Q3FY22 Results: Robust performance continues

Revenues grew 18.9% YoY to Rs 326.2 crore mainly on the back of the company’s unique end to end business model in Latin America. EBITDA margins were steady YoY at 31% while EBITDA grew 20.3% YoY to Rs 101 crore. Adjusted PAT grew 16.3% YoY to Rs 75 crore

Caplin’s core business in Latin America and Africa delivered strong growth amid challenging landscape in logistics while Caplin Steriles 9MFY22 sales has overtaken FY21 revenues and has set a target of US $ 100 million by CY26 in US. Caplin is undergoing a capex journey of Rs 430-450 crore to expand existing capacities, widen its product portfolio and backward integrate majority of the products. Caplin plans to enter more regulated markets such as Canada, Australia, China, Russia/CIS as well as enter the bigger LatAm markets of Mexico and Brazil in the near to medium term horizon

Q3FY22 Earnings Conference Call highlights 

The management guided for the company’s plan to enter six major markets of US, Mexico, Brazil, Europe, South Africa and CIS countries.

The company is planning an entry into Russia/CIS markets with direct presence model, similar to LatAm. Senior team and product selection for the first phase completed.

Caplin has three ANDAs under review with FDA, likely to be approved within the next two to three quarters. The company plans to file 12 more by end of 2022, of which five are ophthalmic/Otic products and two are Complex Injectable. The company has finalised 2 new distribution partnerships in the US, prior to own front-end in 2023.

Caplin has launched 3 niche injectable products in the domestic market through marketing partner.

Revenue from Distributors channel is 65%, Pharmacy Sales is 20% and Tender business is 15% in Q3FY22

Caplin point has started Phase 2 expansion building for US business which is expected to complete by Q3FY23. Installation ongoing for Pre-Mixed Bags line which is expected to be completed by March 2022. It has completed order for 2 Vials filing lines from Syntegon (Bosch Germany), Pre filled Syringe lines from Steriline (Italy) and Lyophiliser from Tofflon (China), Delivery expected by Q3FY23 while project completion is expected by Q1FY24, with capacities to expand by 3x. Total outlay is expected at Rs 200 crore

In oncology segment civil completion ongoing, process equipment ordering completed and will be available for trials by end August 2022. First batch is targeted within nine months. Total outlay is expected at Rs 130 crore

The company targets being backward integrated with own APIs for 70% of all filings in US by 2024, a critical differentiator for generic injectable. Total outlay is expected at Rs 100 crore

API Plant of the company is going to be used for captive consumption thereby attaining backward integration, though the company is not going to backward integrate for all products