Cohance Lifesciences (COHANCE) Q4 21/22 earnings summary

Executive summary

• FY22 delivered strong growth, with reported revenue up 30.75% YoY and standalone PAT up 80.82%; consolidated EBITDA margin reached 51.04%.

• Growth came from CDMO and specialty chemicals, while formulation investments and expanded services are intended to support longer-term growth.

Financial highlights

• Revenue from operations was ₹1,320.22 crore in FY22 versus ₹1,009.72 crore in FY21; the reported growth rate was 30.75%.

• Standalone PAT rose to ₹558.10 crore from ₹308.65 crore, up 80.82% YoY; standalone EPS was ₹21.92 versus ₹12.12.

• Consolidated PAT was ₹453.80 crore versus ₹362.34 crore; consolidated EPS was ₹17.83 versus ₹14.23.

• Consolidated EBITDA increased to ₹713.23 crore from ₹508.89 crore, up 40.15%; operating margin rose to 51.04% from 47.22%.

Outlook and guidance

• FY23 outlook calls for moderate growth led by CDMO; specialty chemicals and formulations expected to be stable at best amid a global pharma slowdown.

• Planned FY23 filings of 6–8 ANDAs, with returns expected 18–24 months later; a steady filing pace is planned over the next 3–4 years.

• Forward integration and product life-cycle management services would extend offerings from intermediates toward KSMs, APIs and formulations; client discussions are expected to resume.

• A ₹600 crore capex program includes ₹200 crore each for Suryapet replacement, R&D relocation and a Pashamylaram block; timelines run through FY23 and FY24.