Concall Analysis

Management Guidance

??Total revenue surpassed 3000 crores and PAT was 1000 crores until date (Still a quarter to go)

??Total revenue for the this quarter alone was 795.6 crores as against 513.3 crores same period last year. Reflecting a growth of 55%.

??Net profit was 212.7 crores as against 62.3 crores during same period last year.

??They also gave segment wise breakdown this year.

→API- 46.3

→Formulation domestics - 99.4 crores.

→Formulation Exports - 605.6 crores.

→Crop health 14.1 crores.

??The management is?now revising their guidance, previously they said PAT could be 1000 -1200 crores but now they are saying this can cross beyond 1200 cores which is good.

??And revenue would be a little around less than 4000 crores.

??Subsidiaries have contributed to 163 crores in total leading the pack are the subs from Canada and Brazil.

??Glatiramer did well this quarter.

??Management is looking out for a big acquisition.

??Cash positions as of December was 1929 crores and borrowings are 129 crores.

??The management admits that they are still lagging in the domestic front they are working on this and?are trying to bring up some products but it is still work in progress but the launch is nowhere in the near term.

??They have looked at acquisitions in the domestic but found it to be really expensive.

??60-65 % of the domestic business is grown by oncology department they are looking out for a subsidiary in Colombia and Indonesia.

??Management is spot on making complex generics and says that this is how they will move forward.

??Pomalidomide is to be launched in the US and they have a launch date

??Company does not see any large capex.

??Their has been a lot of freight issues due to the red sea crisis, the management says they are unaffected because they send a lot of stuff by air and that too it is in small volumes.

??Agrochemical has a lot of exciting news many first time generics are lined up in the next 12 months.

??Major export markets will kick in after 2-3 years, even though some are opening in 12 months.

??Export market may contribute up to 30 %.

??They are looking at acquisitions with 20% ROI minimum and do not wanna do 10-12% types.

??Their business model is always to not work up with innovators but to challenge patents.

Terminologies I learnt today

NRC-2694: It is a drug currently in phase II clinical trials being developed by Natco Pharma for the treatment of solid tumors.

An investigational new drug (IND): It is a medication that has not yet been approved by the Food and Drug Administration (FDA) for general use in the United States.

CAR T-cell therapy: They are programs which are a type of immunotherapy used to treat certain cancers, particularly blood cancers like leukemia and lymphoma.

Immunotherapy: It is a type of cancer treatment that harnesses the body's own immune system to fight cancer cells.

Carfilzomib: It sold under the brand name Kyprolis, it is an anti-cancer medication acting as a selective proteasome inhibitor.?

Everolimus: It sold under the brand name Afinitor among others, is a medication used for several purposes, 1) As an immunosuppressant to prevent rejection of kidney transplants. 2) As a targeted therapy in the treatment of advanced renal cell carcinoma (a type of kidney cancer) and other tumors