Cohance Lifesciences (COHANCE) Q4 22/23 earnings summary

Executive summary

• FY23 was muted: standalone revenue was ₹1,330.08 crore, up 1% YoY, while PAT fell to ₹432.60 crore from ₹558.10 crore amid sharply lower other income.

• Core operations grew despite weaker Pharma CDMO performance; COVID-related revenue did not recur and clinical-trial delays slowed molecule progression.

Financial highlights

• Consolidated revenue from operations was ₹1,340.33 crore versus ₹1,320.22 crore; consolidated PAT was ₹411.29 crore versus ₹453.80 crore.

• Standalone EBITDA was ₹628 crore versus ₹768 crore; EBITDA margin was 46% versus 51%. Lower other income was cited as a key factor in the decline.

• Standalone other income fell to ₹44.55 crore from ₹187.79 crore; standalone PBT was ₹579.39 crore versus ₹722.45 crore.

• Standalone EPS was ₹16.99 versus ₹21.92; consolidated EPS was ₹16.16 versus ₹17.83.

Outlook and guidance

• FY24 revenue and financials were expected to match FY23 or be slightly lower, rather than deliver strong growth.

• FY24 Pharma CDMO and Formulations were expected to post decent results, while Specialty Chemicals revenue could decline; the following year was expected to offer broader growth opportunities.

• Another 5–7 ANDA approvals were expected in FY24, adding to 17 approvals already secured, including five from Casper Pharma.

• Product lifecycle management opportunities remain long-dated; due diligence can take 3–4 years, with pandemic disruption delaying discussions and project progression.