Solara Active Pharma Science con call was today at 3:30 PM.

@Gautam__Baid @unseenvalue @drprashantmish6 @rdkriplani

Here are the key takeaways of the call. 👇🧵

Business Updates:

• Speed of filing products has been increased. Filed 5 new DMFs – 3 in US and 2 in EU
• Currently ramping up the facility in VIZAG with strong customer attraction, and will be commercialized as planned in Q3
• VIZAG EBIDTA growth guidance changed to 40%+ YoY
• Growth Driver: Broad based growth in other products and Vizag.

• PLI: Company has filed Mysore for PLI scheme for 1 molecule.

• Technology: Company is about to complete its 2 out of 3 technology, which will enhance efficiency for Solara.
Demand in some of sectors is moderated:
• Mgmt expected moderation in demand, hence company has taken necessary steps for those products.

Gross Margins:
• It was down a bit due to product mix however.
Fiscal 2022:
• Solara has grown in regulated market space.
• Vizag will kick in. CRAMS will support tailwind.
• Most of the CRAMS is commercial API.

• Most of the product is expected to be stable both in term of demand and price in the coming few quarter
Vizag:
• As the company is ramping up production facility, hence current utilization is around 1/3.

Price:
• Some market company is seeing pricing pressure, but where the major market of Solara is there is no strong pricing pressure.
Investment in Vizag:
• 3600 Tone in phase 1. Phase 2 will be multi-product. This will help mgmt in entering new market for Ibuprofen, as currently company has capacity constrain, which will be served by Vizag facility.
Q from @unseenvalue sir
Solara's Action post warning letters Cuddalore:
• As it was OAI, there won't be any production issues, and co. don't expects any regulatory issues.
• Company has now started with cloud reporting and all the products being registered to the US regulatory.
Gross margins:
• Company is well position in terms of customer, R&D, hence over long term it would be favorable, while in short term, margins are still in close eyes of management.

• Quite positive with strong with demand from the customer for molecule
New products:
• Large scale production, higher margins, better market share

Growth over next 3-5 year: Base molecules expected to deliver good growth, CRAMS (huge head room for space and New molecules is projected to deliver good growth over the next 4-5 years.
• Cash Flow will invested in the growth prospect only with little change over borrowing expected.
• Working Capital has remain same in the past few quarters with a little increase in sales. Receivable from the government is expected to be normalize.

More from The Tycoon Mindset

More from Science

Read this thread from @lilithsaintcrow. I really mean it. Just read it. Because if what she is saying is true (and I happen to think it is) it explains *so much*

An example using the Flat Earthers: A thread of many parts:


I'm firmly convinced that the flat Earth thing was started by some adolescent trolls with nothing more productive to do. They didn't believe it, but they thought it was entertaining to keep pretending that they did.

You can't engage with them, because they *are playing a game*. They think it's fun to see if they can get anybody to engage with something completely stupid as though it's true.

If you challenge them, the rules of the game state that they have to argue as hard and a spuriously as they like, but *never* to admit that the Earth is not in fact flat. I suppose you have to make up your own entertainment on 4chan or whatever hole this was conceived in.

It's annoying as hell, but I suppose it doesn't do much harm.. except to folks like this:

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