Remus Pharmaceuticals Ltd (NSE: REMUS) Q4 2025 Earnings Call dated May. 19, 2025
Corporate Participants:
Anjali Shah — Chief Financial Officer
Arpit Shah — Managing Director
Swapnil Shah — Chairman and Non Executive, Non-Independent Director
Analysts:
Nupur Jainkunia — Analyst
Shubham Gupta — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Remus Pharmaceuticals Limited Q4 and FY 2025 Earnings Conference Call. [Operator Instructions]
I now hand the conference over to Ms. Nupur Jainkunia from Valorem Advisors. Please go ahead.
Nupur Jainkunia — Analyst
Thank you. Good evening, everyone, and a very warm welcome to you all. My name is Nupur Jainkunia from Valorem Advisors. We represent the Investor Relations of Remus Pharmaceuticals Limited.
On behalf of the Company, I would like to thank you all for participating in today’s earnings call for the second half and the financial year ended 2025. Before we begin, let me mention a quick cautionary statement. Some of the statements made in today’s earnings call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ from those anticipated. Such statements are based on management’s beliefs as well as assumptions made by information currently available to management. Audiences are cautioned not to place any undue reliance on the forward-looking statements in making any investment decision. The purpose of today’s earnings call is purely to educate and bring awareness about the Company’s fundamental business and financial quarter as well as year under review.
Now let me introduce you to the management participating with us in today’s earnings call and hand it over to them for opening remarks.
We have with us Mr. Arpit Shah, Managing Director; Ms. Anjali Shah, Chief Financial Officer of the Company.
Without any further delay, I request Ms. Anjali Shah to start with operational highlights — financial highlights for the period and the review followed by operational highlights from Mr. Arpit Shah.
Thank you. And over to you, ma’am.
Anjali Shah — Chief Financial Officer
Thank you, Nupur. Good evening, everyone, and thank you for joining us today. We welcome you all to the earnings conference call for second half and the financial year ended 2025.
Let me start by giving you the financial highlights of our standalone business first. So with effect from April 1st 2024, we have adopted the Indian Accounting Standards that is Ind AS to be in line with the international standards, ensuring greater transparency and comparability in our financial statements. Accordingly, we have restated our previous and corresponding periods as well to make it Ind AS compliant.
So to start with in H2 FY ’25, our revenues were reported at INR41.49 crores on standalone basis, which grew by 14% on year-on-year basis. The EBITDA stood at INR15.70 crores with a growth of around 15% year-on-year and the net profit stood at INR10.71 crores representing a growth of 92% year-on-year basis. For the full year FY 2025, our revenues were reported at INR79.16 crores, which represents a growth of 23% year-on-year and the EBITDA stood at INR28.88 crores growing by 26% year-on-year basis. The net profit stood at INR19.90 crores on standalone basis representing a growth of around 18% year-on-year basis.
Moving on to our consolidated results for H2 FY ’25, the revenues were reported at INR347.75 crores, which represents a growth of 88% on a year-on-year basis. Although it is important to note that these periods are not exactly comparable with the previous H2 FY ’24 as the acquisition of a U.S. subsidiary resulted into a partial consolidation in the previous period. This is the full period where we are covering the complete operations of our subsidiaries.
Moving on, the EBITDA was at INR27.15 crores, which grew by around 29% year-on-year basis and our net profit before non-controlling interest or minority interest as we say stood at INR20.57 crores, which represents a growth of 10% year-on-year basis. And our net profit after minority interest allocated to the — allocated to Remus stood at INR16.01 crores for the second half of FY 2025.
Moving on for the financial year ending 2025, the consolidated revenues stood at INR620.36 crores, which marked an increase of 191%, which is on account of the partial consolidation in the previous period for the U.S. entity. This is the full period where we have covered the complete financials for the subsidiary. The EBITDA stood at INR50.67 crores with an increase of 59% year-on-year basis and the net profit before minority interest or non-controlling interest stood at INR38.42 crores representing a growth of 58% year-on-year basis. And our net profit allocated to Remus is at INR29.07 crores for the FY 2025 on consolidated basis.
So these were the financial highlights. Now I would like our Managing Director to give you — give some insights on our operational highlights for the period under review. Thank you. And over to you, sir.
Arpit Shah — Managing Director
Thank you, Anjali, and good evening, everyone. I’m happy to share with you the performance highlights of our Company for the second half of FY ’25, a period that marks a significant step forward in our journey as a global healthcare company. At Remus, we continue to take great pride in our strong and growing international presence. Today we work closely in more than 40 countries for export of our pharmaceutical finished formulations. Our best footprints lie in Latin America where we have built not just the reach but the real trust.
