Q1 2025 Neuland Laboratories Ltd Earnings Call Transcript
Key Points
- Neuland Laboratories Ltd (BOM:524558) reported a 21.7% increase in total income for Q1 FY25, driven by high growth in the CMS business.
- The company's EBITDA margin improved by 174 basis points to 28.9% compared to Q1 FY24.
- Gross margin for the quarter was 56.1%, showing an improvement from 55.2% in Q1 FY23.
- Profit after tax increased significantly to INR98.3 crores from INR62.2 crores in Q1 FY24.
- The company generated a free cash flow of INR50.9 crores and repaid debt of around INR8.7 crores, resulting in a net debt position of INR110.2 crores.
- The CMS business is inherently lumpy, making quarterly performance an unreliable indicator of annual performance.
- FY25 is anticipated to be a year of moderate growth and normalized margins, indicating a potential slowdown compared to previous years.
- The company faces risks from fluctuations in foreign exchange rates and volatility in raw material costs.
- There is uncertainty regarding the impact of the US Biosecure Act on future business inflows.
- The company has not disclosed specific ROA metrics for new investments, making it difficult to gauge the financial impact of future capital expenditures.
Ladies and gentlemen, good evening, and welcome to the Neuland Laboratories Limited Q1 FY25 earnings conference call.
(Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Ravi Udeshi from Ernst & Young.
Thank you, and over to you, sir.
Thank you, Gia. Good evening, friends. We welcome you to the Q1 FY25 earnings conference call of Neuland Laboratories Limited. To take us through the results and to answer your questions, we have with us the top management from Neuland Laboratories, represented by Mr. Sucheth Davuluri, Vice Chairman and CEO; Mr.
Saharsh Davuluri, Vice Chairman and Managing Director; Mr. Abhijit Majumdar, CFO; and Mr. Sajeev Emmanuel Medikonda, Head, Corporate Planning and Strategy. We will start the call with a brief overview of the financials by Mr. Abhijit Majumdar and then Saharsh will give you broad highlights of the business trends and what are you seeing in the market?
And post this, we will open up the
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