Capitaline

Results 01-May-24

Analysis

RPG Life Sciences

PAT up 27.92%

For the quarter ending March 2024, standalone Net sales (including other operating income) of RPG Life Sciences has increased 7.17% to Rs 126.99 crore compared to quarter ended March 2023. Operating profit margin has jumped from 13.43% to 16.32%, leading to 30.23% rise in operating profit to Rs 20.72 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 18.43% to 21.81%. Purchase of finished goods cost fell from 16.65% to 11.61%. Employee cost decreased from 27.75% to 24.96%. Other expenses rose from 24.10% to 25.49%.

Other income fell 10.33% to Rs 1.65 crore. PBIDT rose 26.03% to Rs 22.37 crore. Provision for interest up 180% to Rs 0.14 crore. Loan funds remained nil. Inventories rose to Rs 101.00 crore as of 31 March 2024 from Rs 95.05 crore as of 31 March 2023. Sundry debtors were higher at Rs 49.13 crore as of 31 March 2024 compared to Rs 37.43 crore as of 31 March 2023. Cash and bank balance declined from Rs 57.04 crore as of 31 March 2023 to Rs 36.47 crore as of 31 March 2024. Investments rose to Rs 91.16 crore as of 31 March 2024 from Rs 58.43 crore as of 31 March 2023 .

PBDT rose 25.59% to Rs 22.23 crore. Provision for depreciation rose 15.42% to Rs 4.49 crore. Fixed assets increased to Rs 181.81 crore as of 31 March 2024 from Rs 116.30 crore as of 31 March 2023. Intangible assets declined from Rs 33.40 crore to Rs 28.03 crore.

Profit before tax grew 28.46% to Rs 17.74 crore. Provision for tax was expense of Rs 4.5 crore, compared to Rs 3.46 crore. Effective tax rate was 25.37% compared to 25.05%.

Profit after tax rose 27.92% to Rs 13.24 crore.

Equity capital stood at Rs 13.23 crore as of 31 March 2024 to Rs 13.23 crore as of 31 March 2023. Per share face Value remained same at Rs 8.00.

Promoters’ stake was 72.81% as of 31 March 2024 ,compared to 72.81% as of 31 March 2023 .

Full year results analysis

Net sales (including other operating income) of RPG Life Sciences has increased 13.50% to Rs 582.05 crore. Operating profit margin has jumped from 20.03% to 22.02%, leading to 24.79% rise in operating profit to Rs 128.15 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 16.56% to 20.83%. Purchase of finished goods cost fell from 17.70% to 10.56%. Employee cost increased from 22.51% to 22.81%. Other expenses rose from 23.49% to 23.69%.

Other income up 50.21% to Rs 7.21 crore. PBIDT rose 25.93% to Rs 135.36 crore. Provision for interest up 45.16% to Rs 0.45 crore. Loan funds remained nil. Inventories rose to Rs 101.00 crore as of 31 March 2024 from Rs 95.05 crore as of 31 March 2023. Sundry debtors were higher at Rs 49.13 crore as of 31 March 2024 compared to Rs 37.43 crore as of 31 March 2023. Cash and bank balance declined from Rs 57.04 crore as of 31 March 2023 to Rs 36.47 crore as of 31 March 2024. Investments rose to Rs 91.16 crore as of 31 March 2024 from Rs 58.43 crore as of 31 March 2023 .

PBDT rose 25.87% to Rs 134.91 crore. Provision for depreciation rose 10.13% to Rs 17.07 crore. Fixed assets increased to Rs 181.81 crore as of 31 March 2024 from Rs 116.30 crore as of 31 March 2023. Intangible assets declined from Rs 33.40 crore to Rs 28.03 crore.

Profit before tax grew 28.53% to Rs 117.84 crore. Provision for tax was expense of Rs 30.18 crore, compared to Rs 24.04 crore. Effective tax rate was 25.61% compared to 26.22%.

