FY22Q4 concall notes
- Expect 18-20% revenue growth (mostly from increased volumes)
- Industry benchmark for fixed asset turns are 1.75x. PI is already doing 2x+ fixed asset turns
- Higher margins is due to change in product mix
- Out of 7 new CSM molecules to be commercialized in FY23, 4 are from agchem and 3 from non-agchem
- Will do 500 cr. CAPEX in FY23
- Order book has remained stagnant in the last few years (at $1.4bn) because customers have been a little tentative of committing longer term contracts in the current uncertain scenario (and that too in geographies which are far away). Additionally, there has been increased competition from other domestic peers. All this being said, confident to sustain 20-25% growth in this business line for years to come. When PI started with this business line, they wanted a large order book for risk management purposes (which also came at a cost). Now PI has evolved and there is a different level of customer stickiness (where customer wants them as much as they want them)
- Received 2 9(3) registrations in 2021 and expect 3 9(3) registrations in 2022
Disclosure: Invested (position size here, no transactions in last-30 days)