Ranvir's Portfolio

[ranvir]

Zydus Lifesciences -

Q4 and FY 24 results and concall highlights -

Q4 outcomes -

Revenues - 5533 vs 5010 cr, up 10 pc
Gross Profit - 3922 vs 3314 cr ( margins @ 71 vs 66 pc )
EBITDA - 1630 vs 1255 cr, up 30 pc ( margins @ 29 vs 25 cr )
PAT - 1182 vs 879 cr, up 32 pc

FY 24 outcomes -

Revenues - 19547 vs 17237 cr
Gross Profit - 13319 vs 10927 cr ( margins @ 68 vs 64 pc - big improvement )
EBITDA - 5384 vs 3859 cr ( margins @ 27 vs 22 pc - big improvement )
PAT - 3873 vs 2564 cr

R&D spends - 1309 cr @ 6.7 pc of sales
Capex spends - 862 cr

Segmental breakup of revenues -

India branded generics - 5369 vs 4911 cr, up 9 pc
Share from chornic therapies @ 41 pc
9 brands with sales > 100 cr
11 brands with sales between 50-100 cr

India consumer wellness - 2301 vs 2233 cr, up 3pc
Gross margins of consumer business expanded by 377 bps
Growth driven by brands like - Everyouth and Nycil

US formulations - 8685 vs 7445 cr, up 16 pc
Launched 5 new products in US in FY 24
Base business grew sequentially every qtr driven by volume growth

Europe and EMs - 1929 vs 1579 cr, up 22 pc
Demand scenario remained strong across key emerging mkts and Europe

Updates on innovations -

NCE - Saroglitazar Magnesium - recruited patients for phase - II(b)/III trials for PBC indication. Phase - II(b) trials for NASH indication are advancing as planned

NCE - Unsoflast - Phase II clinical trials are on for ALS indication. Also received USFDA approval to commence phase II trials iro same molecule for Parkinson’s

NCE - Desidustat - to treat Anemia in patients with Chronic Kidney Disease is expected to be granted NDA approval in China. Company has entered in an out licensing deal with China Medical Systems ltd to sell the drug in China. If the approval is received, it can potentially be a big product for the company as China is a large mkt

Company has already commercialised Desidustat and Saroglitazar in India. Both are growing well in India

Company retained its leadership in Nephrology therapy in India. In Onco, company was one of the fastest growing in India in FY 24

Company expects all its businesses to maintain double digit growth rates in FY 25 with EBITDA margins > 27 pc ( after factoring in competition for Asacol in US )

Expected to launch 30+ products in US in FY 25

Acquisition of Zokinvi ( used to treat Progeria ), scale up of LiqMeds speciality portfolio ( acquired LY ), scale up of animal health business and their pipeline of transdermal products in US should keep the growth momentum going in US

If all goes well, expecting to receive a USFDA’s NDA approval for Saroglitazar by Q2/Q3 in next FY and a potential launch in FY 27

Disc: holding, biased, not SEBI registered

[ranvir]

Orchid Pharma -

Q4 and FY 24 concall and results highlights -

Q4 outcomes -

Sales - 217 vs 209 cr
EBITDA - 42 vs 41 cr
PAT - 33 vs 66 cr (due exceptional gain in previous FY)

FY 24 outcomes -

Sales - 819 vs 666 cr
EBITDA - 154 vs 132 cr ( margins @ 17 vs 16 pc )
PAT - 94 vs 55 cr ( despite exceptional gain of 32 cr in Q4 of last FY )

Enmetazobactum has been approved in both US and EU. This opens up lucrative royalty opportunities for the company in the near future

Expected to launch Enmetazobactum in India by Q2 FY 25. Have partnered with Cipla for sales and marketing in the Indian mkt

Have filed ANDA for Cefepime + Enmetazobactum combination in the US mkt. This should also aid company’s US revenues in a meaningful way

Have completed the land acquisition near Jammu for company’s 7ACA project ( it is a key intermediate for manufacture of Cephlalosporins ). Should commission this facility by Mar 26. Aim to ramp up production to > 60 pc levels within first year of operations

Should also be able to commercialise the Cefiderocol manufacturing facility ( a molecule in-licensed from Shionogi, Japan ) by mid 2026

Regulated : Unregulated revenue share @ 40 : 60

Oral : Sterile revenue share @ 75 : 25

Company’s base business ( except Cefiderocol, Enmetazobactum ) should continue to grow at 20 pc CAGR for next 2-3 yrs

Company has hired 40 odd employees to launch their dedicated hospitals division selling antibiotics directly to Tier-1,2 city hospitals

Company has out-licensed Enmetazobactum to Allecra Therapeutics for sale in US and Europe. Expected to be launched by Q2 FY 25 ( tentatively ). After the ramp up is complete ( in 2-3 yrs ) expected to generate a topline of $ 200 - 300 million with a 6-8 pc kind of royalty to Orchid Pharma

Disc: holding, biased, not SEBI registered

[ranvir]

Sandhar Technologies ( very bullish commentary ) -

Q4 and FY 24 results and concall highlights -

Company’s product profile -

Automotive locking systems, Latches, Hinges and Door handles

Auto Vision Systems ( basically rear view mirrors )

Sheet metal components for 2W, 3W, PVs, CVs

Operator Cabins for OTR vehicles and CVs

Zinc dye-casting products for 2W, 3W, PVs and CVs

Aluminium dye - casting products for 2W, 3W, PVs and CVs

Magnesium dye - casting products - recently acquired a manufacturing facility for the same

Automotive Opto Electronic systems like - keyless entry systems, reverse parking assist systems etc

Polymer based products for 2W and 3W

Painting, plating and coatings

Fuel Pumps, filters and Wiper blades

Wheel rims and Handle bars for 2W

Q4 outcomes -

Sales - 918 vs 765 cr, up 19 pc
EBITDA - 98 vs 68 cr, up 35 pc ( margins @ 11 vs 9 pc )
PAT - 36 vs 25 cr, up 42 pc

FY 24 outcomes -

Sales - 3521 vs 2909 cr, up 21 pc
EBITDA - 341 vs 246 cr, up 34 pc (margins @ 10 vs 8 pc)
PAT - 110 vs 74 cr, up 45 pc

Company’s clients -

2W - Hero, TVS, RE, Honda, Ather, Suzuki, Mahindra

4W - Tata Motors, Mahindra, Honda, SML ISUZU

CV - JCB, Ashok Leyland, Volvo, Komatsu, Tata-Hitachi

Manufacturing facilities -

Company has manufacturing facilities located in -

Domestic - HP, Uttarakhand, Maharashtra, Gujarat, TN, Rajasthan, Karnataka

International - Poland, Romania, Spain, Mexico, South Korea, Japan, Taiwan

Product wise revenue split -

Locking and Vision systems - 25 pc
Cabins and fabrications - 15 pc
Sheet metal parts - 15 pc
Aluminium Dye Castings - 24 pc
Assemblies - 10 pc
Others - 10 pc

