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Themis Medicare Limited Q2 and H1 FY 2023-24 Earnings Conference Call Summary
Key Highlights • Date of Call: November 6, 2023 • Submission to BSE and NSE: Transcript submitted on November 8, 2023
Financial Performance • Q2 Revenue: INR 104.78 crores (15% YoY increase) • H1 Revenue: INR 201 crores (8.62% increase) • EBITDA Margin: 11.84%, impacted by rising raw material costs • PAT for H1: INR 29.51 crores • Share Subdivision: Executed effective October 11, 2023
Business Segments • Hospital Segment: • 20% growth in Q2 YoY • Launch of Remithem, a critical care product • 10 new products launched, with more expected • Pharmaceutical Sector: • Enhancing portfolio of trust brands • Addressing pricing pressures in API segment • Transfer of API business to Themis Chemicals Private Limited
Strategic Initiatives • API Business Transfer: • Carving out API business to align with core growth strategy • Expected completion of demerger by December 2023 • Focus on Generics: • Exploring opportunities in the generics market through RxThemis • Product Launches: • Emphasis on expanding product portfolio and increasing doctor touchpoints
Market Outlook • Revenue Growth: Positive outlook for FY '24 and FY '25 • Competition: Identified Cipla, Neon, and Abbott as key players in the hospital space • Hospital Market Size: Anesthesia valued at INR 700-800 crores
Challenges and Responses • EBITDA Margin Drop: Attributed to API product pressures and increased manpower costs • R&D Unit: New unit in Gujarat for developing specific molecules, not a manufacturing facility • Market Response: Mixed results for Lenzetto gynecological product
Conclusion • Future Growth: Confidence in continued growth in the hospital segment and overall business performance • Investor Engagement: Call concluded with an invitation for further questions and discussions.
Themis Medicare Limited Conference Call Summary (May 15, 2023)
Financial Performance • Q4 FY23 Revenue: INR 80.1 crores (0.9% YoY increase) • PAT: INR 8.41 crores (down 15.52% YoY) • FY23 Total Revenue: INR 354.32 crores (down from INR 394.61 crores in FY22) • Future Growth Projection: 35% CAGR over the next three years • Operating Margins Recovery: Expected to reach 20% by Q2 FY24
Business Challenges and Strategies • API Segment Issues: High input costs led to manufacturing halt; improvements expected in Q1 FY24 • High Receivables Concern: Increased despite declining revenues, indicating extended credit terms • Spot Business Changes: Shift from advance transactions to extending credit; target of 90 days for debtor days
Product Development and Market Positioning • Critical Care Portfolio Expansion: Focus on high-margin products for both export and Indian markets • Gross Margin Target: 50%-80% for development pipeline, especially in generics and new drug delivery systems • Potential Demerger: Plans to separate API and finished dosage businesses for enhanced growth
Hospital Business Focus • Niche Product Strategy: Competing in areas like anesthesia where they hold a dominant position • Hiring Strategy: Focused on expanding hospital business rather than trade side • Medical Devices Exploration: Opportunities to be explored, with launches expected next year
Capital Expenditures and Investments • Investment in Upgrades: Approximately INR 29 crores for facility upgrades and R&D equipment • EBITDA Margin: Just over 19% with a target to exceed 25% as productivity increases
Inquiries and Clarifications • Long-term Borrowing: INR 5 crore increase for capital expenditure in multiple locations • PPE Investment: INR 19 crore net additions after depreciation; gross investment of INR 29 crore • Intensive Care Products: Focus on antimicrobials with minimal overlap with anesthesia products
Sales Force and Productivity • Gross Margins in Hospital Business: Lower due to hospital bargaining power but improved sales force productivity • Future Communications: Management to provide more quantitative insights on productivity improvements
Conclusion • Call Closure: Sachin Patel thanked the team and participants for their contributions.
Themis Medicare Limited Q3 and 9M FY23 Earnings Conference Call Summary
Date and Submission • Date of Call: February 10, 2023 • Submission to BSE and NSE: February 13, 2023
Key Participants • Dr. Sachin D. Patel: Managing Director and CEO
Financial Performance • Q3 Revenues: Rs. 89 crores (6.7% decline YoY) • PAT: Rs. 13.31 crores (6.86% increase) • 9M Revenues: Rs. 274 crores (down from Rs. 314 crores previous year) • Future Outlook: Targeting 35% CAGR over the next three years
Strategic Focus • Hospital Business: Launch of a new intensive care division • API Segment Challenges: Rising input costs affecting production • New Subsidiary for API: Significant capital investment required
Revenue and Product Insights • Revenue Breakdown: Specific figures not disclosed; focus on hospital and API growth • Key Product: Simvastatin contributes 35% of overall API business • R&D Plans: Increased spending anticipated for new drug delivery systems and generic injectables
Competitive Landscape • Hospital Market Position: Ranked third in anesthesia in India • Key Competitors: Fresenius Kabi, Baxter, B. Braun • Export Revenue: Approximately 8-9% of overall revenue
Partnerships and Collaborations • Cipla Partnership: Joint development for anti-TB products; Themis handles manufacturing
Future Strategies • Three-Pronged Approach: Focus on hospital growth, API revenue, and partnerships • CapEx Projection: Rs. 40-45 crores over the next two years • Price Control: About 10% of drug portfolio under NPPA regulations
Market Dynamics • Online Pharmacy Competition: Acknowledgment of Amazon and Reliance's entry; no plans for an online ordering portal • Projected ROCE: 25-30% for the current year
Conclusion • Call Closure: Dr. Patel thanked participants and team members.