IOL Chemicals and Pharmaceuticals Limited — PPTs, 18-11-2024: Investor Presentation

**Financial Highlights:** IOL Chemicals and Pharmaceuticals reported Q2 FY2025 total income of ₹532 Cr, a decrease of 3.7% year-on-year compared to ₹552.4 Cr. EBITDA dropped 32.7% to ₹48 Cr, with an EBITDA margin of 9.0%. Profit After Tax (PAT) fell significantly to ₹19 Cr, representing a 49.5% decrease and a PAT margin of 3.6%. For H1 FY2025, total income stood at ₹1,042 Cr, a decline of 7.2% from ₹1,122.7 Cr, with EBITDA of ₹106 Cr and PAT of ₹49 Cr.

**Strategic Initiatives and Growth Drivers:** The company is expanding its non-Ibuprofen business, evidenced by the recent purchase of 101 acres for new manufacturing facilities. This expansion aims to solidify its position in pharmaceuticals and specialty chemicals.

**Business Developments:** The geographical revenue highlights indicate strong domestic (₹865 Cr in FY24) and export performance. IOLCP’s proactive measures to enhance operational efficiency are noted in the context of pressure on margins due to pricing challenges.

**Market Position and Competitive Advantage:** IOLCP remains the largest global producer of Ibuprofen and holds significant shares in key product segments, including a 30% share in IsoButyl Benzene. The company's backward integration capabilities fortify its market position.

**Investor Implications:** With credit ratings reaffirmed at A+ and ongoing capacity expansions, the company's operational setbacks present potential growth opportunities. Investors should monitor future developments closely to gauge the efficacy of recovery strategies amid current market challenges.