Segment wise revenue split -

2W - 58 pc
PV - 20 pc
Off-Highway vehicles - 15 pc
CVs - 2 pc
Others - 5 pc

New products line up -

EV Motor controller for 2W/3W - production to start in Jun 24

EV battery chargers for 2W/3W - production to start in Jul 24

DC - AC converter for 2W/3W - production to start in Oct 24

Company has done a lot of Capex in the last 2 yrs in its sheet metal parts and Dye - Casting divisions. This Capex can potentially add revenues of around 1500-1700 cr for the company without incurring any fresh capex. However, the company may still incur capex going fwd as it looks to add new components to its portfolio

Company should be able to grow its topline by 20 pc in FY 25 as well with a 50-100 bps margin expansion

Company has added Smart Locks to its product line up. Suzuki and Honda are moving onto these smart locks wef Oct and Nov 24. This should be a major Pivot for the company as the content per vehicle in these locking systems is far higher

Most of the growth in FY24 was led by Dye Casting and Sheet Metal segments

The value of Motor controllers that company is slated to begin to produce varies from Rs 4k-8k per vehicle

Company aspires to keep growing @ 15-20 pc CAGR ( revenues ) for next 3-5 yrs

Disc: planning to add, not SEBI registered, biased

[ranvir]

Shalby Ltd -

Q1 FY 25 concall and results highlights -

Revenues - 288 vs 240 cr, up 20 pc
EBITDA - 55 vs 47 cr, up 15 pc
PAT - 15 vs 20 cr ( due higher Interest and Depreciation costs + increased tax rate )

Net Debt @ 168 cr
RoCE ( annualised for Q1 ) @ 13.6 pc

Hospitals business highlights ( only of standalone business ) -

Revenues - 240 vs 216 cr
EBITDA - 58 vs 49 cr
PAT - 30 vs 26 cr

Company’s Hospitals portfolio -

Hospitals - 16 - 11 multi speciality, 05 single speciality

Company owned and operated units - 10

Franchise units - 6 ( FOSM - 4, FOSO - 2 )

Bed capacity @ 2350

Doctors team @ 1150

OPD clinics - 60 Domestic, 23 International

Payor Mix -

Self Pay - 35 pc
Insurance - 41 pc
Govt Schemes - 24 pc

Operational matrix of Shalby Sonar Hospital ( acquired LY ) -

Revenues - 24 vs 20 cr
EBITDA - (-) 0.35 cr - company is confident of turning this around in near future
ARPOB - 79k
Occupancy @ 26 pc
56 pc of revenues generated from international patients
Bed Capacity @ 130 beds
Expertise in Kidney, Liver and Bone marrow transplant

Homecare business clocked a revenue of 3.7 vs 3.6 cr YoY. Patients served @ 7.3k vs 7.6k YoY

Revenues from FOSO hospitals ( franchise owned, Shalby operated ) - 2.6 vs 1.5 cr

Revenues from FOSM hospitals ( franchise owned, Shalby managed ) - 0.75 vs 1.1 cr

Signed up a new hospital under FOSO model @ Rajkot with a bed capacity of 25 beds

Implants business -

Revenues - 26 vs 16 cr
EBITDA - (-) 0.7 cr (-) 0.35 cr ( due front loading of a lot of marketing expenses )
Implants sold @ 3475 vs 1410 pieces
India sales @ 56 pc, US sales @ 44 pc

Company has sharpened its focus on cost cutting wrt their implants business and hiring multiple vendors for supply of similar components

Company is the largest hospital chain in the world in terms of Joint Replacement surgeries performed

Consolidated occupancy rates stood @ 50 pc ( clearly there is a lot of scope for improvement )

Company believes that weakness in homecare business is an aberration. Should see a pick up in the coming Qtrs

Expect Sanar hospital to be EBITDA positive going fwd. Aim to make it PBT positive by end of FY 25 or thereabouts

The Rajkot FOSO Hospital should go live in Q2. A few more Franchise deals are in the pipeline. Company is not disclosing them as yet due competitive reasons

Higher finance costs in Q1 due higher working capital requirements of the implants business and the additional debt taken up for the Sanar acquisition. Higher finance costs will only moderate by next FY once the Implants business stabilises

Disc : holding, biased, not SEBI registered, Concall and results summary posted only for educational purposes

[ranvir]

Eris Lifesciences -

Q4 and FY 24 results and concall highlights -

Acquisitions made by the company in last 24 months -

Oaknet Pharma - entry into Derma business - paid Rs 650 cr

Select brands of Glenmark Pharma - paid Rs 340 cr

Derma brands of Dr Reddy’s - paid Rs 275 cr

Biocon’s domestic Nephro and Onco business - paid Rs 366 cr

Swiss Parenterals - sterile Injectables business - paid Rs 640 cr for 51 pc stake

Biocon’s India Injectables business - paid Rs 1242 cr

**Total cost of all acquisitions put together - 3510 cr **

Total revenues of the acquired assets at the time of acquisition - 1240 cr

Q4 outcomes -

Revenues - 547 vs 396 cr, up 38 pc ( domestic revenues @ 480 vs 389 cr )
Gross Profit - 432 vs 402 cr, up 31 pc
EBITDA - 148 vs 118 cr, up 25 pc
PAT - 79 vs 61 cr

FY 24 outcomes -

Revenues - 2009 vs 1685 cr, up 19 pc ( Domestic revenues @ 1902 vs 1606 cr )
Gross Profit - 1629 vs 1332 cr, up 22 pc
EBITDA - 674 vs 536 cr, up 25 pc ( margins @ 34 vs 33 pc )
PAT - 397 vs 374 cr, up 6 pc ( due much higher depreciation, amortisation, finance costs )

There were non-recurring one time expenses of aprox 38 cr in Q4. Adjusted to that, PAT for FY 24 would have been 430 cr

Consolidated Debt on balance sheet @ 3000 cr. Company intends to reduce it to 2600 cr by end of FY 25 out of internal accruals. By the end of FY 26, aim to bring it down to 2000 cr !!!

