Shilpa Medicare -Racing away on the Oncology API highway!


(JKS) #347

exceptional item and the lower growth of top line, seems to have ticked off market
PS - invested


#348

Has company fired CFO and compliance officer/company secretary for typographical errors? The error was in totalling expenses which looks very lame. I find it very strange situation.

Disc: Invested


(bala) #349

Shilpa formed a JV with its client ICE, Italy for its product Ursodiol, with Shilpa holding 60%. This is standalone numbers, I don’t know if this JV became functional. If it has become functional then year end consol numbers will capture these sales


(Hitesh Patel) #350

Lacklustre results from Shilpa. But since company hasnt posted consolidated numbers here, one doesnt get the true picture.

The positives in past few months that have happened for Shilpa have been approval of USFDA for its API and formulation facilities which paves the way for good growth for next few quarters once company starts its exports to US. Icing on the cake has been the Japanese regulatory authorities nod bcos very few companies have been able to crack the Japanese markets.

Having said that the company needs to start delivering numbers for valuations to sustain or improve.

I remain optimistic about the company mainly as I see higher growth visibility for next 2-3 years.

disc: invested.


(Ravi) #351

@hitesh2710 - A quick question - Has Shilpa received EIR for the formulation facility? Think only inspection is through. Please clarify if my understanding is incorrect.

Shilpa’s BSE notification dated 26-Jul:
"Shilpa Medicare Ltd has informed BSE that the Company had an audit conducted by the United States Food & Drug Administration (USFDA) at the SEZ Formulations facility situated at Jadcherla, near Hyderabad, from July 18, 2016 to July 26, 2016.

The Company has received without 483 for the above mentioned facility."

Also I saw a brokerage note saying they had a planned shutdown in Q1 for expansion of formulation facility. Possibly one of the reasons for muted qtr.

Thanks,
Ravi S
Disc - Long, no trades in many months.


(Ankit Sharda) #352

Any take on the recent resignations of CFO & CS?

If anybody has a contact at the company, plz find out more about these concurrent exits.


(RoshRaj) #353

It seems that the CFO and CS were fired due to typo error in the previous quarter numbers (Q4 FY16) mentioned in Q1 FY17 results. MD had to correct it a day after Q1 result was announced. In such a case, I guess we shouldn’t be worried over the action taken by management as the company wants to have high standards and not allow inefficiency?


(chets) #354

There was an error in last year’s AR too which was later rectified. I guess this times error was strike3.


(Jey) #355

isnt the sacking of CFO an issue of corporate governance - something more problematic than just clerical errors


(Arun S G) #356

Actually, the sacking of CFO by itself is an issue of secondary priority. The deafening silence over the whole episode is the primary issue here. If indeed the CFO is guilty of lapses, or more serious acts, then sacking him is the right thing to do, but the company must come out clean on what happened. Their website still shows the same compliance officer though she was supposed to have been out by 1-9-2016.

Old timers may recall an incident when there were wrong-doings at Tata Finance, & there were rumors galore that the fixed-deposit holders would lose their shirts. It was then that the head of the company was sacked but the Tatas came out clean in public and said categorically that every investor in the fixed-deposit would be protected from any loss.


(Jey) #357

In addition to what Mr.Arun has said, the company is yet to release its Annual report for 15-16. Also they dont seem to conduct concalls which would be very helpful to clear our doubts. Maybe we got to wait for the AGM to clarify our doubts


(ramanhp) #358

Annual report shared here : https://karisma.karvy.com/images/2016/SML_4716/Shilpa_Annual%20Report2016.pdf


(Anindito Sarkar) #359

From AR “During the financial year under report, the Company
reported gross revenues of Rs.682.59 Cr as against
Rs.570.85 Cr and a Net Profit of Rs.110.32 Cr as against
Rs.84.09 Cr registering growth of 31% and 4%
respectively.” . Can anyone tell me how 31% and 4% is deduced?

Disc- Invetsed


(iamket) #360

The famous typo virus rears its head again :). For a company that is supposed to deliver highly sophisticated products produced in a plant operated as per the exacting standards of USFDA, these kind of errors are disconcerting. I wonder who will get fired this time?


(Sandeep Patel) #361

Appears typo to me. Probably meant to say “… a Net Profit of Rs.110.32 Cr as against Rs.84.09 Cr, registering 31% growth during this financial year against 4% growth in the previous financial year.

FY15 AR snippet follows (illustrating 4% number) -


(MHS) #362

From standalone P&L statement Other operating revenues are 7,889.04 lakhs - Item 22.
Expalanation notes item 22 says Product Development Charges 7,889.04 lakhs.

Any idea what are these product development things, are these for their clients??


#363

CFO has been fired so I am expecting no error gong forward. Do promoters read their own quarterly and annual reports? I have serious doubt now.


(ramanhp) #364

Normatively, I will like the top management to read carefully their own annual results reports. But don’t think there is much to read into if some mistakes are made. Especially if the CFO has already be punished for the mistake.


(Ayush Mittal) #365

I have been really pleasantly surprised to see so much of management discussion and important details shared about the number of APIs under development, patents, therapies and highlight on the R&D work of the company and how the company is getting aggressive and aiming for launches (Para IV etc) in coming years. There is also lot of sharing about the action plan for the subsidiaries going forward. I think we should ignore the clerical errors and try to focus and make sense from the pointers provided in the latest annual report. It will help us in understanding the future possibilities in the company.

Regards,
Ayush

Disc: Invested


(Sandeep Patel) #366

Shilpa Medicare… Oncology API… Some data to chew…


New Edits: Updated the table below on Sep 27, 2016

  • Added four new columns - Volume, Value, US market size & ROW market size.
  • Updated values in the “# of ANDA Holders” column.
    Additional source: ICICISecurities, Karvy and PhiliipCapiital research reports (available in public domain).

Edits: Updated the table below on Sep 17, 2016


  • Green shade: Contributes ~27% to SM’s revenue (probably)
  • Yellow shade: Potential revenue contributor going forward
  • Blue ticks: New development in 2015
  • Red ticks: New development in 2016 (more expected in 3Q and 4Q 2016 DMF list)

Thanks to @crazymama, @ankitgupta and others for pointers in the “ValuePickr Generics Pharma Dashboard” thread (a gold mine for data hungry investors).

Source: www.vbshilpa.com, www.pharmacompass.com, www.fda.gov and www.lens.org.