Some relevant Points :
Disclosure: Not tracking or invested…
I have sold out this stock long back once I found out that very few companies have the ability to get out of USFDA observations issues. At that time, all big pharma companies were affected by USFDA issues. There after I became very skeptical of US facing pharma companies knowing they can get hit with USFDA ban any time.
Yes Pre covid, there was a real scare among investors to buy Pharma scrips who are facing USFDA issues. Two things happened post covid.
Disc: Invested from lower levels and one of top 10 holdings and biased.
(Skipping Welcome notes)
Aditi: I am Third generation in Business. My Grandfather Established this Company. India got independence on 15th Aug and 23rd Aug was Registration of company; 7 days after independence. He used to be a trader in Pharma and wholesale - retail business based out of Goa. He would import medicines from French companies and sell in Goa. His work so impressive that - Laboratory Furniere French company asked him to take dealership of Western Region. He had established a company named Indo Continental Trading company in 1945. After Independence our government said indigenous manufacturing of medicine be done that pharmaceutical is such a essential item that its manufacturing be done in our country. Because of that they banned import of medicines. My grandfather who had started Indo Continental trading - he joined Indo and Co to form Indoco Remedies manufacturing started. He stayed in Goa where expansion going on and the company was in Mumbai - just started in a small way. But in 1963 my father came and he took that rope in his hands and he took that small opportunity forward and established. So out of our 70 year journey last 15 years we have expanded it International business greatly - otherwise even now if you see 60% of business that comes from India - that if I talk of our brands then brands known more than company(?) be it Cyclopam or Febrex Plus be it Cital and various other products. If looked today it’s 1300 Cr turnover company it has become. We have 6000 workers with us - we call them Indoco’its - they work together with me. We have 8 manufacturing sites - 3 in Goa, 2 in Baddi, 1 in Valuj near Aurangabad and 2 out of Mumbai in Pathalganga that side. Other than that one big R&D center is there we have 300 scientists - graduates and postgraduates - research going on there.
If you ask what kind of business, then basically 3 type of business model we have. One is India Branded Medicine sales. Second International business of formulations meaning you may have heard generics means if an innovator company has a brand in US or Europe that a generic company does the generic of that after patent it can be available at cheaper price. In 55 countries our products go as brands or generics. API meaning Active Pharmaceuticals what we call basic drugs. About this in India a big opportunity has come because of China issues - because of US and China Issues - earlier also it was there in Indoco. That’s about us as a company.
Uttara More: I feel that you expanded so much that only at seeing we amazed that such a big expansion and you maintain that today and so efficiently you handle it. So your father, Suresh Kare, he built the business that has become a Banyan tree but when you go below the roots - what it feels like - when you took that on your shoulders - there is a fear that go beyond that and put a ladder to sky - how it feels.
Aditi: I feel what you asked is a good question and about fear - it depends on Banyan tree - that it shelters or overshadows. I will give all credits to him. We are 2 sisters - no brother. In our home they did not bring us up differently like girl or boy etc. My father daily come home and talk about company. So before we knew it, we dragged into it. From early times I used to go to office - company - factory picnic, attending functions and having kept on listening about it, we grew up. In any business family, it is expected from the boys that they will come and like that even though we were 2 girls same expectation was there. Slowly slowly I started liking it. I started feeling that whether it is pharma or anything else meaning anything we got as a legacy business(?) I liked and that’s the reason I decided to get into it. But my sister is Charted Accountant and after CA she said I am not interested. It depends on us. My first day - 2nd Jan - (1st January holiday after 31st its off for us) So 2nd Jan 1993 first day I went to office and papa was there besides together and he said 2-3 things - One he said Aditi keep in mind that Respect - you should command and not demand and if you could do that then you succeed and go far. One he said that and 2nd he told that a girl from my friend has come from America after studying just like you (My post graduation was in US and finished in 1992) He said she has joined the company and in their company many good seniors left and gone. So he told me look you have to do it with under my team. Till then we used to think that Indoco is father’s eldest girl and he favors her more. From long time he used to say if you are not good enough for my Indoco, you will not find place there - putting the corporation ahead of your life. I got lot of support and log of advise. My begining was as Management Trainee in logistics department. And he only discovered that word and he told logistics will be link between production and sales and if you go there you will slowly understand both. After that officer quality assurance after that in 1st year itself in only 200 Sqft space we set up an R&D center. Father said we should recruit Doctorate and PhD candidates and Let’s start some R&D. Today our R&D center is 200,000 (2 lack) SqFt.
