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Feb 4 • 26 tweets • 4 min read
#AartiDrugs Q3 FY22 concall highlights 💊💊

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1. The financial performance is not exactly comparable especially in terms of realizations and margins because of elevated API prices driven by COVID related issues last year.
2. The company posted robust growth in revenues and margins on a sequential basis despite high freight costs, elevated coal prices and high RM prices.
3. Standalone Q3 revenue stood at ₹594.8 Cr (24.9% growth YoY). The standalone business contributed ~91% to the consolidated revenue for the quarter. 59% of the revenues came from the domestic market and 41% from the exports market for Q3FY22.
4. API volumes grew by 12% YoY led by secular growth across acute as well as chronic therapies. The antibiotic segment contributed 46%, anti-protozoal contributed 16%, anti-inflammatory around 10%, anti-diabetic around 14%,
anti-fungal around 10% and the rest contributed to 5% of revenues.

5. Revenue for formulations stood at ₹54.9 Cr. Approximately 30% of revenues came from exports during the quarter. Future growth will come from growing penetration in LATAM
and selective African markets, new product registrations and government tenders. The company is strategically using foreign subsidiaries to capitalize on these opportunities.
6. Revenue for specialty chemicals and intermediates stood at ₹66.6 Cr (74% growth YoY). Management believes this segment is at an inflection point and unique value proposition. Niche product profile and upcoming capacities in
chloro-sulfonation products are expected to bolster the growth momentum further.

7. The company has shown considerable improvement in margins despite multiple headwinds in terms of high RM prices, high freight costs and high coal prices.
Margin expansion is primarily driven by proactive price hikes, API volume growth across therapies and strict cost control.
8. Volume growth is expected to accelerate further in the next financial year due to recently commissioned anti-diabetic capacity and upcoming antibiotic chloro-sulfonation capacities.
9. Capex is expected to to be in the range of ₹150-200 Cr for the entire year which will be funded through a mix of internal accrual and debt. The pace of capex was affected due to incessant rains in Maharashtra and Gujarat in the first half of FY22.
10. They are expecting to double their capacities in specialty chemicals post capex. They have also planned greenfield capex for specialty chemicals which is yet to start. They can double their revenues from specialty chemicals over the next 2 years.
11. They are currently doing greenfield expansions at 2 locations - Maharashtra is expected to come online by December 2022 and Gujarat facility should come online by Feb-March 2023. So both the capacities will be online in 12 months.
12. When they order RM locally, it is delivered in 1 month. When the RM is being imported, it takes 2-3 months to be delivered. So the material costs look higher. RM prices have started to come down which will be reflected in Q4 FY22 and Q1 FY23.
13. Their capacities in specialty chemicals are still very small when compared to the global demand in specialty chemicals. Their costs will also be lower due to better processes. So they don’t see any problem in being able to capture market share.
14. Domestic API demand usually increases in Q4 every year because domestic formulation companies increase their production volume.
They are expecting a growth range of 25% annually for the next 2-3 years.
15. They are expecting growth in the formulation segment due to capacity enhancement in the existing facility. They are also launching a greenfield project into oral oncology.
16. They are going to be launching 10-12 oral oncology products in the regulated markets. They are targeting products with patent expiry from 2024 to 2027. So oncology would start contributing to revenues from FY25.
17. In the API segment, they are mainly expanding in anti-diabetic, dermatology, antibiotic, antifungal. They are also doing a brownfield expansion of a cardiovascular product.
18. In specialty chemicals, they are investing in chloro-sulfonation. They are also doing backward integration for a few of the intermediates, which they also intend to sell outside. They also have a contract manufacturing agreement with a MNC for one of the products.
19. Since 2018, it seems like China is moving more towards greener technologies and are focusing less on manufacturing of specialty chemicals and intermediates.
They will continue to focus in areas where they have natural resources but they are trying not to focus on these segments. That demand will come to India.
20. They are expanding in the gliptins space in stages. They have already set up a gliptin multi purpose facility. If the products grow, they have space to put up another block as well. If that happens, they will be aiming to get more than 50% market share of those products.
21. Under the PLI scheme, they had to invest ₹70-80 Cr to set up a facility. But they found a better process by which they were able to set up the facility in about ₹25 Cr. So they decided to save about ₹50 Cr upfront instead of applying for ₹8-10 Cr PLI per annum.
22. Top 10 APIs contribute to 75% of revenues, Top 15 is contributing to mid 80s. In 13 of these molecules they are the largest manufacturer in India and also globally in some.
23. They are the largest manufacturers in these molecules because they are backward integrated to a larger extent than their competitors. So more than 80% of their revenues are backward integrated.

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Feb 5
#JubilantPharmova Q3 FY22 concall highlights 💊💊

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1. The company’s performance for the quarter was affected by headwinds in the pharmaceutical business.
But was partly mitigated due to robust performance in the Contract Research and Development Services (CRDS) segment.
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#DishmanCarbogenAmcis Q3 FY22 concall highlights 💊💊

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1. They have had a very strong quarter - especially in CRAMS where the pipeline continues to be very strong.
2. They are seeing good interest and strong growth in the Vitamin D analogues.

3. The cholesterol business is stable and the disinfectant business is seeing increased interest from customers.
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Feb 5
#Balajiamines Q3 22 Concall Highlights 🧪🧪

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Operational Highlights

1. Revenues stood at ₹475 Cr in Q3FY22 compared to ₹366 Cr in Q3FY21, growth of 29.4% YoY

2. EBITDA stood at 109.3 Cr translating 23% EBITDA margins
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Feb 5
#Dhanukaagritech Q3 22 Concall Highlights 🧪🧪

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Operational Highlights

1. Revenues from Operations stood at ₹356.86 Crores in Q3 FY2021-22 vs ₹295.66 Crores in Q3 FY2020-21.
2. EBITDA stood at ₹61.74 Cr with EBITDA margins at 17%

3. Q3FY22 revenue split - Specialty Contributed 60% & Generic contributed 40%

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Insecticides 32%- Fungicides 19%-Herbicides 36%-Others 13%
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North 21%
South 37%
East 11%
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Growth is driven by new products and largely driven by herbicides

Volume growth were 18% during the quarter (1.8% for 9MFY22) partly along with price hikes
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Feb 5
#IEX Q3 Concall Highlights ⚡

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Link :

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Financial Update

1. Revenue for the quarter increased by 32.4% from 95.7 Crores in Q3 of FY2021 to 126.7 Crores in Q3 of FY2022.
2. PAT grew by 33% YoY from Rs 60.1 Cr in Q3FY21 to Rs 79.9cr in Q3FY22 with a Margin of 63.1%.

3. Revenue for the 9M FY22 increased by 37%, from Rs. 255.6 Cr. in 9M FY21 to Rs. 350.1 Cr. in 9M FY22.
4. PAT grew by 48.1% YoY from Rs 149.7 Cr in 9MFY21 to Rs 221.6 Cr in 9MFY22, with a margin of 63.3%.
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Feb 4
#IndocoRemedies Q3 FY22 concall highlights 💊💊

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1. Net revenues for the quarter were ₹348.6 Cr (4.6% growth YoY). EBITDA for the quarter stood at ₹73.4 Cr and EBITDA margin for the quarter was 21.1%.PAT for the quarter was ₹33 Cr and PAT margins were 9.5%.
2. Revenues from domestic formulation business for the quarter was ₹181.5 Cr (15.2% growth YoY). Major therapeutic segments viz. anti-infectives, gastrointestinal, urological and respiratory performed well.
Read 25 tweets

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