Conference Call with Caplin Point Labs Management and Analysts on Q4FY20 and Full Year Earnings Performance and Outlook. Listen to the full earnings transcript.
Key Highlights from Management
Top line growth of 35.47% at Rs. 904.5 crore in FY20 on a higher base of Rs. 668 Cr last year. Caplin Steriles Ltd (CSL), the company’s subsidiary operating in the Regulated markets (US), injectable business delivered a strong 3.5x revenue growth during its first full year of commercial operations, contributing 8% to the operating revenues for the year
Operating Revenue at Rs. 65 crore in FY 20 Vs Rs. 18.7 crore last year, while EBITDA crossed the Rs.300 crore mark in FY20 with a strong growth of 20.4%
Contribution margin is at 52% in current year. The marginal temporary reduction in gross margin level vis-à-vis- last year is on account of a) company has exported certain Covid-19 related items at Zero Margin to key markets as part of its humanitarian efforts during the crisis b) Sale of products from pre-acquisition inventory in its subsidiaries.
With continued focus on R&D, Company has not only increased activities in current areas of focus but also commissioned DGCI approved CRO facility and Captive API Development KiloLab to facilitate back ward integration.
R&D Opex increased by Rs 24.8 crore, by more than 90% during the year (from Rs 28.2 cr in FY 19 to Rs.53 cr in FY20). PBT grew by Rs. 42.59 cr (Rs. 226.87 cr to Rs. 269.46 cr), and growth of 19% over the previous year. PBT margin is at 30%.
PAT registered a growth of INR 38.53 cr (22%) over previous year. EPS grew by 22% from Rs. 23.35 to Rs. 28.42 ? Company’s Capex in (Non-R&D) Fixed Assets is close to Rs. 37 cr. ROE at 28% and RoCE at 36% on a significantly higher base of >Rs. 310 cr compared to last financial year (70% increase in Base).
Inventory at the year-end (including in-transit inventory) stood at Rs 238 cr primarily on account of Inventory at warehouses of subsidiaries which were acquired during the year. This equates to around 3-4 months of sales, which we believe gives us the strength to serve the customers more efficiently and pave for growth through our unique Stock and Sale model.
Cash & Cash equivalents at Rs. 284 cr in FY20, an increase of Rs 61 cr over previous year’s balance of Rs 223 cr. This has since increased to around Rs. 343 cr as on June 17th, 2020. Despite growth of over 35% in Operational Revenue, Receivables were at 95 days compared to 89 days in previous year. Out of the Rs. 229 cr of receivables as on March 31st, 70% has since been collected as on June 17th, 2020.