Aarti Pharmalabs Limited · NSE:AARTIPHARM
Aarti Pharmalabs — Q2 FY25 Earnings Presentation
32 slides from Aarti Pharmalabs's earnings presentation, October 2024
Slide 1: Investor Presentation October 2024
INVESTOR PRESENTATION October 2024
Slide 2: Snapshot
SNAPSHOT 200+ Products 500+ Global Clients State-of-the-art 3 R&D facility 56 Patents Filed 50+ Export Countries Manufacturing 6 Units 42 US DMF 2100+ Employees 3 USFDA Units 23 CEP Global 15-20% Market Share 0.18x Net Debt/Equity A+ Credit rating in Xanthine 2 Aarti Pharmalabs Limited
Slide 3: Company Overview
1 COMPANY OVERVIEW 2 BUSINESS OVERVIEW 3 STRATEGIC OVERVIEW 4 FINANCIAL OVERVIEW Aarti Pharmalabs Limited
Slide 4: Company Overview
COMPANY OVERVIEW • Aarti Pharmalabs Limited (APL) formerly known as Aarti Organics was established in 1984 as a wholly owned subsidiary of renowned Aarti Industries Limited. Got demerged in October 2022 STANDLAONE REVENUE (INR Mn) & EBITDA into a separately listed entity (effective July 2021) MARGIN
Slide 5: Key Milestones
2022 KEY MILESTONES • Expanded block for CSD in Vapi and API in Tarapur units • Acquired land at Atali for future growth • Successfully demerged the pharmaceutical business of Aarti Industries Limited to Aarti Pharmalabs Limited 2017 12 Successfully completed Cofepris, Mexico audits at Unit 4 11 202
Slide 6: Board of Directors
BOARD OF DIRECTORS Shri Rashesh C. Gogri Smt. Hetal Gogri Gala Shri Narendra Salvi Shri Rajendra V. Gogri Shri Parimal H. Desai Smt Nehal Garewal Chairman Vice Chairperson & MD Managing Director Non-Executive Director Non-Executive Director Non-Executive Director Shri Rashesh Gogri was appointed Gra
Slide 7: Geographical Presence
GEOGRAPHICAL PRESENCE Sweden Russia Canada United Kingdom Netherlands Ireland Poland Germany France Austria Switzerland Slovenia Italy USA Spain Greece Turkey China Japan South Korea TunisiaLebanon Iraq Pakistan Nepal Saudi Egypt Mexico Arabia UAE INDIA Bangladesh Hong Kong Puerto Rico Yemen Thailan
Slide 8: Manufacturing Presence
MANUFACTURING PRESENCE Atali Vapi - Unit II Tarapur - Unit III, IV, V, VI Dombivli - Unit I Gujarat Mumbai Maharashtra LOCATION MANUFACTURING UNITS CERTIFICATIONS & AUDIT DATE Dombivali Unit - I (API, Intermediates, CDMO) USFDA - Jun 2022 Unit - II (API, Intermediates, CDMO) Vapi USFDA - Sep 2009, A
Slide 9: Manufacturing Capabilities
MANUFACTURING CAPABILITIES END TO END CAPABILITIES UNDER ONE UMBRELLA Hydrogenation facilities from lab-scale to 20+ years of experience in pharmaceuticals manufacturing scale (0.1-10 KL reactors) manufacturing for global clients Impeccable regulatory track record and facilities Cryogenic reactors o
Slide 10: Research & Development
RESEARCH & DEVELOPMENT 3 150+70+ 3 State of the art Process for more than 150 R&D Centers at intermediates developed Maharashtra & Gujarat and manufactured on kilo- lab scale 100+ 6% 70+ 3 7 3 New products to be R&D Spend (as a PhDs developed in next few percent of API & years CMDO sales ) in FY 24
Slide 11: Business Overview
1 COMPANY OVERVIEW 2 BUSINESS OVERVIEW 3 STRATEGIC OVERVIEW 4 FINANCIAL OVERVIEW Aarti Pharmalabs Limited
