Indoco Remedies Ltd. Conducted their conference call today at 3:30 pm.
" Company motivated to earn 19% above CAGR"
Here are the key takeaways π
" Company motivated to earn 19% above CAGR"
Here are the key takeaways π
Business Overview
- Company have nominal profit on YoY basis and has experienced a decline in growth on QoQ basis.
- Company still remains bullish on their key segments for further growth.
- The major impacted acute segment witness strong hit due to fall in demand.
- Company have nominal profit on YoY basis and has experienced a decline in growth on QoQ basis.
- Company still remains bullish on their key segments for further growth.
- The major impacted acute segment witness strong hit due to fall in demand.
- The Company experience about 20% de growth in the prescription buisness. And as the covid situation is falling apart they will be able to cover up the losses.
- Their Domestic business has taken the major hit this quarter but was covered somewhat by international growth.
- Their Domestic business has taken the major hit this quarter but was covered somewhat by international growth.
- Company also had led it's warehouse to launch products, this could store about 3-4 months of inventory.
- Industry in key areas have given great growth upwards of 50%.
- It's milestones are linked to Regulatory approvals so if everything goes well they might able to best 19%.
- Industry in key areas have given great growth upwards of 50%.
- It's milestones are linked to Regulatory approvals so if everything goes well they might able to best 19%.
Product break- up
- Company had seen a decline in growth from its API business and growth from its CRO business.
- Business has been good for its major products but still they got huge cash leaks.
- They were able to solve all FDA related issues presented.
- Company had seen a decline in growth from its API business and growth from its CRO business.
- Business has been good for its major products but still they got huge cash leaks.
- They were able to solve all FDA related issues presented.
- The psych medicine and antibiotics respiratory are still doing well for them.
- Still major growth previously was in colour of covid.
- Company at present have about 17 well performing drug covering- Prevention
Catering treatment and
Protect from infection.
- Still major growth previously was in colour of covid.
- Company at present have about 17 well performing drug covering- Prevention
Catering treatment and
Protect from infection.
- They have planned to have 3-4 product per division which leads to 20 products per year.
International business
- Business from regulated market has grown well during QoQ and YoY basis.
- About 23.5% growth was witnessed from us markets
- Company has also came up in a strategic partnerships for a generic drug.
- Business from regulated market has grown well during QoQ and YoY basis.
- About 23.5% growth was witnessed from us markets
- Company has also came up in a strategic partnerships for a generic drug.
- About 100%+ revenue growth was seen from European markets and south Africa as well.
- For us markets about 5-6 products are files and expected to launch this year.
- Company is bullish on its us market, with firm order book and good size of repeat orders.
- For us markets about 5-6 products are files and expected to launch this year.
- Company is bullish on its us market, with firm order book and good size of repeat orders.
Capex and capacity
- Company has catered to all the previous projects for now.
- They expect to incure about 80cr of Capex this year and for the next year as well.
- This will be used to meet any upcoming opportunities and strengthen their product portfolio.
- Company has catered to all the previous projects for now.
- They expect to incure about 80cr of Capex this year and for the next year as well.
- This will be used to meet any upcoming opportunities and strengthen their product portfolio.
- Company has set aggressive targets of achieving 850cr from domestic market, 300cr from European and 250cr from us markets.
- Their Bandi plant 3 is working at a capacity of 70% plus.
- Company also plans to shift it's europe business plant from Goa to bandi.
- Their Bandi plant 3 is working at a capacity of 70% plus.
- Company also plans to shift it's europe business plant from Goa to bandi.
- Plant 1 and plant 2 are also running at capacity around 72%. And Company has incured about 3 cr of cost on them.
Financials
- Company had shifted to online platform availing all its payables there.
- They have managed to bring their inventory days down in current times leading to an effective WC management.
- They have now linked their receivables to their business growth.
- Company had shifted to online platform availing all its payables there.
- They have managed to bring their inventory days down in current times leading to an effective WC management.
- They have now linked their receivables to their business growth.
- In terms of cost, Domestic market has a bit stress of it but they generally gets cleared in 1-2 months. Leading to low impact on their margins.
- About 40cr of LTD has been paid up bring total value to 141cr which will be brought to 128cr sooner.
- About 40cr of LTD has been paid up bring total value to 141cr which will be brought to 128cr sooner.
- Company had increased its sales and advertising expenses till Q3 and now will re instate in to grab good share in domestic market.
- They expect to generate 17 to 19% cagr where they used to generate 12%.
- They expect to generate 17 to 19% cagr where they used to generate 12%.
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