Profit after tax rose 29.60% to Rs 87.66 crore.

Equity capital stood at Rs 13.23 crore as of 31 March 2024 to Rs 13.23 crore as of 31 March 2023. Per share face Value remained same at Rs 8.00.

Promoters’ stake was 72.81% as of 31 March 2024 ,compared to 72.81% as of 31 March 2023 .

Cash flow from operating activities increased to Rs 94.36 crore for year ended March 2024 from Rs 90.82 crore for year ended March 2023. Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 69.23 crore, compared to Rs 32.73 crore during the year ended March 2023.

Business highlights

The board Recommended equity dividend of Rs 16 per share of Rs 8 each (200 %) for the financial year ended March 31, 2024.

Management Comments :
Mr. Yugal Sikri, Managing Director, RPG Life Sciences said, “In Q4 FY24, the overall performance of the Company continued to be strong. Revenue and PBT grew by 7% and 28% respectively YoY. The EBITDA margin retained its 5-year long upward trajectory growing from 21.0% to 23.3% YoY. The Company continues to remain debt-free. We are well on course in executing all the tenets of our distinctive and smart transformation agenda to achieve our strategic goal of consistent, healthy, and profitable growth. Our top priority, Domestic Formulations, the biggest contributor to the Company’s business, recorded robust growth in both value and volume - significantly and consistently ahead of the market based on its 5 pillar-growth strategy. The comprehensive smart life cycle management program is shaping some of our ‘textbook’ legacy brands into mega brands and our niche specialty portfolio into mega portfolio. New launches in specialty and chronic therapies are helping us shape our Specialty business. We are now working on replicating our smart and successful Rheumatology portfolio entry strategy to enter other specialties like Gastro and Derma to emerge as future growth drivers of Domestic Formulations business. Our MABs portfolio continues to post robust performance. Salesforce productivity continues to register healthy upward momentum, assisted by smart deployment of digital. We are now shaping our International Formulations and API business basis their own 5 pillars, the key being plants modernization cum capacity expansion by infusion of capex and building a smart product pipeline to become strong future growth drivers. The International Formulations business has been registering healthy double-digit growth. Modernization of our API Plant and building product pipeline, both currently underway, will make API also our third engine of growth. Our structural approach of cost optimization has helped us explore newer avenues in our operations to achieve cost efficiencies, thereby helping us to maintain 5-year uninterrupted YoY margin expansion trajectory for the past 5 consecutive years.”

RPG Life Sciences : Standalone Results

	Quarter ended			Year ended
Particulars	202403	202303	Var.(%)	202403	202303	Var.(%)
Net Sales (including other operating income)	126.99	118.49	7.17	582.05	512.81	13.50
OPM (%)	16.32	13.43	289 bps	22.02	20.03	199 bps
OP	20.72	15.91	30.23	128.15	102.69	24.79
Other Inc.	1.65	1.84	-10.33	7.21	4.80	50.21
PBIDT	22.37	17.75	26.03	135.36	107.49	25.93
Interest	0.14	0.05	180.00	0.45	0.31	45.16
PBDT	22.23	17.70	25.59	134.91	107.18	25.87
Depreciation	4.49	3.89	15.42	17.07	15.5	10.13
PBT	17.74	13.81	28.46	117.84	91.68	28.53
PBT before EO	17.74	13.81	28.46	117.84	91.68	28.53
EO Income	0	0	-	0	0	-
PBT after EO	17.74	13.81	28.46	117.84	91.68	28.53
Taxation	4.5	3.46	30.06	30.18	24.04	25.54
PAT	13.24	10.35	27.92	87.66	67.64	29.60
P/(L) from discontinued operations net of tax	0	0	-	0	0	-
Net profit after discontinued operations	13.24	10.35	27.92	87.66	67.64	29.60
EPS (Rs)*	8.01	6.26	27.92	53.00	40.90	29.60

* EPS is on current equity of Rs 13.23 crore, Face value of Rs 8, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

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