RPG Life Sciences: Pain management, oncology, rheumatology, cardio-vascular treatments

 RPG Life Sciences: Pain  management, oncology,  rheumatology, cardio-vascular  treatments


  • Strong brands in the Indian pharmaceutical industry 
    • –The company’s domestic formulations business benefits from its strong brands,  which  continue  to  enjoy healthy market  share  in  their  respective  therapeutic  segments.  Successful execution of these plans and their impact on the company’s revenue growth and profitability are key rating monitorable factors pain  management, oncology,  rheumatology, cardio-vascular  treatments etc.  
    • The  domestic  formulations  business  continues  to  be  its  major revenue driver with ~67% of total revenue in FY2024. 
  • Robust  capital  structure  and  strong  debt  servicing  indicators;  financial  flexibility  as  part  of  the  RPG  Group 
    • –Adequate retained cash flows and unencumbered cash and liquid investments limit RPGLS’ dependence on external debt.
    • With its debt-free status and improved operating performance, it has a robust capital structure and coverage metrics. 
    • Further, the company also  enjoys  financial  flexibility  as  part  of  the  RPG  Group. 
    • ICRA,  however,  will  continue  to  monitor  the  usage  of  free  cash, including  any  inorganic expansion and will assess the impact on RPGLS’ credit profile, in  case  of  any  material  change  in  its liquidity profile. 
  • Expansion  of  product  portfolio  and  geographical  presence  augur  well  for  growth  prospects
    • RPGLS  launched 12new products  in  FY2024and  17new  products  in 9MFY2025 in  its  domestic  formulations  business.  
    • Sales  from  new  products in domestic formulation have been inching up in terms of sales share and stood at around 25%of total sales for all launches since FY2019. 
    • ICRA notes the company’s focus on increasing its presence in existing geographies through new product launches in niche categories, and on exploring new markets. 
    • Successful execution of these plans and their impact on the company’s revenue growth and profitability are key rating monitorable factors.



RPG Life Sciences: To continue moving towards Life time high

  • For the full fiscal year FY24 too, the company achieved a 29% year-on-year increase in PAT 
  • Saw an expansion of EBITDA margin from 21.0% to 23.3% year-on-year. 
  • Revenue from operations, totaling Rs 582.05 crores, experienced a 14% Y-O-Y growth for FY24.
  • Top priority, Domestic Formulations, the biggest contributor to the Company’s business, recorded robust growth in both value and volume
  • To enter other specialties like Gastro and Derma to emerge as future growth drivers of Domestic Formulations business
  • Structural approach of cost optimization has helped explore newer avenues in operations to achieve cost efficiencies, helping to maintain 5-year uninterrupted Y-o-Y margin expansion trajectory for the past 5 consecutive years

 Thank you for contacting Rounaq! Please let us know how we can help you. 

Whatsapp: 7838491131

SEBI registered RA : Rounaq Bakshi
Waheguru

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