Concord Biotech (CONCORDBIO) Q4 22/23 earnings summary

Executive summary

• FY23 delivered revenue from operations of ₹853 crore, EBITDA growth of 28.04% YoY and profit after tax of ₹240 crore vs ₹175 crore; API growth led performance amid macroeconomic headwinds.

• Fermentation-based APIs remain the core growth engine, supported by global leadership in immunosuppressants, niche oncology and anti-infective products, expanded capacity and a broadening customer base.

Financial highlights

• Revenue from operations rose to ₹85,316.82 lakh in FY23 from ₹71,293.35 lakh in FY22; total income was ₹88,847.75 lakh.

• Consolidated profit after tax was ₹24,008.57 lakh vs ₹17,493.01 lakh; diluted EPS was ₹22.95 vs ₹16.72, after the share split and bonus issue.

• Net cash generated from operations was ₹24,600.18 lakh vs ₹20,747.33 lakh; reported EBITDA margin was 40% for FY23.

• API revenue reached ₹761 crore in FY23 vs ₹574 crore in FY22; formulations revenue was ₹92 crore in FY23, with management describing the vertical as maintaining a stable run rate.

Outlook and guidance

• Commercial revenue from the new injectables facility is expected in FY25; the facility is intended to broaden formulations, dosage forms and geographic reach.

• Priorities include expanding APIs in oncology, anti-infectives and antifungals, cross-selling to existing customers, adding customers and advancing a pipeline addressing US$2.5bn in formulation end-market sales.

• CDMO growth is a focus, leveraging fermentation and semi-synthesis capabilities; two projects were completed and one was in progress.

• Management expects growth from genericisation, rising API demand, China Plus One sourcing and supportive Indian manufacturing policies; it also aims to improve utilisation as demand expands.