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
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