The pharmaceutical industry in India is a global powerhouse, valued at approximately $50 billion in 2024 and projected to reach $130 billion by 2030. Home to over 3,000 companies and 10,500 manufacturing facilities, India produces 20% of the world’s generic medicines and supplies 60% of global vaccines, earning the title “pharmacy of the world”.
With a market capitalization of Rs 1,638.19 crore, the shares of Beta Drug Ltd closed at Rs 1,704 per share, increasing around 2.23 percent as compared to the previous closing of Rs 1,742.85 apiece.
Matter Explanation:-
Ace investor Ashish Kacholia increased its stake by 647,644 equity shares which represents 6.74 percent of Beta Drugs Ltd in this quarter, however in Q2FY25 he held 1,203,644 equity shares which is equivalent to 12.5 percent in the company.
Financial Performance:-
The company’s total sales grew significantly from Rs. 227 crores in FY22-23 to Rs. 296 crores in FY23-24, alongside a consolidated EBITDA increase from Rs. 53.88 crores to Rs. 61.5 crores. Net profit also rose, reaching Rs. 36.4 crores from Rs. 30.7 crores.
EBITDA margins declined due to higher raw material costs for platins, comprising 15%-17% of total sales. The company remains focused on improving profitability and aims to bring EBITDA margins back to the 24%-26% range for FY24-25.
Key Highlights and Strategy:-
The company launched Asia’s first cytotoxic suspension facility, filed six new approvals in the suspension and syrup segments, and received 53 export market registrations. It expanded its cosmetology reach across India with over 100 field personnel, focusing on integrating oral and injectable business lines.
Strengthening its hematologic portfolio with two new products, the company identified target markets for sustainable growth. It aims to shift focus from platins to other products to improve margins and plans to migrate to the NSE Mainboard within two months to enhance market positioning.
Segmentwise Business:-
The company’s Own Brand segment saw a 27% sales increase, fueled by the launch of seven new products. In International Business, it secured an additional approval in Eurasia, while its CDMO business expanded with three new clients and added new products to its portfolio.
In the API business, revenue grew 30% through new product launches. The Cosmetology segment achieved Rs. 1 crore in sales in April and aims for Rs. 14-15 crore in FY24-25. The company plans to increase SKUs and establish a manufacturing unit for derma and cosmetology by FY25-26.
Future Plans:-
The company plans to expand into the European market and aims for US FDA approval within the next three years, with a target for exports to contribute 35% of its total business volume. A capex of Rs. 30-35 crores is allocated for a new cosmetology plant and marketing authorizations.
Aiming for a top-line growth of Rs. 450-500 crores, the company expects the cosmetology segment to contribute Rs. 30-40 crores. Strategic focus includes building strong cosmetology brands and maintaining high margins to enhance its competitive positioning in this growing market.
Company profile:-
Beta Drugs Limited manufactures oncology drugs. The company offers a variety of oncology medicines such as pills, capsules, and injections. The company’s portfolio includes over 50 medications that address a variety of cancer disorders such as breast, brain, bone, and others.
Written by:- Abhishek Singh
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