Eris life Q1 concall highlights -
Successfully integrated Oaknet into Eris’s mainstream business
Capacity utilisation ramp up happening at second formulations facility in Gujarat (at 14 pc utilisation now)- started in Mar 24
Derma block expansion underway in the a/m facility
8-10 launches lined up for remainder of FY 24. Entering paediatric dermatology in Q2
Have a pipeline of 10 new FDFs in diabetic, GI, neurological space-these will be first in the Mkt combos. To be launched in FY 24/25
Derma insourcing wef Q4 FY 24 to further improve margins
Injectable diabetic revenue tgt for FY 24 at 50 cr. To launch Glargine and Liraglutide by Q4. Aim to achieve EBITDA breakeven here by Q4 FY24
Q1 Fin outcomes -
Revenues - 467 vs 398 cr, up 17 pc
EBITDA - 169 vs 129 cr, up 31 pc ( margins up 400 bps )
PAT - 94 vs 93 cr
PAT hit by higher amortisation and interest costs, lower treasury income
Reduced debt by 102 cr in Q1 to 672 from 774cr on 31 Mar 24
Current brand strength -
4 brands with > 100 cr revenues
6 brands with > 70 cr revenues
5 brands with > 50 cr revenues
Added 200 MRs in FY 23
Oaknet’s EBITDA margin at 35 pc vs 24 pc LY vs 10 pc at the time of acquisition
Diabetes injectable revenues were at 17 cr in FY 23 with EBITDA loss of 20 cr. Expect to hit 50 cr sales in FY 24 with EBITDA break even
Depreciation+Amortisation to continue at 40 cr/qtr this FY
Aim to reduce debt below 400 cr by end FY24
Aim to have EBITDA margin of 35 pc for FY24. Moderation to happen in H2 vs H1 due marketing spends on new launches
Organic portfolio (excluding Oaknet + brands acquired from Dr Reddy and Glennmark) grew 400 bps higher than the IPM
The 10 new brands (new FDF combos) to be launched in next 12-18 months to contribute min 8-10 cr in revenues each after first yr of launch. Thereafter, it depends on the product’s strength and mkt conditions
Confident of even better organic growth for the remaining part of FY
No capex (except maint) planned this yr
Yield per MR at Rs 5 lakh/month
PAT growth to accelerate next yr due to even higher topline and reduced debt
Not looking for fresh acquisitions in near future
Company believes, it should clock 700-720 cr EBITDA this yr vs 540 cr LY
Most of the cash generated to go into debt reduction
Topline expected to hit 2000-2100 cr this yr
Q1 has been weak for the IPM for last 2-3 yrs in a row. Growth generally picks up post Q1. Hoping for the same this yr too
Q2 is the best Qtr for derma mkt due fungal infections
Disc: holding from 630 levels
IMHO : being a pure play branded India formulations player, it should command better valuations. But - that’s only an opinion