Injectables facility is aprox 85-90 cr

Company’s management did sound extremely bullish about the prospects of their Trade Generics business going fwd

The injectables plant shall initially be used for domestic CMO business. Over a period of time, the company however intends to use it for exports – where the margins profile is much better than 15-17 pc band

Have shortlisted a manufacturing facility for acquisition. If everything goes smoothly, should be able to acquire and manufacture from that facility by Q1 FY 26

Govt intends to triple the Jan – Aushadhi Kendras from 8k to 24k inside next 2 yrs

The Injectables facility that the company has built is easily expandable. Company will exercise that option whenever required

Aim to clock revenues of 1000 cr for FY 26

Disc: holding, biased, not SEBI registered, not a buy/sell recommendation

Both Suzlon and Inox mentioned that they have lifetime highest order books. Some people on social media were concerned that budget allocation has come down for wind and increased for solar. Such a massive orderbook will need multiple players like Sanghvi

The pending order book ( Q1 presentation) points to avg realization of 18.5 lakhs per machine. In Q1 itself the avg realization was around 18.5 lakhs ( confirmed in the transcript ). Now, the EBITDA margin is higher for defence orders. But the avg realization for those orders is also higher than 18.5 lakhs. So, what could be driving this EBITDA margin expansion from 17% to 19% in FY 25 itself?