What sets us apart is our ability to enter markets with new products in a record time so as to take the first mover advantage in short span of time. We have been able to do so because of our strength in research and development and our experience in regulatory and compliance affairs. Today, more than 95% of our exports are from advanced and niche formulations ranging from tablets and capsules to injections, inhalers, soft gels and oral suspensions. This ensures safe, reliable and effective care for the patients across the world. We operate through a robust network of B2B, B2C and institutional partnerships. And through our subsidiaries, we are building our own brands to engage directly with healthcare professionals, prescribers and patients.
Now let me walk you through the progress we have made in the second half of FY ’25. During this period, we have made significant headway in entering new markets and registering new products across different countries. We successfully commercialized over 10 off-patent niche pharmaceutical products, adding momentum to our global portfolio. We have also filed 170 new trademarks and registration of products, out of which 35 trademarks have been secured and approved, further expanding our global brand presence in B2B and B2C markets.
On regulatory front, we have achieved remarkable progress as we begin our product registration in several new countries like Bosnia, Kosovo, Mexico, Tanzania, Azerbaijan, Mauritius, Bhutan and Cambodia. Simultaneously we initiated our own brand and marketing process in key Latin American markets like Chile, Peru, Dominican Republic and El Salvador.
Speaking of Latin America, this region continues to be a powerhouse of our opportunities for us. Our first operational subsidiary in Bolivia under Relius have launched more than 15 products as of now across private market, pharmacy chain, private hospitals and government institutions. We also host a series of impactful engagement events including a brand awareness conference attended by more than 55 doctors, pharmacy representatives and several targeted programs for gynecology, general practitioners and hematologists.
Our brand is not just expanding, it’s being embraced by the patients and the health professionals. This progress reflects the dedication of our team, the strength of our strategy and our collective ambition to bring high quality affordable healthcare to more people around the world. As we look ahead, the Company has maintained the growth trajectory for the second half of this — of the previous financial year and has exceeded our expectations. The growth that we have achieved during the financial years testifies the hard work and dedication of our team. Going forward, we look to — we are looking forward to expand our reach to new markets and product segments. We are confident that our strong and strategic performance will continue to drive our growth in the future.
With this we now open the floor for questions and answer session. Thank you.
Questions and Answers:
Operator
Thank you. We will now begin the question-and-answer session. [Operator Instructions] Ladies and gentlemen, the line for the management seems to have been disconnected. Please stay connected while we reconnect the line for the management. [Technical Issues] Ladies and gentlemen, we have the line for the management reconnected. [Operator Instructions] As there are no questions from the line of the participants, I now hand the conference over — all right. Just one moment. The next question comes from the line of Shubham Gupta from LNM IIT. Please go ahead.
Shubham Gupta
Hello?
Operator
Yes, sir. Please go ahead.
Shubham Gupta
Yeah. So sir, wanted to understand like how is the business different from Senores Pharmaceuticals reimbursement? And like what are the key drivers right now? And why the — like along with the top line growth, there was some growth in bottom line also, so — but the bottom line growth was not that much. So wanted to say on that.
Arpit Shah
Hi, Shubham. Good evening. In regards to the connection that with Senores and Remus, Remus is a completely different as a business operandi and a business model where we are not restricted to have one manufacturer and register our products or market those products and develop. So in Remus, under Remus, we are purely into marketing and distribution branding and doing B2C and B2B — in the segments of B2C and B2B where Senores is — it’s a manufacturing arm that has negligible sales related when it comes to Remus. So our 90%, 95% of the products are outsourced which is not in house but are being developed and made in another CMOs per se.
So there has been a lot of — and again Remus being only present in emerging markets, Rest of the World markets, while Senores continues to have major business in regulated markets. So for us, our distribution channels as well as in terms of our models operandi and the way we are lined up in branding our products, registering those products in different markets has no overlap or conflict with the other companies. So from that perspective I’ll just answer your question and from the bottom line, Anjali is going to answer that.
Anjali Shah
Yes. Hi, Shubham. So as per your question in regards to the increasing sales, increasing the top line versus like increasing in the bottom line, the reason here for consolidated results is that we are consolidating total three subsidiaries along with our main holding company. And out of that the U.S. subsidiary is — has a business model which is a high volume, low margin business model due to which — if you see or if you compare the growth in the turnover versus the growth in the bottom line, it will differ because that U.S. subsidiary is more focused on the business model of — more on the side of the ROI instead of [Technical Issues].
Operator
Ladies and gentlemen, the line for the management has been dropped. Please stay connected while we reconnect the line for the management. [Technical Issues] Ladies and gentlemen, we have the line for the management reconnected. Yes, sir. Please go ahead.
