{"id":156403,"date":"2023-11-17T10:30:26","date_gmt":"2023-11-17T15:30:26","guid":{"rendered":"https:\/\/44.250.171.167\/?p=156403"},"modified":"2023-11-17T10:30:28","modified_gmt":"2023-11-17T15:30:28","slug":"gufic-biosciences-limited-q2-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/gufic-biosciences-limited-q2-fy24-earnings-conference-call-insights\/","title":{"rendered":"Gufic Biosciences Limited Q2 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Gufic Biosciences Limited (GUFICBIO) Q2 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>New Product Launches and Approvals<\/strong>\n<ul>\n<li>Launched new products like Dalbavancin and SeraSeal across divisions.<\/li>\n<li>The company received regulatory approvals for products in markets like Sri Lanka, Chile, Malaysia, Australia and Brazil.<\/li>\n<li>Expecting approvals for Immunocin-Alpha and dual-chamber bags with Meropenam in Q3.<\/li>\n<li>Antifungal drug targets INR500-600 crores existing market.<\/li>\n<li>HMG used in IVF is INR200-300 crores market and goal is to improve efficacy to gain share from recombinant FSH.<\/li>\n<li>New drug delivery systems being developed for pain management.<\/li>\n<\/ul>\n<\/li>\n<li><strong>R&amp;D Achievements<\/strong>\n<ul>\n<li>Gufic&#8217;s R&amp;D team developed an anti-fungal product that eliminates cold-chain handling, making it accessible to remote healthcare centers in India.<\/li>\n<li>The company is working on recombinant alternatives for critical hormones to become self-reliant in supply.<\/li>\n<li>Concluded trials using Thymosin Alpha 1 to treat endometriosis and recurring implantation failure with positive results.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Sales and Distribution Expansion<\/strong>\n<ul>\n<li>Gufic is doing business with nearly 1000 hospitals under its Sparsh division and has presence in 12 states.<\/li>\n<li>The company has reached 60% of IVF centers in India through its Ferticare division.<\/li>\n<li>Gufic set up a neurology team targeting critical neurology segment for its brand Zarbot.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Financial Performance<\/strong>\n<ul>\n<li>Reported total revenue of INR215.2 crores in Q2 FY 2324, up from INR175.7 crores in Q2 FY 2323.<\/li>\n<li>PAT grew to INR23.2 crores in Q2 FY 2324 compared to INR20.2 crores in Q2 FY 2323.<\/li>\n<li>For 1H, total revenue rose to INR410.8 crores and profit after tax increased to INR43.8 crores.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Sparsh Division Growth<\/strong>\n<ul>\n<li>Sparsh currently generates around INR3 crores per month in revenue with 6-7 lakhs per capita per month.<\/li>\n<li>The company aims to reach INR10 lakhs per capita per month, which would justify adding more sales personnel.<\/li>\n<li>Gufic targets reaching INR6-7 crores per month in revenue from Sparsh by end of this financial year.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Internationalization Strategy<\/strong>\n<ul>\n<li>Gufic steadily builds presence across regulated and semi-regulated markets.<\/li>\n<li>Currently has 200 registered products in over 40 countries.<\/li>\n<li>The company has over 150 products in pipeline for registration in international markets.<\/li>\n<li>Takes targeted approach for product registration based on market attractiveness.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Arisia Clinics Strategy<\/strong>\n<ul>\n<li>Arisia clinics meant as training centers and knowledge hubs for doctors.<\/li>\n<li>Goal is to sell products like Botulinum Toxin, fillers and other aesthetics.<\/li>\n<li>Aims to expand doctor base beyond metros into tier 2 cities for wider reach.<\/li>\n<li>Will open more clinics as knowledge centers, not as profit centers.<\/li>\n<\/ul>\n<\/li>\n<li><strong>New Indore Facility<\/strong>\n<ul>\n<li>Existing Navsari facility expected to hit full capacity by mid-2024.<\/li>\n<li>New facility needed to meet demand as injectables market expands in India.<\/li>\n<li>Gestation period required for approvals so facility needs to be ready in advance.<\/li>\n<li>Will help expand capacity and access new geographies with sophisticated products.<\/li>\n<li>Expect gradual ramp up over 2-3 years from 25% to 70% utilization.