⚡ Flash Summary
BF Biosciences Limited (BFBIO) reported strong revenue growth of 60% for the year ended June 30, 2025, reaching Rs. 5,837 million compared to Rs. 3,659 million in the previous year. This growth was driven by both in-market generic sales (50% increase) and institutional sales (127% increase), mainly from new products and Line II operations. However, the gross profit margin decreased to 39% due to increased factory overheads from Line II commissioning. The company also increased selling and distribution expenses by 102% to support top-line growth, resulting in an EPS of Rs. 5.52 per share, a decrease from the previous year due to an increase in the weighted average number of shares after the IPO.
📌 Key Takeaways
- 🚀 Revenue jumped by 60%, from Rs. 3,659 million to Rs. 5,837 million, driven by generics and institutional sales.
- 💊 In-market generic sales grew by 50%.
- 🏥 Institutional sales skyrocketed by 127%.
- 🏭 New products and Line II operations fueled sales increase.
- 📉 Gross profit margin decreased to 39% due to factory overhead increases.
- 💸 Selling and distribution expenses surged by 102% to support topline growth.
- 📉 EPS declined to Rs. 5.52 due to increased weighted average number of shares after IPO.
- 💰 Profit after tax increased by 16%, from Rs. 385 million to Rs. 447 million.
- 🔬 R&D investment continues to be a priority to support future growth.
- 🏭 Line II expansion completed, poised to contribute to future production capacity.
- 🚫 No cash dividend recommended to ensure long-term business sustainability.
- 🤝 Collaborations with Gilead and other partners remain crucial for product access.
- 🚺 Three female directors present on the seven-member Board, demonstrating diversity.
🎯 Investment Thesis
Hold the current position. While revenue growth is strong, the dip in EPS warrants further investigation. Further monitoring of cost management and factory overheads, and the effective execution of sales plans, must continue. A more detailed valuation is not possible with the information available.
Disclaimer: AI-generated analysis. Not financial advice.