{"id":142631,"date":"2023-02-23T07:00:07","date_gmt":"2023-02-23T12:00:07","guid":{"rendered":"https:\/\/44.250.171.167\/?p=142631"},"modified":"2023-02-23T07:00:09","modified_gmt":"2023-02-23T12:00:09","slug":"ipca-laboratories-ltd-q3-fy23-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/ipca-laboratories-ltd-q3-fy23-earnings-conference-call-insights\/","title":{"rendered":"IPCA Laboratories Ltd Q3 FY23 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from IPCA Laboratories Ltd (<a href=\"https:\/\/44.250.171.167\/symbol\/IPCALAB\/\">IPCALAB<\/a>) Q3 FY23 Earnings Concall<\/strong><\/p>\n<p><strong>Q&amp;A Highlights:<\/strong><\/p>\n<ul>\n<li>[00:11:51] Kunal Dhamesha of Macquarie asked if IPCALAB is done with the MR addition and if the incremental cost is already baked into 3Q number. Ajit Kumar Jain JMD clarified that that number is done and about 1,500 people were added.<\/li>\n<\/ul>\n<ul>\n<li>[00:12:34] Kunal Dhamesha of Macquarie also asked if RM addition is done why there is no increase in employee expenses. Ajit Kumar Jain JMD said that last financial year, business growth was significantly higher, and incentive payments were higher than normal. This year, the overall growth numbers are lower, so incentive payments are also lower.<\/li>\n<\/ul>\n<ul>\n<li>[00:13:36] \u00a0Kunal Dhamesha of Macquarie queried what are the major drivers of a 650 bp compression in margins over 9 months, and which of them would be reversing over the next year. Ajit Kumar Jain JMD answered that material costs have gone up by 0.89%, personnel costs by 0.72%, manufacturing expenses by 4%, and analytical costs significantly. These costs are expected to come down in the future due to higher productivity additions and material cost softening. This should improve margins overall.<\/li>\n<\/ul>\n<ul>\n<li>[00:18:28] Kunal Dhamesha of Macquarie asked about a broad range of EBITDA margin outlook for next year. Ajit Kumar Jain JMD replied that it could remain in the range of around 21%.<\/li>\n<\/ul>\n<ul>\n<li>[00:22:10] Cyndrella Carvalho at JM Financials asked about the India domestic business, if there\u2019s any other franchise impacting overall growth other than Zerodol. Ajit Kumar Jain JMD replied that the Cardiovascular business is growing at around 4%, while the Antibacterial segment has declined by INR10 crore. The CNS and Cough &amp; Cold businesses have grown by 18% and 10%, respectively, while the Derma, Neuro, and Ophthalmology portfolios are growing by 18%, 13%, and 17%, respectively. Neuro therapies are also doing very well.<\/li>\n<\/ul>\n<ul>\n<li>[00:24:09] Cyndrella Carvalho at JM Financials asked about the strategy to gain higher share and faster growth in the Cardio, Diabetes segment. Ajit Kumar Jain JMD said the company has had good success in the past few years with its CTD range and have added two new divisions to Cardiovasculars. Due to the addition of people, there was a lower 4% growth but with the addition of these two marketing divisions and products, the company is expecting higher growth in the future.<\/li>\n<\/ul>\n<ul>\n<li>[00:25:02] Dheeresh Pathak of White Oak Capital enquired about the FY22 sales of Cardio, Diabetes and Antimalarial in the domestic business. Harish Kamath replied that Antimalarial comprised 5% of the domestic business last year and Cardiovascular and Anti-diabetes was 17%, for a total of 22%. The Cardiovascular and Anti-diabetic portfolio is growing at 4%, but the Antimalarial portfolio is de-growing at 35%.<\/li>\n<\/ul>\n<ul>\n<li>[00:30:19] Amit Kadam from Canara Robeco enquired that ex-API, if GMs have done better sequentially. Ajit Kumar Jain JMD clarified that excluding API business, IPCALAB\u2019s GM has grown.<\/li>\n<\/ul>\n<ul>\n<li>[00:30:45] \u00a0Amit Kadam from Canara Robeco asked what the prices are for the overall API basket and export outlook. Ajit Kumar Jain JMD said that in RoW markets, for the first nine months, the branded promotional market grew 11%, and in 3Q it delivered a 17% growth. The fourth quarter is expected to bring even more significant growth and for the whole of the year the growth is expected to be around 15-16%. For the Institutional Generic business, the revenue is expected to remain between INR325 crore to INR350 crore.