Literally I worked in Junior level quality assurance, R&D and Human resources (HR) after that International business development then domestic sales and marketing - having kept on doing it and after my 20 years in the company my board made me Managing Director. Now I have 27 years done. I used to sit with everybody in open office.
Mone: I feel that having climbed one one steps you have come so far and then I feel when you get success and credit of that success. After going thru struggle for 27 years you are in post of managing director for that I congratulate. From 200 to 200,000 SqFt is drastic change and your achievement is very big and significant. Now what is your advise to new comers in this pharma company - what are the challenges.
Aditi: Now we are in kind of phase - of Covid - a big crises has come - unprecedented - nobody can predict what may happen going ahead. Here there is good opportunity for startup business. In crisis they say necessity is the mother of invention - work from home. Now where I am sitting it’s like my home office and literally from morning 9 to evening 6 hours I would be sitting here only and on that side our work is going on. Situation change and new environment that comes there is lot of opportunity in manufacturing, Research, etc. But standalone service sector in pharma has build up a lot. After 1991 post liberalization India is considered to be pharmacy of the world. We make 50-55% of medicines used by the whole world. The opportunity that created out of that service sector opportunity for startup -like small scale research, small scale regulatory affairs. If you look at our own business from being in India we export to US and Europe and our manufacturing units have come up to that level by way of infrastructure is hard and soft means systems and other things. All this is knowledge driven and among all, service sector and lot of opportunity going forward.
Mone: In this time how do you manage hygiene. You are in medicine sector. What is your responsibility.
Aditi: If you look at whole global Market then Indian Market, Asian, or African market is very small. Whatever research happened so far mostly in chronic diseases areas like Diabetes, Hypertension, cancer treatment because in developed nations these are main disease. However, among infectious disease this COVID is a viral disease and is highly infectious . infectious disease used to be thought as Asia and Africa domain and in this area there was not much of research happened. After this I feel all across the globe companies will invest again in areas like infectious disease. Coming to post COVID what will happen is, of course Vaccine will come - so much research going on - either way we have to do lifestyle change like avoiding crowd, social distance, wearing mask, overall hygiene. From here on fitness will be given more importance. You would have heard comorbid conditions meaning if you have BP or hypertension more chance of COVID becoming serious. Otherwise in healthy individual its just another viral infection.
In pharma there is lot of opportunity going ahead because of many reasons. One is China which was the supplier to the world of basic drug in that in US lot of people they want to disassociate. Out of this a big opportunity may emerge in the direction of India and in the direction of India means in the direction of Indians. I feel that for all our youngsters how are in the pharmaceutical industry they have some very promising times ahead because of this.
Mone: In Indoco you have 6000 employees and one good thing is that we receive feedback that from your office a group is watching this program and what is your message to them who are watching and listening to us.
Aditi: Indoco has always said this that our people - Indoco’its they our biggest resource. In this COVID period we have found this that you may have noticed that in morning time when doing attendance while swiping the card in and out time - time off 5 minutes 10 minutes all that. But now look at all this COVID period there was no office hours concept. Everyone is in their own house - and every group from house not just 8 hours but - I feel - they work 12 to 24 hours - It is really amazing and I give all credit to our people. Whatever prosperity progress happened in Indoco there is big contribution from all. We work as a team. During COVID period it came to our notice that some thing like lockdown may be announced. In the week of 14th March we in the office with seniors said that if lockdown comes, as an anticipation and proactiveness - that every person should start working from home. Then within 3-4 days everyone from IT people went to everyones house and updated laptops and computers safe for corporate use and when lockdown came it was so seamless. Only manufacturing and R&D people went there and even today 50-60% people work in manufacturing and R&D. They really have such high ownership we say and this is our company’s culture and they have even surprised me meaning that whatever expectation I had beyond that with so much responsibility they all work.
