Vimta Labs Ltd (BOM:524394)
₹ 721.4 -18.7 (-2.53%) Market Cap: 16.02 Bil Enterprise Value: 15.96 Bil PE Ratio: 39.34 PB Ratio: 5.00 GF Score: 96/100

Q2 2025 Vimta Labs Ltd Earnings Call Transcript

Nov 08, 2024 / 08:30AM GMT
Release Date Price: ₹692.75 (+20.00%)

Key Points

Positve
  • Vimta Labs Ltd (BOM:524394) reported a strong year-on-year revenue growth of 26.4%, driven primarily by onsite services.
  • The company achieved a significant improvement in EBITDA margins, reaching 35.8% compared to the previous range of 23% to 30%.
  • Profit after tax more than doubled year-on-year, indicating strong financial performance.
  • The divestment of the diagnostics services business to Thyrocare Technology allows Vimta Labs Ltd to focus on core services and optimize resources for sustained growth.
  • The company is on track to achieve its near-term revenue target of INR500 crores, with growth expected across all business units, particularly in pharmaceuticals.
Negative
  • The food testing services segment experienced a slowdown due to internal transitions, impacting operational capacities temporarily.
  • Economic uncertainties and inflationary pressures have tempered overall expansion in the TIC and CRO industries.
  • The divestment of the diagnostics business requires an adjustment in revenue targets, removing approximately 9% of the previous revenue pie.
  • The company faces capacity constraints in some areas, necessitating gradual transitions and expansions to maintain service levels.
  • Despite improvements, the NFL lab at JNPT is still 30% to 40% below initial expectations, indicating slower-than-anticipated growth.
Operator

Ladies and gentlemen, good day, and welcome to Vimta Labs Limited quarter two FY21 conference call hosted by Systematic Institutional Equities. (Operator Instructions) Please note that this conference call is being recorded.

I now hand the conference over to Mr. Vishal Manchanda from Systematix Institutional Equities. Over to you, sir.

Vishal Manchanda
Systematix Institutional Equities - Analyst

Thank you, Sedan. Good afternoon, everyone. On behalf of Systematix Institutional Equity, I welcome you to the Q2 FY21 earnings call of Vimta Lab. We thank the Vimta Lab management for giving us an opportunity to host the call. Today, we have with us the senior management of the company represented by Harita Vasireddi, Managing Director; Mr. Satya Sreenivas Neerukonda, Executive Director; Mr. Narahari Naidu, Chief Financial Officer; and Mr. Jani Vasireddi, Company Secretary. I'll now hand over the call to the company management for opening remarks. Over to you.

Narahai Naidu
Vimta Labs Ltd - CFO

Thank you, Vishal.

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