Concord Biotech (CONCORDBIO) Q4 21/22 earnings summary

Executive summary

• FY22 revenue from operations rose 15.56% YoY to ₹712.93 crore, while consolidated net profit declined to ₹174.93 crore from ₹234.89 crore as operating costs increased and export benefits fell.

• Growth strategy centers on fermentation-based APIs, scaling formulations, new capacity at Limbasi, and expansion into CDMO services; FY23 growth was anticipated.

Financial highlights

• Revenue from operations was ₹712.93 crore vs ₹616.94 crore in FY21; other income increased to ₹23.42 crore from ₹13.81 crore.

• Consolidated profit before tax, including the JV loss, was ₹237.52 crore vs ₹312.72 crore; net profit was ₹174.93 crore vs ₹234.89 crore.

• Consolidated operating cash flow rose to ₹207.47 crore from ₹166.81 crore; investing cash outflow was ₹111.79 crore, primarily reflecting capital expenditure and investment activity.

• MEIS discontinuation contributed to other operating income declining from ₹12.89 crore to ₹4.49 crore; higher power, fuel and new-facility costs also weighed on profitability.

Outlook and guidance

• FY23 growth was expected to continue, supported by growing demand for key molecules, added API capacity and the growth potential of formulations.

• The injectable facility was expected to be commissioned in FY23; significant capital expenditure had already been incurred.

• Limbasi capacity is intended to help meet previously unmet API demand; formulation penetration and entry into additional markets remain opportunities.