Mone: We have one Anjali Singh she has sent that you are an inspiration to us women and like that there are so many such comments in our inbox so that is a true compliment for you. And I want to say this that other Entrepreneurs that our program Youngistan Biztalk is for such people that many other entrepreneur should get a guidance. What you will tell for them, how they should behave with their employees…
Aditi: They say development happened in the organization. I feel that when small business becomes big then the expansion happens in the topline but entrepreneurs forget that to build a business for that the structure also required to be built equally. What we call flat organization - tall organization… I still remember when I was small I used to go to father’s office and his used to be a flat organization because company was very small. He used to interface directly with everyone. But as expansion happens you create middle level management of capable people and keep on decentralizing. Now what happened is MIS system is so well developed that within company whatever is happened everything comes into your system. Everything is controlled and now it is development. Control is only required to check whether anything is getting abused, financial misappropriation of funds etc. But all these are so well tied down that if you want to really grow your business that you have to create teams along with you and professionals. Indoco has at every product level created something new. When I came in R&D center - there we recruited people who can value add. When we decided to put products in US then we bought such a person in vice president that he had already done it somewhere else. And by the time that he could add value along with him our own people got ready. So this is very important that you have to add value from outside but you have to see that you develop organization such that your structure of organization that has to become strong. And many times I have seen that when a small organization become big very fast that this question does not come and then ahead that is the reason that they slide and fall.
Mone: Today from Youngistan medium from Biztalks whatever we have talked that will be helpful to lot of others. Having come to this platform how You have felt that I want to listen from you. but before that I have to tell a happy thing that today is Biztalks 23rd day and within this we have crossed 1000 members and counting so this is a good thing. So today having talked with Biztalks and talked to entrepreneurs how you felt?
Aditi: I am grateful to you that you talked with me and I really feel that this type of dialog should happen. That I found in the business world that In Marathi community there is far less people in business. I really feel that for us to come into business the requirement of environment is there. Whatever environment is provided in this platform Youngistan this will be very good. And there are lot of young people who may use it going forward. I really loved talking to you.
Definition of business is like this that optimization of resources in given environment. Given environment is very important meaning business assumes that whatever situation is there we have to move ahead. The people in business their only passion is to succeed whatever way. What I feel that in COVID situation going ahead people in business will have lot of opportunity getting opened that they have to grab. When you look at migrant workers and their movements in this going ahead what situation could be there for business where could it impact and could there be opportunity for local youth that we have to see if we can do something meaning that other side of every setback is opportunity. That opportunity you have to find. That they say disruption happened - that since 10 years disruption going on and now everywhere disruption happened. But in this time we have found that if your business is financially strong that while taking financial risk you have to meet your own business and your business sector issues. You said I struggled for 27 years - difficulty will be there but most importantly If you understand your business in such a detail that you have worked in every role and this is most important - know your business fully. And this is my advise that go after ethics and principles this two thing and hard work - no alternative. And business image is such that in cinema area or in television they show businessmen in big financial accolade - business is nothing - it is just like everything else - stay true to the core. Just now you said we have to use Mask so Indoco will it produce Mask? But we are in medicine - why not produce antibiotics that is closer to our area - why not Sanitizer that is closer to our area - food medicine products - you should understand your core. My elders used to say that everyday you should live better than the day before even in crisis. You will be surprised that in our company that even one person is not there that did not get salary not only that last year incentive also credited. Because we are so focused on what is required and financially also so strong. I feel that in any business financial strength is far important. Many times so happens that - Ours is the listed business - public limited (voice unclear) need to grow - how better is it from last year. Growth is bigger challenge but when we go behind that growth (Voice unclear) we have to take informed risk - that is my advise to young people.
(Skipped Thanks giving)
PS: I am not Maharashtrian or Marathi. Yearlier for 2 years worked in Mumbai and understand little spoken Marathi. I did not understand many words spoken by Aditi ma’am and skipped)
Thanks @sahil_vi for this interesting video. Enjoyed listening Marathi after long time 
Indoco AR 2021
In the Domestic market, launched nine new products (SKUs), four in Anti-Diabetic, two in
Anti-Infective and one each in Stomatological, Cardiac and Vitamin/Mineral/Nutrient
segments. Of the nine new products, two are in the acute, one in sub-chronic and six in the
chronic segment. Amongst these are a couple of new products, which were launched for the
treatment/prevention of Covid-19. (Poviclean Gargle and Fevindo 400 and 800 mg)
In US market, the Company launched eleven products, one of them being the first and only
generic. We also received six ANDA approvals during the year.
