IPCALABNSEQ4 FY25June 2, 2025

IPCA Laboratories Limited

14,850words
131turns
11analyst exchanges
3executives
Management on call
Ajit Jit Kumar Jain
MANAGING DIRECTOR
Harish Ompany Secretary
IPCA LABORATORIES COMPANY ABORATORIES IMITED LIMITED
Nitin Itin Agarwal
DAM CAPITAL ADVISORS DVISORS LIMITED IMITED
Key numbers — 40 extracted
11%
ur own judgment on information given during the call. Our domestic business ed a growth of around 11%. And overall, for the whole of the year, it has for Q4 has delivered a growth of around 11%. And o
12%
of around 11%. And overall, for the whole of the year, it has for Q4 has deliver delivered around 12% business growth. delivered around 12% business growth. Mid-March '25, Ipca is ranked at the 16th
07%
t share. In last quarter of Q4 also, we have top 20 players. Ipca continued to improve its market 07% from 1.8% in improved our market share by around 9 basis points to almost around 2.07% from 1.8% i
1.8%
In last quarter of Q4 also, we have top 20 players. Ipca continued to improve its market 07% from 1.8% in improved our market share by around 9 basis points to almost around 2.07% from 1.8% in improve
9 basis point
layers. Ipca continued to improve its market 07% from 1.8% in improved our market share by around 9 basis points to almost around 2.07% from 1.8% in improved our market share by around 9 basis points to almost
2.07%
e its market 07% from 1.8% in improved our market share by around 9 basis points to almost around 2.07% from 1.8% in improved our market share by around 9 basis points to almost around 2. March '24. m
8%
ronic segment, we had delivered better growth compared to the market. ll market growth was around 8%, Ipca delivered at a growth of around As per IQVIA, overall market growth was around 8%, Ipca deli
13.2%
IA, overall market growth was around 8%, Ipca delivered at a growth of around As per IQVIA, overa 13.2%. On acute segment, the market growth was 6.9%. Ipca delivered around 10.9%. On 13.2%. On acute seg
6.9%
elivered at a growth of around As per IQVIA, overa 13.2%. On acute segment, the market growth was 6.9%. Ipca delivered around 10.9%. On 13.2%. On acute segment, the market growth was 6.9%. Ipca deliver
10.9%
nd As per IQVIA, overa 13.2%. On acute segment, the market growth was 6.9%. Ipca delivered around 10.9%. On 13.2%. On acute segment, the market growth was 6.9%. Ipca delivered around 10.9%. On 13.2%. O
9.8%
nt, the market growth was 6.9%. Ipca delivered around 10.9%. On chronic, market growth was around 9.8%. Our growth is tracked by IQVIA as 17.9% overall. chronic, market growth was around 9.8%. Our grow
17.9%
ivered around 10.9%. On chronic, market growth was around 9.8%. Our growth is tracked by IQVIA as 17.9% overall. chronic, market growth was around 9.8%. Our growth is tracked by IQVIA as 17.9% overall.
Guidance — 20 items
Ajit Kumar
opening
“Our overall guidance for the year was around 18% kind of consolidated EBITDA margin as Our overall guidance for the year was around 18% kind of consolidated EBITDA margin as Our overall guidance for the year was around 18% kind of consolidated EBITDA margin as hem has delivered against that, we have delivered around 18.94% overall.”
Ajit Kumar
qa
“And I think in current year, we will be shipping almost around shipped in the month of March.”
Surya Narayan Patra
qa
“growth guidance that you have mentioned 10%.”
Surya Narayan Patra
qa
“But the guidance -- growth guidance that you have mentioned 10%.”
Surya Narayan Patra
qa
“But the guidance selling benefit or anything.”
Harish Kamath
qa
“So we feel this year, the growth will be better.”
Harish Kamath
qa
“So we feel this year, the growth will be better.”
Harish Kamath
qa
“It will be injectable and oral facility will also start trial production in the current financial year.”
Harish Kamath
qa
“It will be injectable and oral facility will also start trial production in the current financial year.”
