-
Quarterly Revenue: INR 1,672 million, a 6% year-on-year increase and a 1% sequential increase.
-
Quarterly EBITDA Margin: 27%.
-
Quarterly PAT Margin: 16%.
-
Annual Revenue FY25: INR 6,369 million, a 2% increase from FY24.
-
Annual EBITDA FY25: INR 1,944 million, 31% of sales.
-
Annual Net Profit FY25: INR 1,340 million.
-
Human Nutrition Revenue Contribution: 62% for the quarter, 64% for FY25.
-
Animal Nutrition Revenue Contribution: 12% for the quarter, 12% for FY25.
-
Bio-Process Revenue Contribution: 17% for the quarter.
-
Specialized Manufacturing Revenue Growth: 39% year-on-year for the quarter, 30% for FY25.
-
R&D Expenditure FY25: INR 328 million, 5.3% of revenue.
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Advanced Enzyme Technologies Ltd (BOM:540025) achieved a 6% year-on-year growth in quarterly revenue, reaching INR1,672 million.
-
The company has filed multiple dossiers with the European Food Safety Authority and the US FDA, indicating progress in regulatory compliance for new enzyme applications.
-
A new independent laboratory, Staria Labs, has been established under the US subsidiary for testing enzymes and probiotic products.
-
The company has increased its clean energy capacity by installing an additional 350 kilowatt solar power plant, enhancing its sustainability efforts.
-
The animal nutrition segment showed strong growth, contributing 12% to quarterly revenue with a 13% year-on-year increase.
Negative Points
-
EBITDA margin decreased to 27% due to changes in product mix and inventory valuation adjustments.
-
The human nutrition segment experienced a 3% annual revenue decline, primarily due to lower domestic market performance.
-
The largest product, erra peptides, faces competitive pressures, potentially leading to a 2-5% revenue decline in this area.
-
New product launches in weight management, sugar management, and protein digestion did not meet expected traction in the US market.
-
The company faces challenges in expanding its marketing reach and product registration in international markets, impacting growth potential.
Q & A Highlights
Q: Can you explain the reasons behind the falling gross margin and whether the inventory evaluation was a one-time activity? A: The change in product mix and the year-end inventory evaluation impacted the gross margin. The inventory evaluation is a regular year-end exercise, not a one-time event. We expect to maintain a gross contribution of around 76-77% going forward. - Beni Rauka, Chief Financial Officer