Neuland Labs CRISIL Credit Rating Update: https://www.bseindia.com/xml-data/corpfiling/AttachLive/9accfe08-baf7-49e7-9175-5353f3933f81.pdf
The thesis behind the rating:
Neuland is expected to sustain its healthy growth momentum backed by its established market position and diversified product basket and established clientele. Neuland has developed more than 300 processes and 75 APIs and has filed over 898+ Regulatory filings in the US (55 active US DMFs), the European Union (EU), and other geographies.
Revenues grew to Rs 764 crore in fiscal 2020 from Rs 667 crore in fiscal 2019 and are expected to sustain the momentum in FY21. Improving scale and a strong portfolio of products will help sustain the improved operating margin at 16-18%.
Annual cash accrual is expected to be over Rs 110 Crore. Adjusted Net worth increased to Rs 428 crore as of March 31, 2020, from Rs 417 crore in the previous year and is expected to improve to over Rs 800 crore over the next two years. Gearing was 0.61 times as of March 31, 2020. Despite capital expenditure (Capex) of Rs 250 crore over the next two years for business expansion, gearing is expected to improve to 0.45-0.5 time range due to high accretion to reserves.
Source: CRISIL Credit Ratings