20-05-2025
Eris Lifesciences Ltd (NSE:ERIS) Q4 2025 Earnings Call Highlights: Robust Revenue Growth Amidst ...
Release Date: May 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Eris Lifesciences Ltd (NSE:ERIS) reported a 28% year-on-year growth in consolidated operating revenue for Q4, reaching INR 705 crores.
The company achieved a significant 70% year-on-year growth in consolidated EBITDA, amounting to INR 252 crores.
Eris Lifesciences Ltd (NSE:ERIS) saw a 28% growth in profit after tax, totaling INR 102 crores for the quarter.
The company reported a strong operating cash flow to EBITDA ratio of 111% in Q4.
The return on capital employed (ROCE) improved to 15% for FY25, up from 11% in the previous year, with an adjusted ROCE of 20%.
There was a significant product shortage in human insulin, resulting in an estimated sales loss of around INR 50 crores.
The critical care segment experienced a planned 20% decline, attributed to delays in building out the domestic go-to-market strategy.
The company faced challenges in the oncology business due to product mix issues, impacting performance.
Insulin fill-in took longer than anticipated, affecting the rollout of certain products.
The company experienced intermittent connection issues during the earnings call, leading to unclear communication at times.
Warning! GuruFocus has detected 8 Warning Signs with NSE:ERIS.
Q: Can you clarify the impact of the supply shortage on the insulin business and the expected market capture? A: We experienced a sales loss of around INR 50 crore due to supply shortages, with INR 38 crore within the Biocon One business. We are confident in capturing 50-60% of the vacated market, supported by a secured supply deal and upcoming capacity expansions. (Respondent: Unidentified_3)
Q: What are the challenges faced in the critical care business, and how do you plan to address them? A: The critical care segment faced issues due to a lack of market strategy and bandwidth. We are working on improving our go-to-market strategy and expect to see improvements in the next quarter. (Respondent: Unidentified_3)
Q: Why is there a discrepancy in the expected margin improvements despite significant growth in the insulin business? A: The expected margin improvements are tempered by the timing of cartridge production, which will start in Q4, and the addition of 300 new employees, which initially strains the EBITDA line. We are cautiously guiding a 37% margin. (Respondent: Unidentified_3)
Q: How does Eris plan to fill the gap left by Novo's exit from the insulin cartridge market? A: We believe the substitutes offered by Novo are either reverting to vials or are significantly more expensive. We expect to capture a significant portion of the market due to our competitive pricing and established brands. (Respondent: Unidentified_3)
Q: What are the next steps for Swiss Parentals in terms of export opportunities and CDMO contracts? A: We are awaiting N visa approval, which will open large markets for us. We are in discussions for CDMO contracts, focusing on specialty injectables for EU clients, with plans to expand into oral solids. (Respondent: Unidentified_3)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
