Questions across 8 calls

Sudarshan Padmanabhan

JM Financial

Navin Fluorine International Limited

Navin Fluorine International Limited CC-Dec24.pdf · 2025-01-30

My first question is on the CDMO side. I mean, if I'm looking at -- you talked about the Fermion contract, but also the visibility over the 2 years with other products, a lot of these products are under patent and there is a huge runway of growth. I mean today, when I'm talking about Fermion contract itself, I mean, they are trying to expand the product for other appli cations in oncology as well. So from that side, I mean, beyond the $100 million, are we today in a spot where we have probably hit kind of a sweet spot with a few products hitting commercial in the late stage, which gives you visibility, not necessarily yet for 2 years, but say 3, 4, 5 years with the growth engine that we see. I just want to process on the cycle on that side. Anish Ganatra Yes, I get where you're coming from Sudarshan. So good question. Thank you for that. I mean on the contract. See again, at any given point in time, we are working with close to about 35 to 50 molecules, okay, and -- in any year, right? And roughly, if I look at it, about 8 to 10 would be in the commercial space. So we are not sort of banking on one, commercial or lat e stage, right? And then the others are your early -stage molecules, which eventually provides the long -term pipeline as they move into commercial. So it's a combination of things. Are we in a sweet spot or not, difficult to tell but we are certainly well diversified in terms of our footprint across the portfolio.

Sure. And with respect to the capex, I mean, now that we have capex for -- say the Phase 1, typically you're coming with INR160-odd crores that will come in the third quarter. I mean, do you think that probably with the scale up that you're seeing with the Fermion contract and other, I mean do we have enough land probably to go in for a brownfield or what is our thought process in terms of developing the capacity?

Navin Fluorine International Limited CC-Jun24.pdf · 2024-07-30

My question is to dwell a little deeper on your earlier commentaries on the agrochemical environment. So, I mean, even if you are looking at the commentary by other players like (Inaudible), it looks like the scenario continues to remain weak, especially the prices have been coming down. While it is heartening to see that we have been able to get products from Japanese customer and other products in place and going ahead with our Dahej CAPEX. From your investment and return on capital perspective, one is with the prices going to the probably the worst levels that we've seen in decades. Is this impacting your ROCE in terms of what you would have initially thought of versus what you are currently negotiating in terms of margins and ROCEs and prices? And with respect to this environment, one, how worst do you think it can further go or you can do the bottom? How are we tackling it in terms of our strategy, how are we looking at us doing relatively better in this environment?

Yes, so what I'm trying to understand is today when you are looking at the product called Glufosinate, the prices have come down so sharply that hardly seen the scenario where the prices, I mean, nobody is making money or roughly the largest people are making money. Most have been integrated. But it does not make sense to manufacture certain molecules and then the prices are likely to kind of reverse. I mean, I'm just trying to figure out whether this is the right one?

Navin Fluorine International Limited CC-Mar24.pdf · 2024-05-07

Sir, my question is to understand the underlying demand on the Specialty Chemicals side. So we have seen the fourth quarter to be much better than the previous three quarters. You had talked about at least the agrochemicals being a pain. If you can throw some color with respect to where are we seeing the longer-term demand coming in from? I mean, on a quarter-to-quarter the growth that you are seeing, is it a reflection of an improved demand environment or is it largely driven by restocking? Some color on this.

Yes, sir. The second question from my side is on understanding the CRO CDMO space. What we understand from a lot of Indian players as well as global players is there's been a slowdown again because of higher interest regime. I mean not specifically taking about projects, but are we seeing that kind of a slowdown impacting us on the health care side as well?

Acutaas Chemicals Limited

Acutaas Chemicals Limited CC-Sep24.pdf · 2024-10-29

Sir, this quarter if you can give some color on how the margins for intermediate, pharma intermediate and Specialty Chemicals plan, and also some color on how do we see the margins in the next few quarters?

Sir, I would just like to look at, this quarter has been quite a transformational quarter for us, specifically on this pharma intermediate side, and we do have a strong pipeline including, the contract with Fermion that is there. So, what I am trying to understand here is, you had given a 30% guidance going forward. But if you look at it slightly a little longer, we have built capacities, we have built capabilities both on the R&D as well as the product synthesis side, and having relationship built over the years. One is, primarily mining existing customers, like Darolutamide, the opportunity size is big and growing. So, how do we see the wallet share from the existing clients. And also, if you can give some color with respect to how many products we have which is in the late stage, which can give more molecules something like what we are seeing with Fermion and contract. So, what I am trying to understand is this, this year we are looking at 30% but if I am taking three years, what is it that we should be comfortable with as far as growth is concerned?