Arpit Shah
Anuj, I — I mean, I don’t know from where we lost the call. Hello?
Operator
Yes, sir, you are audible.
Shubham Gupta
Yeah. So basically you were explaining that the — this is a drop in the baseline basically that you were explaining.
Anjali Shah
Sorry, Shubham, your voice is actually not clear. Can you just repeat your question?
Shubham Gupta
Yeah, yeah. You were basically explaining because of some U.S. subsidiaries, there was not much growth in the bottom line, that’s what I heard, because you were consolidating some of the subsidiaries.
Anjali Shah
Yes, yes, yes. So I was just giving you an insight that on consolidated levels, we are consolidating three subsidiaries which are holding companies. So out of those three subsidiaries, one is our U.S. subsidiary which has — which is also into R&D distribution. So in R&D distribution, it is more focused. The business model is more focused on higher volumes as compared to like focus on the margins. In comparison to that, it is more focused on the higher volumes in which — through which we earn the margins in the absolute terms. So accordingly, the growth in sales will not be seen like will not be comparable with the growth in the margins, and that is the reason that it is not proportionate. So it is just because of the different subsidiaries consolidating along with the holding company which is resulting into this difference or variation.
Shubham Gupta
Okay. One more question, like do you have some projections for the next year, H1 and H2 or full year?
Anjali Shah
Sorry, your voice is again not clear.
Shubham Gupta
Yeah, yeah. So is it audible now? Hello?
Anjali Shah
Yeah, yeah.
Shubham Gupta
So just wanted to check if you have some, like projections for the next year, next financial year. And one more question basically. Yeah, one more question. I saw that you also expand 3% of the revenue on R&D. So how that will help you going for this? Because what I have heard most of the time is or Remus is basically a distribution company for pharmaceuticals, so — but it’s also doing R&D along with it. So like how this R&D basically help you? Yeah.
Anjali Shah
Okay. So yeah, so in regards to your question about the projections, I think we will continue like — continue with a sustainable growth. In the current revenues, there will not be such kind of exorbitant growth as you have seen, exorbitant growth which you have seen. because of — because that was just because of the consolidation. Now you’ll see a sustainable growth in the revenue which we’ll see in the next coming year. As for your question in regards to the R&D cost which we are incurring at the Remus level. So that cost is around 2% to 3%. And the reason that we are incurring that cost, I think that was your question at first is that the R&D is required.
We are registering in multiple regions, multiple countries. If you have gone through the Company overview, we are registering multiple products with multiple countries. So whenever we are registering, we have to do certain level of research and development, level of development that this product will be supplied to your country if it is approved in your Ministry of Health. So that is where the development process comes in picture and that is a key matter in our immersive business which we need to enter. So that cost is around 2% to 3% of our turnover and I think it will continue to remain on the same levels in future as well.
Shubham Gupta
Do you also expect margin improvement in future?
Swapnil Shah
Yes, hello. Can you hear me? This is Swapnil here.
Operator
Yes, sir, you’re audible.
Swapnil Shah
Yes. I’m audible. Okay. So hi, Shubham, this is Swapnil. So to answer your questions with the margin and everything. So currently, the Remus is focused as the team suggested on our own branding on a B2C model of the business. So likes of all the Indian generic players that you see today, similar business that we are developing for the Latin American market that you will see in consistent years more and more products getting launched with our own branding that will drive to margin expansion. At the same time, there are more products that are being registered across the different markets that we are operating in. And you must have seen in the presentation which other territories that you started in existing territories where we have grown our product basket. That will again drive our revenue as well as profitability going forward in next year or so.
Shubham Gupta
Okay. Okay. Thanks, Swapnil. Thanks, everyone. Thank you.
Swapnil Shah
Thank you. Yeah.
Operator
Thank you. [Operator Instructions] Our next question comes from the line of Gautam Chopra [Phonetic] from BPL [Phonetic]. Please go ahead.
Unidentified Participant
Yeah. Hi, this is Gautam. I wanted to ask around the Singapore announcement that you guys made in the press release. Can you talk about that once? What is the like prospect over there?
Arpit Shah
I’m sorry, but we are not able to hear you properly. Would you please repeat your question?
Unidentified Participant
Yeah, I saw the announcement around the Singapore expansion or like you’re opening an office in Singapore, right? So I was asking around that what is the vision over there?
Arpit Shah
So from Singapore it’s not going to be our — it’s going to be a subsidiary, but it’s not going to be — it’s going to be a branch but not subsidiary. So actually we are looking to have an office in Singapore from there as a branch office, we are going to operate out of it. Previously several months back, we decided on Dubai, but then we dropped the plan and now we decided finally to go for Singapore as our branch office.