Slide 12: Key Business Segments
KEY BUSINESS SEGMENTS QUARTERLY REVENUE BREAK-UP 49.4% 45.3% 52.6% Xanthine Derivatives & Allied Products API & Intermediates 36.1% 43.4% 51.2% CDMO/CMO 11.3% 7.2% 3.5% FY24 Q2-FY24 Q2-FY25 CDMO/CMO API & Intermediates Xanthine derivatives
Slide 13: Xanthine Derivatives & Allied Products
XANTHINE DERIVATIVES & ALLIED PRODUCTS • Aarti Pharmalabs is the largest Indian manufacturer of Xanthine Derivatives, including Caffeine, Theophylline Anhydrous, Aminophylline, Etophylline, and Theophylline that find applications in beverages, nutraceuticals, and pharmaceutical industries. • Largest
Slide 14: API & Intermediates
API & INTERMEDIATES • Aarti Pharmalabs specializes in the development and manufacturing of Highly Potent Active Pharmaceutical Ingredients (HPAPIs), catering to the demand for critical drugs used in oncology, corticosteroids, and cytotoxic medicines. MARKET SEGMENTATION (H1-FY25) • Backward integrat
Slide 15: CDMO & CMO
CDMO & CMO • Aarti Pharmalabs is one of the leading small molecule Contract Development and Manufacturing Organization (CDMO/CMO) in India. • Offers services for drug substance projects including NCEs, APIs, RSMs, and Intermediates to global innovative pharmaceutical and biotech companies, Currently
Slide 16: Strategic Overview
1 COMPANY OVERVIEW 2 BUSINESS OVERVIEW 3 STRATEGIC OVERVIEW 4 FINANCIAL OVERVIEW Aarti Pharmalabs Limited
Slide 17: Growth Drivers
GROWTH DRIVERS Increasing capacities of existing products and, adding 100+ new value-added products in next few years Developing and exploring more opportunities of Increasing presence in CDMO & CMO with regulated markets innovators for APIs and intermediates Ongoing Capex for the Atali project 4 Ad
Slide 18: Future Growth Strategy
FUTURE GROWTH STRATEGY FUTURE OUTLOOK Plan to strengthen Fortify market leading API and CDMO Aim to achieve Expect EBITDA position in the segment by long-term goal of growth of Xanthine segment by introducing more about 15% annual approximately brownfield capacity value-added products growth in the
Slide 19: ESG
ESG E G • Hazard Identification and Risk Assessment (HIRA), Hazardous Area Classification (HAC) and work permit system in place • Safety Trainings - Induction, On ENVIRONMENT the job, Classroom, Demos GOVERNANCE • ISO 14001 : 2015 certification • Incident management - “Safety • Robust Compliance Mon
Slide 20: Financial Overview
1 COMPANY OVERVIEW 2 BUSINESS OVERVIEW 3 STRATEGIC OVERVIEW 4 FINANCIAL OVERVIEW Aarti Pharmalabs Limited
Slide 21: Quarterly Consolidated Income Statement
QUARTERLY CONSOLIDATED INCOME STATEMENT PARTICULARS (INR Mn) Q2-FY25 Q1-FY25 Q-O-Q Q2-FY24 Y-O-Y Operational Revenue 4,580 5,555 (17.6)% 4,398 4.1% Operating Expenses 3,643 4,590 (20.6)% 3,518 3.6% EBITDA 937 965 (2.9)% 880 6.5% EBITDA Margin (%) 20.46% 17.37% 309 Bps 20.01% 45 Bps Depreciation and
Slide 22: Half Yearly Consolidated Income Statement
HALF YEARLY CONSOLIDATED INCOME STATEMENT PARTICULARS (INR Mn) H1-FY25 H1-FY24 Y-O-Y Operational Revenue 10,135 8,982 12.8% Operating Expenses 8,234 7,253 13.5% EBITDA 1,901 1,729 9.9% EBITDA Margin (%) 18.76% 19.25% 49 Bps Depreciation and amortisation 411 353 16.4% Finance costs 103 81 27.2% Other
