Neuland Laboratories Limited CC-Feb26.pdf · 2026-02-09
My questions are regarding our capital allocation. My first question, I like to summarize in a few points. So firstly, in H1 balance sheet, our inventory is of INR550 crores, which you have outlined is for sales setup. But this number is even higher than our guy profit by around 2x. Secondly, in Q2 concall, you mentioned API manufacturing takes about 4 months? But according to environmental content, our majority APIs have added 5 to 6 manufacturing process even our largest revenue contributing molecule has 7%. So, I believe majority API should take approximately two weeks to manufacture only because even if 4 -month manufacturing is there, this inventory, even at a blended level of their raw material work in progress and finished goods seems to be for approximate 7 to 8 months at 40% of cost of goods sold? And lastly, this 9-month revenue increase is of 10% to 15%. Inventory has increased by INR170 crores and PAT by INR150 crores. So, prima facie, it looks like whatever profits we do are due to inventory gain. So, can you please provide some clarity on these points? Or will we be seeing any write-off? I'll ask my follow-up later.
Just 1 thing. I note that the increase in PAT is by around INR150 crores in this 9 months, whereas inventory has increased by around INR170 crores. So, prima facie it is still looking at the profit are due to inventory again. Can you touch up on that?