Key Metrics of Neuland Laboratories
About Neuland Laboratories
Sectors
Company details
- Website
- neulandlabs.com/en
- Registered office
- 11th Floor (5th Level) Phoenix Ivy Building Plot No. 573a-iii, Road No. 82 Jubilee Hills,, Hyderabad, In-ts, 500033
- Listed
- NSE: NEULANDLAB · ₹19,280.00
Operational Areas of Neuland Laboratories
Company summary
Entity details
Compliance
Industry classification
Financials, ratios and risk analysis
Revenue, EBITDA, net profit, net worth, debt and assets for every filing year, 15+ ratios, the financial health score, shareholding, charges and peer comparison are part of the premium plan.
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Due dates follow the Companies Act: AGM within six months of the year end, AOC-4 within 30 days and MGT-7 within 60 days of the AGM. A filing made but not yet uploaded here shows as pending.
Vendor checks & payment capacity
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Credit ratings
NoteLatest action: rating withdrawn (CARE, 28 Apr 2020)
Rating history
Rating actions
| Date | Agency | Action | Long term | Short term | Outlook | Rated amount | Rationale |
|---|---|---|---|---|---|---|---|
| 28 Apr 2020 | CARE | Withdrawn | BB | A3+ | Stable | — | View |
| 02 Aug 2019 | CARE | Reaffirmed | BBB+ | A3+ | Stable | ₹826 Cr | View |
| 30 Jan 2019 | CARE | Reaffirmed | BBB+ | A3+ | Negative | ₹845 Cr | View |
| 27 Feb 2018 | CARE | Reaffirmed | BBB+ | A3+ | Stable | ₹939 Cr | View |
| 07 Feb 2018 | CARE | Reaffirmed | BBB+ | A3+ | Stable | ₹344 Cr | View |
| 11 Apr 2017 | CARE | Reaffirmed (from BBB) | BBB+ | A3+ | Stable | ₹709 Cr | View |
| 26 Aug 2016 | CARE | Revised (from BBB-) | BBB | A3+ | — | ₹370 Cr | View |
| 29 Apr 2016 | CARE | Reaffirmed | BBB- | A3 | — | ₹300 Cr | View |
Credit strengths (CARE, Aug 2019)
+ Experienced management and approved manufacturing facilities
NLL is led by Dr. D.R. Rao, the Chairman and MD of the company, who has over four decades of industry experience. He has a Masters in Science from Andhra University, Post Graduate Diploma in Technology from IIT Kharagpur, and was awarded his PhD in Organic Chemistry from the University of Notre Dame, U.S.A. Prior to promoting Neuland in 1984, Dr. Rao has held senior positions in R&D, production, and quality assurance at Glaxo India for about ten years. He is a member of Royal
+ Reputed and geographically diverse clientele
The company has been generating revenue from customers with long standing relation with an average age of 15 years of association. The company enjoys dependable relationships with major global and Indian pharma majors. The company has established healthy relationship with reputed clients. The established relations have also resulted in repeat orders from customers. No single client contributes more than 15% to the total operating revenue. Further, Top 5 clients of the company
+ Healthy growth in total operating income during FY19
At consolidated level, the total operating income of the company grew by 26.01% and stood at Rs. 666.82 crore during FY19 as against Rs. 529.17 crore during FY18. The total operating income of the company improved on account of strong demand for the products with improving generic API volumes during FY19. During FY19, company witnessed healthy growth of 1 CARE Ratings Limited Press Release 35.48% in the revenues of generic APIs from Rs. 395 crore during FY18 to Rs. 535.18 crore during FY19. The
+ Improved financial risk profile of the company
During FY19, the overall gearing of the company has improved from 1.26x as on March 31, 2018 to 0.61x during March 31, 2019. During May 2018, to strengthen the Balance sheet of the company has issued 16,75,000 equity shares through QIP at an issue price of Rs. 750 per share amounting to Rs. 125.63 crore (including a premium of Rs. 121.68 crore). The company has utilized the aforementioned amount for pre – payment of part its long term debt amounting to Rs. 38.20 crore approx. and
+ Comfortable liquidity position
The company has a satisfactory liquidity position with adequate cash accruals generation. The current ratio stood at 1.33x as on Mach 31, 2019 as against 1.17x as on March 31, 2018. Considering the cash accruals which the company is expected to generate during FY20 and the total debt obligation of about Rs. 21.69 crore during FY20, the cash accruals are expected to be adequate to meet the debt obligations comfortably. The company has cash and bank balance of Rs. 37.83 crore as on March
+ Growth opportunities in Custom manufacturing solutions (CMS) Segment
NLL provides contract manufacturing solutions (CMS) to innovator pharma and biotech companies. It offers both small-scale clinical trial quantities and commercial-scale requirements. The company has well equipped facilities for Preclinical trials to Phase III for development of New Chemical Entity (NCE). The company caters to regulated markets such as US, Europe and Japan. The CMS business is in its nascent stage making the segment revenues volatile. During FY19, the revenue from CMS
Credit challenges
− Decline in Profitability margins during FY19
During FY19, the PBILDT margin of the company has deteriorated marginally by 69 bps from 9.89% during FY18 to 9.20% during FY19. The decline in PBILDT level of the company was primarily due to increase in major raw material costs which are being sourced from China. Notwithstanding the rise in input raw material prices on one side and obligation to honour the contractual orders at predetermined price on the other side has hit the profitability margins of the company. However,
− Moderate operating cycle
