Neuland Laboratories concall was today at 5:00 PM

@unseenvalue @darshanvmehta1 @drprashantmish6 @punitbansal14 @suru27 @rdkriplani

Hope
customer book of Neuland to remain as booked and full just like today's conference call😂

Here are the Key takeaways from the earning call👇

Business Updates:
• Price growth drivers were Levetiracetam and Mirtazapine.
• Commercialization of Unit 3 has begun and 2 API have been shipped in.
• Neuland has filed Donepezil based with USDFA.
Q from @unseenvalue sir: Growth opportunity in Peptide (esp. on generic)

• Involved in many molecule discovery in generic side
• Co. has seen value on generic capacity, GDS being continuous play for the company
• Co. may have partnership for generic side of business as well.
NCE Buinssess:

• Portfolio of PMS project has mix of both orphan and convectional drugs.
• Few molecules of NCE has started generating revenue and benefits of those molecule will be discovered in future.
CMS Buinsess:
• Most of the molecules in pipeline has been increased and some are even in commercialization.
• New business momentum continues to remain strong, and lot of business are attracted through referral business.
• More focus remains on the quality of the molecules.
De-risking the supply chain

• Neuland has decrease the raw material dependency from China, which was ~60% previously have been brought down to just 10% now which is also for cost competitiveness.
Unit 3:
• Current it is fairly underutlize as it has geographical larger side.
• Next 2-3 growth will be from the utilization of the Unit 3.
• Expansion will be based on growth company sees in future.
• Range of utlization stays at 75-80% with that productive plant.
Lower Margin, despite of operating leverage:
• As unit 3 is not entirely commercialize, operating leverage has not kicked in.
• With more investment and increasing capacity, there will be increase in margin.
Q from @darshanvmehta1 sir on margin under-stated
• Margin understatement is majorly more because of company wants to be conservative in terms of margins.

CAPEX- Currently company has done 80 crores for expansion and it will same next acquisition for better growth proposition.
Q from @suru27 sir on future of the business segment
• Volatility of the segment is expected to be reduced, as Prime, Speciality, CMS entire segment has received huge growth in the past, resulting in decline in volatility.
• Neuland is commanding higher margins and are expecting volatility in margins to remain on line.

• Utilziation target till FY 2022 is difficult predict as there will increasing in product block which will decrease the utilization and subsequently go up.

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Rig Ved 1.36.7

To do a Namaskaar or bow before someone means that you are humble or without pride and ego. This means that we politely bow before you since you are better than me. Pranipaat(प्राणीपात) also means the same that we respect you without any vanity.

1/9


Surrendering False pride is Namaskaar. Even in devotion or bhakti we say the same thing. We want to convey to Ishwar that we have nothing to offer but we leave all our pride and offer you ourselves without any pride in our body. You destroy all our evil karma.

2/9

We bow before you so that you assimilate us and make us that capable. Destruction of our evils and surrender is Namaskaar. Therefore we pray same thing before and after any big rituals.

3/9

तं घे॑मि॒त्था न॑म॒स्विन॒ उप॑ स्व॒राज॑मासते ।
होत्रा॑भिर॒ग्निं मनु॑षः॒ समिं॑धते तिति॒र्वांसो॒ अति॒ स्रिधः॑॥

Translation :

नमस्विनः - To bow.

स्वराजम् - Self illuminating.

तम् - His.

घ ईम् - Yours.

इत्था - This way.

उप - Upaasana.

आसते - To do.

स्त्रिधः - For enemies.

4/9

अति तितिर्वांसः - To defeat fast.

मनुषः - Yajman.

होत्राभिः - In seven numbers.

अग्निम् - Agnidev.

समिन्धते - Illuminated on all sides.

Explanation : Yajmans bow(do Namaskaar) before self illuminating Agnidev by making the offerings of Havi.

5/9