Entero Healthcare Solutions Limited · NSE:ENTERO
Entero Healthcare Solutions — Q3 FY24 Earnings Presentation
37 slides from Entero Healthcare Solutions's earnings presentation, Mar 8, 2024
Slide 1: Regulation 30 cover letter to stock exchanges
Ref: 10/SE/LC/2023-24 Date: March 08, 2024 To, Head, Listing Compliance Department Head, Listing Compliance Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Dalal Street, Exchange Plaza, Plot No. C/1. G Block, Mumbai - 400 001. Bandra -Kurla Complex, Bandra (
Slide 2: Entero Healthcare Solutions Limited Investor Presentation - March 2024
Everything in Pharma… Everywhere in India… Entero Healthcare Solutions Limited Investor Presentation - March 2024
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Entero Healthcare Solutions Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe
Slide 4: Q3 & 9M Financial Highlights
Q3 & 9M Financial Highlights
Slide 5: Management Commentary
Management Commentary We extend our heartfelt gratitude to every investor who has shown confidence in Entero Healthcare Solutions Limited by investing in our Initial Public Offering (IPO) in February 2024. Your support and trust in our vision to create an organized, pan-India, technology-driven, and
Slide 6: Operational Highlights
Operational Highlights Relationship with Customers healthcare product (Retailers) SKU’s Handled manufacturers › 9MFY24: 79,400+ › 9MFY24: 67,100+ › 9MFY24: 1,900+ › 9MFY23: 72,700+ › 9MFY23: 60,300+ › 9MFY23: 1,700+ Customers Districts Covered Warehouses (Hospital) › 9MFY24: 3,300+ › 9MFY24: 501 › 9
Slide 7: Consolidated Financial Highlights
Consolidated Financial Highlights Revenue (Rs. Mn) Gross Profit (Rs. Mn) & Margin (%) EBITDA (Rs. Mn) & Margin (%) PAT (Rs. Mn) +20% +31% +54% +96% 9,926 902 286 70 Quarter 8,290 686 186 36 8.3% 9.1% 2.9% 2.2% Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Revenue (Rs. Mn) Gross Profit (Rs.
Slide 8: Key Balance Sheet Highlights
Key Balance Sheet Highlights Net Working Capital (In Days) RoCE (%) RoE (%) 10.3% 5.5% 65 66 5.6% 9MFY23 9MFY24 9MFY23 9MFY24 -2.3% 9MFY23 9MFY24 RoCE: EBIT / Average Capital Employed (Capital Employed = Tangible Networth + Borrowings + Deferred Tax Liability) RoE: PAT / Average Tangible Networth (T
Slide 9: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Mn) Q3FY24 Q3FY23 YoY% 9MFY24 9MFY23 YoY% Revenue 9,926 8,290 20% 28,881 24,130 20% Cost of Goods Sold 9,024 7,604 26,288 22,157 Gross Profit 902 686 31% 2,593 1,973 31% Gross Margin (%) 9.1% 8.3% 81 bps 9.0% 8.2% 80 bps Employee Expenses 391 312
Slide 10: Listed on BSE & NSE on 16th February 2024
Listed on BSE & NSE on 16th February 2024 Company raised Rs 1,000 crs via Fresh Issue of shares 9
Slide 11: Utilization of IPO Proceeds
Utilization of IPO Proceeds* Amount to be Balance to be Particulars (Rs. Mn) funded from Net Utilized till now Utilization in FY25 Utilization in FY26 utilized in FY24 Proceeds Repayment/prepayment, in full or part, of certain borrowings availed of 1,425 525 900 - - by our Company Funding of long-te
Slide 12: About Us
About Us
Slide 13: We are a Healthcare Supply Chain Solutions Specialist
We are a Healthcare Supply Chain Solutions Specialist Amongst the top three healthcare products distributors in India in terms of revenue Our Warehouses Fastest scale-up of operations among healthcare products distributors in India with track record of 34 acquisitions Pan-India presence through our
Slide 14: Entero at a Glance
Entero at a Glance Geographical Reach of Distribution Network 79,400+ 3,300+ 1,900+ Customers Retail Pharmacies Hospital Supply relationships with catered to customers healthcare product manufacturers AMRITSAR PANCHKULA DEHRADUN KARNAL DELHI GHAZIABAD GURGAON FARIDABAD GORAKHPUR JAIPUR GUWAHATI LUCK
