Kopran hosted a conference call on November 18, 2024, which was attended by the following representatives: Mr. Surendra Somani, Executive Vice Chairman; Mr. Ajit Jain, Chief Executive Officer; and Mr. Sanjay Dosi, Advisor.

Key takeaways of the call

In Q2 FY25, the performance of the API segment was affected by lower API prices, primarily due to competition from China.

Focus on new products continues. The company has started trial production at its Panoli plant. It expects to begin commercial production in the next 3-4 months.

The company expects H2 FY25 to be stronger compared to H1 FY25.

The company continues to focus on complete forward and backward integration for margin improvement.

Management expects utilization levels to improve going forward.

The company is working on CDMO projects with customers from Africa and UK.

In Q2 FY25, Anti-hypertensive contributed 14.2% to API revenue, Anti-Thrombotic 3.2%, Carbapenem 49.3%, Cardiology 1.6%, Macrolide 17%, Neuromodulator 8.8% and others 5.9%.

In Q2 FY25, exports contributed 38% to API sales and domestic 62%.

In H1 FY25, exports contributed 45% to API sales and domestic 55%.

Branded generics contributed 25% to formulations revenue in Q2 FY25.

In Q2 FY25, Africa contributed 20% to formulations sales, Latem 5.7%, Middle East and North Africa 4.5%, South Africa 46%, Southeast Asia 6.5% and UK 17.3%.

In H1 FY25, Africa contributed 25% to formulations sales, Canada 0.49%, Latem 5.08%, Middle East and North Africa 4.4%, South Africa 43%, Southeast Asia 9.5% and UK 12.53%.

In Q2 FY25, Non-Pen Plant contributed 41% to formulations revenue and Pen Plant 59%.

In H1 FY25, Non-Pen Plant contributed 46% to formulations revenue and Pen Plant 54%.

As of Sept 2024, debt to equity was 0.23.

The company is focusing on R&D to develop niche, high-value/high-volume APIs and intermediates.

The company is reducing its dependence on China by developing KSMs and intermediaries.