<\/li>\n<\/ul>\n<ul>\n<li>[00:38:40] Surya Patra at Phillip Capital India asked about the promotional spend during the first 9 month period. Ajit Kumar Jain JMD replied that it\u2019s almost around 40-45% that has moved up compared to last year. And these numbers would remain at same level in next year.<\/li>\n<\/ul>\n<ul>\n<li>[00:39:31] Surya Patra at Phillip Capital queried about any update on the new process about the sartans after impurities issues. Ajit Kumar Jain JMD said IPCALAB are back on normal business, both Valsartan as well as Losartan. There are no pending issues.<\/li>\n<\/ul>\n<ul>\n<li>[00:40:04] Surya Patra of Phillip Capital asked about any update on the Dewas, Nagpur site. Ajit Kumar Jain JMD said that two months back, IPCALAB got the final clearance from the govt. on the environment side.<\/li>\n<\/ul>\n<ul>\n<li>[00:49:23] Nikhil from SIMPL asked if IPCALAB can maintain its 24-25% EBITDA margin in the long run, despite the cost pressures experienced earlier. Ajit Kumar Jain JMD replied that Margins were good for the past two years, but have been negatively impacted this year by increasing people and energy costs, as well as increased material costs. Going forward, margins should improve with increasing productivity and more cost-effective materials.<\/li>\n<\/ul>\n<ul>\n<li>[00:52:09] Nikhil from SIMPL asked about capex guidance for next year. Ajit Kumar Jain JMD replied that INR200 crore is the depreciation and maybe INR400-500 crore level will be the total capex annually, including routine maintenance capex.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from IPCA Laboratories Ltd (IPCALAB) Q3 FY23 Earnings Concall Q&amp;A Highlights: [00:11:51] Kunal Dhamesha of Macquarie asked if IPCALAB is done with the MR addition and if the incremental cost is already baked into 3Q number. Ajit Kumar Jain JMD clarified that that number is done and about 1,500 people were added. [00:12:34] [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"IPCA Laboratories Ltd Q3 FY23 Earnings Conference Call Insights #IPCALAB #Q3 #FY23 #Earnings #Stocks","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,5747],"tags":[10169,1115],"class_list":["post-142631","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-healthcare-stocks","tag-earnings","tag-pharmaceuticals"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":142163,"url":"https:\/\/alphastreet.com\/india\/ipca-laboratories-ltd-ipcalab-q3-fy23-earnings-concall-transcript\/","url_meta":{"origin":142631,"position":0},"title":"IPCA Laboratories Ltd (IPCALAB) Q3 FY23 Earnings Concall Transcript","author":"IRS_INDIA","date":"February 17, 2023","format":false,"excerpt":"IPCA Laboratories Ltd (NSE:IPCALAB) Q3 FY23 Earnings Concall dated Feb. 16, 2023. Corporate Participants: Ajit Kumar Jain\u00a0--\u00a0Joint Managing Director Harish Kamath\u00a0--\u00a0Corporate Counsel and Company Secretary Analysts: Nitin Agarwal\u00a0--\u00a0DAM Capital Advisors Limited -- Analyst Kunal Dhamesha\u00a0--\u00a0Macquarie Group Limited -- Analyst Cyndrella Carvalho\u00a0--\u00a0JM Financial Ltd. -- Analyst Dheeresh Pathak\u00a0--\u00a0WhiteOak Capital Management --\u2026","rel":"","context":"In &quot;Earnings Call Transcripts&quot;","block_context":{"text":"Earnings Call Transcripts","link":"https:\/\/alphastreet.com\/india\/category\/transcripts\/"},"img":{"alt_text":"Earnings Conference Call Transcript","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":141513,"url":"https:\/\/alphastreet.com\/india\/ipca-laboratories-limited-q3-fy23-revenue-increased-to-%e2%82%b91546-crore\/","url_meta":{"origin":142631,"position":1},"title":"Ipca Laboratories Limited Q3 FY23; Revenue Increased To \u20b91,546 Crore","author":"Hardik Bhandare","date":"February 14, 2023","format":false,"excerpt":"Ipca Laboratories Limited (NSE: IPCALAB) reported Revenue from Operations for Q3 FY23 of \u20b91,546 Crore up from \u20b91,430.47 Crore year on year, a growth of 8%. The Consolidated Net Profit of \u20b9107.84 Crore, down 45% from \u20b9196.96 Crore in the same quarter of the previous year. The Earnings per Share\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/e8559177-a2aa-442a-9229-39ca4bebdf96-scaled.