Eris Lifesciences Q4 highlights -
Revenues at 403 vs 306 cr
EBITDA at 119 vs 97 cr
EBITDA margins at 30 vs 32 pc
PAT at 61 vs 80 cr (due higher interest outgo, higher amortisation, lower other income - all due aggressive inorganic acquisitions made by the company in FY 23)
Consolidated revenue growth for Q4 and FY 23 at 32 and 25 pc
Standalone ( organic business ) revenue growth for Q4 and FY 23 at 11.5 and 9.5 pc
Consol Debt at 774 cr. Expect accelerated pre-payments in FY 24 due generous cash flow generation
Oakent business ( Derma focussed company, acquired early LY) -
Revenues at 250 vs 195 cr, up 23 pc ( for full FY )
Generated EBITDA of 61 vs 20 cr YoY
Added complementary brands to this business by acquiring medical and cosmetological brands of Glenmark, DRL in FY 23
Oaknet’s MR productivity increased from 2.3 to 3.2 lakh / month. EBITDA expanded from 10 to 24 pc
Basically - a very sucessful turnaround of Oakent under Eris
Eris Life - therapy wise revenue share -
Diabetic- 29 pc
Cardiovascular- 21 pc
Vit & Minerals- 16 pc
Derma- 14 pc
CNS- 7 pc
Women Health- 5 pc
Others- 9 pc
Revenue wise Brand strength -
4 brands > 100 cr revenues
6 brands > 70 cr revenues
5 brands > 50 cr revenues
Added 200+ MRs in FY 23
Total cost of acquisition of Oaknet +Derma brands of DRL and Glennmark at 1265 cr incurred in FY 23
Consolidated gross margins sustaining at 80 pc !!
With Oaknet scale up and higher sales of Injectable Insulins, expect improvement in Gross, EBITDA margins in FY 24!!
Eris MJ (JV) for oral insulin hit 17 cr revenues for FY 23. Could have been higher but for supply issues in Q4
Going to launch a number of new formulations in FY 24. Even after accounting for these launches, expect significant jump in EBITDA margins in FY 24
Currently all Derma formulations being made by third parties. Intend to bring them in-house in their new Gujarat facility
Top 20 brands account for 70 pc of revenues
Effective tax rate should be around 14-15 pc this yr
Intend to pay back 400-500 cr of Debt this yr
Business Matrix improvements should be visible from Q1 FY 24 onwards
Going to add aprox 100 MRs in H2 FY 24 in Oaknet division
Disc: holding a tracking position, biased
Once the topline growth starts translating into bottomline growth, I personally expect a significant re-rating in the stock price … something similar to JB Chemicals
That a hunch
Do ur own homework before investing