RPG Life Sciences eyes acquisitions amid strong growth across segments

 RPG Life Sciences eyes acquisitions amid strong growth across segments



  • Steady  growth  in  top  line  and  improving  operating  margins 
    • –The  company  reported  healthy  revenue  growth  of  13.5%  to Rs. 582.1crore in FY2024and by 12.1% to Rs. 510.3crore in 9M FY2025on a YoY basis, owing to healthy dema divisions, which  will  support  the operating margins going forward, while continuing its domestic and active pharmaceutical ingredients (APIs). 
    • The  revenue  growth  can  also  be  attributed  to  healthy  sales  of  new  products.  
    • The  company  is  expected  to  report  revenue growth of 10-15% in FY2025. This performance trend is expected to continue over the medium term, driven by new product development as well as capacity enhancements. 
    • Further, the operating margins improved to 22.2%in FY2024 and 26.3% in 9M FY2025 (23.6% in 9M FY2024)over 20.4% in FY2023, owing to better product mix and various cost-rationalisation measures of the company, including optimisation of costs and product re-engineering, which are expected to be sustainable in nature. 
    • The  company  is  expected  to  increase  its  focus  on  the  international  formulation  and  API divisions,which  will  support  the operating margins going forward, while continuing its domestic formulation segment growth
  • RPG Life Sciences is actively exploring acquisitions in both the formulations and active pharmaceutical ingredients (API) segments, says Managing Director Yugal Sikri.

  • The recent monetisation of land in Thane, near Mumbai, has strengthened the company’s position, leaving RPG Life Sciences with a cash surplus of over ₹200 crore after clearing its debt over the past five years. 
  • This surplus is now driving the company’s acquisition ambitions, Sikri said.
  • RPG Life Sciences operates in three main segments: domestic formulations, international formulations, and APIs.
  • Domestic formulations contribute about 66% of revenue, international formulations 19%, and APIs 15%, and all three segments are growing in double-digits
  • RPG Life Sciences: An Integrated Pharmaceutical Company APIs to Formulations; R&D to Manufacturing to Marketing
  • RPG Life Sciences, part of RPG Enterprises, is an integrated research based pharmaceutical Company operating in the domestic and international markets in the branded formulations, global generics and synthetic APIs space. 
  • Upticking Growth Trajectory 
  • Bold Move 1 :  Galvanizing Organization to an “Inspiring Purpose”: Framing and embedding in the organisation
  • Bold Move 2 :“Small Brands” to Building “Mega Brand of 100 cr +; future 500 cr OTC”: Naprosyn 
  • Bold Move 3 “Small Product” to Building “Mega Rx Portfolio of 100 cr +; Potential 200 cr” : Immunosuppressants 
  • Bold Move 4 “Small API” segment to Building “Formidable API Business”: Manthan 
  • Bold Move 5 Predominant “Domestic Play” to “Expanded Global Play” : Capex infusion ~140 cr 
  • Bold Move 6 “Operations” Focus to “Sustainable Operations” Focus: ESG    

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SEBI registered RA : Rounaq Bakshi
Waheguru

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