Detailed Narrative
Strong Q4 Recovery After Weak FY24
Q4 FY24 delivered 21% constant currency growth and CS mix of 51% against a full-year cc growth of -2%. The quarter marked an inflection point with custom synthesis momentum improving significantly. Material consumption at 39% was favorable. FY24 total income stood at ₹8,184 crores with ₹1,600 crores PAT. Cash position remained strong at ₹3,980 crores despite Kakinada investments.
Custom Synthesis Pipeline and Long-Term Agreements
CS crossed 51% of Q4 revenue driven by increased customer engagement and RFP activity from China Plus One and regulatory trends. A major long-term supply agreement requiring ~₹650-700 crores dedicated CAPEX was signed, expected to contribute from FY27 timeline. Protected amino acids business for GLP-1 innovators continuing. Contrast media progressing through qualifications with multiple innovators.
Generic Business: Volume Stable, Pricing Under Pressure
Core generics like Naproxen, Gabapentin maintained volumes with Naproxen seeing 1% market growth. Future generics pipeline includes Ticagrelor, Lacosamide, Brivaracetam expected to contribute from FY26-27. Industry-wide pricing deflation comparable to 2009-10 cycle. Management maintains volumes through process efficiency and leadership position but honest about uncertain pricing recovery timeline.