Q1 2025 Vimta Labs Ltd Earnings Call Transcript
Key Points
- Vimta Labs Ltd (BOM:524394) reported a 3% sequential growth in revenue, reaching INR824 million, driven primarily by pharmaceutical services.
- The company successfully completed a US FDA remote audit with no observations, enhancing its credibility in clinical research studies.
- Received grants in aid of INR40.9 million from the Ministry of Food Processing Industries for upgrading food testing laboratories, which will boost the food division.
- Plans to double capacity at the Genome Valley, Hyderabad campus, adding 200,000 square feet of additional space for labs and support functions.
- Maintained EBITDA margin at 30.6%, up by 50 basis points YoY, despite a marginal dip in revenue, showcasing better operating efficiencies.
- Revenue from operations for Q1 FY25 stood at INR818 million, a slight decrease from INR835 million in Q1 FY24.
- The company has faced capacity constraints for over a year, impacting its ability to grow revenue significantly.
- Despite new capacity coming online in Q2 FY25, the company expects only a gradual ramp-up, with utilization rates around 20-30% initially.
- The electronics testing segment has not yet reached its projected revenue potential of INR25-30 crores.
- The company has been experiencing flat revenue growth over the past eight quarters, primarily due to capacity constraints and strategic refocusing.
Ladies and gentlemen, good day, and welcome to Vimta Labs Limited quarter-one investors conference call hosted by Systematix Institutional Equities. (Operator Instructions) Please note this conference is being recorded.
I now hand the conference over to Mr. Vishal Manchanda from Systematix Institutional Equities. Thank you, and over to you, sir.
Thank you, Sheejal. Good afternoon, everyone. On behalf of Systematix Institutional Equities, I welcome you to the Q1 FY25 earnings call of Vimta Labs. We thank the Vimta Labs management for giving us an opportunity to host the call. Today, we have with us the senior management of the company represented by Ms. Harita Vasireddi, Managing Director; Mr. Satya Sreenivas Neerukonda, Director; Mr. Narahari Naidu, Chief Financial Officer; and Ms. Sujani Vasireddi, Company Secretary.
I'll now hand over the call to the company management for opening remarks. Over to you, sir.
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