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Informist, Tuesday, Feb. 25, 2025

 

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--Sai Life Sciences MD: Capex seen INR 4 bln-INR 5 bln/yr for next 2-3 yrs
--Sai Life Sciences: Expect 15-20?GR in revenue for next 3-5 yrs
--Sai Life Sciences: To complete capacity expansion in next 6-12 months
--Sai Life Sciences MD: Expect EBITDA margin to reach 30% in 2-3 years
--CONTEXT: Sai Life MD Kanumuri's remarks to Informist at Bio-Asia event
 

 

By Narayana Krishna 

HYDERABAD - Sai Life Sciences Ltd. expects its revenue to see a compounded annual growth rate of 15-20% for the next 3-5 years, aided by capacity expansion and robust demand in contract manufacturing and development organisation space, Managing Director and Chief Executive Officer Krishna Kanumuri told Informist. Speaking on the sidelines of Bio-Asia 2025 event on Tuesday, Kanumuri said the company is working with 18 of the top 20 global pharmaceutical majors and there is a clear visibility of growth. 

 

On growing competition in the contract manufacturing business, which may hurt the growth, Kanumuri said this business requires time to build trust in the industry and it is not possible to create such an organisation overnight, adding that he remains confident of growth over the next few years.

 

Kanumuri said the company is working on new modalities and expanding capacities to meet the upcoming opportunities in areas such as peptides. By offering end-to-end solutions to the pharmaceutical industry, the company is creating capacities to meet the growth potential of every segment. The discovery services segment contributes 40% of Sai Life Sciences' revenue, while 60% comes from contract manufacturing and development segment.

Kanumuri said India has a competitive edge as it is a relatively cheaper location for pharma manufacturing operations, despite US tariff threats. The company is targetting a capital expenditure of INR 4 billion-INR 5 billion a year for the next 2-3 years, he said. The current capacity expansion plans are expected to completed over the next 6-12 months, the company MD said. 

 

Sai Life Sciences expects its earnings before interest, tax, depreciation and amortisation margins to reach 30% in the next 2-3 years. In Oct-Dec, the company's EBITDA margin was 28%. On Tuesday, shares of the company ended 2% higher at INR 710.40 on the National Stock Exchange.  End

 

Edited by Tanima Banerjee

 

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