IOL Chemicals & Pharmaceuticals (IOLCP) has achieved a significant milestone in its pharmaceutical operations. The company announced that it has received a Certificate of Suitability from the European Directorate for the Quality of Medicines & Health Care (EDQM) for its API product Pantoprazole Sodium Sesquihydrate Process-III.

Key Details of the Certification

Product Information

Pantoprazole sodium is a proton pump inhibitor (PPI) that plays a crucial role in reducing stomach acid. It is widely used in the treatment of various gastrointestinal conditions, including:

• Gastroesophageal reflux disease (GERD)
• Erosive esophagitis
• Zollinger-Ellison syndrome

Implications for IOLCP

This certification marks a significant achievement for IOL Chemicals & Pharmaceuticals. The Certificate of Suitability from EDQM is a testament to the quality and compliance of IOLCP's manufacturing process for Pantoprazole Sodium Sesquihydrate. It potentially opens doors for the company to expand its presence in the European pharmaceutical market, which is known for its stringent quality standards.

Market Impact

Such certifications typically enhance a company's credibility and can lead to increased business opportunities, especially in international markets. For IOLCP, this could translate into:

1. Expanded market access in Europe
2. Potential for increased export revenues
3. Enhanced reputation in the global pharmaceutical industry

Conclusion

The receipt of the EDQM Certificate of Suitability for Pantoprazole Sodium Sesquihydrate Process-III represents a positive development for IOL Chemicals & Pharmaceuticals. It underscores the company's commitment to quality and compliance in its API manufacturing processes, potentially setting the stage for growth in the competitive European pharmaceutical market.

Investors and industry observers will likely keep a close watch on how IOLCP leverages this certification to strengthen its market position and drive future growth in its pharmaceutical segment.

IOL Chemicals & Pharmaceuticals has reported a strong start to the fiscal year, with robust growth in both revenue and profitability for the first quarter ended June 30.

Financial Highlights

• Revenue from operations increased by 9.8% year-on-year to Rs. 552.00 crores, up from Rs. 502.00 crores in the same quarter of the previous year.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose by 19.5% to Rs. 69.50 crores, compared to Rs. 58.20 crores in the same quarter last year.
• EBITDA margin improved by 102 basis points to 12.4%.
• Profit After Tax (PAT) grew by 14.4% to Rs. 34.00 crores.
• Cash PAT stood at Rs. 55.00 crores, registering a growth of over 16% compared to Rs. 47.00 crores in the same quarter of the previous year.

Operational Performance

The company's newly commissioned 10,800 MTPA Paracetamol plant has begun exports to European markets and is currently operating at 34% capacity. IOL Chemicals expects this to reach 60% by Q3. The company is targeting a 50-50 split between Ibuprofen and non-Ibuprofen APIs, with non-Ibuprofen currently at a 34% share.

Export revenue comprises 25% of total sales, with plans to increase this to 40% over the next two years. The company received REACH registration for Acetic Anhydride in EU markets, opening up new opportunities for expansion in Europe.

Strategic Developments

IOL Chemicals has initiated the setup of Unit 9B by carving out part of the existing Unit 9 for manufacturing Minoxidil and its intermediates, expected to be completed by Q3. The company has also acquired a 100-acre land parcel near the Chandigarh-Bhatinda highway, with environmental clearance processes underway for future expansion.

Sustainability and Compliance

The company earned an EcoVadis Silver Medal for sustainability performance, placing it among the top 15% of companies globally for environmental, social, and ethical performance. IOL Chemicals continues to focus on regulatory advancements, with upcoming EU GMP audits planned for November.

Management Commentary

Abhay Raj Singh, Sr. Vice President & Company Secretary, stated, "Q1 has been a quarter of efficient execution marked by revenue growth, margin expansion, and resilient cash flow. This performance reflects the strength of our integrated business model and the strategic clarity with which we are navigating both opportunities and challenges."

Future Outlook

IOL Chemicals maintains its guidance of 14-15% EBITDA margins and 10% revenue growth for the full year. The company aims to achieve Rs. 2,000.00 crores in revenue from Ibuprofen and non-Ibuprofen segments combined within the next two years.

The management remains confident in its strategic focus on portfolio diversification, regulatory advancements, and operational excellence to drive growth and profitability in the coming quarters.

Investor Relations

IOL Chemicals has scheduled several analyst and institutional investor meetings in August, including participation in 'Emkay Confluence – India Ascending: The Next Leap', 'Systematix Group – Pharma & Healthcare Conference', and 'Antique - Build India, New India' events.

As IOL Chemicals continues to strengthen its position in both domestic and international markets, investors will be keenly watching the company's progress in achieving its strategic objectives and financial targets for the future.