Harish Kamath
qa
“No, no, whatever guidance we gave at the time of acquisition of Unichem, many things are No, no, whatever guidance we gave at the time of acquisition of Unichem, m No, no, whatever guidance we gave at the time of acquisition of Unichem, m work in progress.”
Risks & concerns — 6 flagged
The lower growth for the financial year in generic business is mainly due to decline business.
— Ajit Kumar
The lower growth for the financial year in generic business is mainly due to decline business.
— Ajit Kumar
The lower growth for the financial year in generic business is mainly due to decline , a decline of almost in business in South Africa from INR113 crores to around INR39 crores, a decline of almost in business in South Africa from around 74%, that's mainly on account of the loss of certain tenders in South African market.
— Ajit Kumar
impurity issue in a couple of products and initiated by the Euro And this year, FY '25 numbers are also kind of similarly weak, so like how should one really And this year, FY '25 numbers are also kind of similarly weak, so like how should one really And this year, FY '25 numbers are also kind of similarly weak, so like how should one really and you also mentioned about a couple of this thing contract getting lost think about it?
— Surya Narayan Patra
And sir, any particular reason you would like to highlight where the business with products being shipped but still taking longer is the competition pressure so much that it's a products being shipped but still taking longer is the competition pressure so much that it's a products being shipped but still taking longer is the competition pressure so much that it's a oduct after like after getting into this market after many years.
— Tushar Manudhane
little difficult to push our product after like after getting into this market after many years.
— Tushar Manudhane
Q&A — 11 exchanges
Q
Sir, my first question about the U.S. business potential, see and U.S. business that we would question about the U.S. business potential, see -- and U.S. business that we would have done. So now since we have integrated Unichem fully, so what is the U.S. revenue that have done. So now since we have integrated Unichem fully, so what is the U.S. revenue that have done. So now since we have integrated Unichem fully, so what is the U.S. revenue that we would have reported in the consolidated number for that market? And also, if you can give we would have reported in the consolidated number for tha
Ajit Kumar
As far as Ipca is concerned, U.S. has not made any significant overall contribution to the As far as Ipca is concerned, U.S. has not made any significant overall contribution to the As far as Ipca is concerned, U.S. has not made any significant overall contribution to the alone basis, I think we have shipped goods overall generic business, I think we have stand-alone basis, I think we have shipped goods overall generic business, I think we have stand en in the third and fourth worth around INR65 crores, but most of the shipment has happen in the third and fourth worth around quarter, very smal
Q
My question is again on export market. So if you can talk a bit more about performance in key My question is again on export market. So if you can talk a bit more about performance in key My question is again on export market. So if you can talk a bit more about performance in key a and New Zealand, et cetera, as well as in some branded market. markets like U.S., Australia and New Zealand, et cetera, as well as in some branded market. markets like U.S., Australi And for these markets, specifically the bigger one, like on an overall basis, you mentioned And for these markets, specifically the b
Harish Kamath
As far as the branded formulation business is concerned, we have grown this year by around As far as the branded formulation business is concerned, we have grown this year by around As far as the branded formulation business is concerned, we have grown this year by around 10%. CIS, which is the large branded promotional market, the growth is muted at around 2%. 10%. CIS, which is the large branded promotional market, the growth is muted at around 2%. 10%. CIS, which is the large branded promotional market, the growth is muted at around 2%. l year, we are guiding a growth of around 10% from the
Q
ee a lot of activities are going at the Pithampur facility that has belonged to the Unichem Sir, I see a lot of activities are going at the Pithampur facility that has belonged to the Unichem ee a lot of activities are going at the Pithampur facility that has belonged to the Unichem laboratory, right? So as you already mentioned... laboratory, right? So as you already mentioned...
