HYDERABAD, India | 12th October 2020: Balaxi Pharmaceuticals Limited (BPL), a branded IPR-based pharmaceutical company, today announced its results for the quarter and half year ended 30th September, 2020.
Financial Highlights – H1FY21:
- The Company recorded a revenue of INR 1,124 million. Incremental growth is due to consolidation of newly acquired subsidiaries of Guatemala and Dominican Republic.
- EBITDA came in at INR 193 million; EBITDA margin at 17.2%.
- PAT came in at INR 188 million; PAT margin at 16.7%.
| Particulars (INR mn) | Q2FY21 | Q1FY21 | Q-o-Q% | H1FY21 |
| Revenue | 603 | 521 | 16% | 1,124 |
| EBITDA | 103 | 90 | 14% | 193 |
| EBITDA Margin % | 17.1% | 17.3% | -20 bps | 17.2% |
| PAT | 101 | 87 | 16% | 188 |
| PAT Margin % | 16.8% | 16.7% | 10 bps | 16.7% |
Segmental Performance:
| Revenue (INR mn) | Q2FY21 | Q1FY21 | Q-o-Q % | H1FY21 |
| Pharmaceuticals | 385 | 322 | 20% | 706 |
| Ancillary | 177 | 131 | 36% | 308 |
| Branded Consumer Products | 41 | 68 | -40% | 109 |
- Revenue from Pharmaceutical business saw sequential growth of 20% on account of new product launches and better product mix in Q2Y21. Sales mix of Branded: Generics in Q2FY21 stood at 29:71 as against 25:75 in Q1FY21.
- Pharmaceutical business segment contributes 63% of the consolidated revenues and 73% of the consolidated EBITDA.
- Ancillary business witnessed an increase in revenue to INR 177 million in Q2FY21 versus INR 131 million in Q1FY21 registering a growth of 36% Q-o-Q.
- Branded Consumer products top-line declined from INR 68 million in Q1FY21 to INR 41 million in Q2FY21. The de-growth was due to supply chain disruptions amidst the lockdown in Angola in the wake of COVID-19 pandemic.
Update on Pharmaceutical Product Registrations:
| Particulars | Angola | Guatemala | Dominican Republic | Honduras | El Salvador | Central African Republic |
| Existing Product Registrations | 289 | 79 | 136 | 24 | 20 | – |
| Product Registrations in Pipeline | – | 115 | 52 | 120 | 120 | 175 |
Commenting on the performance, Mr. Ashish Maheshwari, Chairman and Managing Director said, “We are delighted to report a decent growth in our business amidst Covid-19 pandemic. The Company has 548 pharmaceutical product registrations spanning across 5 countries and 582 product registrations in pipeline. We also have a well-established expert regulatory team, which carefully monitors the registration process at every stage. We aim to double our pharmaceutical product registrations over next 2 years.”
Pharmaceutical Business Overview:
| Geographical Mix % | Q2FY21 | Q1FY21 | H1FY21 |
| Angola | 72% | 82% | 77% |
| Guatemala | 8% | 5% | 6% |
| Dominican Republic | 20% | 13% | 17% |
- The Company generated 77% of the pharmaceutical revenue from Angola followed Dominican Republic and Guatemala as on H1FY21.
- Revenues from Latin American markets (including Venezuela & Haiti) increased from 18% in Q1FY21 to 28% in Q2FY21.
- The product split between Branded & Generics is at 24:76 as on H1FY21. Balaxi is focused on growing share of branded generics in its overall pharma sales.
- The Company has set its foot in the newer geographies such as Central African Republic, Honduras and El Salvador and plans to expand its presence in these markets.
Strategic Initiatives:
- Balaxi Pharmaceuticals is in the process of forming a wholly owned subsidiary in Central African Republic. The Company plans to begin with pharmaceutical business in the region through well-built on-ground infrastructure in terms of warehouses, fleet of vehicles and personnel.
- The Company has also initiated the incorporation of a wholly owned subsidiary in China, to also facilitate and manage its sourcing from reputed manufacturers within China.
- The Company plans to scale up Branded Consumer Products business by adding new products such as hand sanitiser, disinfectants, confectionaries etc.
- The Company has inducted Mr. Rakesh Khanna and Mr. M.S Rao to serve as additional independent directors on board. Inclusion of the board members will enable the company to adhere to highest standards of corporate governance.
