Company came up with reasonable results, Oaknet business has turned around faster than earlier guided and is already doing 24% EBITDA margins. Management is guiding for 30% sales growth and 16-17% EBITDA growth in FY23. Recovery in cardiovascular division is the reason behind the confidence. Concall notes below.
FY23Q2
- Guidance maintained at 30% sales growth and 16-17% EBIDTA growth for FY23. Tax rate will be ~10% for FY23
- Oaknet’s 50 cr. target EBITDA will be achieved in FY23 vs earlier guidance of FY24. Expanded dermatologist coverage to 90% from 60%
- Oaknet will be amortized over 20 years
- Growth in cardiovascular division has resumed. SGL2 & DPP4 contributes 35-40% to diabetes sales
- The stark difference in primary (10%) vs secondary sales (19%) is because of certain products (probably Zayo, link) which have gone into legal issues, which were already supplied to the market (but are no longer being supplied). So these are captured in secondary sales data but not in primary sales
- Launched 4 drugs (Zomelis D, Glura, Gluxit S & FCM Injection) in H1 FY23
- Aim is to get 18-20 cr. of revenues from insulin in FY23. This will not be a cash burn business in FY24
- Eris standalone PCPM ~ 5.3 lakh, Oaket PCPM ~ 3-3.5 lakh
Disclosure: Invested (position size here, no transactions in last-30 days)