Swapnil Shah
Yeah, just to what Arpit said, Singapore demonstrates a lot of flexibility on doing business. And for us being a large part of business being international, such subsidiary really helps us in terms of visibility of doing business. And that was we realized it becomes a very strategic to have an offshore arm. That’s how the strategic Singapore branch office has been planned, as we speak.
Unidentified Participant
Thank you. If I can slip another question, this is regarding the gross margins. You gave some guidance around the gross margins like the overall gross margins would remain at 40% and the B2C share should improve, which was around 65% to 70% gross margin. Can you please elaborate if the margin stays the same with the current landscape plus any increase in the B2C share?
Swapnil Shah
Yeah. So Arpit, you want to take this?
Arpit Shah
Yeah. Yeah, yeah, yeah. So basically what we have been trying to work is, yes, of course, we started with B2B that now we are also moving towards B2C where our brands are being registered trademark to ensure that we have a long and sustainable B2C business across the countries that we have been doing. On that front, the margins of course on B2C are higher and we anticipate that in next H1, H2 and the coming years after we will see an exponential growth when it comes to the gross margins as currently we have been doing 10% to 15% of B2C which eventually is going to be the — by end of this year we’ll have at least 25% to 30% of B2C business coming from — sorry the business coming from B2C as well. So we see a sustainable but growth in terms of our GP as well. So the margins will of course — we have a strong improvement on those fronts as well.
Unidentified Participant
Thank you. And also we talked about Semaglutide in the last con call in H1. There have been some updates on Mounjaro [Indecipherable]. Any strategic change that we might see going forward because you were trying to do something on that front in new molecules?
Arpit Shah
So on the molecular perspective, I’ll be a little short on it that those products that we have already in our portfolio have been developed and already the filings of those products have commenced at our end. So as you are quite aware of it that several countries where we operate has been patented. So at least from the filing perspective, we have already started our exercise both in injection, PFS as well as tablets, all the strength across this both products. So the filing is in process and we also see that as and when we start commercializing of these products in the market where we don’t encounter the patent issue, those sales and revenues will also be coming on pretty soon, probably H2 is what we are eyeing.
Unidentified Participant
Thanks. That’s great. So you talked about the SKUs, probably can you tell us what is the run rate for the new products that you guys are launching? Like you gave some target around 200 plus B2C and 2,000 plus new products in the coming years.
Swapnil Shah
Yeah, just one second, just to add to what Arpit said, so as you mentioned Semaglutide, Mounjaro and couple of other molecules, Rybelsus is a Semaglutide oral solid, right? So as a weight loss category that is going to be focused for us as well going forward for all the markets that we are currently operating in. So that will also give you visibility on multiple products that are going into the weight loss side going forward in the markets that we are operating in.
Unidentified Participant
Yeah, thank you. So the pricing would — currently the pricing for the innovator drugs is pretty high. So we do — do we see a lot of market because of the pricing of the innovator drugs because we would price it a bit lower, right?
Arpit Shah
Right. Right. Right.
Swapnil Shah
Yeah. So I think to begin with the pricing will definitely going to be a lot higher. But again, as I said, as more and more players coming in, it will have its own impact. But as I said, again, on a B2C, we are building a branded generics portfolio, right, in the market that we are operating in. So as you know branded generics, the price erosion doesn’t happen the way it happens on a typical generic that exists in this market. So of course there’s going to be a little bit of price pressure but we feel we are going to be able to maintain a healthy profit margins on these products.
Unidentified Participant
Thanks. Just my last question around the new product launches and the B2C, SKUs, you guided like 2,000.
Arpit Shah
Yeah. For B2C product this year, as we speak, we already filed 170 of them, and as and when the weeks pass by, we have an average of filing new products to B2C. So we’re looking at at least — a year from now we’re looking at around 250 to — 250 products on the B2C level. And of course, the B2B itself is, we’re also filing products under B2B as well. So all put together, that is what the numbers that we anticipate would be from the filing perspective would be those numbers.
Unidentified Participant
Thank you. All the best. Thank you.
Operator
Thank you. [Operator Instructions] As there are no further questions from the line of participants, I now hand the conference over to the management for closing comments.
Arpit Shah
Thank you, Anuj. Thank you all for taking time and participating in our earnings call today. I hope we have been able to answer your questions satisfactorily. If you have any further questions or would like to know more about our Company, please reach out to our newly appointed Investor Relationship Managers at Valorem Advisors. Thank you so much and have a good day.
Operator
[Operator Closing Remarks]