Gujarat Fluorochemicals Limited

Gujarat Fluorochemicals Limited CC-Jun24.pdf · 2024-08-13

Sir, my question is to understand the impact of the Red Sea as you mentioned in the presentation. One is I would assume because of the transit time, there could be impact, as you mentioned, on the Fluoropolymer side, I mean if you can mention the quantum. And broadly, 2 things, as far as the cost is concerned because wherever we see, we see that the shipping cost has basically hit the roof. And second is as far as imports are concerned, which would basically be a strength for us given that we are relatively more integrated. So putting all the 3 into perspective, if you can give some color on the Red Sea and the impact...

Yes. Sir, I just wanted to understand the impact of the Red Sea, as you had mentioned in the presentation. One is the sales. I would understand because of the tran sit time, they would have been a spillover as far as sales are concerned. But apart from that as well, I mean, the cost, and is the Red Sea actually going to be a benefit for us, given that we are more integrated? I mean to that extent, our imports will be relatively less dependent as compared to peers. And because of our cost efficiency, does the Red Sea basically be a tailwind for us in terms of getting more visibility with customers?

Blue Jet Healthcare Limited

Blue Jet Healthcare Limited CC-Jun24.pdf · 2024-08-07

Thank you for taking my question and thanks for the elaborate explanation. Just looking forward from what Sanjesh was discussing about see today I mean I agree that probably the sales is not being booked on the contract media side and we are running at anywhere between 120 to 130 per quarter. But when I look at the build-up as far as this segment goes I think as you had alluded earlier I mean GEH also talked about better growth on this segment and more capacity. Then you have the idea of Gadolinium opportunity that you have. And in this segment, one is from the current run rate say if you are looking at the next year, what are the kind of volumes run rate that we are talking about? And the second is in terms of capacity while we have been upgrading capacities inconsistently. I mean when I'm just looking at the opportunities ahead I mean we know about the label extension product, the cardiovascular product. But interestingly there are also a couple of more products, which is in the oncology and CNSA which is at the next stage. If we are lucky and we are able to see the commercialization on this, would we have capacities to take the kind of growth visibility if everything goes well? I mean, what would be the capex that we'd be looking at?

Sir, with respect to the scaleup, I mean, as we move from clinical trials to the absolute profitability on a unitary basis might be less, which is compensated by economies of scale. But when I'm looking at two things here, one is you are also backward integrating with the APD, capacities coming in. And also the fact that when you move up the scale, I mean, currently, if I look at the quarter, I'm happy to see that we are already running at INR60 odd crores. As the scale goes up, you also have operating leverage on the pharma business. I mean, which was subscale, I would say, even a year ago, which is actually coming into a fair amount of growth space and maturity in the next two to three years. So, from that side, when you're looking at molecules transitioning from, say, pre-commercial to commercial, I mean, I'm talking about including the oncology products, the cardiovascular products. So, the scale would basically be much higher. In the context of operating leverage and APD, I mean, how do we see the margins? I'm just trying to understand whether the trajectory would be more or less similar to what we are doing or is there going to be a negative obtuse, but something which is very gradual. Because at one end, your operating leve rage will offset the kind of absolute profitability in terms of unitary when you move from market to commercial.

Neuland Laboratories Limited

Neuland Laboratories Limited CC-Mar24.pdf · 2024-05-14

My question is to understand the revenue segment. So, we have seen a very favorable movement with the high-margin business increasing and the low-margin business coming down. One is, as you have alluded the order book is getting stronger. So even from here, I mean, where do we see the mix between say a high -margin prime vis-a-vis somewhat a low margin prime vis -a-vis the high margin specialty. The second is when I'm actually coming to the working capital. So, it was quite good to see the working capital also improving on a year -on-year basis. I mean, should we also continue to see the improvement in the working capital?

Sun Pharmaceutical Industries Limited

Sun Pharmaceutical Industries Limited CC-Sep24.pdf ·

Sir, my question is a little bit more on the housekeeping side. The first half we have seen our gross margin significantly higher than expectation. I just wanted to know , would we be looking at say for the full year, given that the specialty is doing well, the gross margins will trend more towards 79 %-80% as compared to what we initially thought?

And with the R&D spend probably coming back in the second- half, should we be looking at more or less margins at around 28%, which is what you initially guided for, or do we see that the R&D spend can be still a little slower giving some kind of fillip to the margins in second half?