Alembic continues to do its thing, adjusting the CWIP directly through reserves and not passing it via P&L statement. It lowers their book value, improves ROE and P&L looks clean. On the business front, large number of launches will happen in the next few quarters. Concall notes below
FY23Q4
- Wrote off 1150 cr. of CWIP (largely capitalized pre-operating expenses) without passing through P&L statement. Won’t be capitalizing any pre-operating expenses from now (65 cr. additional costs in Q4 P&L)
- Received PLI benefits of 21 cr.
- Price erosion is still in double digits
- Launched 5 products in Q4FY23, will launch 10 products in Q1FY24 and 20-25 in FY24
- R&D will be maintained at 500-525 cr.
- 15-20 ANDA filings in FY24
- Expect margins of 15% in FY24
- Will have 17.5% tax rate in FY25
- FY24 capex will be less than 250 cr.
Disclosure: Invested (position size here, no transactions in last-30 days)