Revenues for the quarter was ₹409.19 Cr (35.8% growth YoY) and for the full year was ₹1540.75 (23.4% growth YoY). EBITDA margin is 20.1% for the quarter and 21.8% for the full year.
Revenue from domestic business was ₹192.9 Cr (38.5% growth YoY) for the quarter and ₹803.1 Cr (29.7% growth YoY) for the full year. They launched 2 new products during the quarter – Subitral 50mg capsule and Subitral DS 100mg capsule. The API is Itraconazole. They have launched a total of 6 products in FY22.
Revenue from international business was ₹189.5 Cr (43.8% growth YoY) for the quarter and ₹620.5 Cr (26% growth YoY) for the full year. Revenue from regulated markets was ₹155.2 Cr (47.6%% growth YoY) for the quarter and ₹503 Cr (25.9% growth YoY) for the full year. Revenue from the Emerging Markets was ₹34.3 Cr (28.7% growth YoY) for the quarter and ₹117 Cr (26.4% growth YoY) for the full year.
Revenue from the US business was ₹69.6 Cr (110.3% growth YoY) for the quarter and ₹212.7 Cr (43.5% growth YoY) for the full year. They received 3 ANDA approvals during the quarter including Lacosamide tablets (Day 1 of patent expiry) and Lacosamide injection (1st generic). They have a pipeline of 6 ANDAs to be filed in FY23 and plan to maintain that pace over the next few years.
Revenue from the Europe business was ₹79.7 Cr (14.7% growth YoY) for the quarter and ₹272.8 Cr (14% growth YoY) for the full year. Revenue from South Africa, Australia and New Zealand was ₹5.9 Cr for the quarter and ₹18 Cr for the full year.
Revenue from the API business was ₹13.1 Cr for the quarter and ₹63.4 Cr for the full year. API revenues declined as a result of higher captive consumption. Revenue from Analytical Services was ₹4.8 Cr for the quarter and ₹15.7 Cr for the full year.
Their respiratory and anti-infective portfolio got a boost during the year due to Covid. The 3 main products which got a boost were Karvol Plus, ATM and Oxipod. Domestic sales saw an approximate upside of ₹30 Cr due to Covid.
Their ATM brand is the third largest Azithromycin brand in the country and they believe that they will be able to carry the momentum even after Covid. Karvol Plus is a high repeat sales product which is also expected to continue after the Covid boost.
Their 2 main therapies – Stomatologicals and Gastrointestinal were completely unaffected by Covid. They are looking to grow their gynecology, dental and ophthalmology portfolio in FY23 as they were affected during Covid.
They have taken a 10.7% price hike in the NLEM portfolio and for the rest of the portfolio about 4-5% based on competition. The total price hike taken is about 6% on a blended basis. The NLEM portfolio contributes about 11% to sales.
Management says FY23 will be a good year to assess the health of the business as most product categories have done well in FY22. They are going to be focusing on growing their market share in their respective product segments in FY23.
They have been facing raw material price increases which has caused gross margin to decline. They believe costs will be inflated in the first quarter of FY23 as well.
They installed a line in the ophthalmic plant which will be operational from June 2022. They are going to be spending about ₹110-120 Cr for capex during the year. This will include maintenance capex as well as an additional manufacturing line in the ophthalmic plant.
They have multiple ophthalmic products coming out during the year. First one is a product in partnership with Teva and the second product is a steroid in combination with an antibiotic partnered with another company. They plan to launch at least 5-6 ophthalmics in the next 1.5-2 years.
MR productivity has increased to ₹3.3 lakhs. They expect it to get very close to ₹4 lakhs in the next 2 years.
For FY23, the US business is expected to grow by 40%. Europe business is expected to grow by 20%. The domestic business is expected to grow between 12-15%.
Their Europe order book looks very robust and the contracts are expiring in May 2023. The UK business consists of Paracetamol, Cerizine and 12-14 other products.
They have installed a block for high potency products and are in the process of signing some very large contracts in Europe for the supply of these products. They have also installed a block for sustained release tablets tablets and capsules.
These facilities are going to be operational from July onwards. Total capex done was about ₹55-60 Cr for these 2 blocks and the sterile line. These blocks have not been inspected by the regulatory agencies yet.
Their current market share is about 5-7% in Brinzolamide. They expect it to go up to 20% by July.
They have not been facing competition in the US because they operate in a niche segment of ophthalmology and injectables. Of the 20 products they have in the US, 15 are for ophthalmology and injectables.
API is a very small part of their business, so they have not been affected much due to the price of KSMs for API manufacturing. In FY23, they expect to do API sales of ₹120 Cr and use an equivalent amount for captive consumption.
They hold an inventory of 1.5 months for packaging material and 2 months for APIs and excipients.
Among the Emerging Markets, French West Africa and Kenya are their biggest markets. The emerging markets are all billed in US Dollars so the risk of local currency depreciation is not there.