Earnings Call Submission
• Date: June 5, 2024
• Submitted to: BSE and NSE
• Led by: Managing Director Vinay Lohariwala and CFO Lokesh Bhasin
Company Overview
• Integrated pharmaceutical company
• Successful listing on Indian Stock Exchange (December 2023)
• Strong position in Contract Development and Manufacturing (CDMO) sector (58% of FY24 revenue)
• Growth in domestic and international branded generics
• Plans for a new Greenfield plant in Jammu (operations expected by Q2 FY25)
• Targeting over 20% CAGR growth in coming years
Financial Performance (Q4 FY24)
• Total income: Rs. 268.3 crores (10.2% YoY increase)
• Revenue mix:
• 53% from CDMO
• 18% from domestic branded generics
• 11% from international branded generics
• 18% from Sharon
• EBITDA: Rs. 43.8 crores (48.7% growth, 16.7% margin)
• Profit after tax: Rs. 28.7 crores (66.5% increase)
• Full fiscal year total income: Rs. 1,093.8 crores (16.9% increase)
• Profit after tax for FY24: Rs. 94.3 crores (38.9% increase)
• Improved cash flow and debt repayment
Q&A Highlights
• CDMO Pricing and Volume Trends:
• Price decline noted; strong volume growth remains.
• Future growth depends on pricing stabilization.
• Sharon's Revenue Growth:
• Revenue flat year-on-year; focus on enhancing product pipeline.
• CDMO Business Performance:
• Growth influenced by operational capabilities and pricing.
• Cephalosporin facility at 70% utilization; general facility at 40-45%.
• Future Plans:
• Expansion of Cephalosporin capacity in Jammu.
• Expected over 20% CAGR in CDMO category.
• Capital Investments:
• Rs. 330 crore investment in Jammu project; total cost expected at Rs. 450 crore.
• Anticipated GST benefits and tax advantages.
Margin and Revenue Insights
• Historical gross margins around 25%; recent increases due to volume growth and API price declines.
• EBITDA margin for Sharon: approximately 24% for first three quarters of FY24, expected 26%-27% for Q4.
• Revenue potential for Jammu block: over Rs. 1,000 crore in 3-4 years.
Conclusion
• Positive outlook on growth trajectory and competitive positioning in the CDMO market.
• Ongoing discussions with customers and positive feedback on existing facilities.

Earnings Call Overview
• Date: February 14, 2024
• Submitted transcript to BSE and NSE on February 20, 2024
• Key Executives: Vinay Lohariwala (Managing Director), Gaurav Srivastava (CFO)
• Focus: Operational and financial performance, business segments, and future growth plans
Business Segments
• Contract Development and Manufacturing Organization (CDMO)
• Domestic Branded Generics
• International Branded Generics
• Sharon Bio-Medicine Limited
Financial Performance
• Q3 FY24 Revenue: Rs 302.5 crores (25% YoY growth)
• Breakdown:
• 55% CDMO
• 17% Domestic Branded Generics
• 12% International Branded Generics
• 16% Sharon
• EBITDA: Rs 47 crores (27% growth, 15.5% margin)
• Profit After Tax: Rs 25 crores (28% growth)
• Nine-Month Revenue: Rs 818.7 crores (19.4% growth)
Future Growth Plans
• New manufacturing facility in Jammu
• R&D center in Panchkula
• Expansion into regulated markets
• Anticipated interest savings of Rs 18-20 crores in FY25
Q&A Highlights
• CDMO Revenue Concerns: Decline due to falling API prices, stable margins
• Jammu Facility Updates:
• Two production blocks nearing completion
• Full commercialization expected by September quarter
• Estimated peak revenue potential: Rs 1,800 crores
• Cost Management: Fixed costs of Rs 2 crores/month for the new facility
• Utilization Rates: Existing plants could increase from 45%-50% to 70%-75%
• Order Book: Approximately Rs 140-150 crores with 1-2 months visibility
Strategic Focus
• Expansion in cephalosporin production
• Introduction of new dosage forms
• Integration of Sharon business progressing well
• No major new capital expenditures planned in the near term
Financial Clarifications
• One-off expenses related to acquisitions and IPO clarified
• Product mix expected to show healthy growth across all segments
Conclusion
• Vinay Lohariwala thanked participants and encouraged further inquiries through investor relations.