- Revenues for the quarter were ₹122 Cr (43.5% growth YoY). Gross profit margins have increased from 61% in Q3 FY21 to 66% in Q3 FY22. EBITDA stood at ₹43 Cr(43% growth YoY) and EBITDA margins increased from 35% in Q3 FY21 to 36% inQ3 FY22.
- The EBITDA margins have dipped slightly YoY for the 9 month period due to new product introductions that are more focused on the semi-regulated markets.
- Supriya sells 38 API focused on the diverse therapeutic segments, along with being the largest exporter of Chlorphenamine Maleate, Salbutamol Sulphate, Ketamine Hydrochloride and Esketamine from India. Supriya Lifescience is a pioneer in segments like antihistamine, analgesic, anesthetic, vitamin and antiasthmatic and anti-allergic.
- They have a state-of-the-art modern manufacturing facility at Parshuram Lote, spread across 23,806 square meters with a capacity of 547 KLPD, which is combined with advanced R&D capabilities.
- They are always focused more on penetration into regulated markets. Hence, the current site is three times USFDA approved, European authority approved, as well as Health Canada approved.
- 77% of the total revenue is generated from exports and about 23% domestic. The 77% is also spread across almost 86-countries and different geographies like Latin America, Southeast Asia, North America and Europe(which is the strongest regulated market for them).
- They control a large percentage of exports from India for the top three products that they manufacture which are Chlorphenamine Maleate, Ketamine, Hydrochloride, and Salbutamol Sulphate. Chlorphenamine Maleate is about 45% to 50%, Ketamine is 50% to 65%, and Salbutamol Sulphate is about 30% to 40%.
- They have backward integration for the top 12 products which they produce that contribute 67% of total revenues i.e they do not buy any advanced intermediates from outside and manufacture all the APIs mostly from the basic stage because they do not want to rely on external parties. They have not faced any supply chain disruptions thus far.
- They are focused on increased penetration in the regulated markets. The contribution from regulated markets to revenues was 38% in FY21 which has increased to 47% in the 9M FY22.
- They have four manufacturing blocks in operation with seven clean rooms for isolation of the final products. The total reactor capacity is 547 kilolitres. Capacity utilization has grown from 52% in FY18 to 71% in FY 21. They have recently added one more production block in the first quarter of FY22.
- They can handle complex chemistries involving processes such as Grignard Reaction and High Pressure Reaction. They have completely backward integrated operations in the narcotics portfolio. They have molecules which are photosensitive and which require very careful handling under controlled conditions. They also handle very temperature sensitive molecules.
- Q3 was a phenomenal quarter for anesthetic therapies, anti asthma and vitamins. These three therapies have done exceedingly well. Anesthetics has gone up from ₹21 Cr in Q3 FY21 to almost ₹72 crores in Q3 FY22. That has been a phenomenal growth and jump in the vitamin as well as the anti-seminal therapies. There has been a phenomenal growth in Germany and Latin American sales.
- Historically, Q2 and Q4 have been the best performing and will continue to be so at least for the next couple of years, till they have more products in the pipeline which are able to cater to different markets which will enable them to balance out quarterly ups and downs.
- Top 3 products contributed to 35% of revenues for Q3. Regulated markets contributed to 44% of revenues.
- They are in the early stages of the CDMO business. They currently have 4 projects at various stages. First one is in the early supply for registrations. They are in the final stages of development for the second. In the third project, they are in early lab development. And the fourth one they have to initiate development in the lab. The activity is picking up and CDMO business is such that there is typically a slow start. And it takes about two to three years to realize significant commercial benefits.
- They will be replacing their older manufacturing blocks with newer ones to modernize the infrastructure which will bring in 150 cubic meters of incremental capacity in the first phase and 600 cubic meters capacity in the second phase. So they are looking to double their capacity in the next 3-4 years. Capex for the first phase in FY23 will be around ₹55 Cr.