Any current/future new fundraising through debt or equity?

VeerHealth Care Limited is currently in the process of a rights issue (equity fundraising). The status of the rights issue is ongoing with the lead manager. An update on the rights issue is expected within the next four weeks from June 12, 2024. The funds from the rights issue are planned to be used for setting up a new manufacturing plant. No specific mention of new debt fundraising was made in the call. Promoters may increase their shareholding in the next two quarters, indicating possible equity interest activity.

Any current/future capex/capital investment/strategic investment?

The company is completing an upgradation of its current facility with new infrastructure, plant, and machinery to support new contracts and buyers, particularly for the U.S. market. They are in an advanced stage of identifying a new location to set up an additional manufacturing unit. The new plant construction is planned to be funded through the upcoming rights issue. The existing facility will continue to operate alongside the new plant once the latter is operational. Expansion includes adding new manufacturing lines not only in oral care but also in body care categories. These investments a

Future growth expectations in sales/revenue/volumes?

Target revenue of INR 42 crores in FY '25 with profit before interest and tax around INR 6 crores. Aim to achieve INR 100 crores turnover by March 2027, within 3 financial years. Plan to increase own brand contribution from current 15% to 35% of total revenue by expanding marketing and product variants. Contract manufacturing to decrease from 55% to around 35%, with added new categories like personal care, body care, skin care. Exports expected to remain around 30%, primarily led by the US market, with expansion into new categories like body care starting in Q2 FY '25. Currently utilized capac

Future growth expectations in earnings/operating earnings/profits/EPS?

VeerHealth Care targets INR100 crores turnover by March 2027, up from INR42 crores projected for FY25. EBITDA for FY25 is expected at INR6 crores (profit before interest and tax), with profit before tax around INR5.26 crores. The increase in revenue is driven by scaling own brand contribution from 15% to 35%, contract manufacturing remaining at 35%, and exports steady at 30%. Expansion includes adding new product categories (personal care, body care, skin care), facility upgrades, and a new manufacturing plant funded by rights issue. The US market export is forecasted to contribute INR12-15 cr

Current/ Expected Orderbook/ Pending Orders?

VeerHealth Care Limited's current order book for the US market is fully booked with the existing client until September 30th. They have completed about three shipments for the US institutional supplies sector. They expect to start exports in the body care category to the same US client by the start of Q2 FY25, with FDA registration underway. They are targeting adding 4-5 new customers after the new plant is operational. Initial customer onboarding took 8-10 months, but subsequent customer acquisitions are expected to be faster (approximately two weeks). The company is scaling up shipment capac

IN US

Sale is live|00:00:00left today

Veerhealth Care LtdQ1 FY24Pharmaceuticals & Biotechnology

Veerhealth Care Ltd Q1 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹29.2P/E: 56.8Market Cap: ₹45 CrSector: Pharmaceuticals & Biotechnology

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Target revenue of INR 42 crores in FY '25 with profit before interest and tax around INR 6 crores.
→Aim to achieve INR 100 crores turnover by March 2027, within 3 financial years.
→Plan to increase own brand contribution from current 15% to 35% of total revenue by expanding marketing and product variants.
→Contract manufacturing to decrease from 55% to around 35%, with added new categories like personal care, body care, skin care.
→Exports expected to remain around 30%, primarily led by the US market, with expansion into new categories like body care starting in Q2 FY '25.
→Currently utilized capacity is 85%, with plans to upscale shipments from 6 to 10-12 per month via upgraded and new manufacturing facilities.
→Significant opportunity in the US market due to regulatory changes and shifting focus away from China, targeting INR 12-15 crores in US exports in FY '25.
→Expansion underway with new plants funded by rights issue; both existing and new plants will operate concurrently.

Margin guidance

Category 3

→VeerHealth Care targets INR100 crores turnover by March 2027, up from INR42 crores projected for FY25.
→EBITDA for FY25 is expected at INR6 crores (profit before interest and tax), with profit before tax around INR5.26 crores.
→The increase in revenue is driven by scaling own brand contribution from 15% to 35%, contract manufacturing remaining at 35%, and exports steady at 30%.
→Expansion includes adding new product categories (personal care, body care, skin care), facility upgrades, and a new manufacturing plant funded by rights issue.
→The US market export is forecasted to contribute INR12-15 crores in FY25, expanding to INR25-30 crores annually in coming years.
→Improved operational efficiency, higher capacity utilization (~85%), and enhanced marketing (including e-commerce and Nykaa listing) are expected to support earnings growth.

3 more insights locked — sign up free to unlock

Fundraise plans

Yes

→VeerHealth Care Limited is currently in the process of a rights issue (equity fundraising).
→The status of the rights issue is ongoing with the lead manager.
→An update on the rights issue is expected within the next four weeks from June 12, 2024.
→The funds from the rights issue are planned to be used for setting up a new manufacturing plant.
→No specific mention of new debt fundraising was made in the call.
→Promoters may increase their shareholding in the next two quarters, indicating possible equity interest activity.

Order book

Yes

→VeerHealth Care Limited's current order book for the US market is fully booked with the existing client until September 30th.
→They have completed about three shipments for the US institutional supplies sector.
→They expect to start exports in the body care category to the same US client by the start of Q2 FY25, with FDA registration underway.
→They are targeting adding 4-5 new customers after the new plant is operational.
→Initial customer onboarding took 8-10 months, but subsequent customer acquisitions are expected to be faster (approximately two weeks).
→The company is scaling up shipment capacity from about 6 shipments in one category to 10-12 shipments per month across multiple categories.
→New product categories like personal care, body care, and skin care are being added to the contract manufacturing portfolio to diversify and increase order volumes.

Capex plans

Yes

→The company is completing an upgradation of its current facility with new infrastructure, plant, and machinery to support new contracts and buyers, particularly for the U.S. market.
→They are in an advanced stage of identifying a new location to set up an additional manufacturing unit.
→The new plant construction is planned to be funded through the upcoming rights issue.
→The existing facility will continue to operate alongside the new plant once the latter is operational.
→Expansion includes adding new manufacturing lines not only in oral care but also in body care categories.
→These investments aim to scale shipments from 6 to 10-12 per month and increase contract manufacturing, own brand promotion, and exports.

How does Veerhealth Care Ltd rank vs peers in Pharmaceuticals & Biotechnology?

Pro feature

1Veerhealth Care Ltd

Rev 2Mar 3

See full Pharmaceuticals & Biotechnology sector rankings

Want more stocks like Veerhealth Care Ltd?

Build an AI portfolio filtered by sector, market cap, and growth rank. Takes 2 minutes.

Build my portfolio