Slide 23: Historical Consolidated Income Statement
HISTORICAL CONSOLIDATED INCOME STATEMENT PARTICULARS (INR Mn) FY23 FY24 H1-FY25 Operational Revenue 19,452 18,526 10,135 Total Expenses 16,031 14,666 8,234 EBITDA 3,421 3,860 1,901 EBITDA Margins (%) 17.59% 20.84% 18.76% Other Income 23 49 67 Depreciation 625 732 411 Finance Cost 211 172 103 PBT 2,6
Slide 24: Quarterly Standalone Income Statement
QUARTERLY STANDALONE INCOME STATEMENT PARTICULARS (INR Mn) Q2-FY25 Q1-FY25 Q-O-Q Q2-FY24 Y-O-Y Operational Revenue 3,773 3,935 (4.1)% 3,561 6.0% Operating Expenses 2,925 3,099 (5.6)% 2,823 3.6% EBITDA 848 836 1.4% 738 14.9% EBITDA Margin (%) 22.48% 21.25% 123 Bps 20.72% 176 Bps Depreciation and amor
Slide 25: Half Yearly Standalone Income Statement
HALF YEARLY STANDALONE INCOME STATEMENT PARTICULARS (INR Mn) H1-FY25 H1-FY24 Y-O-Y Operational Revenue 7,708 7,143 7.9% Operating Expenses 6,024 5,637 6.9% EBITDA 1,684 1,503 12.0% EBITDA Margin (%) 21.85% 21.08% 77 Bps Depreciation and amortisation 372 318 17.0% Finance costs 96 79 21.5% Other Inco
Slide 26: Historical Standalone Income Statement
HISTORICAL STANDALONE INCOME STATEMENT PARTICULARS (INR Mn) FY23 FY24 H1-FY25 Operational Revenue 15,112 15,021 7,708 Total Expenses 12,028 11,560 6,024 EBITDA 3,084 3,461 1,684 EBITDA Margins (%) 20.41% 23.04% 21.85% Other Income 13 110 372 Depreciation 558 660 96 Finance Cost 205 166 51 PBT 2,334
Slide 27: Historical Consolidated Balance Sheet
HISTORICAL CONSOLIDATED BALANCE SHEET ASSETS (INR Mn) FY23 FY24 H1-FY25 EQUITY & LIABILITIES (INR Mn) FY23 FY24 H1-FY25 Non-current assets Equity share capital 453 453 453 Property, plant and equipment 9,227 9,942 10,944 Equity Share Capital Pending allotment - Capital work-in-progress 622 785 1,160
Slide 28: Historical Standalone Balance Sheet
HISTORICAL STANDALONE BALANCE SHEET ASSETS (INR Mn) FY23 FY24 H1-FY25 EQUITY & LIABILITIES (INR Mn) FY23 FY24 H1-FY25 Assets Equity & Liabilities Non-current assets Equity share capital 453 453 453 Property, plant and equipment 8,471 9,160 10,167 Equity Share Capital Pending allotment - - Capital wo
Slide 29: Consolidated Financial Highlights
CONSOLIDATED FINANCIAL HIGHLIGHTS OPERATIONAL INCOME (INR Mn) EBITDA (Mn) & EBITDA MARGINS (%) PAT (Mn) & PAT MARGINS (%) 19,452 3,860 18,526 3,421 2169 1,935 10,135 1,901 1,101 20.84% 18.76% 17.59% 11.71% 9.95% 10.86% FY23 FY24 H1-FY25 FY23 FY24 H1-FY25 FY23 FY24 H1-FY25 Net Debt to Equity (X) ROCE
Slide 30: Capital Market Information
CAPITAL MARKET INFORMATION SHARE PRICE UP TO 30th September, 2024 60% 50% 40% 30% 20% 10% 0% -10% -20% Oct-23 Nov-23 Dec-23 Jan-24 Jan-24 Mar-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 AARTIPHARM Sensex PRICE DATA (AS ON 30th September, 2024) INR SHAREHOLDING PATTERN (AS ON 30th September,
Slide 31: Disclaimer
DISCLAIMER Aarti Pharmalabs Limited No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all event
Slide 32: Thank You
THANK YOU AARTI PHARMALABS LIMITED