Business Wire India
Revenue for the Pharmaceuticals grows by 29% in FY22, with strong expansion in Gross Margins
PAT up 25% YoY
Balaxi Pharmaceuticals Limited (Balaxi), a branded IPR-based pharmaceutical company headquartered in Hyderabad, reported its results for the quarter and full year ended March 31, 2022.
Financial Highlights:
Particulars (INR Crore)
FY22
FY21
YoY
Revenue
279.39
231.33
+20.8%
Gross Profit
83.79
59.19
+41.6%
Gross Margin %
30.0%
25.6%
EBITDA
55.18
44.64
+23.6%
EBITDA Margin %
19.75%
19.3%
Profit After Tax
47.66
38.14
+25.0%
PAT Margin %
17.1%
16.5%
Earnings Per Share (INR)
47.66
38.14
Revenue: The strong growth in revenue of 20.8% YoY in FY22 was driven by Pharmaceuticals, with share of the LATAM market increasing to 41%. The LATAM demonstrated healthy growth with Guatemala (45%) and Dominican Republic (29%).
EBITDA: EBITDA of INR 55.18 Cr. was recorded in FY22, registering 23.6% growth YoY, as the Company was able to pass on cost escalation on account of higher freight and other supply chain disruptions.
Profit After Tax: On the back of strong performance of revenue and higher margins, the company was able to report an increase in Profit After Tax by 25% YoY in FY22.
Commenting on the results, Mr. Ashish Maheshwari, Chairman and Managing Director said, “In FY22, Balaxi has demonstrated solid execution and showcased the inherent strengths of its business model. We have achieved substantial scale-up in revenues, margin expansion and profit growth to deliver value in a tough operating environment marked by continuing impact of the global pandemic, geo-political upheavals, inflationary trends and supply chain bottlenecks. While the Angola business continues to be a cash cow, we are now starting to see the results of our efforts in the LATAM markets. We will continue to pursue our strategy of targeting leadership in difficult-to-enter markets and have drawn out a roadmap to grow rapidly in other high-potential countries in Latin America over the next few years. We are also taking forward our manufacturing initiative that will allow us to create strong backward integration in our supply chain, completely reliant on outsourcing at present. Production from our planned facility will find immediate traction from established demand in existing markets. This EU GMP-compliant unit is also expected to open up new markets for our products, resulting in shorter pay-back on the investment and strong return on capital. We now look into the future with excitement and purpose, confident in our ability to drive continuing value for stakeholders by delivering on the strategic business plan.”
Financial consolidation of Angola operating entity
Effective 1st January 2022, Balaxi Global DMCC, Dubai, a wholly-owned subsidiary of Balaxi Pharmaceuticals Limited, which previously owned 49% of the outstanding equity share capital of Balaxi Healthcare Angola has acquired the remaining 51% for a cash consideration of USD 0.65 Million (book value of the acquired entity). The previous structure, initially created for local regulatory adherence, is now transitioned and Balaxi’s entire global business and all its operating entities are fully consolidated in financial reporting. Balaxi Healthcare Angola, recorded turnover of USD 31 million in the year ended March 31, 2022.
“Asset Light” to “Asset Right” strategy
As a part of its corporate evolution – from a player currently participating in semi-regulated markets to gradually entering advanced markets – Balaxi Pharmaceuticals Limited is moving its business model from ‘Asset Light’ to ‘Asset Right’. While continuing with organic growth in Africa and Latin America, Balaxi proposes to set up an EU GMP compliant pharmaceutical manufacturing unit to cater to the increasing demand in advanced regulated markets. Balaxi has acquired land in a Pharma SEZ located at Jadcherla, Hyderabad and the project is expected to be completed by March 2024, focusing on General Oral Solid Dosage (OSD) and Liquid Injection formulations and Penicillin OSD formulations. Production from the unit will enable entry into EU markets and will also catering to the existing Latin American markets.
