The revenue from operations stood at ₹578.1 crore as compared to ₹477.5 crore in the previous year same quarter.
• The net profit for the quarter stood at ₹75.3 crore v/s ₹32.3 crore in Q2 FY20.
• The EBITDA for the quarter was reported as ₹166.4 crore.
• The debt to equity ratio of the company reduced further down to 0.47 as of September, 2020 on a
consolidated basis due to strong internal control.
Active Pharmaceutical Ingredients (API)
• The API segment contributed 88% to the total consolidated revenue. Within the API segment, 66.2%
of the revenue is from the domestic market and 33.8% is from the exports market.
• Domestic sales for the API grew by ~20.8% YoY and exports by 8.5% YoY.
• Around 55% of this growth in the API segment is volume driven and 45% is price driven.
• For the quarter, the revenue from the API segment can be classified into the following therapeutic
categories: antibiotic category was 44%, anti-protozoal category was 15%, anti-inflammatory
category was 12%, anti-fungal category was 7% and ant-diabetic category was 10%.
• Compared to last year, the anti-inflammatory category has grown from 10% to 12%, mainly on the account of higher sales of its products.


• The revenue from the formulation segment grew by 48.4% on a YoY basis on account of high export
and also due to the change in the product mix.
• The formulation segment contributed 12% to the total consolidated revenue and 32.7% of the sales was from the exports market.


• The current capacity utilization of the company is at 75%-80%.
• The company’s dependency on China for its overall raw materials is about 15%-20% and it is taking initiatives to develop alternate vendors in India.


• The overall capital expenditure (capex) for the next 3-4 years is expected to be ~₹600 crore and the
external sales potential of this capex is expected to be roughly around ₹1,500 crore.
• Of the ₹600 crore, broadly ₹150-₹200 crore will be allotted for the performance linked initiative (PLI)
• 60% of the product under development is API based, mainly in the anti-diabetic and anti-
inflammatory therapeutic areas and the rest would be in the Sulphurated products and Chloro
Sulphurated products etc.
• The company plans on expanding the API products in the 9 acre plant acquired last year in Tarapur,
Maharashtra, and the rest of the products in Gujarat.
• The company plans on utilizing a part of the capex for doing a phase expansion of Metformin in the
coming years. Initially it will launch a total capacity of 2,000 tonnes per month in a near term and the
final capacity would be 3,000 tonnes per month. Currently, it is 1,000 tonnes per month.
• Majority of the capital expenditure will be done by the end of the calendar year 2021.


• The company has already scaled up its anti-diabetic and anti-inflammatory capacities, the benefit of which will be reflected in the revenues and the export sales in the coming quarters.
• With the company’s current setup, revenues from the formulation segment is expected to be about
₹350 crore in the next financial year and thereafter, considering the new capacities the company is adding, the revenue in the segment is expected to be around ₹450-₹480 crore in the next 2 years.
• The company plans on continuing its strategy of major investment in the research and development and information technology (IT) segment.
• Since the company has enough products under pipeline, it may look at capacity enhancement going
• The full potential of the anti-biotic and anti-protozoal segment was not explored by the company due to the lockdown. So with the economy coming to normal, the demand in terms of quantity sales
is expected to improve.
• By the end of this year, the additional anti-diabetic facility is expected to come up, which will have a positive impact on the revenues of the company.
• Given the capital expenditure and the demand returning for few segments, the company is confident
of an incremental revenue growth in the future.
• The EBITDA margin for the coming quarters is expected to be around 18%-20%.

Signing off

Having worked several years into Life Insurance, Health Insurance, Mutual Funds & Closely with people into financial planning i am now putting my first step in investment advisory

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