Harish Kamath
That is API facility. That is API facility. trial production is going to Right. So can you give us a light like are we -- like it is a start -- trial production is going to Right. So can you give us a light like are we start or how it is like it is going to contribute from this year onwards? Or we are looking just start or how it is like it is going to contribute from this year onwards? Or we are looking just start or how it is like it is going to contribute from this year onwards? Or we are looking just the number will be going to contribute next year onwards? the number will be going to cont
Q
So my first question is with respect to the capex. We've spent somewhere about So my first question is with respect to the omewhere about INR775 crores. If you could just throw some light on the breakup of where we spend the amount and crores. If you could just throw some light on the breakup of where we spend the amount and crores. If you could just throw some light on the breakup of where we spend the amount and for the next year, what will be the total capex of our company. for the next year, what will be the total
Harish Kamath
Apart from routine maintenance capex, which will be around INR250 crores, Apart from routine maintenance 0 crores, INR300 crores level. I told you 4 projects are currently under implementation, which will start trial production level. I told you 4 projects are currently under implementation, which will start trial production level. I told you 4 projects are currently under implementation, which will start trial production in the current financial year. in the current financial year. Ipca Laboratories L Okay. And the breakup of what -- where we are spending in. Okay. And the breakup of what So
Q
Sir, you have, I think, around 7,000 marketing reps in India. So which means the PCPM is just Sir, you have, I think, around 7,000 marketing reps in India. So which means the PCPM is just Sir, you have, I think, around 7,000 marketing reps in India. So which means the PCPM is just over 4 lakhs. So with your current portfolio, what do you think will be the optimum PCPM? over 4 lakhs. So with your current portfolio, what do you think will be the optimum over 4 lakhs. So with your current portfolio, what do you think will be the optimum
Harish Kamath
we don't add any PSR in the market, our per See, now the business is growing around 12%. If we don't add any PSR in the market, our per See, now the business is growing around 12%. If man productivity also increased by 12%. But having said that, every year, we add in the man productivity also increased by 12%. But having said that, every year, we add in the man productivity also increased by 12%. But having said that, every year, we add in the normal circumstances, 400 to 500 people just to take care of increase in the medical normal circumstances, 400 to 500 people just to take care of increa
Q
I have more specific questions on Unichem. We've seen the fourth quarter results. Gross I have more specific questions on Unichem. We've seen the fourth quarter results. Gross I have more specific questions on Unichem. We've seen the fourth quarter results. Gross off in these 2 quarters? margin sharply declined from 64% in 3Q to 55%. Was there any one-off in these 2 quarters? margin sharply declined from 64% in 3Q to 55%. Was there any one Or what was the reason for... Or what was the reason for...
Harish Kamath
No, no, it is majorly because of the product mix change. No, no, it is major Okay. I mean, and any specific therapy that we shift -- tilted towards or... Okay. I mean, and any specific therapy that we shift No, no, nothing like that, depending on market situation, market demand, market growth, plus No, no, nothing like that, depending on market situation, market demand, market growth, plus No, no, nothing like that, depending on market situation, market demand, market growth, plus in the therapies some therapies, some products give better margins. Some minuses will happen in the therapies some
Q
spend in FY '25? And Couple of clarification. How much capex have we spent in total capex spend in FY '25? And Couple of clarification. How much how much are you guiding for FY '26, the total number? how much are you guiding for FY '26, the total number?
Ajit Kumar
Currently is around INR400 crores. Currently is around sorry, FY '25 plus FY '26 put together, it will be around So FY '24 plus FY '25 put together -- sorry, FY '25 plus FY '26 put together, it will be around So FY '24 plus FY '25 put together 1,000 crores. INR1,000 crores. 1,000 crores. And how much of that we have already spent in '25? INR1,000 crores. And how much of that we have already spent in '25? 600 crores, we have already spent. Around INR600 crores, we have already spent. So INR400 crores m 400 crores more is expected to be in FY '26? That is correct, yes. That is correct, yes. Okay
Q
Just on this product filings from Ipca side for U.S. market. So the one which you report for FY Just on this product filings from Ipca side for U.S. market. So the one which you report for Just on this product filings from Ipca side for U.S. market. So the one which you report for '26, these are like what refiling of the already approved product for U.S. market or... '26, these are like what refiling of the already approved product for U.S. market or... '26, these are like what refiling of the already approved product for U.S. market or...
