Q1 2025 SMS Pharmaceuticals Ltd Earnings Call Transcript
Key Points
- Revenue from operations increased by 22% year on year to INR164 crores due to higher volume growth of key APIs.
- Gross margins remain strong at 35%, primarily due to lower raw material prices and improved product mix.
- EBITDA margin improved to 20%, up by 104 bps from a year ago and 670 bps higher sequentially.
- PAT for the quarter was INR16.48 crores, up by 76% year on year, primarily due to higher EBITDA and lower financial costs.
- The company is on track to complete the backward integration of key intermediates by the first half of FY25 and increase production capacity by the end of Q4 FY25.
- Sequential revenue from operations was lower by 33% due to seasonality.
- Ibuprofen margins are on the lower side due to it being a commoditized product.
- The company faces competition from two major competitors in India, which could impact market share.
- The CapEx for the CRO business is still in preliminary stages, with no detailed plans provided yet.
- Dependency on Chinese suppliers for raw materials poses a risk, although efforts are being made to reduce this dependency through backward integration.
Ladies and gentlemen, good day and welcome to SMS Pharmaceuticals Limited Q1 FY25 earnings conference call. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantee of future performance and involve risks and uncertainties that are difficult to predict. (Operator Instructions)
Please note that this conference is being recorded. Today, we have with us Mr. Vamsi Krishna Potluri, Executive Director; Mr. Lakshmi Narayan Tammineedi, Chief Financial Officer; Mr. Thirumalesh Tumma, Company Secretary and Compliance Officer.
I now hand the conference over to Mr. Vamsi Krishna Pothluri, Executive Director. Thank you, and over to you, sir.
Good morning, ladies and gentlemen. Welcome to our first-quarter FY25 conference call. It's a great pleasure to have you all here, and I hope you and your families and your loved ones are all in good
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