Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Dishman Carbogen Amcis Ltd (BOM:540701, Financial) reported its highest-ever quarterly revenue of INR789 crores, driven by increased commercial revenues from Carbogen Amcis and India.
- The company's new facility in France has been fully validated and is operational, securing a significant contract with a German customer, contributing to a total order value above EUR 10 million.
- The India CRAMS business showed a growth of 37% compared to the previous year, indicating strong demand and increased order book from existing and new customers.
- The company is finalizing digitalization efforts, aiming for an operational go-live of the SAP software in the next fiscal year, which is expected to enhance efficiency and profitability.
- Dishman Carbogen Amcis Ltd (BOM:540701) is on track to achieve its revenue target of CHF255 million for the year, with expectations of increased profitability in the next fiscal year.
Negative Points
- The company is experiencing a slowdown in capturing new business due to delayed investments in biotech funding, particularly in the U.S., impacting the development project pipeline.
- The cholesterol and Vitamin D analog business in the Dutch facility saw a decline in revenue due to lower sales, and the market remains challenging post-COVID.
- The French facility reported an EBITDA loss in the first half of the year, although it is expected to reduce in the second half, indicating ongoing financial challenges.
- Employee expenses have been impacted by adverse foreign exchange movements, particularly due to costs denominated in Swiss francs.
- The company's net debt has increased due to higher working capital requirements, and while a reduction is expected by year-end, it remains a concern.
Q & A Highlights
Q: The order book for Carbogen Amcis has reduced significantly. Is this a temporary issue, and how is the pipeline for early-stage projects?
A: Pascal Villemagne, CEO: The decrease is due to a slowdown in capturing new projects, particularly in the U.S. biotech sector. However, the commercial pipeline remains stable, and we expect to capture new projects soon, regaining a high level in the pipeline.
Q: Are you on track to achieve the CHF 255 million revenue target for Carbogen Amcis in FY25?
A: Pascal Villemagne, CEO: Yes, we are on track to achieve the CHF 255 million target for Carbogen Amcis.
Q: When do you expect the Bavla business to reach a run rate of INR 70-80 crore per quarter?
A: Harshil Dalal, CFO: We expect the Bavla business to achieve this run rate by Q4 of the current financial year or Q1 of the next financial year.
Q: Is the French facility now breaking even, and what are the operational expectations?
A: Harshil Dalal, CFO: The French facility had an EBITDA loss of about EUR 4 million in the first half but is expected to reduce this loss to EUR 1.5 million in the second half. We anticipate it will break even and become EBITDA positive in the next financial year.
Q: Are you seeing increased inquiries from the U.S. for CRAMS projects post-election?
A: Pascal Villemagne, CEO: Yes, we have started seeing changes and expect the market to pick up, especially in the first quarter of 2025, as venture capitalists reinforce their investments.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
