Q4 2024 Eris Lifesciences Ltd Earnings Call Transcript
Key Points
- Eris Lifesciences Ltd (BOM:540596) reported a consolidated operating revenue of INR 2,009 crores for FY24, representing a 19% growth year-on-year.
- The company achieved a 15% organic growth in its Domestic Branded Formulation business in Q4 FY24.
- Eris Lifesciences Ltd (BOM:540596) successfully integrated multiple acquisitions, including Oaknet, Glenmark, Dr. Reddy's, and Biocon Nephro and Derma businesses, enhancing its portfolio.
- The company has a strong EBITDA margin of 34% for FY24, with an adjusted EBITDA margin of 36% after accounting for non-recurring items.
- Eris Lifesciences Ltd (BOM:540596) plans to reduce its debt by INR 400 crores in FY25 and INR 600 crores in FY26 through internal accruals, aiming for a debt-to-EBITDA ratio of less than 2x by September 2025.
- The company reported a decline in Q4 gross margin by 180 basis points due to an evolving product mix and new portfolio additions.
- There were significant one-time non-recurring expenses in Q4, including INR 21 crores for donations, SAP implementation costs, and deal-related expenses.
- The capacity utilization of the Ahmedabad plant was less than 20%, leading to underutilization costs of INR 17 crores.
- The company's return on capital employed (ROCE) dropped to 11% in FY24 from 34% in FY22, primarily due to the impact of acquisitions and amortization.
- Eris Lifesciences Ltd (BOM:540596) faces challenges in integrating and scaling newly acquired brands, with some brands like Cosmetology underperforming compared to Dermatology.
Good day and welcome to the Q4 and FY24 earnings conference call of Eris Lifesciences Limited. We have with us today on the call, Mr. Amit Bakshi, Chairman and Managing Director, and Mr. V Krishnakumar, Chief Operating Officer and Executive Director. (Operator Instructions) Please note that this call is being recorded.
I now hand the conference over to Mr. V. Krishna Kumar, Chief Operating Officer and Executive Director of the company. Thank you, and over to you, sir. Please go ahead.
Good afternoon, and welcome to our quarter four and FY24 business update. So just before we get into the quarter. I think this is a good time to kind of recap the journey that we have been over the last 24 months or so. It's been nothing short of transformative as far as our business is concerned.
As far as the footprint is concerned, it began with the acquisition of Oaknet in May '22, followed by the acquisition of suite of brands from Glenmark and Dr. Reddy's later
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