Slide 15: Building a Highly Scalable Business Model
Building a Highly Scalable Business Model Consolidated Revenue (Rs. Mn) Customers (Retailers) Customers (Hospitals) FY21 39,500+ FY21 1,600+ CAGR 36% 33,002 FY22 64,200+ FY22 2,500+ FY23 81,400+ FY23 3,400+ Relationship with healthcare 25,221 SKU’s Handled product manufacturers FY21 44,400+ FY21 1,1
Slide 16: Growing faster than Industry… Gaining Market Share
Growing faster than Industry… Gaining Market Share High base effect due to COVID-19 65% IPM Entero Organic Growth Entero Consolidated Growth 53% 40% 41% 38% 35% 35% 32% 31% 26% 27% 24% 21% 19% 19% 19% 20% 16% 15% 15% 16% 14% 18% 17% 11% 10% 10% 9% 9% 9% 7% 2% -2% Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q
Slide 17: Strong Board backed by a Healthcare-Focused Investors
Strong Board backed by a Healthcare-Focused Investors Prabhat Agrawal Sujesh Vasudevan Rajesh Shashikant Dalal Sandhya Gadkari Sharma Promoter, Managing Director and Chairperson and Non-Executive Non-Executive Independent Non-Executive Independent CEO Independent Director Director Director Prem Seth
Slide 18: Leadership Team
Leadership Team Prabhat Agrawal Prem Sethi CV Ram Promoter, Managing Director and CEO Promoter, Whole-time Director and COO Group Chief Financial Officer ◼ Previous experience as CEO with Alkem Laboratories, ◼ Previous experience as Director – Offering Development and ◼ Previous experience as CFO wi
Slide 19: Leadership Team
Leadership Team Jayant Prakash Sambit Mohanty Shashwat Nigam Vice President - General Counsel, Company President - Institutional Business Vice President - Head Retail Pharma Business Secretary and Compliance Officer • Bachelor’s degree in corporate secretaryship from • Bachelor’s of science from Utk
Slide 20: Market Opportunity
Market Opportunity
Slide 21: Pharmaceutical Supply Chain in India is Highly Fragmented
Pharmaceutical Supply Chain in India is Highly Fragmented Player in Value Chain Typical Functions and Role No. of Players Typical Margin range Pharmaceutical and Healthcare Companies ~3,000 Products Manufacturer ▪ Manufacturing units supplying finished products 40 – 60% Man. Units 10,500 ▪ Marketer
Slide 22: Key Challenges in the Pharmaceutical Supply Chain
Key Challenges in the Pharmaceutical Supply Chain Pharmaceutical and Healthcare Products Manufacturer / High expiries due to multiple Complexity of dealing with Limited or no secondary sales No direct reach to retailers, Inadequate storage stock points and no data Marketer multiple sub-scale distrib
Slide 23: Healthcare Products Distribution Market Overview
Healthcare Products Distribution Market Overview Large and Growing Target Addressable Market… …Led by Increasing Share of Large / National Distributors Share of the total distributor sales for Large / National pharmaceutical distributors 20-30% CAGR $33.2bn 10-11% 25-30% 8-10% Target Addressable Mar
Slide 24: Key Strengths
Key Strengths
Slide 25: Key Strengths
Key Strengths We Operate in the Large and Highly Fragmented Indian Healthcare Products Distribution Market and Expect to Benefit from Market Consolidation We are One of India’s Largest and Fastest Growing Healthcare Products Distribution Platforms Track Record of Inorganic Expansion and Integration
Slide 26: Highly Fragmented Market… to Accelerate Consolidation
Highly Fragmented Market… to Accelerate Consolidation US China India(1) Germany Top 3: 90 – 95% Top 4: 40 – 45% Top 3: 8 – 10% Top 5: 95 – 97% Share of Large Players in the Pharma Distribution Top 3 Top 4 Top 3 Top 5 / All Share of Top x 2020 90 – 95% 40 – 45% 8 – 10% 95 – 97% in Total Pharma Distri