Aiming for organic revenue growth of 12-14 pc in the domestic formulations business. Aim to maintain EBITDA margins > 35 pc for FY25. Will share complete company level guidance post completion of integration of Swiss Parenterals and Biocon’s domestic business by end of Q1 FY25. Biocon’s domestic business is currently clocking annual sales of 360 cr. Swiss parenterals clocked FY24 revenues of 280 cr with 37 pc EBITDA margins

Eris - Biocon combined will create 5th largest Anti Diabetic franchise in India with Anti Diabetes only revenue base of close to 1000 cr / yr. It will have significant presence across oral and injectable Anti-Diabetic products

Company can work on expanding margins by using Swiss Parenterals manufacturing facilities to manufacture a lot of Biocon’s injectable products

Eris - MJ Biopharm JV ( 70:30 JV formed in 2022 to sell Insulins and GLP-1 products ) is now clocking a monthly sales of 5 cr. It reported an EBITDA loss of 20 cr in FY 23. In Q4 FY 24, EBITDA loss has narrowed down to 1 cr. Should turn EBITDA positive from Q1 FY 25

The Insulin penetration in the domestic mkt is very low. Company sees fairly large growth runway for their Insulin products - both from Biocon’s and MJ Biopharm’s portfolios

Aim to launch 4-5 new brands in India in Q1 in the Critical care space to be manufactured out of Swiss Parenteral’s facilities

Aprox capex lined up for next 2 yrs @ 70 - 80 cr each

Disc: holding, biased, not SEBI registered

[ranvir]

Marathon NextGen Realty -

Q4 and FY 24 results and concall highlights -

Established in 1978. Total projects delivered till date @ 100 +

Ongoing projects at ( MNRL’s share ) -

Panvel - Nextzone ( 91 pc )
Bhandup - NeoHomes ( 100 pc )
Byculla - Monte South ( 40 pc )
Mulund - Millennium ( 100 pc )
Lower Parel - Futurex ( 100 pc )

Total homes in pipeline - 15k+
Land under development - 40 lakh Sq ft

Business highlights of FY 24 -

Acquired 14 acres ( aprox 6.1 lakh Sq Ft ) land parcel in Bhandup with a total development potential of 21 lakh sq ft and GDV of 2250 cr

Marathon Futurex - one of the biggest commercial towers of Mumbai received occupation certificate upto 38th floor ( top floor )

Monte South Wing A received occupation certificate upto 51st floor

Marathon Millennium - one of the biggest commercial tower of Mulund received occupancy certificate till 20th floor

Monte South - received best Ultra Luxury Project award - ZeeBusiness Real Estate

FY 24 outcomes -

Area sold - 5.61 lakh sq ft ( Avg realisation @ Rs 14,563 / sq ft )
Booking value - 817 cr
Revenues - 705 cr
EBITDA - 309 cr, margins @ 41 pc
PAT - 169 cr, margins @ 24 pc

Debt on books @ 751 vs 838 vs 1190 cr ( for last 3 FYs ). As the Debt keeps coming down, cost of debt should also keep reducing

Q4 outcomes -

Area sold - 1.26 lakh sq ft ( Avg realisation @ Rs 13,888 / sq ft )
Booking value - 175 cr
Revenues - 155 cr
EBITDA - 67 cr, margins @ 40 pc
PAT - 40 cr, margins @ 26 pc

Company’s landbank -

Panvel - 100 acres
Thane - 100 acres
Bhandup - 100 acres
Dombivali - 50 acres

Just a broad brush calculation / assumption - if the company were to develop and sell all of this land bank over next 10 yrs @ avg per sq ft rate of 13k/Sq Ft, FSI of 2.5, PAT margins of 20 pc … they can earn profits of around 9700 cr over next 10 yrs
Note : this is just a broad brush, back of the envelop calculation based on certain assumptions☝️

Total estimated revenue from currently unsold inventory @ 1500 cr ( aprox ) - assumed at prevailing mkt rates

Avg cost of Debt in FY 23 was 15.5 pc. In FY 24, it fell to 12.5 pc

Launch pipeline for FY 25 @ 12 lakh sq ft valued at around 1400 cr

Targeting a booking value of between 1000 - 1200 cr for FY 25. Booking value for FY 24 was 817 cr

Current unsold but completed inventory ( residential + commercial ) that the company is holding is around 380 cr ( expected to receive this much cash as and when this is sold )

In next 3 yrs or so, company should be able to do an annual pre-sales of around 2000 cr / yr ( provided the up cycle sustains )

Disc: holding, biased, not SEBI registered, not a buy / sell recommendation

[ranvir]

Time Technoplast -

Q4 and FY 24 results and concall highlights -

Q4 outcomes -

Sales - 1394 vs 1192 cr, up 17 pc ( volume growth @ 19 pc )
EBITDA - 197 vs 170 cr, up 17 pc
PAT - 94 vs 65 cr, up 45 pc ( due lower interest costs due debt reduction )

FY 24 outcomes -

Sales - 4992 vs 4289 cr, up 16 pc ( volume growth @ 18 pc )
EBITDA - 705 vs 581 cr, up 22 pc ( margins @ 14 vs 13 pc )
PAT - 310 vs 220 cr, up 41 pc
RoCE @ 16.4 pc. Aim to hit 20 pc RoCE in next 2 yrs time

Growth in value added products @ 32 pc vs growth in regular products @ 12 pc in FY 24. Growth in value added products accelerated to 48 pc in Q4

Reduced debt by 117 cr in FY 24. Net Debt ( net of cash ) now stands at 591 cr. Aim to be debt free in next 3 yrs time

Segment wise sales -

Regular products - 3724 cr, up 12 pc

Regular products include - packaging products ( drums, jerry cans ), Auto components, batteries business, PE pipes, urea tanks, composite air tanks, hydraulic tanks

Value added products - 1281 cr, up 32 pc. Value added products now contribute to 25 pc of company’s sales

Value added products include - Composite IBC ( intermediate bulk containers ), composite cylinders for LPG, CNG and MOX films

Guiding for a 10-12 pc growth in regular and 30 pc growth in value added products for next 3 yrs. This should take the total contribution from value added products to 35 pc of company’s sales from 25 pc currently

India : Export business split @ 67:33

Capex for FY 24 stood at 180 cr. Out of this, 110 cr was spent towards value added products and the rest towards brownfield expansion in regular products

Have identified non-core assets of aprox 100 cr to be sold before Mar 25. Funds to be used to fund capex / reduce Debt

Have received approval for their prototype - high pressure composite cylinder to store and transport Hydrogen. Company expects to get manufacturing orders for these in next 2-3 months. Time Technoplast is the first company to get this approval

Future growth triggers for composite cylinders ( that are lighter and can store more gas per unit volume ) include - replacing Automotive metal CNG cylinders with composite cylinders, supplying composite cylinders to new CBG plants that are being put up across the country. All this shall materialise once company expands its current composite cylinder manufacturing capacity

Company expects the interest cost for next FY to fall to 70 cr vs 101 cr for FY 24

Company also makes telecom sector batteries, solar batteries, railway signal batteries, industrial batteries. Company expects to be ready with E-Rikshaw batteries within 6 months

Guiding for a blended volume growth of 15 pc for FY 25 with incremental EBITDA margin expansion

