Kilitch Drugs (India) Ltd. Q4 FY24 Earnings Conference Call Summary
Date and Submission
• Date of Call: June 10, 2024
• Submission to BSE and NSE: June 14, 2024
Key Management Participants
• Managing Director: Mukund Mehta
• CFO: Sunil Jain
Company Operations and Projects
• New Greenfield Project: Maharashtra, aimed at expanding manufacturing capabilities.
• Ethiopian Market: Positive growth from Cephalosporin facility; significant government order of $9.13 million.
• Current Capacity Utilization: 5-7%, expected to rise to 60% in the upcoming fiscal year.
Financial Performance
Q4 FY24 Results
• Standalone Revenue: Rs. 39.14 crores (down from Rs. 43.28 crores)
• EBITDA: Rs. 6.11 crores (down from Rs. 8.12 crores)
• Profit After Tax: Rs. 3.64 crores (down from Rs. 5.13 crores)
Full Fiscal Year Results
• Standalone Revenue: Rs. 131.60 crores (up from Rs. 117.78 crores)
• EBITDA: Rs. 26.51 crores (up from Rs. 17.57 crores)
• Profit After Tax: Rs. 17.57 crores (up from Rs. 8.28 crores)
Consolidated Results
• Q4 Revenue: Rs. 44.82 crores (down from Rs. 45.48 crores)
• EBITDA: Rs. 7.55 crores (up from Rs. 7.23 crores)
• Profit After Tax: Rs. 3.68 crores (up from Rs. 2.90 crores)
Full Year Consolidated Results
• Revenue: Rs. 154.37 crores (up from Rs. 139.60 crores)
• EBITDA: Rs. 28.63 crores
• Profit After Tax: Rs. 13.58 crores (up from Rs. 8.28 crores)
Revenue Generation Strategy
• Sales to Private Players: Advance payment basis.
• Revenue Split: 60% export and 40% domestic for FY 2023-34.
• Growth Projection: 25%-30% for FY '25.
Future Plans and Developments
• Revenue Target: INR 500 crores by 2027 with margins of 22%-24%.
• New Facility in Mumbai: Construction underway, production expected by May 2025.
• Khopoli Plant: Set to produce various pharmaceutical products, operations expected to commence in 2025.
Market Opportunities
• African Market: Limited competition, strong position in Ethiopia.
• Export Plans: Expected to start by 2025.
Working Capital Management
• Advance Payments: From government and private clients mitigate working capital challenges.
• Land Monetization: Historical value around INR 50 crores, ownership of 40-45% of an 18.67-acre parcel.

Kilitch Drugs (India) Ltd. Q4 FY23 Earnings Conference Call Summary
Financial Performance
• Q4 FY23 Revenue: Increased by 35.12% to INR 43.28 crores.
• EBITDA Growth: Up by 71.31% to INR 8.12 crores.
• Full Fiscal Year Revenue: Rose by 12% to INR 117.78 crores.
• PAT Increase: Up by 49.29% to INR 15.72 crores.
Operational Updates
• Manufacturing Facility: Plans for a new facility in Khopoli, Maharashtra, to enhance production and reduce outsourcing.
• Ethiopian Operations:
• Facing challenges but expected to improve in FY 2023-2024.
• Capacity of 16-17 million vials against local demand of 25 million vials.
• Government support for foreign exchange anticipated.
Growth Prospects
• India: Strong performance in the effervescent division; growth expected in the injectable business.
• Ethiopia: Plans to export to African countries pending regulatory approvals.
• Contract Manufacturing: Focus on increasing capacity at Khopoli plant with over INR 100 crores capex.
Future Plans
• New Factory Production: Expected to start by March 2025.
• Market Strategy: Positioning as a key supplier for UN agencies in Africa.
• Pharmaceutical Market Growth: Anticipating 8% to 12% year-on-year growth.
Financial Considerations
• Capex Funding: Expected to be financed through bank loans.
• Non-Core Assets: Plans to monetize land in Bhiwandi at the right time.
• Operational Costs: Increase in registration fees and commissions noted.
Conclusion
• Management's Remarks: Expressed gratitude for participant questions and aimed to provide satisfactory responses.
• Call Closure: Concluded by Kirin Advisors, thanking participants.