Company continued it’s execution and posted good numbers. Few important updates from the IP & Press release.
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Installed capacity for capsules currently stand at 16.2 BCPA. FY21 ended with 14.4B capacity, The addition was done in month of June (hence contribution to numbers was limited to that extent).
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4 new generations machines to be commissioned by Q4’23 taking the capacity to 24.1 BCPA. So about 50% increase in capacity by this year end.
Q2 - 1 line of gelatin capsules was added in Aug.
Q3 - 2 lines of HPMC(Vegan) capsules to be added.
Q4 - 1 lines of HPMC capsule to be added.
Note: HPMC capsules have only 50% capacity of gelatin capsules, but with 2.75 to 3 times realizations and with higher margins. So the 24.1B capacity should be accordingly revised. -
On API front, capex figures have been revised from 96 cr to 115 cr. So accordingly asset turns expected has been revised from 3x to 2.7x
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Commercial production to begin from Q1’24
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Export figures for all 3 API’s has been updated in the new slides for FY22 (older numbers were for FY21).
Dexamethasone import remained constant at 19 MT for FY21 & FY22
Betamethasone import increased from 20MT(FY21) to 25MT (FY22), growth of 25%
Prednisolone import increased from 30MT (FY21) to 39MT (FY22), growth of 30% -
Company has received Letter of Intent (LoI) for it’s API’s products from buyers in US, Japan and domestic markets for more than 100 crs on an annual basis. So Mgmt is confident of exceeding 50% capacity utilization in first year of operation (which is hopefully FY24)