Slide 27: One of India's Largest & Fastest Growing Healthcare Supply Chain Company
One of India’s Largest & Fastest Growing Healthcare Supply Chain Company Geographical Reach of our Distribution Network Distribution Presence 19 States 38/501 Cities/Districts AMRITSAR Customer Network PANCHKULA DEHRADUN KARNAL GHAZIABAD DELHI Retail GURGAON FARIDABAD Hospital JAIPUR GORAKHPUR GUWAH
Slide 28: Successful track record of Acquisitions and Integration
Successful track record of Acquisitions and Integration Track Record of Growth of Acquired Companies Acquisition Strategy Distributor Name Date of Acquisition Location FY21-23 Growth R.S.M Pharma 14-Aug-2018 Bengaluru ~69% › Take advantage of market consolidation opportunities available Getwell Medi
Slide 29: Differentiated Business Model
Differentiated Business Model Offers both demand generation and demand fulfilment capabilities to healthcare brands and product manufacturers Demand Generation via Integrated Demand Fulfilment via end-to-end healthcare products distribution solutions Commercial Solutions Deploy Medical Representativ
Slide 30: Proprietary Technology Platform
Proprietary Technology Platform with Integrated Business Intelligence Tools and Solutions Technology-Focused Approach Anchored on Our Proprietary Integrated Tech …To Grow our Operations and Bring Efficiencies in the Healthcare Platforms and Business Intelligence Tools… Products Distribution Ecosyste
Slide 31: Key Growth Drivers
Key Growth Drivers Benefit from healthcare products distribution market consolidation with strategic acquisitions Strengthen market position through increases in customer base, wallet share and geographic penetration Pursue comprehensive marketing and distribution collaborations with healthcare prod
Slide 32: Historical Financials
Historical Financials
Slide 33: Historical Financial Highlights
Historical Financial Highlights Revenue (Rs. Mn) Gross Profit (Rs. Mn) and Margin (%) EBITDA (Rs. Mn) and Margin (%) 8.0% 8.3% 8.1% 1.2% 1.0% 1.9% +36% 33,002 +38% 2,683 640 +72% 25,221 2,096 17,797 1,416 215 244 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 Net Working Capital (Days) Net Debt to Equ
Slide 34: Consolidated P&L Statement
Consolidated P&L Statement Particulars (Rs. Mn) FY23 FY22 FY21 Revenue 33,002 25,221 17,797 Cost of Goods Sold 30,319 23,124 16,381 Gross Profit 2,683 2,096 1,416 Gross Profit Margin 8.1% 8.3% 8.0% Employee Cost 1,281 1,148 759 ESOP Expenses - - - Other Expenses 762 704 441 EBITDA 640 244 215 EBITDA
Slide 35: Consolidated Balance Sheet
Consolidated Balance Sheet ASSETS (Rs. Mn) Mar-23 Mar-22 Mar-21 EQUITY AND LIABILITIES (Rs. Mn) Mar-23 Mar-22 Mar-21 ASSETS Equity Non-current assets Equity Share capital 41 39 1 Property, plant and equipment 432 457 409 Other equity 5,909 5,572 4,853 Capital work-in-progress - 6 - Non-Controlling I
Slide 36: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (Rs. Mn) FY23 FY22 FY21 Net Profit Before Tax -37 -198 -108 Adjustments for: Non Cash Items / Other Investment or Financial Items -730 -415 427 Operating profit before working capital changes 693 217 318 Changes in working capital -1,022 -461 -959 Cash ge
Slide 37: Company and Investor Relations Advisor contacts
Company: Investor Relations Advisor: CIN: U74999HR2018PLC072204 CIN: U74140MH2010PTC204285 Mr. CV Ram Mr. Jigar Kavaiya / Parin Narichania E: irentero@ehspl.com E: jigar.kavaiya@sgapl.net / parin.n@sgapl.net T: +91-22-69019100 T: +91 9920602034 / +91 9930025733 www.enterohealthcare.com www.sgapl.net
Entero Healthcare Solutions — Q3 FY24 Earnings Presentation on 6ix