PLI Scheme, BAL Pharma, a fully integrated pharmaceutical company specializing in Bulk Actives, Prescription Drugs, Generics and pharma intermediates, has announced its results for the quarter and nine months ended 31st December 2021.
The Company maintained its strong momentum and has delivered an all-around performance for 9MFY22, with Revenue registering a growth of 16% YoY and PAT growing by 23% for 9MFY22. Companies API’s business has been witnessing strong momentum, which is driving overall growth. Company standalone business represents majority of its overall business
Financial Highlights- H1FY22
Revenue- Strong contribution from API business led to Revenue growth of 16% YoY for 9MFY22. Such overall Revenue growth was on account of non-covid therapeutic segments and robust demand both in domestic and international markets. Various APIs like Gliclazide, Ebastine, and Benzydamine has been witnessing strong growth momentum. Export : Domestic mix for 9MFY22 stood at 69:31 versus 64:36 in 9MFY21. Expanding existing API products into newer geographies of South America, Africa, and Europe aided such Revenue growth. EBITDA increased by 7% YoY to INR 223 mn in 9M FY22. EBITDA margins remained stable at 10.6%; although bottlenecks in supply chain logistics have been gradually reducing, higher freight rates and higher Raw material costs kept EBITDA margin under check. The company was able to partly mitigate these costs inflation and is expected to pass on the costs gradually over the period of time. PAT increased by 23% YoY to INR 58 mn in 9MFY22. Better operating leverage and lower overheads led to an overall increase in PAT. The company has efficiently managed its debt portfolio in 9MFY22, which resulted in lower interest costs – down by 10% YoY in 9MFY22 and by 18% YoY in Q3FY22.
API Business: API constitutes 59% of Total Revenue
API segment revenue reported an increase of 35% YoY to INR 1219.8 mn in 9MFY22. The share of API in total revenue increased to 59% in 9MFY22 from 51% in 9MFY21. API exports witnessed a robust growth of 70% YoY for 9MFY22; The Company exports its API across various regions, with Ireland, Spain, Slovenia, Indonesia, Japan, Mexico, Turkey, and Bangladesh being the top destinations. Exports: Domestic mix was 68:32 in 9MFY22 versus 54:46 in 9MFY21. Gliclazide being an API used for treating Diabetes has been an important contributor in the company’s earnings. Ebastine and Benzydamine have also been started contributing meaningfully to the overall API’s Revenue.Top 5 APIs contributed nearly 94% of API’s revenue in 9MFY22. The total Order book for API’s remains strong at INR 300 mn as on 9MFY22, API’s such as Alfuzosin for prostate enlargement and Dabigatran for cardiac care are under scale up. Along with this API’s Total 8 products are under development and scale up.
Formulations Business (FDF): Formulation constitutes 41% of Total Revenue
The formulations segment remained marginally subdued at INR 837mn in 9MFY22. However, Domestic Formulations have been witnessing positive momentum and has reported 13% growth YoY. On the domestic front, the company has launched Dapagliflozin under the brand name Dapaten which is an anti-diabetic drug. With this, BAL Pharma further consolidates its market share in Diabetes as a Therapeutic segment Domestic to exports was at 30:70 in 9MFY22 versus 25:75 in 9MFY21. The order book for FDF stands at INR 340 mn as on 9MFY22. The new launches and strengthening the medical representative team in the domestic market would continue the positive trajectory.
PLI Scheme:
The company is also a beneficiary of the Production Linked Incentive scheme 2.0. for the Pharmaceutical Sector under “Atmanirbhar Bharat”. The company has been placed under ‘Category C’ of the said scheme, where in the company is eligible for incentives to the tune of INR 500 mn spread over 5 years. The company’s various products in API and intermediates are eligible for 10% incentives on incremental turnover per annum and Formulations in Anti Diabetic and Cardiovascular diseases are eligible for 5%. The company targets an average incremental annual turnover of INR 1,250 mn p.a from these eligible products. This coincides with the company’s growth plan where in the company was planning capex in these facilities. Thus with no additional capex (over and above Capex planned), such incentives are expected to directly flow into the company’s profits.
Commenting on financial results, Mr. Shailesh Siroya, Managing Director, BAL Pharma said, “The overall financial performance for 9MFY22 has been quite encouraging. On the API front, export markets were quite buoyant and has witnessed significant improvement over previous year. The Company would keep focussing on key therapeutic areas affecting Lifestyle disorders, and Exports are expected to drive the growth momentum going head. The company has expanded its existing API products in various new territories of South America, Africa and Europe.
In view of Covid, It was tactically decided to restrict the export of formulations and concentrate on domestic markets, which has been witnessing encouraging momentum. Further, the company has introduced 15 new products in Asia and Africa which will further diversify our geographical presence. The company has laid out an outlay to improve market share in the domestic formulations market by strengthening the medical representative team and have new product launches over a period of time
Along with these, we believe the PLI scheme introduced by the government will be an add-on to our growth targets and is expected to enhancing the company’s bottom line.
Our Strategy over the medium to long-term remains to focus on API exports and Domestic formulations and simultaneously strengthen our balance sheet as well. Our product opportunities are encouraging, and we expect demand to remain buoyant going ahead in the current fiscal year.”
About BAL Pharma Ltd (BPL)
BAL Pharma Limited (BSE: 524824) (NSE: BAL PHARMA) is a fully integrated pharmaceutical company specializing in Bulk Actives, Prescription Drugs, Generics, and pharma intermediates. Bal Pharma’s focused, therapeutic areas are oncology, diabetes, gastroenterology, and dermatology; The Company is one of the largest producers and exporters of Gliclazide, a medicine to treat type-2 diabetes. Bal Pharma’s niche APIs and FDFs are produced at world-class manufacturing facilities located at Karnataka, Maharashtra, Rajasthan and Uttarakhand. The Company exports APIs to Europe, Australia, Japan, the Far East, Canada, Latin America, Africa, the Middle East and other World markets. Its FDFs are exported to Semi-regulated, Non-regulated markets, and select regulated market, besides having a robust domestic presence. Backed by strength in Research and Development and strong infrastructure, Bal Pharma is poised to become a significant company in the pharmaceutical industry.
Forward-Looking Statement:
