Beta Drugs conducted the conference call for Q4 FY22.
"Mgmt targets to grow at 30% CAGR for next 3-4 years"
Here are the concall highlights
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"Mgmt targets to grow at 30% CAGR for next 3-4 years"
Here are the concall highlights
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Business Updates:
โข Exports, Price Realization and innovation in drugs led to growth for the company.
โข In FY22, Beta has launched 15 new molecules and got DCI approval of Azacitidine Oral tablet.
โข In april co. also got approval of Cabozantinib for API & formulation.
โข Exports, Price Realization and innovation in drugs led to growth for the company.
โข In FY22, Beta has launched 15 new molecules and got DCI approval of Azacitidine Oral tablet.
โข In april co. also got approval of Cabozantinib for API & formulation.
Product Portfolio:
โข Co. is expecting for more approval of drug in coming quarter.
โข Beta's own brand grew about 67%, and 2 brands have occupied no 1 position in India.
โข International business has grew by 15%.
โข API & Cram business has grew 60+% over last year.
โข Co. is expecting for more approval of drug in coming quarter.
โข Beta's own brand grew about 67%, and 2 brands have occupied no 1 position in India.
โข International business has grew by 15%.
โข API & Cram business has grew 60+% over last year.
Revenue Mix:
- 21cr for export market, with 18% growth.
- Domestic Business has 55cr of contribution.
Expected Revenue share
Domestic : Export : CRAMS - 35:30:35
Margin Share:
- Own Brand: 30-31%
- Export: 27-30%
- API: 24-26%
- 21cr for export market, with 18% growth.
- Domestic Business has 55cr of contribution.
Expected Revenue share
Domestic : Export : CRAMS - 35:30:35
Margin Share:
- Own Brand: 30-31%
- Export: 27-30%
- API: 24-26%
API:
โข Received WHO for the API facility. It will help for both domestic and international market.
โข Co. has launched 13 products.
โข Expansion will drive growth for the company, with filing of new molecules.
โข Received WHO for the API facility. It will help for both domestic and international market.
โข Co. has launched 13 products.
โข Expansion will drive growth for the company, with filing of new molecules.
CRAMS:
โข Beta has participated with 50+ companies till now and plans to add 5-7 new companies for Fy23. (In Fy 22 co. added 7 new cos.)
โข Beta has participated with 50+ companies till now and plans to add 5-7 new companies for Fy23. (In Fy 22 co. added 7 new cos.)
Oncology:
โข Current market size of Onco is 4750cr and Beta market share is 3.75% only.
โข Co. had started to in all the semi-regulated market & will shift to regulated market.
โข Co. targets for 14-15% market share.
Zydus, Dr Reddy, Natco, Cipla
โข Current market size of Onco is 4750cr and Beta market share is 3.75% only.
โข Co. had started to in all the semi-regulated market & will shift to regulated market.
โข Co. targets for 14-15% market share.
Zydus, Dr Reddy, Natco, Cipla
CAPEX:
โข Lypholizer capacity increased to 3 folds in Beta drugs plant.
โข Separate lypholized injectable manufacturing facility for general inject able in Adley formulations plant has been made.
(Geographic expansion in image).
โข Lypholizer capacity increased to 3 folds in Beta drugs plant.
โข Separate lypholized injectable manufacturing facility for general inject able in Adley formulations plant has been made.
(Geographic expansion in image).
โข Installed 2 new Lypholizer and the. Co. will be focusing on OEM parts and non-regulated market.
Plant is expected to commence by June end and all the license has been procured.
โข Co. will focusing on anti-fungal & immunosuppressant segment.
Plant is expected to commence by June end and all the license has been procured.
โข Co. will focusing on anti-fungal & immunosuppressant segment.
Growth Strategy:
Capacity utilization:
- Oral: 67%
- Injectables: 45%
- API: 30-40% (including recent plant addition.)
With optimum utilization revenuer potential is 300cr+, excluding the current capacity plants.
Capacity utilization:
- Oral: 67%
- Injectables: 45%
- API: 30-40% (including recent plant addition.)
With optimum utilization revenuer potential is 300cr+, excluding the current capacity plants.
Margins:
โข EBIDTA margins is expected to grow by 1% and in 3-4 years mgmt expect margins to be ~26-27%.
โข Dependency on RM sourcing from China has reduced from 42-45% to ~35% & co. is planning for backward integration for reducing permanent dependency
This will be one in FY25
โข EBIDTA margins is expected to grow by 1% and in 3-4 years mgmt expect margins to be ~26-27%.
โข Dependency on RM sourcing from China has reduced from 42-45% to ~35% & co. is planning for backward integration for reducing permanent dependency
This will be one in FY25
Other:
โข Company has reduced the debtor days to 90 days from 110 days, due to better realization and continue follow-ups.
โข Beta is now net debt free.
โข Working Capital days has been improved a lot.
โข Post MAT credit tax rate will shift to 22%.
โข Company has reduced the debtor days to 90 days from 110 days, due to better realization and continue follow-ups.
โข Beta is now net debt free.
โข Working Capital days has been improved a lot.
โข Post MAT credit tax rate will shift to 22%.
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