The total operating cycle of the company improved from 169 days during FY18 to 137 days during FY19 mainly due to improved collection days and inventory days which improved from 131 days and 121 days during FY18 to 100 days and 112 days during FY19 respectively. The company is maintaining inventory of regular products and raw material for 90-120 days to avoid stock-out issues and providing about 80-100 days of credit period to its customer. Further, the company receives credit
− Risk associated with exchange rate fluctuations
The total operating income of the company constitutes about 70.88% from export sales during FY19 (71.44% during FY18). Further the company has imported raw material of Rs. 81.61 crore which is about 21.76% of total raw material purchases during FY19. Accordingly NLL has natural hedge against exchange rate fluctuations to certain extent. Further, towards its hedging policy, the company is issuing bill discounting and Pre-shipment Credit in Foreign currency (PCFC) to cover about 90-
Borrowings & rated debt
Rated limits over time
Facility mix
Rated facilities
| Facility | Type | Previous | Current | Change | Rating | Action | Agency |
|---|---|---|---|---|---|---|---|
| Long-term Bank Facilities | Working capital & bank lines | — | ₹294 Cr | — | BBB+ (Stable) | Other | CARE |
| Short-term Bank Facilities | Working capital & bank lines | — | ₹119 Cr | — | A3+ | Reaffirmed | CARE |
| Total Facilities | Other | — | ₹413 Cr | — | — | Reaffirmed | CARE |
CARE ratings on record (checked 26 Oct 2026)
| Instrument | Amount | Rating |
|---|---|---|
| BG/LC | — | Withdrawn |
| Forward Contract | — | Withdrawn |
| Long Term | — | Withdrawn |
| Working Capital Limits | — | Withdrawn |
Credit assessment · Manufacturing
Rating Methodology – Manufacturing Companies (Mar 2025) · Standalone accounts · FY 2025-26
Ratios, pillar scores and the indicative rating are part of Premium.
Rating status
| Default | No default on record |
| Issuer cooperation | Cooperating |
| Credit enhancement | None – standalone rating |
| Withdrawal | CARE · 28 Apr 2020 · Withdrawn at company request with lender NOCs |
| Next action stable or better (model) | 53% |
| Information on file | 67% · missing: Capex / investment plans, Auditor details, Recent rating review (last 15 months) |
Indicative assessment from public data using the published methodology factors; not a credit rating.
Borrowing & funding lifecycle
- Credit outlook model: 53% chance the next rating action is stable or better
- Current rating BBB+ (investment grade)
- CARE withdrew its ratings on 28 Apr 2020 — usually after the rated bank loans were repaid or moved to another lender
Rated limits by facility
Timeline
From the report
The company has cash and bank balance of Rs. 37.83 crore as on March 31, 2019 and the working capital utilization during last 12 months ending on June 2019 has been moderate at 69.42%.
From the report
The average of maximum working capital utilization of the company for the last twelve months ending on June 2019 has been moderate at 69.42%.
From the report
However, post QIP the liquidity profile of the company improved significantly as the company raised Rs. 125.63 crore from the issue and utilized the proceeds for pre – payment of part of its long term debt amounting to Rs. 37.88 crore and balance of Rs. 87.75 crore is to be utilized for capex and working capital requirements.
From the report
Further, the company had free cash and bank balance of Rs. 19.74 crore as on Dec 31, 2018.
From the report
Further, the company has additional liquidity comfort with availability of Rs. 12 crore of CC as the company has presently availed Rs. 208.00 crore of CC out of the total sanctioned limit of Rs. 220.00 crore.
From the report
The deterioration was mainly due to increase in term loans availed during the year.
From the report
The average of maximum working capital utilization of the company for the last twelve months ending on November 2018 has been moderate at 77.96%.
Lender names, bank charges and audited borrowings are part of Premium.
Built from MCA charges, ICRA/CARE rating reports and audited accounts. The borrowing view is an estimate, not a lender's credit decision.
Registered office and contact
Directors and key people
Directors are read from the MGT-7 annual return and AOC-4 signatories.
Competitors of Neuland Laboratories
Top competitors by location
| Company | Description | Domain | Founded | Location |
|---|---|---|---|---|
 Dr. Reddy's Laboratories |
Part of Dr. Reddy's Laboratories. | drreddys.com | 1984 | India |
 Aurobindo Pharma |
Part of Aurobindo Pharma. | aurobindo.com | 1986 | Hyderabad, India |
 Cipla |
Part of Cipla. | cipla.com | 1935 | Mumbai, India |
| Formulations & Contract Manufacturing · Pharmaceuticals & Healthcare | lupin.com | 1968 | India | |
 Glenmark Pharmaceuticals |
Part of Glenmark Pharmaceuticals. | glenmarkpharma.com | 1977 | Mumbai, India |
| Part of Biocon. | biocon.com | 1978 | Bangalore, India | |
 Alkem Laboratories Limited |
Formulations & Contract Manufacturing · Pharmaceuticals & Healthcare | alkemlabs.com | 1973 | Mumbai, Maharashtra, India |
 Torrent Pharmaceuticals |
Formulations & Contract Manufacturing · Pharmaceuticals & Healthcare | torrentpharma.com | 1959 | Ahmedabad, India |
| Aster DM Quality Care Limited | Discovered Companies · Other Industries | — | — | Hyderabad, Telangana, India |
 Thomas Cook India |
Part of Thomas Cook Group. | thomascook.in | 1978 | Mumbai, India |
Similar companies
Charges (secured borrowings)
0 registered charges. Lenders, amounts and dates are part of the premium plan.
Statutory auditors
Auditors are read from the AOC-4 auditor's report section.
Business activities and related parties
pharmaceutical industry
Filings
No filings on record yet.