Disc: holding, biased, not SEBI registered

[ranvir]

Krsnaa Diagnostics -

Q4 and FY 24 concall and results highlights -

Company’s operating infra -

148 CT / MRI centers, 1400 X-Ray machines - contributing to 57 pc of revenues

120 - Pathology Labs, 1900 collection centers - contributing to 43 pc of revenues

Present across 150 district locations across India ( in 17 states and UTs )

Company is now averaging 1.5 lakh CT / MRI scans / month and 5 lakh X-Ray scans per month

Company is the largest Radio - diagnostics company in Asia

Company is only into B2G segment ( catering only to Govt patients / Govt hospitals ). Currently having a bid win ratio of 75 pc. Company is present in most states except - Gujarat, Bihar, Jharkhand, WB, Telangana, Chattisgarh, Haryana, Kerala - among major states

FY 24 outcomes -

Sales - 619 vs 487 cr
EBITDA - 146 vs 124 cr ( margins @ 24 vs 25 pc )
PAT - 56 vs 62 cr ( margins @ 9 vs 13 pc )

Revenues from old centers - 386 cr, EBITDA margins @ 33 pc

Revenues from new centers - 233 cr, EBITDA margins @ 8 pc ( as they scale up, there is massive scope for margin expansion )

Q4 outcomes -

Sales - 166 vs 158 cr
EBITDA - 44 vs 37 cr ( margins @ 26 vs 24 pc )
PAT - 18 vs 13 cr ( margins @ 11 vs 8 pc )

In last 12 months, company has put up 15 new CT/MRI centers and 25 new Pathology labs + 800 collection centers

Company is the process of setting up 22 new CT/MRI centers in Maharashtra + MP ( 17 + 05 )

Company is now venturing into B2C segment. Company will leverage its existing infra for the same and will try and keep the pricing lower vs pure B2C players

Receivable days are currently @ 68 days ( excluding the recievables from HP which are elevated ). Increase in receivable days is also due to the 2024 general elections as a similar increase was witnessed during 2019 elections as well ( this is a key monitorable, hope it reduces towards the end of Q1 )

LY in July, Rajasthan Govt had arbitrarily cancelled the State’s health mission tender given to the company ( worth Rs 450 cr ). The matter is sub-judice and a verdict is expected shortly

Generally it takes about 3 yrs for a new center to mature and to start reporting healthy EBITDA margins. Company expects its centers in Punjab and Chandigarh to start turning around soon

Company looking at 25 pc kind of CAGR on Topline for next 2-3 yrs. Also expect the EBITDA margins to stabilise at around 25 pc

Expecting the receivables from Himachal Pradesh to start moderating towards the end of Q1 / beginning of Q2

Capex lined up for next FY @ 150 cr ( excluding Rajasthan )

Disc: initiated a tracking position, biased, not SEBI registered, not a buy/sell recommendation

[ranvir]

HDFC AMC -

Q1 Concall and results highlights -

Industry highlights -

AUM of MF industry @ 61 lakh cr on 30 Jun 24 vs 44 lakh cr on 30 Jun 23. Out of the total 61 lakh cr, 38 lakh cr is contributed by retail and rest by Institutional clients. WRT geography, 50 lakh cr have come from T-30 cities and only 11 lakh cr from B-30 places ( Beyond top 30 cities )

It was only 8 lakh cr on 31 Mar 14. In the last six months alone, the Industry has added AUMs worth 10 lakh cr !!!

Even Debt and Liquid Funds saw a healthy inflows ( 70k cr and 51k cr respectively ) in Q1 FY 25 after 3 consecutive Qtrs of outflows. Equity schemes saw an inflow of 1.2 lakh cr in Q1 !!!

Total MF folios in India @ 18.9 cr vs 14.8 cr YoY

83 pc of Individual / Retail money is in Equity MFs. Only 17 pc is in Liquid / Debt MFs / ETFs and Others

Monthly SIP flow @ 21.3k cr vs 14.7k cr in Jun 23

SIP AUM @ 12 lakh cr. SIP accounts @ 89 vs 66 lakh accounts in Jun 23

HDFC AMC highlights -

Overall Mkt share - 11.4 pc ( third largest in the Industry ). Closing AUM of 6.9 lakh cr. Company’s retail Mkt share @ 13.3 pc

Mkt share in Equity funds - 12.9 pc. AUM @ 4.4 lakh cr

Mkt share in Debt funds - 13.3 pc. Debt AUM @ 1.4 lakh cr

Mkt share in Liquid funds - 12 pc. Liquid AUM @ 0.6 lakh cr

Company’s mkt share in ETFs and others categories is in low single digits

Company’s SIP book @ 3200 cr vs 1890 cr in June 23

19 pc of company’s AUM come from B-30 cities. Company is a distant 2nd in the B-30 business

Q1 Financial outcomes -

Revenues - 775 vs 574 cr, up 35 pc
Other Income - 173 vs 158 cr, up 10 pc
Total expenses - 195 vs 161 cr, up 22 pc
( employee expenses are up 20 pc. other expenses up 28 pc )
PAT - 600 vs 475 cr, up 26 pc

**Company is holding investments of 6400 cr. **
85 pc of this is parked in Liquid and Debt funds. Rest are in equity and arbitrage funds

Company’s operating margins { Gross margins (46 bps ) minus Operating expenses ( 12 bps ) } as a percentage of AUMs stand at 34 Bps vs 35 Bps YoY. Margins in FY 22 were also 35 Bps

Company is hiring and expanding aggressively. Added 280 employees and opened 24 new branches LY ( total branches now @ 250 + ). Most of the employee addition has been on the sales and client service side.

Equity based AUM forms 64 pc of company’s AUM vs 56 pc for the Industry. One good trend that’s emerging in this Bull mkt is that its driven more by consistent SIP flows vs the previous bull mkts when the flows were more lump-some in nature

Company has started investing behind building their AIF business. The company is also open to M&A opportunities in order to utilise the 6000 cr + that they are holding in Liquid / Debt funds

Disc: bought recently, I know I m late here. However the growth tailwinds here are impressive, not SEBI registered, biased, not a buy / sell recommendation

[ranvir]

Bajaj Auto -

Q1 outcomes -

Revenues - 11932 vs 10312 cr, up 3 pc
EBITDA - 2370 vs 1932 cr, up 22 pc ( margins @ 20 vs 19 pc. 20 pc EBITDA margins are very healthy levels for an auto OEM )
PAT - 1942 vs 1644 cr, up 18 pc

Sale of spare parts now constitute 11 pc of company’s revenues

EBITDA margins are in excess of 20 pc despite growing 2W EV sales which hardly breakeven on EBITDA levels

Asian, ME and LATAM mkts continue to report strong growth. African mkts continue to demonstrate significant weakness - although not as bad as Q4 LY. Company expects the export business in Q2 to be better than Q1

Company’s mkt share in the 150 CC plus bikes in India is now at a solid 40 pc ( mostly led by Pulsars ). Pulsar 400 has current bookings of > 2000 units

Company’s mkt share in the 100-125 cc segment is 15 pc. The launch of their CNG bike - Freedom 125 can potentially boost their mkt share in this segment over time. This is a 5 lakh bikes / month kind of segment ( basically the biggest segment. With 50 pc savings on the running costs, CNG driven Freedom 125 is actually a unique and innovative product

Freedom 125’s success hinges on expansion of CNG pumps. Initially launching it in Maharashtra, Gujarat. Next will be a Delhi NCR launch. Current capacity for this bike is 10k/month - going to take it to 40k/month by Q4

Company’s mkt share in ICE 3 Wheelers @ 78 pc !!!

In EV- 3 Wheelers, company’s mkt share jumped to 26 pc vs 17 pc in Q4 FY 24 - a huge jump !!!

Chetak is now 3rd largest selling EV - 2W in the country. Have also launched a sub 1 lakh variant of the Chetak which should further help them ramp up volumes. It’s being currently sold through 250 retail stores. Company aims to expand this to 1000 retail stores within the CY 24

Triumph branded bikes ( under Bajaj-Triumph JV ) are now available across 100 stores in India. Triumph volumes are currently in the range of 5k / month ( 2.5 k each in domestic and export mkts )

Contribution of EVs - 3W + 2W to the domestic sales is now at 14 pc

Cash on books @ 16700 cr

Bajaj Auto credit ( fully owned subsidiary - NBFC ) aims to cover 100 pc of company’s stores by end of FY 25. This should also start aiding company’s overall profitability in medium term

Company sells around 30k 3Ws / month out of which about 3k are EV 3Ws / month

Disc: initiated a tracking position, will be keenly watching out the performance of Freedom, Chetak and Exports, biased, not SEBi registered, not a buy/sell recc

[ranvir]

Aarti Pharmalabs - ( extremely bullish commentary wrt medium to long term ) -

Q4 and FY 24 results and concall highlights -

Manufacturing footprint -

Atali - New Unit under construction for CDMO, making Intermediates

Dombivali - Unit -1 - APIs, Intermediates, CDMO

VAPI - Unit -2 - APIs, Intermediates, CDMO

Tarapur - Unit -3 - Xanthine Unit
Unit -4 - APIs, CDMO
Unit -5 - Xanthine Unit
Unit - 6 - Xanthine intermediates and allied products

Segment wise revenues breakup in Q4 -

Xanthine, its derivates and allied products - 44 pc vs 50 pc YoY

API and Intermediates - 37 vs 43 pc YoY

CDMO / CMO - 19 vs 6 pc ( that’s a huge jump )

Aarti Pharma labs is the largest manufacturer of Xanthine, Caffeine ( a Xanthine derivative ) in India. Aarti Pharma’s global mkt share in Xanthine and derivatives is > 15 pc

Other Xanthine derivates are used as mild stimulants and bronchodilators ( for management of Asthma and Influenza )

Aarti Pharmalabs is a key beneficiary of China +1 wrt all its business segments

Most of the APIs that the company makes have a good degree of backward integration giving them good control over the entire value chain

Domestic : International sales breakup for FY 24 @ 56:44. Out of the total international sales, aprox 80 pc are to the regulated Mkts ( a great indicator of organisations’s compliance and quality culture )

In their CDMO business, they are currently working on 16 innovator molecules in various stages of development

Aim to grow topline by an avg of 10-15 pc for next 3 yrs

FY 24 outcomes -

Revenues - 1852 vs 1945 cr
EBITDA - 386 vs 342 cr
PAT - 216 vs 193

Net Debt / Equity @ 0.14 vs 0.13 pc
RoCE - 18 pc
RoE - 14 pc

Q4 outcomes -

Revenues - 505 vs 448 cr
EBITDA - 117 vs 80, up 47 pc ( margins @ 23 vs 17 pc )
PAT - 65 vs 42 cr, up 53 pc

Company’s API business has a greater focus towards regulated mkts. Their key therapeutic areas include - Anti-Hypertensive, Ant-Diabetic and Oncology drugs

Company is going to undertake brownfield expansion for capacity addition of the Xanthene and derivatives. Aim to take the total capacity up to 750 MT/ Month by end of FY 25. Current capacity is around 425 MT/ Month - so that’s a substantial jump

Guiding for a 10-12 pc EBITDA growth in FY 25. Management admitted that its a conservative guidance since the company did have exceptionally good q4

CMO / CDMO is likely to remain a high growth area for the company for next 2-3 yrs.Should grow @ > 30-35 CAGR for next 2-3 yrs. CMO/CDMO business is margin accretive for the company

Current capacity utilisation of the Xanthene plants @ 90 pc, hence the brownfield expansion

Company believes that the Xanthene prices have bottomed out. Should only go higher from here

FY 25 is going to be a Capex heavy year. Company may end up spending to the tune of 600 cr for the brownfield Capex for Xanthene + plus the ongoing projects projects @ Atali ( that’s a lot of Capacity addition )

Most of the company’s CMO business is concentrated on supply of KSMs ( key starting products ) / RSMs ( regulated starting materials )

Breakup of capex for FY 25 -

Aprox 300 cr for ongoing expansion @ Atali

80-90 cr for Solar power projects ( for future savings on the energy costs. Post this, 1/3rd of company’s power requirements shall be met internally )

Rest for brownfield expansion for Xanthene and other small capexes at various locations

Company is confident of achieving ideal capacity utilisation on the expanded Xanthene capacities inside 2-3 yrs !!! ( this should result in a lot of growth )

Tax rate for FY 24 for the company was 28 pc. Should be around of 25 pc for FY 25

Disc: holding, biased, not SEBI registered, not a buy / sell recommendation

[ranvir]

Dodla Dairy -

Q1 results and concall highlights -

Revenues - 911 vs 823 cr, up 10 pc ( revenues are at all time high ). Revenues from international business grew by a massive 38 pc to 83 cr

EBITDA - 105 vs 60 cr, up 60 pc ( margins @ 11.5 vs 7 pc )

PAT - 65 vs 35 cr, up 86 pc

Value Added products contribution to sales @ 35 vs 32 pc - a big jump

Avg milk procurement per day @ 17.6 lakh litres, up 11 pc YoY

Avg milk sales per day @ 11.3 lakh litres, up 2.5 pc YoY

Avg daily sale of curd @ 467 MT, up 6.3 pc

Sale of Value added products in Q1 @ 313 vs 258 cr, up 22 pc

Total Dodla parlours @ 598

Total chilling centers @ 152

Total milk processing capacity per day @ 20 lakh litres @ 14 processing plants

Total milk processing plants in Africa @ 02. Margins in Africa are higher due to limited competition

Sales from Animal feed @ 31 vs 18 cr YoY. EBITDA @ 4 vs 1.6 cr YoY

Company has taken minor price cuts in Q1 ( due falling milk procurement prices ) and may take some more price cuts in future too. However, they intend to maintain their Gross margins at Q1 levels

Gross margin expansion in Q1 led by - higher value added sales, higher export sales, soft procurement prices

Seeing similar procurement prices in Q2 as in Q1 ( basically seeing no inflation in procurement )

Africa sales LY were around 220 cr. Expecting to do around 350 cr this yr !!!

