Granules India Limited · NSE:GRANULES
Granules India — Q1 FY21 Earnings Presentation
19 slides from Granules India's earnings presentation, Jul 17, 2020
Slide 1: Exchange filing cover letter
G GRANULES REGISTERED OFFICE GRANULES INDIA LTD., 2nd Floor, 3rd Block, My Home Hub, Madhapur, Hyderabad- 500 081, Telangana, INDIA. Tel: +91 40 30660000, Fax: +91 40 23115145, malleseranulesinais com, www.granulesindia.com CIN: L24110TG1991PLCO12471 Dated July 17, 2020 To, National Stock Exchange o
Slide 2: Granules India Limited Investor Presentation Q1FY21
Granules India Limited Investor Presentation Q1FY21
Slide 3: Safe harbor
Safe harbor The Presentation is to provide the general background information about the Company’s activities as at the date of the Presentation. The information contained herein is for general information purposes only and based on estimates and should not be considered as a recommendation that any
Slide 4: Table of Contents
1 Q1FY21: Business highlights 2 Q1FY21: Financial Highlights Table of Contents 3 Multiple Growth drivers 4 Key Focus areas for FY21 5 Company Overview 6 Leadership Team
Slide 5: Q1FY21: Business Highlights
Q1FY21: Business Highlights 1 Milestone quarter, the highest ever in the history of the company with a quarterly revenue of INR 7,356 Mn, an EBITDA margin of 25%, 503 bps improvement from Q1FY 20 and a PAT margin of 15.2% a 93% growth YoY Strong growth momentum witnessed in ROE and ROCE which st
Slide 6: Financial Highlights: Best financial quarter in the history of Granules
Financial Highlights: Best financial quarter in the history of Granules (₹ Mn) 2 Revenue Gross Profit and Gross Profit Margins EBITDA and EBITDA Margins 4,380 1,836 Revenue from operations 7,356 59.5% 1,186 in Q1FY21 grew by 23.6% 2,998 5,953 YoY 25.0% 19.9% EBITDA for the quarter 50.4% grew at
Slide 7: Q1FY21: PAT & PAT margin
Q1FY21: PAT & PAT margin (₹ Mn) PAT and PAT Margins with JVs profit share PAT and PAT Margins without JV profit share 1,114 1,114 832 578 15.2% 15.2% 14.0% 9.7% Q1FY20 Q1FY21 Q1FY20 Q1FY21 Particulars (Rs in Mn) Q1FY20 Q1FY21 PAT with JV’s profit share 832 1,114 JV's share (255) PAT without JV profi
Slide 8: Geographical Mix
Increasing contribution from higher-margin Finished dosages (₹ Mn) Strong growth momentum witnessed across geographies Finish Dosage and PFI segment grew by 35% and 42% YoY respectively 7,356 Segment Revenue Geographical Mix 5,953 5,953 7,356 3,856 3,814 2,853 3,007 1,405 1,291 971 1,379 862 842 762
Slide 9: Continuous improvement on stated financial goals (1/2)
Continuous improvement on stated financial goals (1/2) (₹ Mn) Net Debt & Net debt-to-EBITDA (x) ROE (%) 8,550 8,265 7,888 1.8x 1.4x 6,058 5,998 1.6x 21.2% 24.4% 1.2x 19.8% 22.2% 0.8x 19.9% Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 ROCE (%) R&D and R&D % of sales 5.8% 26.9
Slide 10: Continuous improvement on stated financial goals (2/2)
Continuous improvement on stated financial goals (2/2) (₹ Mn) Cash to Cash cycle (days) Free Cash Flow 1,099 122 109 109 105 103 601 590 354 373 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Free cash flow this quarter decreased due to an increase in working capital on accoun
Slide 11: Multiple Growth drivers provide visibility for long-term growth
Multiple Growth drivers provide visibility for long-term growth* 3 Expanding base US Multi APIs/ Business R&D Generics Oncology Expanding base business by Focus will be to build the Filing new ANDAs (7- 8 ANDAs/2- Fully integrated entering into new geographies Multi-API platform for 4 dossie
Slide 12: Evolving Business Strategy for R&D
Evolving Business Strategy for R&D Base Business Emerging Business GPI Business High Volume and Low Value Medium Volume and Medium Low Volume and High Value products Value products Products First line of treatment New Products filing through R&D Focus on complex R&D at GIL Less R&D and more
Slide 13: Key focus areas for FY21
Key focus areas for FY21 4 1 To ensure timely launches of 9 products expected in FY21 while also increasing the market share of existing products by passing on cost benefits realized through operational efficiencies 2 Placeholder To ensure employee safety while increasing productivity and improve re
Slide 14: Strong Regulatory Compliance history
Strong Regulatory Compliance history Facility Installed Inspection Value chain Approvals Outcome location capacity Date Bonthapally 34,560 TPA U.S. FDA, EDQM, WHO, COFEPRIS, INFARMED July-19 Clear API Jeedimetla 4,800 TPA U.S. FDA, EDQM, COFEPRIS, WHO, CDCSO March-18 Clear Vizag (Unit IV) 290 KL U.S
Slide 15: Building on solid base and value unlocking underway: 5 year trajectory
Building on solid base and value unlocking underway: 5 year trajectory (₹ Mn) 5 Gross Profit and Gross Profit Margins 25,986 50.7% 52.6% 22,792 44.9% 16,918 47.0% Revenue 13,829 14,353 13,176 47.6% 7,955 7,556 10,236 6,579 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 *EBITDA and EBITDA Margins
Slide 16: Increasing contribution from FDs while remaining backward integrated in APIs
Increasing contribution from FDs while remaining backward integrated in APIs : 5 years trajectory (₹ Mn) Higher revenue contribution coming from regulated market, which contributed 73% to total revenue 16,918 25,986 14,353 22,792 13,879 6,612 13,829 6,010 11,113 5,055 5,393 4,573 4,029 4,083 3,795 3
Slide 17: Improving returns; focus on FCF generation: 5 year trajectory
Improving returns; focus on FCF generation: 5 year trajectory (₹ Mn) Net Debt & Net debt-to-EBITDA (x) Cash-to-Cash cycle (days) 8,704 9,082 135 125 Free Cash Flow (FCF) 114 109 3.1x 6,138 6,058 2.4x 2.1x 2,645 1.2x Mar'17 Mar'18 Mar'19 Mar'20 Mar'17 Mar'18 Mar'19 Mar'20 Mar'17 Mar'18 Mar'19 Mar'20
Slide 18: Leadership Team
Leadership Team 6 C Krishna Prasad Mr Prasad’s journey as pharma entrepreneur began in 1984, when he set up a paracetamol API manufacturing facility that focused on capital and process efficiency. Pharmaceutical formulations intermediates (PFIs) as a cost efficient product for global Chairman and Ma
Slide 19: Thank you
Thank you Granules India Investor relations team Granules India Ltd Sandip Neogi (CFO)/ Krishna Raghunathan (VP Finance/IR) Floor 2 Block 3 My Home Hub Madhapur Granules India Ltd Hyderabad 500081 Sandip.Neogi@granulesindia.com CIN: L24110TG1991PLC012471 krishna.raghunathan@granulesindia.com Voice: