Q2 FY2019 Earnings Presentation Providing Affordable and Innovative medicines for healthier lives
Highlights Q2 FY2019 vs. Q2 FY2018 Management Perspective “ The company has shown the Profit Before Tax (PBT) of Rs. 46.24 Crs for the financial year ending as on 31.03.2018, as against company had achieved PBT o Total Income of Rs. 1,070.4 million, up 15.5% of Rs. 42.93 Crs for the period ending on 30.09.2018, almost previous year performance in six months. The company is also optimistic about the o EBITDA of Rs. 235.2 million, up 27.7% performance of remaining six months of Financial year 2018-19. The company’s Profit for the whole year is attractive & remarkable. ▪ EBITDA margin of 22.0%, up 209 bps We are also in the process of setting up an API unit which we expect to be o PBT of Rs. 202.6 million, up 34.0% operational by end of this financial year. This in-house API production will ▪ PBT margin of 18.9%, increased 260 bps ensure reduction in price fluctuation and will also be instrumental in getting approvals for supplying our products to the US and other regulated markets. In o PAT of Rs. 149.9 million, up 32.7% addition, we are also in the process of setting up a new solar plant which will result in further fuel cost savings going forward and enhance our margins. ▪ PAT margin of 14.0%, up 181 bps Our recent expansion and modernization of plants, strong order book, o Total Debt of Rs. 466 million outstanding R&D capabilities coupled with various strategic investments expected to contribute to the growth of the Company in near to medium term. ” ▪ Total Debt / Equity of 0.18x and Net Debt to LTM EBITDA of 0.47x Mr. Mahendra G. Patel, Managing Director 2
Performance Overview Consolidated Financial Performance Q2 y-o-y Q1 q-o-q Half Year y-o-y Particulars FY2019 FY2018 Growth (%) FY2019 Growth (%) FY2019 FY2018 Growth (%) Net Revenue 1,070 926 15.5% 1,021 4.8% 2,092 2,450 (14.6)% EBITDA 235.2 184.2 27.7% 255.9 (8.1)% 491.1 282.8 73.6% Margin (%) 22.0% 19.9% 25.1% 23.5% 11.5% PBT 202.6 151.2 34.0% 226.8 (10.7)% 429.3 219.9 95.2% Margin (%) 18.9% 16.3% 22.2% 20.5% 9.0% Profit After Tax (PAT) 150.0 113.0 32.7% 160.7 (6.6)% 310.7 162.1 91.6% Margin (%) 14.0% 12.2% 15.7% 14.9% 6.6% Basic EPS (Rs.) 7.50 5.65 32.7% 8.03 (6.6)% 15.53 8.11 91.5% Note: Financials are as per IND-AS 3
Performance Overview Quarterly Revenue Breakup General Anti Infectives 19.2% 21.0% 21.5% 26.1% Respiratory Systems Therapeutic Area 0.5% Alimentary Tract and Metabolism 0.5% 2.5% Genito Urinary System and Sex Hormones 2.8% Q2 FY19 Q2 FY18 2.9% 0.3% Musculo-Skeletal System 9.9% Parasitology 7.2% 15.2% Blood and Blood Forming Organs 17.0% 9.9% 8.3% Cardiovascular System 2.1% Central Nervous System 16.8% 16.2% Others 37.6% Geography International 54.3% 45.7% Q2 FY19 Q2 FY18 Domestic 62.4% 4
Performance Trend Total Income (Rs. million) and Y-o-Y Growth (%) Q2 FY2019 Highlights (Y-o-Y) 15.5% 18.1% 10.3% (33.0)% o The company has shown the Profit Before (43.8)% Tax (PBT) of Rs. 46.24 Crs for the financial year ending as on 31.03.2018, as against this 926.5 830.2 679.7 1,021.2 1,070.4 company had achieved PBT of Rs. 42.93 Crs Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 for the period ending on 30.09.2018, almost EBITDA (Rs. million) and Margin (%) previous year performance in six months. 25.1% 22.9% 22.0% 19.9% o Profitability improved on the account of: 15.4% ▪ Increased share of exports business 184.2 189.8 105.1 255.9 235.2 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 ▪ Better product mix PAT (Rs. million) and Margin (%) ▪ Fuel cost savings on account of 15.7% optimum utilization of wind mill 13.9% 14.0% 12.2% 10.0% 113.0 115.8 68.3 160.7 150.0 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 5 Note: Financials for Q2 FY2018, Q3 FY2018, Q4 FY2018, Q1 FY2019 and Q2 FY2019 are as per IND-AS.
Performance Trend Net Debt / LTM EBITDA Total Debt / Net Worth 1.87x 0.5x 1.0x 0.9x 0.26x 0.2x 0.2x 0.68x 0.18x 0.47x Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 ROCE 1 RONW 2 24.3% 22.1% 19.6% 19.0% 16.7% 15.4% 14.9% 14.5% 13.0% 11.3% Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Financials for Q2 FY2018, Q3 FY2018, Q4 FY2018, Q1 FY2019 and Q2 FY2019 are as per IND-AS. Q3 FY2018 and Q4 FY2018 balance sheet numbers are as are as per IND-AS Note: 6 1. ROCE calculated as LTM EBIT/ Capital Employed 2. RONW calculated as LTM Net Profit/ Net Worth
Leverage Profile (Rs. million) Sep 2018 Jun 2018 Long Term Debt 153 161 Credit Rating Short Term Debt 313 466 o The Company’s debt facilities have been assigned the following ratings by ICRA Total Debt 466 627 ▪ Long term bank facilities: A- Less: Cash & Cash Equivalents 100 126 ▪ Short term bank facilities: A2+ Net Debt / (Net Cash) 365 501 Net Worth 2,517 1,964 Note Q2 FY2019 balance sheet numbers are as are as per IND-AS 7
Recent Developments Investment in renewable power to further enhance operational efficiency 1 • Setting up a new Solar Plant of 1 MW at factory’s rooftop with a capacity of producing 15 Lakh Power Unit PA • The Plant will be operational from last quarter of this year Setting up API production unit 2 • Applied to Pollution Control Board for permission of APIs Unit • Expect the plant to be operational and start commercial production by end of this financial year • Anticipate reduction in price fluctuation and enable us to get requisite approval to supply to the US and other regulated markets International Operations 3 • The Company has aggressively started the business in 13 Francophone African countries • The Company has got many new products registration Launched Vaginal Spray for the first time in India 4 • Developed a new NDDS Micronized Progesterone Vaginal Spray under the brand name ART-Luton • ART-Luton is used for the treatment of Luteal Phase Support in ART, dysmenorrhoea and premenstrual syndrome 8
Recent Developments Developed new NDDS formulation Ondansetron Oral Spray (Domi Up) for the first time in India 5 • Currently the Ondansetron formulation is available in the form of tablet, syrup and injectable. Lincoln Pharma has developed Ondansetron (Domi Up) as an oral spray which is first in India • Ondansetron Spray (Domi Up) is used in for travelling motion sickness, during Chemotherapy, pregnancy and ENT, Neurological and Cardiac surgeries • Indian Anti-emetic drug market is valued at Rs. 678 crores and Ondansetron has a potential market size of Rs. 303 Crores 9
Research & Development Research Facilities R&D Expenditure (Rs. mn) and as % of Sales 3.2% 2.4% 2.0% 2.7% 117.3 Senior Scientist 15 1.6% 88.5 Junior Scientist 18 79.5 72.6 Analysts 18 Regulatory Personnel 12 34.3 Administrative Personnel 9 Others 6 FY14 FY15 FY16 FY17 FY18 Total 78 10
A Leading Pharmaceutical Company Research & Development Department Market Presence Presence in Presence in 4 Patents Granted 1,000 Registered Dossiers 60+ 25 25 Patents Applications 550 Ongoing Applications Countries States across India 43 rd 300+ 15+ 650 Field Staff Rank in AIOCD Formulations Developed Therapeutic Areas June 2017 in covered markets 30+ 500+ 22 C&F Agents 5,000 Stockiest Scientists SKUs 11
Key Milestones Received WHO – Becomes Public Covered 80% Installed Windmill Developed & Launch 3 products which are GMP for plant / Limited Company of all India 600 KVA launched 2 more first time in India. Entered in production unit from a Partnership Market NDDS products more (regulated) African and Latin American countries 2018-19 2017-18 2016-17 2015-16 2014-15 2010-11 2008-09 2001 2000 1997-98 1 MW Solar Roof Top Plant under installation 1995-96 1990 Targeting Regulated Market Inspection 1984-85 1979 Launched Next Generation 1979 Progesterone Therapy “ Prolin Spray” R&D Center Developed & Installed Windmill Started export to Domestic Started started; Export Launched 3 NDDS 2.1 MW Tanzania and network house certificate Operations 12 products Mauritius across nation received
Global Footprint Presence over 60 countries in Europe, Latin America, Africa, Asia Pacific and South East Asia; 22 states across India Jammu Uttaranchal Chandigarh Delhi Europe : Ambala Ghaziabad France Lucknow Guwahati Jaipur Patna Ranchi Ahmedabad Kolkata Indore Raipur Nagpur Cuttack Vijayawada Chennai Latin & Central America : Africa: Angola, Benin, Botswana, Asia: Afghanistan, Bhutan, Bangalore Bolivia, Chile, Costa Rica, El- Burkina Faso, Burundi, Cameroon, Cambodia, Fiji, Hong Kong, Salvador, Guatemala, Guyana, Congo, Ethiopia, Gabon, Ghana, Guinea, Iraq, Kazakhstan, Mongolia , Kochi Honduras, Jamaica, Panama, Ivory Coast, Kenya, Liberia, Madagascar, Myanmar, Nepal, Philippines, Peru, Suriname, Trinidad & Malawi, Mali, Matadi, Mozambique, Sri Lanka, Thailand, Vietnam Tobago, Venezuela, West Namibia, Niger, Nigeria, Rwanda, International Presence Indies Senegal, Seychelles, Sierra Leone, South C&F Agent Location in India Sudan, Sudan, Tanzania, Togo, Uganda, Yemen, Zambia, Zimbabwe, Zazibar 13
Recommend
More recommend