Animal feed business sales LY were 80 cr. Expecting to do around 160 cr this yr !!!

Confident of maintaining 10-12 pc kind of topline growth with 11-12 pc kind of EBITDA margins for whole of FY 25. That would mean a full yr EBITDA of around 380 cr vs 290 cr YOY !!!

Most of company’s products do sell at a premium price vs competitors. That’s because of better quality and better positioning

Current avg procurement price is Rs 36 / lit and avg selling price is Rs 56 / lit - for India business

No major capex is lined up for current FY

International business margins are almost double that of India business margins

Margins in plain milk business are around 7-8 pc. Margins in VAP ( including curd ) are around 13-14 pc (EBITDA margins - ie)

Company expects the total share of value added products for FY 25 @ 33-34 pc of total sales

Disc: holding from lower levels, not SEBI registered, not a buy/sell recommendation

[ranvir]

FEDERAL BANK -

Q1 results and concall highlights -

Deposits @ 2.66 lakh cr, up 20 pc

Advances @ 2.20 lakh cr, up 20 pc

NII up 19 pc @ 2592 cr

Fee income grew 22 pc @ 652 cr

Other income grew 25 pc @ 915 cr

NIMs @ 3.16 vs 3.20 pc

Gross NPAs @ 2.11 vs 2.38 pc

Net NPAs @ 0.60 vs 0.69 pc

High yielding segments grew at faster rates ( However, these segments grew on a lower base ) -

CV/CE loans up 51 pc @ 3.7k cr
MFI loans up 107 pc @ 3.7k cr
MSME book up 22 pc @ 40.1 k cr
Credit cards book up 73 pc @ 3.2k cr
Gold loans book up 31 pc @ 27.4k cr

Total high yielding book @ 35 pc of total loan book. Growth in high yielding segments is critical for the bank as their NIMs are on the lower side

CASA deposits grew by 10 pc @ 77k cr vs 70k cr YoY. CASA ratio @ 29 vs 33 pc YoY

CASA + Deposits < 3 cr form 80 pc of the Deposit book vs 84 pc YoY

Retail : Wholesale loan book @ 56:44

Yield on advances @ 9.43 vs 9.21 pc

Fresh slippages @ 417 cr - very well controlled - this to me is the key highlight of the results

Expecting the credit quality to remain within control for rest of FY 25 ( at similar levels as in Q1 )

Cost / Income @ 53 pc. Added 210 branches in last 18 months. Despite that, cost / income is trending downwards ( vs Q4 ). Aim to bring to down to 50 pc within 1.5-2 yrs time

Aim to add > 100 branches in FY 25. This should also help in deposit mobilisation

Federal bank’s loans are generally priced lower than other banks in most of the segments they operate. As a result, they are able to get best customers, lower slippages ( its reflected in the numbers as well ). But it comes at the cost of lower NIMs. But this is a deliberate ( and very conservative ) policy

Expect the NIMs to be around Q1 levels for Q2,Q3

Expect to exit FY 25 with RoA @ 1.35 pc vs 1.27 pc in Q1. That should mean - continued momentum in Deposits, Advances and control over slippages

Disc: holding from lower levels, things looks well within control, doesn’t look expensive at CMP, not SEBI registered, biased, not a buy / sell recommendation

[Sujeet_Kumar]

thank you so much ranvir for sharing your valuable insights about innova captab ltd. it is my biggest holding in my portfolio .

[ranvir]

ICICI BANK -

Q1 results and concall highlights -

Advances grew 16 pc YoY and 3 pc QoQ @ 12.2 lakh cr
( led by retail loans up 17 pc, business banking up 36 pc, SME loans up 23 pc. Corporate loans only grew by 10 pc )

Deposits grew 18 pc YoY and 3.3 pc QoQ @ 14.2 lakh cr
( very healthy growth vs the banking system growth. CA deposits up 13 pc, SA deposits up 8 pc, term deposits up 23 pc )

CASA ratio @ 39.6 vs 42.6 pc YoY

NII grew by 7.3 pc @ 19,530 cr
Fee income grew by 13 pc @ 5490 cr
Dividend from subsidiaries @ 894 vs 291 cr

Employee expenses grew by 12.5 pc @ 4370 cr
Non employee expenses grew by 9 pc @ 6159 cr

**Slippages @ 5916 vs 5318 cr YoY **
Recoveries + Upgrades @ 3292 vs 3511 cr
Provisions @ 1332 cr, up 3 pc YoY

Gross NPAs @ 2.15 vs 2.76 pc
Net NPAs @ 0.43 vs 0.48 pc

NIMs @ 4.36 vs 4.78 pc ( in Q1, NIMs were 4.40 pc )

RoA @ 2.36 vs 2.39

Performance of subsidiaries ( YoY PAT ) -

ICICI pru life - 225 vs 207 cr
ICICI lombard general insurance - 580 vs 390 cr
ICICI pru AMC - 633 vs 474 cr
ICICI Sec - 527 vs 271 cr
ICICI home finance - 117 vs 105 cr

Bank’s Consol PAT @ 11696 cr, up 10 YoY

Bank’s standalone RoE @ 18 pc

Opened 513 branches in last 12 months. Total branch count currently stands @ 6587 branches

Incremental in slippages are coming from Kisan Credit Cards. This is also a seasonal phenomenon ( generally peaks in Q1 )

Bank infused additional Rs 500 cr in their subsidiary - ICICI Home Finance in Q1

95 of slippages are from Retail + SME portfolios. But the same is true for recoveries too

Slippages in Q1 from KCC @ 720 cr

Overseas loan book at 3 pc of total loan book

At present, not seeing any elevated stress in the unsecured book

**Investing aggressively behind technology @ 9 pc of total operating expenses **

Disc: holding, biased, not SEBI registered, not a buy/sell recommendation

[ranvir]

Piramal Pharma -

Q1 results and Concall highlights -

Revenues - 1971 vs 1787 cr, up 10 pc
EBITDA - 224 vs 171 cr , up 31 pc
Share of profit of associates - 22 vs 14 cr, up 56 pc
PAT - (-) 89 vs (-) 99 cr ( due heavy depreciation and finance costs )

