IOL Chemicals and Pharmaceuticals on Wednesday said it expects FY20 revenue to see a minimum growth of 30 percent year-on-year (YoY) after the company reported strong Q3 results.
In an interview to CNBC-TV18, Vijay Garg, joint managing director, said ibuprofen is still in a short supply globally as there is no official news in the market on the re-opening of BASF Texas plant in America.
According to Garg, global ibuprofen prices have increased from $12 to $16, "If I compare the prices with Q3 of FY19, there is a 40 percent increase in prices. In India, it was in the range of Rs 750 and now it's in the range of Rs 1,050 and the same is happening in the global market."
On production level front, Garg said, "IOL Chemicals was at Rs 1,000 crore and this year we will be doing around Rs 1,750 if I consider the same number for Q4. So we will be growing at the rate of 70 percent this year."
"Presently, IOL Chemicals runs ibuprofen plant at 100 percent capacity, whereas our chemical plant is running at 80 percent capacity utilisation. As far as FY20 is concerned, we expect minimum growth of 30 percent and it will be in the range of Rs 2,200-2,300 crore for FY20," he added.
IOL makes active pharmaceutical ingredient (API) and bulk drugs and Ibuprofen is its flagship product.