51% Domestic, 40% Export, 9% API
No 1 in Dental Segment
R&D Strength .300 Scientists
Manufacturing Facilities…FDF…6 & API 3
51 brands ranking among Top 5 in their respective therapeutic segment
Export …Europe 48.6%, USA 30.1, ROW 21.3%
During the year, Process Development for the following API’s were successfully implemented:
a. Cetirizine dihydrochloride: Process development and bench scale validation is
completed. Technology transfer and manufacturing of 3-validation batches was
completed successfully at the Patalganga facility.
b. Rivaroxaban: Process development and bench scale validation is completed. Technology is ready for transfer. The R&D team is ready for transfer of technology and scale up at Indoco’s API manufacturing facility
API Business:
Unlike other pharma companies, Indoco entered into API manufacturing, after firmly establishing itself in the domestic formulation business. After foraying into international business, Indoco realized that backward integration is a key to success. Accordingly, a new API facility at Patalganga was acquired to ensure that the majority of the Company’s ANDAs / Dossier filings are backed by own APIs. The objective is to make APIs available for own use and offer remaining capacity to meet the market demand. Though API contribution to overall business is not sizable, its importance from the strategic perspective is high. Considering the growing demand, both for captive as well as external sales, the capacity was expanded recently by commissioning of a new state-of-the-art API manufacturing facility at Patalganga. The new facility is equipped with an automated solvent dispensing system, efficient recovery system to control the cost of manufacturing and adequate safety by installing modern equipments. The facility is USFDA approved.
In addition to Patalganga, the Company has two more sites at Rabale, viz., Kilo Lab facility which is USFDA approved and an intermediates manufacturing facility, which supplies intermediates to both the Kilo Lab and Patalganga plants.With a good product mix of APIs in ophthalmics, anti-diabetic, anti-gout and other therapeutic categories, backed by DMFs and Certificates of Suitability (CEPs), the API division is well positioned
to register an impressive growth in the coming years .
Regulatory Affairs:
Indoco’s Regulatory team comprises of 40 team members, who are engaged in the submission of Dossiers to Regulatory Authorities in regulated and emerging markets. Over 730 product registrations have been achieved across more than 50 countries. In addition, Indoco regulatory has submitted Drug Master Files for 24 Active Pharmaceuticals (APIs).
The regulatory function is equipped with eCTD software to support submissions in all advanced countries and a software for Structured Product Labelling (SPL) to support US applications. Electronic submissions of DMFs and Dossiers are done through the Electronic Submission Gateway (ESG) to USFDA and through the Common European Submission Platform (CESP) to EDQM and other European National Competent Authorities (NCA) and through specific National Portal of MHRA for submissions to UK
AnaCipher CRO, Hyderabad :
The AnaCipher CRO offers a complete range of BA/BE services, such as, bio-availability,
bio-equivalence, pharmacokinetics, steady state studies, food effect studies, taste evaluation
formulation studies, single and multiple dose studies.
The CRO is equipped with 98-beds, monitoring stations, phlebotomy stations, four-bed ICU, state-of-the-art Bio-analytical lab and capabilities of eCTD (Electronic Common Technical Document) submission. It has a database of more than 18,000 healthy human volunteers and has tied up for the implementation of a ‘Common Volunteer Database Management System’ to track the volunteer’s cross participation across all the CROs in Hyderabad.
Indoco Remedies Q2FY22
Decent results
Revenues grew by 15.6 % at Rs. 372.6 crores, as against Rs. 322.5 crores, Y-O-Y.
EBIDTA to net sales for the quarter is 23.2% at Rs. 86.3 crores, compared to 18.7% at Rs. 60.2 crores, Y-O-Y.
For the quarter, the PAT to net sales is 11.2 % at Rs. 41.6 crores, compared to 7.8 % at Rs. 25.1 crores, same quarter last year.
Market reacted negatively for Below Market estimates.
Indoco Remedies Con Call Q2FY22 Notes:
Business:
• Revenues increased by 15.6%: Rs.372 crores in Q2FY22 vs Rs.322 crores in Q2FY21.
• EBITDA increased by 43.4%: Rs.86 crores in Q2FY22 vs Rs.60 crores in Q2FY21.
• EBIT increased by 65.7%: Rs.85 crores in Q2FY22 vs Rs.51 crores in Q2FY21.
• PAT increased by 65.6%: Rs.41 crores in Q2FY22 vs Rs.25 crores in Q2FY21
• Indian Pharma Industry (IPM) has shown normalcy in sales in June 2021. The sales registered for Q2FY22 is Rs.43,064 crores (growth of 14.6%).
• Most of the therapies have shown strong growth: Anti-infectives, gastrointestinal. & respiratory segments.
• In September 2021, the company’s rank jumped to 25th from 29th in the IPM with a market share of 0.75%.
