Balaxi Pharmaceuticals reports continued solid growth in Q1 FY23

Revenue grows 42% in Q1FY23

Pharma Revenue in Latin America up 39%                                                                 

Profit After Tax up 32% YoY

Hyderabad, August 02, 2022: Balaxi Pharmaceuticals Limited (Balaxi), a branded IPR-based pharmaceutical company headquartered in Hyderabad, reported its results for the first quarter of financial year 2023 ended June 30, 2022.

Financial Highlights: 

Particulars (INR Crore)	Q1FY23	Q1FY22	YoY
Revenue	82.78	58.34	+41.9%
Gross Profit	34.52	16.8	+105.5%
Gross Margin %	41.7%	28.8%	1,290 bps
EBITDA	17.03	12.55	+35.6%
EBITDA Margin %	20.6%	21.5%	(95) Bps
Profit After Tax	14.15	10.71	+32.1%
PAT Margin %	17.1%	18.4%	(127) Bps
Earnings Per Share (INR)	14.15	10.71	+32.1%

Quarterly Fianacial Results for Quarter ending 30.6.22 are not strictly comparable with Quarter ending 30.6.21 due to the consolidation of Balaxi Healthcare LDA Angola (BHA) which became a wholly owned subsidiary of Balaxi Global DMCC with effect from 1st January 2022. 

·          Revenue: The strong growth in revenue of 41.9% YoY in Q1FY23 was driven by the Pharmaceuticals business, with the LATAM share increasing to 38%.

·          EBITDA: EBITDA of INR 17.03 Cr. was recorded in Q1 FY23, registering 35.6% growth YoY, as the Company, despite the cost structures in new geographies incurred ahead of commercial launches in these   countries.

·          Profit After Tax: On the back of strong performance of revenue and higher margins, the company reported an increase in Profit After Tax by 32.1% YoY in Q1FY23. 

Commenting on the results, Mr. Ashish Maheshwari, Chairman and Managing Director said, “Our revenue growth of 42% during Q1 is driven by strong volume contribution from Latin American markets. We have also derived translation benefits from a strong currency in Angola. Gross margin expanded significantly, once again based on the strength of the growing Latin American business and increased contribution from branded products at 35% in Q1. In Latin America, product margins are intrinsically higher, especially for value-added, branded portfolios, a clear area of focus for Balaxi.  

The company’s operating cost structure – both people and organizational costs – has increased substantially with the entry into several new markets. This includes establishment and product registration expenses in countries that are not contributing to sales at present. Going forward, as business scales up, we expect a positive contribution to revenue growth as well as geographical diversification.

As indicated previously, we are making good progress on the planned EU GMP-compliant manufacturing facility near Hyderabad. Production is expected to commence by March 2024, focusing on General Oral Solid Dosage (OSD) and Liquid Injection formulations in Latin American markets where  we are rapidly gaining visibility. The estimated project investment of Rs. 90 crore will be financed partly from internal accruals and a judicious mix of additional capital. With the seamless transition from outsourcing to manufacturing in existing geographies, we see a strong payback apart from several strategic benefits for the business from this investment.”

Corporate Comm India (CCI Newswire)