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/e8559177-a2aa-442a-9229-39ca4bebdf96-scaled.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/e8559177-a2aa-442a-9229-39ca4bebdf96-scaled.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/e8559177-a2aa-442a-9229-39ca4bebdf96-scaled.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/e8559177-a2aa-442a-9229-39ca4bebdf96-scaled.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/e8559177-a2aa-442a-9229-39ca4bebdf96-scaled.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":131835,"url":"https:\/\/alphastreet.com\/india\/sun-pharmaceutical-industries-ltd-q1-fy23-earnings-conference-call-insights\/","url_meta":{"origin":142631,"position":2},"title":"Sun Pharmaceutical Industries Ltd Q1 FY23 Earnings Conference Call Insights","author":"Praveen","date":"August 1, 2022","format":false,"excerpt":"Key highlights from Sun Pharmaceutical Industries Ltd (SUNPHARMA) Q1 FY23 Earnings Concall Management Update: SUNPHARMA recorded the highest ever quarterly revenue in 1Q23, with sales increasing 14% YonY, excluding the contribution of 1Q22. SUNPHARMA\u2019s current generic pipeline for the US includes 89 ANDAs and 13 NDAs awaiting approval with the\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":135122,"url":"https:\/\/alphastreet.com\/india\/torrent-pharmaceuticals-ltd-q2-fy23-earnings-conference-call-insights\/","url_meta":{"origin":142631,"position":3},"title":"Torrent Pharmaceuticals Ltd Q2 FY23 Earnings Conference Call Insights","author":"Praveen","date":"October 25, 2022","format":false,"excerpt":"Key highlights from Torrent Pharmaceuticals Ltd (TORNTPHARM) Q2 FY23 Earnings Concall \u00a0Q&A Highlights: [00:06:41]Damayanti Kerai from HSBC asked about split of India business growth in 2Q in terms of \u00a0price, volume and new launches. Sudhir Menon CFO replied that the company had 19% growth and the breakup of 19% is\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":142932,"url":"https:\/\/alphastreet.com\/india\/earnings-summary-of-ipca-laboratories-limited-for-q3-fy23\/","url_meta":{"origin":142631,"position":4},"title":"Earnings Summary Of IPCA Laboratories Limited For Q3 FY23","author":"Hardik Bhandare","date":"February 27, 2023","format":false,"excerpt":"Ipca Laboratories (NSE: IPCALAB) is a leading pharmaceutical company in India that produces and markets a broad range of prescription and non-prescription drugs, APIs (Active Pharmaceutical Ingredients), and intermediates. The company was founded in 1949 and is headquartered in Mumbai, India. It has a global presence with operations in over\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":136169,"url":"https:\/\/alphastreet.com\/india\/cipla-limited-q2-fy23-earnings-conference-call-insights\/","url_meta":{"origin":142631,"position":5},"title":"Cipla Limited Q2 FY23 Earnings Conference Call Insights","author":"Praveen","date":"November 9, 2022","format":false,"excerpt":"Key highlights from Cipla Limited (CIPLA) Q2 FY23 Earnings Concall Management Update: [00:02:21] CIPLA reported the highest quarterly revenue historically of INR5,829 crores. Q&A Highlights: [00:18:50] Tushar Manudhane from Motilal Oswal asked about the outlook for 2H23 on the GM front and if there is any revision in the EBITDA\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/142631","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=142631"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/142631\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/125416"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=142631"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=142631"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=142631"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}