• Revenues from Domestic Formulation Business grew by 22.3% : Rs.214 crores in Q2FY22 vs Rs.175 crores in Q2FY21. Major Therapeutic segments: Anti-infectives, Gastrointestinal, Vitamins, Minerals & Nutrients and Ophthalmics performed well during the quarter.
• During the quarter two new products were launched: Renofin Plus Tablets (Paracetamol) under Pain & Analgesics Segment. Noxacream (Molecule: Ozenoxacin) under Derma segment.
• New products stand at 4 for the period
• Revenues from International Formulation Business increased by 11.6%: Rs.136 crores in Q2FY22 vs Rs.121 crores in Q2FY21.
• Revenues for US Business increased by 10.2%: Rs.48 crores in Q2FY22 vs Rs.43 crores in Q2FY21.
• Revenues from Europe increased by 6.3%: Rs.60 crores in Q2FY22 vs Rs.56 Crores in Q2FY21
• Revenues from South Africa, Australia & New Zealand increased by 114%: Rs.3.8 crores in Q2FY22 vs 1.8 crores in Q2FY21.
• Revenues from emerging markets increased by 20.6%: Rs.24 crores in Q2FY22 vs Rs.20 crores in Q2FY21.
• Revenues from API business declined by 13.6%: Rs.20 crores in Q2FY22. The degrowth is due to higher captive consumption which is around 60% of the total API dispatches.
• Revenues from CRO & Analytical Services increased by 6%: Rs.3.7 crores in Q2FY22 vs Rs.3.5 Crores in Q2FY21.
• Aloja & Aloja M has been launched in the market and expect this molecule to get good sales. Indoco is the only player in the market.
• Indoco has 2,300 MR’s and with managers around 2,800.
• MR productivity stands at 2.6 lakhs
• 1 Tender won in Germany and 2 more products are being planned for FY23. Appointed a distribution company to distribute the products all over the country. Indoco pays them for the distribution costs and some profit.
Management:
• MD: Ms.Aditi Panandikar, Joint MD: Mr. Sundeep Bambolkar, CFO: Mandar Borkar
• US order book is very healthy and we will recover in Q3 & Q4.
• There has been close to 90-95% growth in Anti-infectives alone. Respiratory also helped this quarter.
• Chronic has been muted and it is not our area of strength.
• Dental divisions have done decently.
• The biggest gainer has been the Ophthalmics business and seeing an excellent upside on this basket.
• We are selling 12 products in the US. We plan to launch 3-4 products in the Ophthalmics basket.
• There have been major issues in terms of the availability of the containers.
• Most of the legacy brands across our divisions are doing well.
• Expect Anti-infectives to do well going forward.
• The end of Q3 would be the right time talk about the numbers for the future.
• Going forward we expect the Dental-Gynaecological, Ophthalmics and Cardio-diabetics and even for the acute division to grow well.
• In Q3 & Q4 we will have a good amount of launches.
• The revenues from Brinzolamide will come in phases.
• Consuming most of the API that we are making right now.
• Capex guidance stands at Rs.80 crores.
Risks:
• Certain challenges in dispatches. Container availability and API raw material availability challenges.
•There is a rise in input prices. There is no impact as of now but going forward in Q3, the impact would be more significant.
Coverage initiated by ICICI Direct .
Key triggers for future price performance:
Restructuring exercise for improvement in MR productivity & therapy
calibration is likely to yield productive growth in Indian formulations
Clearance from UK-MHRA & lifting of USFDA warning letters for Goa plant II
and III is likely to improve operating leverage for export formulations
Indoco will benefit as domestic sales normalise while export formulations
are likely to grow with a strong pipeline and visible launch schedule
Niche ANDA filings in ophthalmic, injectable and oral solid dosages in US
to scales up the US share from a low base
Brinzolamide - Teva’s volume has declined by 73% QoQ and has lost 19% market share in the US market.
Citing IQVIA sales data for the period ending January 2022, the company said the Vimpat tablets market achieved annual sales of approximately USD 1.7 billion
Indoco Q4FY22 results : Excellent results
Press reelase
PAT jumps 62% in Q4FY22
During the fourth quarter of FY 2021-22, revenues grew by 35.8 % at Rs. 400.3 cr, as against Rs. 294.8 cr, YoY.
EBIDTA to net sales for the quarter is 20.1 % at Rs. 80.5 cr, compared to 18.5 % at Rs. 54.6 cr, same quarter last year.
For the qtr, the PAT to net sales is 10.1 % at Rs. 40.4 cr, compared to 8.4 % at Rs. 24.9 cr, YoY.
