Key highlights from Gufic Biosciences Limited (GUFICBIO) Q3 FY23 Earnings Concall
Q&A Highlights:
- [00:11:06] Gunit Singh from CCIPL enquired about the driver of operating margin jump for YTD 9 months and if it will sustain in future. D.B.Roonghta CFO replied that the increase in turnover did not increase the fixed cost that helped driver margin. In future, GUFIC said, if topline increases, EBITDA margin will further increase.
- [00:11:38] Gunit Singh from CCIPL asked about the expected 25% market share gain and when it will be reflected in the revenue figures. Pranav Choksi CEO expects that in the first two years it will capture a 20% market share. In 4Q23, the company expects about two months of revenue capture from Sparsh and going forward, GUFIC is looking at close to INR100 crore run rate from 2024-25.
- [00:17:50] Yash Tanna from iThought PMS queried about new product launches performance. Pranav Choksi CEO said that Ceftazidime-avibactam launch was expected in 4Q23. In Jan 2023 end, GUFICBIO launched the molecule in India. Also dydrogesterone tablets is expected to be a INR10 crore brand in less than 1.5 years. The revenue of dual chamber bags should start capturing from 1Q24.
- [00:24:08] Ajinkya Jadhav from KamayaKya enquired about the traction in Stanox and Zarbot. Pranav Choksi CEO answered that Stanox is doing well and the growth percentage MoM is still maintained. On Zarbot, the company said it’s not growing as fast as Stanox, but added that with the new team coming in it will be more technically adept in handling the target audience.
- [00:26:07] Ajinkya Jadhav from KamayaKya asked about Alicia update. Pranav Choksi CEO answered that Alicia is a training program that has been running for more than five batches. The program covers topics such as new strategies and practices in cosmetics, and gynecology.
- [00:27:25] Chetan Phalke from Alpha Invesco asked when a new certificate for the Indore plant will be available. Pranav Choksi CEO replied that plant will be commissioned by around June 2023, then there will be three batches and then there will be a wait for a 6-month stability. So CY2024 is expected for all liquidation to happen.
- [00:29:07] Chetan Phalke from Alpha Invesco asked about the margin profile for CMO business. Pranav Choksi CEO said that the CMO margins have not eroded in the last 2 years, but they have been compressed due to an increase in inventory. This is due to people stocking up on products in anticipation of future waves of the pandemic. Additionally, with the start of the Pennant block in Q2, margins should also improve in the next two years.
- [00:38:43] Aman Vij at Astute Investment asked about the Indore site and the likely mix of CMO vs. domestic for next years. Pranav Choksi CEO said the company would look at a like a 50%, 50% module going forward.
- [00:42:17] Aman Vij at Astute Investment enquired about growth in critical care, fertility care, international and API. Pranav Choksi CEO replied that critical care will be flat. But with Ceftazidime and Avibactam coming, on a 12 months basis, there will be about 3-4% growth in critical care. Fertility and healthcare are growing double digits, with Stunnox also growing faster.
- [00:45:00] Jain from AGIPL asked about geographical split currently and future. Pranav Choksi CEO said that in exports, Germany is leading the growth followed by Colombia and Sri Lanka. Going forward, GUFICBIO is getting more aggressive into EU. India will be a strategic market going forward in terms of growth.