Caplin Point Laboratories

“It's all from the internal cash flow, which means, suppose if it's slightly delayed, we don't have much to worry about.”

“Once we complete our all-regulated market factories with all kinds of pharmaceutical formulation in two to two and a half years from now, as I told you, we are sure to reach great heights.”

“We are increasing our sterile manufacturing capacity, we have already expanded into oncology, we are developing API capabilities to increase backward integration, and we are expanding our oral solids and dermatology capabilities also.”

“Soon enough, we are also planning to build manufacturing capabilities closer to the market in Mexico. We are also investing in the expansion of Amaris Clinical for a larger number of BE studies for our growing portfolio of products.”

“Then, for ophthalmic products, we have an ophthalmic machine which we are going to import from Germany.”

“Yes, it will start from 1.5 years to 3 years.”

“Our current challenge is not a lack of orders but a lack of capacity in our two major factories, which are CP1 in Pondicherry and the CSL in Gummidipundi.”

“So when we go for the Phase 3, we will not use all 7 lines; we'll start with 3 lines. And we will move all the aseptic processes to the aseptic line, where it will be with an isolator, which means the aseptic practices will be totally eliminated, because isolator lines don't require aseptic practices.”

“But for the last three or four lines, we'll have to take a call closer to the commercialization of the existing ones.”

“And I'm not even taking into account any of the capacity requirements that we will need when we get into full-scale operations in Brazil and Mexico also. So we don't think this is overexpansion by any means, or anything like that.”

“The LatAm business recorded strong growth, supported by a major tender won in El Salvador and mostly supplied in the last quarter.”

“US revenue growth was predominantly driven by the US subsidiary, which Mr. Vivek mentioned, where revenue increased from INR 14.4 crores in the previous year to INR 43.7 crores which is about a three-fold increase”

“However, we will focus more on private market where there is less competition for generics from India and China.”

“we are also expanding the addressable opportunity through new areas such as the oncology segment, branded generics, and new markets such as Chile and Mexico.”

“Coming to Mexico, we have a substantial pipeline of our internally developed products and also in-licensed products planned for filing.”

“See, now out of 7 lines that we have here today, we find it very difficult to handle the orders that are coming to us.”

“From the commercial side, if you see, we are actually booked out till almost February of next year.”

“So even in US, 70% may be controlled by three top companies, but there is 30%. We'll look at the 30%.”

“US contributed approximately INR 25 crores of the total INR 50 crores increase in the gross profit.”

“Operating expenses increased in absolute terms from INR 137 crores to INR 151 crores. However, as a percentage of revenue, they declined from 25.7% to 23.6%. This improvement in operating efficiency more than offset the movement in gross margin resulting in an increase in EBITDA margin from 37.7% to 38.4%.”

“So that 1% or 0.5% is not going to keep declining on a year-on-year or quarter-on-quarter basis. It might even improve.”

“And then the second most important thing is our expenses also slightly increasing in these places, because the products that we've been marketing, is more of generic”

“Just to give you an idea, if we did bio studies at an external BE center, something that costs us around USD 100,000 per study, at Amaris it will cost around 50% of that.”

“Cash flow from operations is expected to improve from the current INR 95 crores reported for the quarter.”

“This is primarily due to a conscious decision to increase warehouse stock from INR 429 crores in March to INR 505 crores, an increase of about INR 76 crores”

“Additionally, to shield against potential increases in raw material prices arising from escalating oil fluctuations, we have increased our RM & PM inventory by INR 15 crores.”

“And apart from that the receivables also have gone up by about INR 46 crores as compared to March, primarily due to supplies to government in the quarter and then these are all expected to be received by Q3 FY27.”

“So, these increases are not likely to repeat in the same quantum going forward from Q2 onwards, so the entire profits will flow into the CFO.”

“We now plan to buy a distribution company in Mexico which will make our job easier to understand the product selection and customer identification.”

“We are moving from a manufacturer-to-customer model towards a customer-proximity inventory model by planning to buy registrations in the bigger geographies too.”

“Yes, there are opportunities, like 3 to 4 companies, the Vice Chairman of the company Ashok Partheeban has looked at it and of course is going to collect the details and send it to us. After that we'll have to do the due diligence and take a call.”

“If he is selling the local company products, we'll be very keen, we would like to buy even at a little higher cost.”

“So we would like to have the cash at our disposal at any point of time where required.”

“Because if we find a very good opportunity, definitely we would like to put our money into the acquisition if it's meaningful. Otherwise we would like to share this in the form of a dividend as well.”

“In the sense, it is not a major issue in the form of quality, integrity or safety issues, but it leads to breakdowns.”

“So any product that gets converted from current facility to a new one will take about 9 to 10 months for it to start getting commercially operational from there.”

“Probably it'll take some more time because starting a generic factory in the US will not be cost-effective.”

“Definitely there will be opportunities when we go for our own factories in various bigger geographies.”

“Overall revenue grew by 20% supported by 18% growth in our conventional market and more importantly 26% growth in the US market.”

“PBT grew by 22.1%, from INR 184.5 crores to INR 225.2 crores.”

“PAT stood at INR 179 crores representing a 19% increase over the previous year.”

“in fact, for CSL, we have completed 80% to 90% of it, and in the next 6 months it will become paperless.”

“We have also introduced AI cameras, and we are planning to move to digital twins, maybe in one or two years from now”