BAL Pharma, a fully integrated pharmaceuticals company specialising in bulk drugs, prescription drugs, generics and pharma intermediates has announced its results for the quarter ended June 30, 2022.

The company reported revenue of Rs 700.71 million for Q1FY23 as compared to Rs 711.38 million for Q1FY22. Revenue was impacted by macro and uncontrolled factors led by geopolitical concerns, external market turmoil and certain other unavoidable market factors. EBITDA for Q1FY23 stood at Rs 60.05 million as compared to Rs 76.23 million for Q1FY22. Margins were impacted by lower-price realisations from API products, along with severe raw material prices increase. PAT for Q1FY23 stood at Rs 14.07 million as compared to Rs 21.48 million for Q1FY22. The formulation business remained the revenue growth driver and witnessed robust growth of 50 per cent whereas export formulation grew by 69.43 per cent and stood at Rs 307.71 million for Q1FY23 as compared to Rs 181.62 million for Q1FY22. Domestic formulation grew by 2.96 per cent and stood at Rs 77.66 million for Q1FY23 as compared to Rs 75.43 million for Q1FY22. The API business revenue stood at Rs 303.49 million for Q1FY23 as compared to Rs 446.1 million for Q1FY22.

BAL Pharma is expanding its footprints into new geographies in both segments. In the API segment, they have expanded their presence in Uzbekistan, Guatemala, and Malta. This geographical expansion will add more value to the business and ultimately enhance profitability in the coming years.

The company expects an average annual turnover of Rs 1,250 million p.a from the eligible products in the next five to six years. BAL Pharma is strengthening and preparing itself under all the parameters to cater to the maximum market opportunity and market share. They have more than two decades of experience, five manufacturing facilities, 200+ finished products, 80+ presence across the countries, 370 tonnes API capacity, 22+ API molecules and 1000+ employee strength. 

Shailesh Siroya, MD, BAL Pharma said, "Despite several challenges in the marketplace - both on the demand and the supply side, we turned out a resilient set of numbers for Q1FY23. We had to navigate through a volatile market, inflated raw material procurement costs, and steep fuel and freight charges. We also made investments in hiring highly qualified professionals to support our ambitions. I expect them to take our operational excellence to a different level and bolster our journey towards quality growth. On the positive side, the Company has a robust product pipeline and is strategically improving its presence in both domestic and international markets. In particular, our formulation business is gaining solid momentum by growing 50 per cent YoY – which should help improve our margins profile continually. Recently, we have expanded into three new geographies and added strategic new customers that will bode well for us in the long term. Government support in the form of a PLI scheme will further boost our overall growth strategy. Going forward, we foresee strong demand growth for our various products, and we are placing concerted efforts for improving our profitability in the coming quarters."