Drug firm Caplin Point Laboratories Ltd on Friday (February 7) reported an 18.6% year-on-year (YoY) surge in net profit at ₹139 crore for the third quarter that ended December 31, 2024, over ₹117.2 crore in Q3 FY24.
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Revenue from operations increased 13.2% to ₹493 crore against ₹435.5 crore in the year-ago period.
At the operating level, EBITDA was up 14% to ₹162.4 crore in the third quarter compared to over ₹142.4 crore YoY. The EBITDA margin stood at 33% in the reporting quarter compared to 32.7% a year ago. EBITDA is earnings before interest, tax, depreciation, and amortisation.
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Caplin Point reported a gross margin of 60.4% for Q3 FY25, up from 56.3% in Q3 FY24, and 60.3% for the first nine months (9M) FY25 compared to 57.1% in 9M FY24. This improvement was driven by product launches across existing and new markets. Basic EPS increased by 17.3% to ₹51.82 in 9M FY25 from ₹44.19 in 9M FY24.
Cash flow from operations rose to ₹284 crore in 9M FY25 from ₹189 crore in 9M FY24. Free cash flow stood at ₹153 crore after a capex investment of ₹131 crore, compared to ₹72 crore after a capex investment of ₹117 crore in the previous year. As of December 31, 2024, the company’s free cash reserves were ₹1,081 crore, with total liquid assets of ₹2,042 crore.
Geographically, revenue composition for 9M FY25 stood at 82% from Latin America & rest of the world (RoW)and 18% from the US. The company’s revenue mix was balanced between product supply (75%) and milestone plus profit share (25%). Inventories stood at ₹333 crore, with 52% stocked at warehouses close to customers, 18% in transit, and 30% in India. Receivables stood at 118 days.
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Caplin Point’s Latin America business continued its strong growth in revenue and profitability, with robust cash flows. The oncology business, through Caplin One Labs, turned profitable with ₹34 crore in revenue for 9M FY25. The injectable division of the oncology unit is expected to commence operations by Q4 FY25.
In Mexico, the company has filed 28 products, securing 10 approvals, and is working on a pipeline of over 45 products to be filed within the next 12 months.
Caplin Point has filed for insulin analogues in select Central American markets through strategic partnerships with Chinese firms. The company is also planning additional filings in Latin America for insulin, biosimilars/biologics, and the GLP-1 product range over the next few quarters.
The company’s API (active pharmaceutical ingredient) unit in Vizag is nearing completion, with trials and scale-ups expected in Q4 FY25. The first drug master files (DMFs) from this facility will be filed before the end of 2025 for key US abbreviated new drug application (ANDA) products as part of its backward integration strategy.
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Caplin Point has also commenced construction of an oncology API facility in Thervoy, near Chennai. The facility, expected to be completed within 15 months, will support the company’s expanding oncology business for both regulated and emerging markets.
Shares of Caplin Point Laboratories Ltd ended at ₹2,212.25, up by ₹41.65, or 1.92%, on the BSE.
