IOL Chemicals and Pharmaceuticals Limited has informed the Exchange about Transcript
IOLCP · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
IOL Chemicals and Pharmaceuticals reported Q1 FY25 total income of Rs. 510 crore, down from Rs. 570 crore YoY, with EBITDA at Rs. 58 crore and EBITDA margin at 11.4%, down 260 basis points from 14% last year. Net profit fell to Rs. 30 crore from Rs. 46 crore YoY, hit by sharp price declines in Paracetamol (down 40%+) and Metformin (down 15-20%). Management guided for an EBITDA margin recovery to 13-15% in the near term, stating API prices have bottomed out. Revenue guidance of 10% growth is expected this fiscal (10% volume, 5-10% price). CAPEX is pegged at Rs. 200 crore in FY25 and Rs. 150 crore in FY26. Non-ibuprofen capacity utilisation improved to ~60% from 25% two years ago, and the company aims to grow this segment to 50% of API revenue (currently ~20%) over 3-4 years. Net cash stands at Rs. 190 crore.
The margin compression story is clearly in the past tense with explicit guidance for improvement to 13-15%, supported by capacity ramp-up in non-ibuprofen and SI Group's reported exit from ibuprofen (4,500-5,000 tonnes). However, near-term pricing remains weak and US FDA approval is still pending, which keeps a key growth lever on hold. Shareholders should watch margin trajectory over the next 1-2 quarters as the main catalyst.