Ipca Laboratories Ltd (NSE:IPCA) Q1 2020 Earnings Conference Call - Final Transcript

Aug 14, 2019 • 01:30 am ET


Ipca Laboratories Ltd (NSE:IPCA) Q1 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, good day, and welcome to the IPCA Labs Ltd Q1 FY '20 Earnings Conference Call hosted by IDFC Securities Ltd. [Operator Instructions]

I now hand the conference over to Mr. Nitin Agarwal from IDFC Securities. Thank you. And over to you, sir.

Nitin Agarwal

Thanks, Bimal.

Hi. Good morning, everyone, and a very warm welcome to IPCA Labs Q1 FY '20 earnings call hosted by IDFC Securities.

On the call today we have representing IPCA management are Mr. A.K. Jain, our Joint Managing Director, and Mr. Harish Kamath, Corporate Counsel & Company Secretary. I hand over the call to the IPCA management team to take it forward from me.

Please go ahead, sir.

Ajit Kumar Jain

Good morning, everyone.

During the first quarter of the current financial year our standalone sales number -- domestic business -- domestic formulation business has grown by at almost around 13% in this quarter and overall number is almost around INR453 crores as against INR400 crores what we had in last financial year. Export formulations in this quarter was around INR245 crores as against INR224 crores or around 9% growth. So overall, formulation business has grown by almost around 12% in this quarter, from INR625 crore to almost around INR698 crore. So that's the overall formulation number.

On API side, domestic formulation -- domestic API has grown by around 9% in this quarter from INR60 crore to almost around INR65.7 crores and export of API has grown to -- almost around 47% in this quarter to around INR233 crores as against INR157 crore in last year. And overall, API business in this quarter is around INR298 crores against INR217 crore, so a growth of around 37%.

Overall domestic business in this quarter, API and the formulation put together, has grown by around 12% and export business, API and formulations put together, has grown by around 25%. So exports overall has become around INR477 crores as against INR381 crore in last financial year, so a growth of around 25%. And overall turnover of the Company standalone in INR1,030 crores as against INR867 crore in the last financial year.

Overall, if you look at the EBITDA side, we have achieved almost around -- EBITDA of almost around 19.91% in this quarter as against 17.57% in the first quarter of last financial year on a standalone basis. On consolidated basis, our EBITDA is around 19.11% against 17.73% in last financial year -- first quarter of last financial year.

Overall ratio of the API to overall sales is close to almost around 30% now as against 23%, 24% normal we used to have. And that has a little disturbed our overall material cost to sales ratio. The material cost to sales ratio in this quarter has grown to almost around 35%, close to -- 35% as against 32% what we had in overall in last year.

But overall, there is a -- let's say personnel cost to sales ratio has come down by around 2.58% from 22.5% to around -- almost around