Harish Kamath
No, no. They are fresh development, fresh filing Tushar. No, no. They are fresh development, fresh filing Tushar. Understood. So 67 new filing... Understood. So 67 new filing... Everything got over in the last financial year. Everything got over in the Got it. And sir, any particular reason you would like to highlight where the business with Got it. And sir, any particular reason you would like to highlight where the business with Got it. And sir, any particular reason you would like to highlight where the business with products being shipped but still taking longer is the competition pressure
Q
Yes. Sir, this revenue guidance which you gave of 8% to 10% for FY '26, Isn't that a bit Yes. Sir, this revenue guidance which you gave of 8% to 10% for FY '26, Isn't that a bit Yes. Sir, this revenue guidance which you gave of 8% to 10% for FY '26, Isn't that a bit in the domestic business, we are beating market growth by conservative number given that -- in the domestic business, we are beating market growth by conservative num 300, 400 basis points every year. And for the export businesses as well, we have generally 300, 400 basis points every year. And for the export businesses as well, we
Harish Kamath
If you see our business segment and turnover, API grows by 6%, 7%, and all formulation If you see our business segment and turnover, API grows by 6%, 7%, and all formulation If you see our business segment and turnover, API grows by 6%, 7%, and all formulation business, excluding India business grew by around 10% and India grows by around 12%. The business, excluding India business grew by around 10% and India grows by around 1 business, excluding India business grew by around 10% and India grows by around 1 overall growth will be 8% to 10% only. overall growth will be 8% to 10% only. Ipca Lab
Q
Hopefully, we have answered all the questions. I don't think there is anything further to add. Hopefully, we have answered all the questions. I don't think there is anything further to add. Hopefully, we have answered all the questions. I don't think there is anything further to add. nk you very much all the participants. Thank you. Thank you very much all the participants. Thank you.
Management
Q
Thank you. Bye. Thank you. Bye.
Management
Speaking time
Harish Kamath
52
Moderator
12
Shiva
12
Ajit Kumar
10
Damayanti Kerai
10
Rashmi Shetty
7
Dharmil Shah
6
Surya Narayan Patra
5
Kunal Randeria
5
Rahul Jeewani
5
Opening remarks
Nitin Agarwal
Thank you, f. Hi, good afternoon, everyone, and a very warm welcome to Ipca Yusuf. Hi, good afternoon, everyone, and a very warm welcome to Ipca Laboratories Q4 F '25 Earnings Call, hosted by DAM Capital Advisors Limited. On the call Laboratories Q4 F '25 Earnings Call, hosted by DAM Capital Advisors Limited. On the call Laboratories Q4 F '25 Earnings Call, hosted by DAM Capital Advisors Limited. On the call today representing Ipca management, we've got Mr. A.K. Jain, Managing Director; and Mr. today representing Ipca management, we've got Mr. A.K. Jain, Managing Director; and Mr. today representing Ipca management, we've got Mr. A.K. Jain, Managing Director; and Mr. math, Corporate Counsel and Company Secretary. Harish Kamath, Corporate Counsel and Company Secretary. I will hand over the call to Mr. Jain to make the opening comments, and we will open the floor I will hand over the call to Mr. Jain to make the opening comments, and we will open the floor I will hand over the call to Mr
Ajit Kumar
Thanks, Nitin, and DAM Capital Advisors for organizing this call, and welcome to all Thanks, Nitin, and DAM Capital Advisors for organizing this call, and welcome to all Thanks, Nitin, and DAM Capital Advisors for organizing this call, and welcome to all participants. Today's earning call and discussions and answer given may include some participants. Today's earning call and discussions and answer given may include some participants. Today's earning call and discussions and answer given may include some looking statements based on our current business expectation. This must be viewed in looking statements based on our current business expectation. This must be vie forward-looking statements based on our current business expectation. This must be vie conjunction with risks that pharmaceutical business faces. Our actual financial performance conjunction with risks that pharmaceutical business faces. Our actual financial performance conjunction with risks that pharmaceutical business fac
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