Supriya Lifescience CFO aims for Rs 1,000 crore revenue by FY27, advocates R&D policy changes in Budget 2024

Supriya Lifescience, an active pharmaceutical ingredient (API) maker based in Mumbai, aims to achieve Rs 1000 crores in revenue by the fiscal year 2027, said its CFO Krishna Raghunathan.

Raghunathan also stressed that Supriya Lifescience is confident of achieving target top line revenue in the range of 550 to 575 crores in FY24 with an EBIDTA between 20 to 30 per cent on an overall annualized basis.

The CFO shared the company's strategy, emphasizing achieving targets through sustained growth in current markets, capturing a larger share, enhancing revenue streams, and simultaneous expansion into new territories. Additionally, there's a focus on introducing new products and capitalizing on contract development and manufacturing organisation (CDMO) opportunities.

" Looking at the long-term perspective, the company aspires to reach a top line revenue of 1000 crores in FY27," Raghunathan told ETCFO.

"In addition to the existing product line, the company anticipates introducing new products in therapeutic areas such as second-generation antihistamines, anti-anesthetics, and anti-diabetics and capitalizing on CDMO opportunities'', the CFO added.

Raghunathan said that these strategic moves are expected to play a pivotal role in propelling the company's revenue from the current 500 to 575 crores in FY24 to the targeted 1000 crore by FY27

Capex and fund raising plans

Raghunathan mentioned that as of now, the company has around Rs 80 crores in internal accruals and an additional Rs 15 crores in IPO funds, making it cash-rich. The company is currently well-funded for its existing capital expenditure plans.

The CFO highlighted that while there is no immediate need to scout for additional cash, the company remains open to inorganic opportunities or new business ventures. In case such opportunities arise, the company can leverage the existing 80 crores in cash.

Regarding the specific capital expenditure for FY 23, Raghunathan stated that the company had incurred a capex of around Rs 108 crores during that period, and the capital expenditure in FY24 is expected to be in the same range.

CFO advocates for R&D incentives in Budget 2024

The CFO of Supriya Lifescience, conveyed his expectations for the pharmaceutical industry by sharing a wishlist. The CFO said that the backbone of the pharmaceutical industry lies in research and development. In the current tax regime, R&D spending is treated merely as regular business expenditure, lacking the necessary exemptions. Particularly in the case of pharmaceutical companies, where R&D holds unique significance,

Raghunathan advocated for the reinstatement of targeted concessions. " It is my earnest wish to see a reintroduction of supportive measures in the financial landscape, specifically tailored to nurture and incentivize research and development initiatives within the industry, " the CFO said.

Raghunathan believes that providing such incentives would act as a catalyst for innovation within the pharmaceutical sector, thereby making a significant contribution to its overall growth. This expectation reflects the company's vision for a supportive regulatory environment that fosters research and development initiatives within the industry.