For FY22, the revenues grew by 23.4 % at Rs. 1502.7 cr as against Rs. 1217.4 cr, for FY21.
EBIDTA to net sales for the period is 21.8 % at Rs. 327.0 cr, compared to 18.4 % at Rs. 223.6 cr, for FY21.
PAT to net sales is 10.3 % at Rs. 154.5 cr, compared to 7.6 % at Rs. 92.4 cr,
Commenting on the fourth quarter FY22 results, Aditi Panandikar, Managing Director, Indoco Remedies Ltd., said, “An excellent sales growth has resulted in an impressive financial performance in spite of various challenges, primarily higher input and freight costs.”
Dividend Declared: Rs 2.25 per share
Invested
Question : Has the company cleared the warnings given by USFDA on its Goa plants 1,2 and 3, or not yet ?
If not, by when does the mgmt. guide this to be cleared?
Does anyone analysed company again based on quarterly results and US FDA observation. I don’t see any update in this thread from quite long and looking for business update, if anyone has done detail work?
Indoco Remedies Q4 concall highlights -
Revenues - 428 vs 409 cr
EBITDA - 65 vs 81 cr
EBITDA margins at 15 vs 20 pc
PAT at 30 vs 36 cr
For full FY 23 -
Revenues - 1669 vs 1541 cr
EBITDA - 286 vs 328 cr
EBITDA Margins at 17 vs 21 pc
PAT at 142 vs 150 cr
Base was very high due COVID related sales in FY 22
Domestic brand Cyclopam (used to relieve cramps) grew at a rapid pace
New product launches generated aprox 30cr sales
Top 20 brands of Indoco India generated double digit prescription growth
Two of company’s brands are in top 300 brands in IPM. Cyclopam jumped 27 ranks in FY 23
Company has three brands that generate > 100 cr and 04 brands that generate > 50 cr sales
Launched a D2C division this year for a few OTC dental brands
Plant-1’s import alert lifted by FDA
Plant-1 (solid dosage facility), now can export to US
In Europe, garnered 30 pc and 20 pc Mkt share for Lacosamide (to control seizures) tablets and Injections respectively
In Germany, company’s Allopurinol (to manage gout that causes intense joint pain) has 70 pc Mkt share
Business promo & marketing spends back to pre Covid levels
IPM rank at 27
Formulations-
Q4 India formulations sales at 185 cr, down 4 pc
FY 23 India formulations sales at 797 cr, down 1 pc
(India business had a big Covid base)
Q4 Intl formulation sales at 216 cr, up 14 pc
FY 23 Intl formulation sales at 754 cr, up 21 pc
Within Intl Mkts -
Q4 Revenues from regulated Mkts grew 5 pc to 163 cr
FY 23 revenues from regulated Mkts grew 21 pc at 610 cr
APIs -
Q4 API business grew by 75 pc to 23 cr
FY 23 API business grew by 12 pc to 71 cr
ndoco CRO operations-
Q4 revenues at 4.5 cr,down 5 pc
FY 23 revenues at 17 cr,up 12 pc
Base yr’s Covid sales in India were around 40 cr because of which company could not grow this year in the domestic market
Post clearance of Plant -1, US sales should also pick up next yr
Growth in advertising and sales promotion likely to moderate next year
Legal cost incurred this yr (aprox 5-6 cr) is unlikely to recur next yr
Company confident of doing 18-19 pc EBITDA for FY 24 and 25 ( that’s a descent jump from Q4 levels )
FY 24,25 growth expectations at 15 pc plus CAGR ( plus margin expansion )
US business has healthy order book. Likely to grow US business by 25-30 pc this yr
2.5 pc of domestic sales from new products (launched within last 2 yrs)
Expect the toothpaste business ( medicated ones ) to do better due to the D2C push initiatives that company shall take in FY 24
Attrition in MRs is an issue that company intends to resolve this year
Expect 3-4 approvals in US this yr - mostly in ophthalmic space
Expect a price hike of 5-6 pc in domestic mkt for FY 24
Company has overpromised and underachieved in the past 2-3 yrs. Mrs Parandikar was mindful of that. Intends to correct this in FY 24. The proof of the pudding will be in the numbers though
Ophthalmic and Injectables supplies to US involve very complex manufacturing practices. Company has been learning this over the last few years
Capex plan for FY 24,25 - aprox 125 cr
Disc: holding a tracking position. Hope to see an improvement in business momentum next year
Disclosure : Not invested on current date.
