- Revenue: INR1,545 million, up 5% year-on-year, down 2% sequentially.
- EBITDA: INR512 million, up 16% year-on-year, down 8% sequentially.
- EBITDA Margin: 33% for Q1 FY25.
- Profit After Tax (PAT): INR350 million, up 19% year-on-year, up 17% sequentially.
- PAT Margin: 23% for Q1 FY25.
- Human Nutrition Revenue: 65% of total revenue, up 2% year-on-year, down 1% sequentially.
- Animal Nutrition Revenue: 11% of total revenue, up 9% year-on-year, down 7% sequentially.
- Bio Processing Revenue: 16% of total revenue, up 12% year-on-year, down 3% sequentially.
- Specialized Manufacturing Revenue: 7% of total revenue, up 13% year-on-year, unchanged sequentially.
- JC Biotech Revenue: INR159 million, up from INR134 million year-on-year.
- Evoxx Revenue: INR47 million, down from INR54 million year-on-year.
- SciTech Revenue: INR111 million, up from INR97 million year-on-year.
- Anti-inflammatory Enzyme Revenue: INR280 million, down 20% year-on-year.
- Top 10 Customers Contribution: 23% of total revenue, down from 26% year-on-year.
- B2C Segment Revenue: USD950,000, down from INR1.28 million year-on-year.
- Pharma India Revenue: INR375 million, down from INR447 million year-on-year.
- Probiotics Revenue: INR39 million, up from INR5 million year-on-year.
- Biocatalysis Revenue: INR74 million, down from INR86 million year-on-year.
- India Sales: INR488 million, down from INR538 million year-on-year.
- International Sales (Human Nutrition): INR523 million, up from INR456 million year-on-year.
- USA Sales: INR494 million, up from INR422 million year-on-year.
- R&D Spending: INR76 million, up from INR62 million year-on-year.
Release Date: August 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Revenue increased by 5% year-on-year to INR1,545 million.
- EBITDA grew by 16% year-on-year to INR512 million.
- Profit after tax increased by 19% year-on-year to INR350 million.
- The company anticipates robust growth in all segments in the second half of the year.
- R&D spending increased, indicating a focus on innovation and future growth.
Negative Points
- EBITDA declined by 8% on a sequential basis.
- Human Nutrition segment remained largely unchanged, contributing 65% to revenue.
- Animal Nutrition business declined by 7% on a sequential basis.
- Bio processing segment de-grew by 3% on a sequential basis.
- The largest product, anti-inflammatory enzyme, saw a 20% decline in sales year-on-year.
Q & A Highlights
Q: Could you provide an update on the development and launch timeline for your sugar management and weight loss products? What kind of revenues can we expect, and will these products be distributed only in the US market?
A: Some sales have started in the US market, but the products are still under trial. We cannot provide exact revenue numbers yet. The products are currently targeted at the US market.
Q: What are the key priorities and gaps you want to address in the next two to three years?
A: Our focus will be on the nutraceutical, food, biocatalyst, and animal feed segments. We will introduce new products in these areas to drive growth.
Q: Why has the India business been flat, and what is the outlook for the rest of the year?
A: The India business, particularly the human side, is under pressure this year. Most growth is expected in the second half of the year, especially in the biocatalyst areas.
Q: What is happening with the Serratiopeptidase market, and why is it experiencing de-growth?
A: Pharma companies picked up more stock last quarter, impacting Q1. We don't expect significant growth in the Serra business; it should remain flat or grow by about 5%.
Q: Given the growth in the US market, do margins have room to expand from here?
A: Margins are expected to remain around 33-34%. As international sales increase, margins may improve, but this will take a couple of quarters.
Q: What is the outlook for the biocatalyst segment, and are there new molecules being launched?
A: We are working on new products in the biocatalyst segment, and some are expected to come up in the second half of this year.
Q: How are you managing freight costs, and is there any significant impact from the Red Sea issue?
A: Freight costs have increased slightly, but we generally pass these costs on to customers. The impact is about INR5 million year-on-year.
Q: What is the status of your R&D facility, and what is the expected CapEx?
A: The R&D facility should be operational by June next year. We expect to spend around INR25-30 crores this year and next year.
Q: Are there any potential M&A developments?
A: There are no concrete developments at the moment, but we continue to explore opportunities.
Q: How do you allocate your R&D budget, and what are your key focus areas?
A: We focus on our core strengths in human nutrition, animal nutrition, and biocatalysts. R&D spending is around 3-4% of revenue, and we work on developing enzymes that can be applied across multiple segments.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
