- Revenue: INR171 crores in Q4 FY24, a 27% increase year-on-year.
- Gross Margin: 46.8% in Q4 FY24.
- EBITDA: INR36.3 crores in Q4 FY24, a 37% increase year-on-year.
- EBITDA Margin: 21.3% in Q4 FY24, an increase of 160 basis points year-on-year.
- PAT (Profit After Tax): INR19.3 crores in Q4 FY24, a 95% increase year-on-year.
- PAT Margin: 11.3% in Q4 FY24, an increase of 390 basis points year-on-year.
- Cash PAT: INR29.3 crores in Q4 FY24, a 48% increase year-on-year.
- Annual Revenue: INR643.9 crores in FY24, a 6% increase year-on-year.
- Annual EBITDA: INR123.4 crores in FY24, a 28% increase year-on-year.
- Annual EBITDA Margin: 19.2%, an increase of 340 basis points year-on-year.
- Annual PAT: INR57.3 crores in FY24, a 63% increase year-on-year.
- Annual PAT Margin: 8.9%, an increase of 310 basis points year-on-year.
- Annual Cash PAT: INR93 crores in FY24, a 36% increase year-on-year.
- ROCE (Return on Capital Employed): 17.7% as of March 31, 2024.
- ROE (Return on Equity): 14.3% as of March 31, 2024.
- Debt-to-Equity Ratio: 0.5x, with long-term debt-to-equity at 0.15x.
- Consumer Segment Revenue: INR481.2 crores in FY24, a 4% decrease year-on-year.
- Pharma Segment Revenue: INR107.7 crores in FY24, an 87% increase year-on-year.
- Industrial Segment Revenue: INR55 crores in FY24, a 19% increase year-on-year.
- Dividend: Final dividend of INR1 per equity share of face value INR2 each.
Release Date: May 27, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Shaily Engineering Plastics Ltd (BOM:501423, Financial) reported a 27% year-on-year growth in revenue for Q4 FY24, reaching INR 171 crores.
- EBITDA for Q4 FY24 increased by 37% year-on-year to INR 36.3 crores, with an EBITDA margin of 21.3%.
- PAT for Q4 FY24 saw a significant increase of 95% year-on-year, reaching INR 19.3 crores.
- The company has received confirmed business orders from three customers in the Healthcare division, indicating strong future growth potential.
- Shaily Engineering Plastics Ltd (BOM:501423) is expanding its reach to the global market through Shaily in the UK and is developing advanced drug delivery solutions with electronics.
Negative Points
- The consumer segment, which forms a major part of the company's revenue, saw a degrowth of 4% year-on-year due to lower toy sales and raw material pass-through.
- Machine utilization remained low at around 40% for both Q4 FY24 and FY24, indicating underutilized capacity.
- Despite improvements, the carbon steel business has not yet broken even at the EBITDA level.
- The company faces challenges in scaling up its base business, with expected growth rates of only 12% to 15%.
- There are uncertainties regarding the approval timelines for key products like injection pens in regulated markets, which could impact future revenue.
Q & A Highlights
Q: On the Healthcare segment, what capabilities and frameworks are being developed to compete with established Medtech companies?
A: Amit Sanghvi, Managing Director: We are awaiting our first US and EU approvals on one of our injection pen platforms, expected within this financial year. Our R&D and design capabilities are on par with global competitors. We have invested in manufacturing infrastructure, including in-house mold production, and will continue to add resources as we scale up.
Q: What is the expected growth rate for the base business (non-pharma) given recent order wins?
A: Sanjay Shah, Chief Strategy Officer: We anticipate a 12% to 15% growth rate for the base business. Some businesses commercialized in Q3 and Q4 of FY24 will ramp up in Q2 and Q3 of FY25.
Q: Are we on track to break even in the carbon steel business this year?
A: Sanjay Shah, Chief Strategy Officer: We have seen substantial year-on-year improvement and are close to breaking even at the EBITDA level. We expect to achieve this in the current year.
Q: Can you clarify the number of new contracts added in the healthcare segment for FY24?
A: Sanjay Shah, Chief Strategy Officer: We added a total of seven new contracts in FY24, four in the first three quarters and three in Q4.
Q: What is the pipeline for new contract additions in the healthcare segment for FY25 and FY26?
A: Amit Sanghvi, Managing Director: We are seeing significant traction for semaglutide and are looking to add contracts for tirzepatide. We currently have around 20 to 23 ongoing projects, including four auto-injector projects.
Q: What kind of growth is expected in the healthcare segment for FY25?
A: Amit Sanghvi, Managing Director: We expect 50% to 60% growth in the pharma side of the healthcare segment, even on the high base of FY24.
Q: What contributed to the improvement in gross margins in Q4 FY24?
A: Sanjay Shah, Chief Strategy Officer: The improvement was due to higher revenues from the pharma side, both from Shaily India and Shaily UK.
Q: What is the expected CapEx for FY25?
A: Sanjay Shah, Chief Strategy Officer: We are not planning any substantial CapEx. Our focus will be on improving utilization levels and utilizing existing capacities.
Q: When can we expect the commercial launch of semaglutide in RoW markets?
A: Amit Sanghvi, Managing Director: We are targeting a launch in calendar year 2026 (FY27) for RoW markets like Brazil, India, and Canada.
Q: What is the total pen volume for FY24, and what is the expected volume for FY25?
A: Amit Sanghvi, Managing Director: We sold around 11 million to 12 million pens in FY24. We anticipate this volume to increase to around 17 million to 18 million pens in FY25.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
