Thread by @tycoonmindset05

#Dishman Carbogen Amcis Concall today at 4pm!

We would be providing live updates & key highlights of Con call.
Stay tuned😀

@unseenvalue @punitbansal14 @VikasReports @anupsoans @Ankit090287 @KevalAshar @MunkThePunk

Reassessment of #API plants:

- Reassessment of API plants to reassure that no product was negatively affected.
- It was done for 90 products.
- And it all went well.

#Indian Operations:

- Costs increased from 20% to 31% due to poor Indian operations.
- Indian operations were not up to the mark due to observations found and #covid.
- They had to move out from the fixed expenses which could not be capitalized.

#Costs this quarter:

- #Employee costs were increased by ~20 crs due increase in employee strength.
- #Other expenses include main loss on account of forex.
- Due to Indian operations overall consolidated #loss is 21 crs.

#Operations highlights:

- On cash basis, cash profit is 43 cr & expects this profit to increase further.
- Switzerland entity's revenue grew by 20%.
- France, UK businesses were non linear to material issue.

Margins:

- #CRAMS - India reported loss
- CRAMS UK had margins of 32% due to more contribution from cholesterol sales.

Financing:

- Capex in Switzerland and France
- Net debt should not increase drastically. It would be in the range of 1.25 -1.5 x

Markets:

- Europe is near to complete the reassessment and by Q4 it should be normalized.
- From India stand point second half should be much better than first half. All the losses would be mitigated in the second half.

- Demand coming from development segment (Positive trend of 17-18% growth but the margins are low)
- Significantly enhancing capacities in Switzerland and France

- At least 2 products are expected to be approved which are currently in phase1 & 2.
- Formulation biz-successful (continue to grow with additional investments)
- Focus on niche liquids and solids products
- #Carbogen has lot of opportunity want a land near the existing facility

- Expecting to leverage on the markets which can go higher in near future.
- Focusing on securing supply chain by working on efficiency issues

Indian Operations:

- Restructuring operations from next month
- Investing a lot in technology so that it will require less people to work more efficiently in India
- In 2nd half of the year it would be better, Company has orders and will be able to deliver.

-Production of #D3 this month on wards would be more with good orders.
-Marketable molecule which are coming out of New Zealand will be part of #Carbogen
-It will take time to sort the material issue

EBITDA% improvement:

-CRAMS to replace pipeline phase projects, waiting for commercial approvals.
-More money in commercial along with better project mix
-There's no significant change in antibiotics & biologic, however niche insecticides opportunity(good efficacy in ph1 trial)

Product #Pipeline:

-18 products close to commercialization
-2 products - one in breast cancer and other in cardio vascular, waiting for approval.
-All the process has been done

Product #Pipeline:

-Products are small scale but very specialized
-Using internal investments to develop pipeline
- #Vitamin D plant - Small contribution this year. Facilities of vitamin D analogues will be starting soon in 6-9 months

Contribution:

-Switzerland to contribute more in API
-Oncology projects are abt to complete with approvals which can ramp up Sales
-If pipe line continues to strengthen then co. will have to ramp up the production
Manufacturing formulation in France is mainly for niche molecules

-Company is going through Technology complexity
-Observations were mainly in 7-8 products (4-5 mn market), this has impacted not only generics but also crams in India,
backlog which has been created will be cleared till next year in Crams

#NIRA no noise in coming years in this product. Market for this is 20 mn.

#API
Cost of API is somewhere between 0.5 to 24%. Out of which 24% of API cost is branding.