AR23 notes
Financials:
- Exports: 289 cr. (vs 228 cr. in FY22)
- Foreign outgo: 281 cr. (vs 302 cr. in FY22)
- Planned capex of 5 cr. for capacity enhancement. This will help them reach target growth rate of 15-20% in FY24
- Other expenses breakup
General
- Want to increase margins through increase in exports and backward integration
- Launched Vildagliptin in Q4FY23, which is a fast-growing Type 2 Anti diabetic product
- EDQM restored all regulatory approvals for Erythromycin Base, Erythromycin Ethyl Succinate, & Pyrazinamide. Received CEP for Ambroxol Hydrochloride
- WHO authorities have restored regulatory status for Pyrazinamide and Sulfadoxine
- Approved by COFEPRIS, Mexico for Erythromycin Stearate, Erythromycin Estolate, Erythromycin Ethyl Succinate
- USFDA approved Ambroxol Hydrochloride
- Inspected by USFDA and passed inspection without any observations
- Main focus for new products will be on lifestyle disease like Diabetes, Hypertension, CNS, and Dermatology
- Company is on a look out for inorganic expansion through mergers or acquisitions which will allow rapid market access and build synergies
- Expanding geographical presence with special focus on increasing presence in Vietnam, Japan, South Korea, Brazil and North America
- R&D pipeline: Sitagliptin, Clotrimazole, Ticagrelor, Sulfadimethoxine, Citicoline sodium, Dapagliflozin, Canagliflozin, Empagliflozin. Have 11 new products
- Planning to install greener technologies like briquette fired boilers, economizers etc. to save power and fuel costs
- Remuneration taken by Ritesh Shah (63 lakhs vs 40 lakhs in FY22) and Vivek Shah (62 lakhs vs 42.5 lakhs in FY22)
- Factory: Tarapur; R&D office: Navi Mumbai
- Took approval of sales to S Kant Chemicals Pvt Ltd upto 100 cr. (did sales of 37 cr. in FY23 vs 34 cr. in FY22)
- Employees: 159 (Average increase was 10-15%)
- KMP remuneration decreased by (-12.5%)
- Audit fee: 9 lakhs (vs 7.18 lakhs in FY22)
- Share price: 77 (low), 109.9 (high)
- Shareholders: 20’444
- R&D: 3.54 cr. (vs 3.03 cr. in FY22). Largely revenue expenditure
- Disputed taxes: 55 lakhs
- Capex: 1.55 cr. (vs 1.61 cr. in FY22)
- Investment in debt MFs: 50.34 cr. (vs 21.47 cr. in FY22)
- Receivable from Related parties: 25.5 cr. (vs 9.14 cr. in FY22)
- Promoter shareholding increased by 0.15% in FY23
- Bank: HDFC
Disclosure: Invested (position size here, no transactions in last-30 days)