Segment wise revenues -

CDMO - 1057 cr, up 18 pc ( seeing signs of revival in biotech funding. Also seeing steady inflow of orders for commercial manufacturing of on-patent molecules - a key positive ). Also seeing uptick in generic API business

CHG ( complex hospital generics ) - 631 cr, up 2 pc ( anesthesia products reported healthy volume growth in US and EMs - offset by price erosion in US ) Aim to keep expanding portfolio offerings and signing new in-licensing deals. Robust demand seen for Sevofluranne and Isoflurane

ICH ( India Consumer Health ) - 264 cr, up 10 pc ( launched 7 new products, power brands grew @ a strong 19 pc YoY ). New product launches include -

Littles - Baby Diapers
Littles - Baby Detergent
I-Active - Period panties
I-Feel - Intimate women wash
Bohem - men’s hair removal spray
Tri-Active - mosquito nets

Company’s power brands portfolio includes - Littles, I-Range, Tetmosol ( anti-fungal soaps and dusting powder ), Lactocalamine and Polycyrol ( antacids )

In general, 35 pc of company’s EBITDA comes from H1 and 65 pc comes from H2

**50 pc of company’s CDMO work is now innovation related ( ie related to on patent molecule manufacturing + Clinical trials of new molecules ) vs 35 pc in FY 20. Split between Development : On patent Commercial manufacturing is aprox 70:30. That means, on an annual basis - company is generating an aprox revenue of 700 cr from on Patent manufacturing on an annual basis **

19 pc of ICH segment sales come from E-Commerce. The E-comm channel grew by 37 pc YoY

Continue to maintain early teens guidance of growth in Topline and EBITDA and meaningful growth in PAT

Most of company’s sales promotion, advertising efforts in the ICH business are directed towards power brands. Other brands are likely to be in sustain mode

The Bio Secure Act passed in US should act as a tailwind for the company. However, the uptick in business should take some time

Q1 is always the weakest for the company. Business usually picks up from Q2. Expecting the same in FY 25 as well

If the interest rates start to trend downwards, the same will get reflected as savings on interest costs for the company

Company has a product pipeline of 17 products in the CHG business in US. Out of these, 05 are already approved

No of molecules in Phase - 1, 2, 3 development stages @ 68, 38, 33 - as on 31 Mar 24. This looks like a very healthy pipeline. Even if 10-15 molecules from the 33 molecules in phase 3 go into commercial production, company’s revenues from on patent manufacturing can potentially double in 2-3 yrs ( or go up by even higher percentage ) from 700 to > 1400 cr / yr

Disc: holding from lower levels, biased, not SEBI registered, not a buy/sell recommendation

[ranvir]

Mankind Pharma -

Q1 concall and results highlights -

Revenues - 2893 vs 2579 cr, up 12 pc
Gross profit - 2081 vs 1759 cr, up 18 pc
Gross margins @ 72 vs 68.3 pc, up 370 Bps
EBITDA - 686 vs 655 cr, up 4 pc ( margins @ 23.5 vs 25.5 pc ). Adjusted for one time M&A related cost, EBITDA would have been 728 cr, margins would have been 25 pc
PAT - 543 vs 494 cr, up 9 pc

Cash on books @ 3750 cr

Domestic sales grew by 9 pc ( growth in domestic business impacted by delayed onset of anti - infective season )

Export sales grew by 62 pc !!!

Domestic : Export sales ratio @ 91 : 9

Chronic : Acute sales ratio @ 39 : 61

Company’s domestic Mkt share share @ 6.1 pc ( second largest after Sun Pharma )

In Q1, Company Acquired Bharat Serums and Vaccines for 13,630 cr. This translates to 22-23 times FY 25 EBITDA that BSV is expected to clock. To be funded by cash on books, debt and Equity ( if required ). Transaction expected to close in 3-4 months

Some brands where BSV enjoys 100 pc Mkt share in India are -

Rhoclone ( Injection - prevents formation of antibodies after a person with Rh-Negetive blood is given a transfusion with Rh-positive blood ) - FY 24 sales @ 180 cr

Thymogam ( immunosuppressant injection )- FY 24 sales @ 32 cr

ASVS ( anti Venom Injection ) - FY 24 sales @ 41 cr

Other dominant brands where BSV is no 1 / 2 in domestic mkt are -

Hucog ( infertility treatment - injectable )- FY 24 sales @ 63 cr
Humog ( supports ovulation - injectable ) - FY 24 sales @ 55 cr
Luprodex ( used in treatment of prostate cancer - injectable ) - FY 24 sales @ 37 cr
Foligraf ( infertility treatment - injectable ) - FY 24 sales @ 35 cr

BSV ltd reported sales of 1723 cr with 28 pc EBITDA margins for FY 24

Company in-licensed Symbicort ( inhaler - for Asthma ) from Astra Zeneca and launched in Q1. Seeing good traction

Also in-licensed Inclisiran ( lipid lowering - injectable ) from Novartis in Q1

Company’s OTC business reported flattish sales @ 206 vs 208 cr. Their popular OTC brands include - GasOFast, PregaNews, ManForce, AcneStar, Unwanted 72, HealthOK

Company’s EBITDA margins in their OTC / Consumer Healthcare business are @ 20 pc

After the acquisition of BSV ltd, company shall emerge as the No 1 player in the Gynae therapeutic segment

Capex for Q1 @ 125 cr

For FY 25, company is guiding for EBITDA margins for 25-26 pc

Company’s EBITDA margins in Q1 did not rise despite the sharp rise in gross margins as the company launched a number of new products in Q1 and there were higher marketing spends in Q1 to support them. These spends should moderate going forward

Company believes that BSV’s business is under - levered and Mankind’s distribution can help improve growth and margins of BSV’s business

The difference in gross margins of Chronic vs Acute business are > 10 pc ( similar figures were given by Alkem Labs in their Q4 or Q3 concall LY … quoting from memory )

Company’s In-Licensed brands give them a foot in door when it comes to high end Hospitals / Clinics / Doctors. These deals do enhance the company’s reputation in a big way + these In-Licensed products are limited competition products

Company believes, it can sustain 70 pc kind of gross margins in the medium term

There will be merger related costs that ll come up in Q2 as well

Company may raise around 3000 cr via equity route to fund the BSV ltd acquisition. At current valuations ( that Mankind trades, I think it makes sense to raise equity )

Confident of accelerating the BSV Ltd’s growth rates to much higher levels due to speciality + complex to make + monopoly products ( under patent ) - that BSV offers

Disc: holding, should do well over medium term ( IMHO ), biased, not SEBI registered, not a buy / sell recommendation

[ranvir]

