Key highlights from Solara Active Pharma Sciences Q3 FY23 Concall:
CMP: ₹416
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CMP: ₹416
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-Revenue for the quarter was at ₹401.9 Cr (282% growth YoY, 17% growth QoQ) EBITDA margin for the quarter was at 12.7%.
-Management has said that their course correction strategy has started to yield results. The base business has shown good strength during the quarter.
-Management has said that their course correction strategy has started to yield results. The base business has shown good strength during the quarter.
-Revenue from the regulated markets stood at 73% of sales for the quarter led by a strong performance in Brazil. Management has said that their focus markets are Latin America and China.
-They filed 2 new DMFs during the quarter and are on track to file 4 more in Q4 FY23 taking
-They filed 2 new DMFs during the quarter and are on track to file 4 more in Q4 FY23 taking
the total new DMFs filed to 6 in FY23. -They have a pipeline of 8 products to be filed in FY24.
-They started manufacturing intermediates and API in Vizag and sales were made to semi regulated markets. They have been making good progress on the regulatory approval for the Vizag
-They started manufacturing intermediates and API in Vizag and sales were made to semi regulated markets. They have been making good progress on the regulatory approval for the Vizag
facility. The first one was the CEP approval for Ibuprofen. Out of 2 new DMFs filed in Q3 - 1 was filed from Vizag which should trigger a USFDA inspection. Management has said that Vizag can generate ₹300-400 Cr revenue at full utilization.
-They have been aggressively
-They have been aggressively
registering their existing products in new markets. They expanded in 5 new markets for 5 existing products in Q3 FY23. In total, they have expanded in 9 new markets for 15 products.
-In order to de-risk the key products manufactured at Cuddalore facility
-In order to de-risk the key products manufactured at Cuddalore facility
(currently under OAI status).
-They have qualified the key products at the Cuddalore to be manufactured at the Pondicherry facility as well as the Vizag facility. This was done to de-risk the key products as the Cuddalore facility is currently under OAI status.
-They have qualified the key products at the Cuddalore to be manufactured at the Pondicherry facility as well as the Vizag facility. This was done to de-risk the key products as the Cuddalore facility is currently under OAI status.
-Current utilization for Ibuprofen at the Pondicherry facility is at 90%. Overall capacity utilization for the company is at 77%.
-Management plan to pay down ₹120 Cr of term loan every year. They plan to reduce short term debt when capacity utilization picks up at Vizag.
-Management plan to pay down ₹120 Cr of term loan every year. They plan to reduce short term debt when capacity utilization picks up at Vizag.
-They have hired a CRAMS head for North America. CRAMS as a segment only contributes in single digit to revenues but they are focusing on growing it rapidly.
-The company only undertook some maintenance capex during the year and did some debottlenecking at Vizag.
-The company only undertook some maintenance capex during the year and did some debottlenecking at Vizag.
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