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Growth Drivers and\u00a0<\/strong><b>Comparison<\/b>\n<ul>\n<li>Domestic market driving more growth compared to exports.<\/li>\n<li>New products like Dydrogesterone and Polmacoxib contributing.<\/li>\n<li>Sparsh acquisition added inorganic growth domestically.<\/li>\n<li>Critical care and infertility segments saw expansion.<\/li>\n<li>Domestic growth higher than exports currently.<\/li>\n<li>Exports to regulated markets already at capacity.<\/li>\n<li>Domestic growth is 6-6.5X while exports is 4-4.5X.<\/li>\n<li>New facility needed to expand export capacity.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Debt Repayment Plans<\/strong>\n<ul>\n<li>99 crores raised via preferential allotment to be used.<\/li>\n<li>50% to repay term loans, 50% to reduce cash credit limits.<\/li>\n<li>Term loan repayment avoids prepayment charges.<\/li>\n<li>Reduced debt to reflect in March balance sheet.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Working Capital Management<\/strong>\n<ul>\n<li>Conscious trade-off between margins and working capital.<\/li>\n<li>Direct hospital billing avoids leakage despite long cycle.<\/li>\n<li>Optimizing inventory levels considering production cycles.<\/li>\n<li>Exploring ways to reduce contract manufacturing cycles.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Gufic Biosciences Limited (GUFICBIO) Q2 FY24 Earnings Concall New Product Launches and Approvals Launched new products like Dalbavancin and SeraSeal across divisions. The company received regulatory approvals for products in markets like Sri Lanka, Chile, Malaysia, Australia and Brazil. Expecting approvals for Immunocin-Alpha and dual-chamber bags with Meropenam in Q3. Antifungal drug [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","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-156403","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\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":128245,"url":"https:\/\/alphastreet.com\/india\/gufic-biosciences-limited-q3-fy22-earnings-conference-call-insights\/","url_meta":{"origin":156403,"position":0},"title":"Gufic Biosciences Limited Q3 FY22 Earnings Conference Call Insights","author":"Praveen","date":"March 14, 2022","format":false,"excerpt":"https:\/\/youtu.be\/f3tlyxhD91U Key highlights from Gufic Biosciences Limited (GUFICBIO) Q3 FY22 Earnings Concall Management Update: In CDMO, GUFICBIO said it\u2019s looking at a 9.4 million vials capacity per month which should make the company the largest manufacturer in the world. Q&A Highlights: Umang Shah from Sarath Capital AIF asked that 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":153038,"url":"https:\/\/alphastreet.com\/india\/gufic-biosciences-ltd-q1fy24-18-rise-in-revenue\/","url_meta":{"origin":156403,"position":1},"title":"Gufic BioSciences Ltd Q1FY24; 18% rise in Revenue","author":"Hardik Bhandare","date":"August 11, 2023","format":false,"excerpt":"Gufic Biosciences Limited is engaged in the manufacture of pharmaceuticals, medicinal chemicals and botanical products. 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Total Expenses for Q1FY24 of \u20b9168.00 Crores up from \u20b9137.00 Crores year\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\/08\/image-787.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/08\/image-787.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/08\/image-787.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/08\/image-787.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/08\/image-787.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/08\/image-787.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":156834,"url":"https:\/\/alphastreet.com\/india\/gufic-biosciences-ltd-q2fy24-15-rise-in-profits\/","url_meta":{"origin":156403,"position":2},"title":"Gufic BioSciences Ltd Q2FY24; 15% rise in Profits","author":"Hardik Bhandare","date":"November 29, 2023","format":false,"excerpt":"Gufic Biosciences Limited is engaged in the manufacture of pharmaceuticals, medicinal chemicals and botanical products. 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Pranav Chokshi CEO answered that GUFICBIO is currently following certain animal models as per the regulatory pathway. 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