Neuland Labs -

Broad brush highlights from management’s Q1 commentary -

Expecting moderate growth this FY. Growth in last two FY’s was exceptionally high. Won’t get repeated this FY. Management asked the audience to draw their own conclusion from this ( my deduction - going by the management’s tone, I guess they are hinting at 10-15 pc kind of growth rates for current FY - to be taken with a bucket of salt )

Also guided at pick up in growth rates in FY 26

BioSecure act should be a huge tailwind going forward for the CDMO Industry. Seeing increased customer visits as a lead indicator of customer’s interests wrt Indian players

Traditionally, Neuland did most of its innovation related work with smaller Bio-Tech companies. As these companies are being acquired by big Pharma companies, Neuland hopes to become a household name with big Pharma as well ( in next 3-4 yrs )

CDMO Pipeline -

Current number of molecules in Phase 3 @ 07 ( 03 APIs + 04 Intermediates )

No of commercial molecules @ 18 ( 08 APIs + 10 Intermediates )

No of molecules in pre-commercial stage @ 14 ( 08 APIs + 06 Intermediates )

Disc: holding from lower levels, biased, my largest portfolio position, not SEBI registered, not a buy / sell recommendation

[ranvir]

ADF Foods -

Q1, FY 25 concall highlights -

Consolidated results ( includes the lower margin distribution business of Unilever brands ) -

Revenues- 121 vs 112 cr
EBITDA- 19.6 vs 21.9 cr ( margins @ 19.6 vs 21.9 pc )
PAT- 14.4 vs 14.7 cr ( margins @ 11.8 vs 13.1 pc )

Segmental revenues -

Processed foods - 103 vs 86 cr. EBITDA @ 23.8 vs 23.1 cr ( margins @ 23.1 vs 26.7 pc YoY )

Distribution - 18.4 vs 26.1 cr. EBITDA @ 2.3 vs 2.4 cr ( margins @ 12.4 vs 9.1 pc )

In FY 24, total revenues from processed foods was 432 cr. Total revenues form distribution business was 88 cr

Company has 02 manufacturing facilities - both in Maharashtra. Exports its products to 55 countries. US, Canada, EU and Gulf region are their primary markets. Current food processing capacity @ 28k MT. Company is setting up a new facility ( Greenfield expansion ) at Surat

Ashoka is a key brand for the company - FY 24 sales @ 254 cr, growing at 29 pc CAGR for last 4 years. Company sells - Pickles, Chutneys, Sauces, Ready to eat curries, Frozen Indian food under this brand

Other brands include - Camel, Aeroplane, Truly Indian, SOUL

Camel and Aeroplane brands are Middle East focussed - mainly selling Pastes, Sauces and meal accompaniments and pickles. Camel is more a premium brand while Aeroplane is positioned in the economy segment

SOUL ( relatively newer brand ) is focussed on Indian domestic mkt. Currently selling premium Pickles and Chutneys. More product launches are planned in future. Aim to generate 100 cr sales from this brand in 3-4 years

Truly Indian brand primarily offers ready to eat meals, pastes and sauces. Has strong presence in Germany. Now launched in USA. Working hard on increasing the distribution reach of this brand in US

Company also has a distribution business of select Unilever brands like - Lipton, Taj Mahal, Red Label and Knorr

Guiding for a revenue growth of 20 pc + for FY 25 with high teens EBITDA margins

Company lost sales of around 8 cr in Jun 24 due non-availability of containers for exports

Company has incurred greater advertising costs wrt its SOUL brand in India in Q1. Also the freight costs in Q1 were higher vs LY. These two were the primary factors leading to EBITDA margin compression ( over and above the loss to sales due to logistical issue )

Company’s H2 is always better than H1. Generally, Q1 is the weakest Qtr

At present, the SOUL brand is doing an annualised sales of around 7-8 cr. This can grow rapidly on a low base. Similar is the case for Truly Indian brand were the growth rates can be high on a small base

Distribution of Unilever brands in US helps the company push its own ASHOKA brand into various stores. Both these businesses compliment each other

Surat - Greenfield expansion should go live in Sep 25. Additionally, brownfield expansions are on at both their Maharashtra manufacturing locations

The brand Ashoka targets NRIs. The brand Truly Indian is targeted at foreigners where in the spice levels etc are toned down. Plus the Truly Indian brand is positioned at a premium vs the Ashoka brand

At present, not investing aggressively behind Camel + Aeroplane brands ( both focussed towards Middle East region ) . However, both brands are growing nicely at 8-10 pc / yr kind of rate

Disc: holding, biased, not SEBI registered, not a buy / sell recommendation

[ranvir]

Krsnaa Diagnostics -

Q1 FY 25 concall and results summary -

Revenues - 170 vs 139 cr, up 22 pc
EBITDA - 44 vs 32 cr, up 39 pc ( margins @ 26 vs 24 pc )
PAT - 18 vs 15 cr, up 20 pc ( due jump in depreciation charges )

Total Radiology centers @ 168 ( MRI + CT scans + X Rays )

Total Pathology labs @ 120 with 2270 collection centers

Revenues, EBITDA from Mature centers @ 90 and 35 cr respectively. Margins @ 38 pc. Most of the mature centers are Radiology focussed

Revenues, EBITDA from newer centers @ 79 and 9 cr respectively. Margins @ 12 pc. Clearly, there is a huge scope of improvement here. Newer centers are the ones lesser than 3-5 yrs old. Most of the newer centers are pathology focussed. Their margins won’t go to as high as radiology levels but are likely to be slightly below 38 pc levels ones these centers mature

52 more radiology centers are expected to come up in near future. 41 of those shall come up in Maharashtra

Over 700 collection centers + labs each shall come up in Assam and Odhisha

Cash on Books @ 240 cr
Gross Debt on books @ 170 cr
Company is net debt free

The new contracts received in Maharashtra, Odisha, Assam are for 15, 12 and 5 yrs respectively ( gives a fair long term visibility for the company ). The MP contract is also for 12 yrs

Company is bidding for AP tenders. Hoping for some good news on that front

The company has started venturing into B2C business. Pricing here will be different vs the B2G business. However, they aim to still operate in the affordable space

Current radiology : pathology revenue breakup @ 55 : 45

Have received payments to the tune of 40-50 cr from HP ( which was earlier stuck ). Have started seeing receivables coming down wef July ( ie post election results )

Capex lined up for FY 25 @ 170 cr (mostly towards setting up radiology centers in Maharashtra and MP). Have spent about 20 cr in Q1

Should grow topline by 25 pc in FY 25. Aspiration is to grow by 30 pc !!!

This growth guidance doesn’t take into account a favourable outcome from Rajasthan ( where the company’s tender win is facing some legal troubles and the matter is sub-judice )

Disc: holding, biased, not SEBI registered, not a buy / sell recommendation