Granules India Limited · NSE:GRANULES
Granules India — Q4 FY24 Earnings Presentation
34 slides from Granules India's earnings presentation, May 15, 2024
Slide 1: Cover letter to stock exchanges
© GRANULES REGISTERED OFFICE GRANULES INDIA LTD., 2nd Floor, 3rd Block, My Home Hub, Madhapur, Hyderabad - 500 081, Telangana, India. Tel: +91 40 69043500, Fax: +91 40 23115145, mail@granulesindia.com, www.granulesindia.com CIN: L24110TG1991PLC012471 Date: May 15, 2024 To, National Stock Exchange of
Slide 2: Earnings Presentation Q4 & Full Year FY24
Granules India Limited Earnings Presentation Q4 & Full Year FY24 15th May 2024 1
Slide 3: Safe Harbour Statement
Safe Harbour Statement 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 recommendatio
Slide 4: Key Business Updates For Q4 FY24
Key Business Updates For Q4 FY 24 ▪ Strong uptick in gross margin for the quarter as well as for the full year FY 24. ▪ Continued growth in formulations share in the business, driven by CNS/ ADHD portfolio and other new products. Performance ▪ Growing contribution from new products in the product mi
Slide 5: Business Strategy Update
Business Strategy Update 4
Slide 6: Strategy In Action: A Breakout Year for FD portfolio and Product Diversification
Strategy In Action: A Breakout Year for FD portfolio and Product Diversification 5
Slide 7: Strategy In Action: Strengthening Business in North America
Strategy In Action: Strengthening Business in North America Unique Manufacturing Platform of Optimizing “Make in India” (GIL) and “Make in America” (GPI , GPAK) Market leadership in CNS/ADHD (GPI operations), adding to the leadership position in large volume molecules GPI Market leadership: 7 produc
Slide 8: Strategy In Action: Portfolio Expansion
Strategy In Action: Portfolio Expansion 7
Slide 9: Strategy In Action: Prioritizing Investment in Building R&D Capability and Product Pipeline
Strategy In Action: Prioritizing Investment in Building R&D Capability and Product Pipeline Integrated Product Development Genome Valley – MN Park R&D facility for Integrated Product Development ▪ ̴ 170 scientists across API & FD R&D ▪ Fast tracking product development through seamless coordination
Slide 10: Strategy In Action: Building & Sustaining Key Product Leadership
Strategy In Action: Building & Sustaining Key Product Leadership Key Operations and R&D Initiatives to Strengthen and Sustain Our Cost and Market Leadership Backward Integration Process Improvement Formulation Technologies Bio Catalysis + Cont. Mfg. Minimizing Carbon Footprint 9
Slide 11: Strategy In Action: Expanding Reach Through Commercial Excellence
Strategy In Action: Expanding Reach Through Commercial Excellence Replicate commercial success of North America in other key markets Strengthening Teams | Building Commercial Excellence Processes ▪ Revamped and augmented Commercial leadership team ▪ Formulation Driven Growth in Europe through key pa
Slide 12: Sustainability at Granules: Green Molecule Platform
Sustainability at Granules : Green Molecule Platform, beginning with our core products – Paracetamol & Metformin Granules CZRO has initiated a pilot DCDA plant in Visakhapatnam. The pilot plant has commenced operations in the month of March’24. 11
Slide 13: Quarterly Performance
Quarterly Performance 12
Slide 14: Q4FY24: Y-o-Y performance highlights – P&L
Q4FY24: Y-o-Y performance highlights – P&L (In ₹ Mn) Q4 FY24 Q4 FY23 Y-o-Y Gr% Y-o-Y performance Formulations growth including GPI manufactured Revenue 11,758 11,955 (2)% products offset by decline in Para API sales volume and price erosion Value Added 7,062 5,720 Achieved a higher value-added perce
Slide 15: Q4FY24: Q-o-Q performance highlights – P&L
Q4FY24: Q-o-Q performance highlights – P&L (In ₹ Mn) Q4 FY24 Q3 FY24 Q-o-Q Gr% Q-o-Q performance Inline with our strategic focus, continued FD sales growth Revenue 11,758 11,556 2% including GPI manufactured products offset by decline in Para API sales volume and price erosion Value Added 7,062 6,58
Slide 16: Q4FY24 Revenue split by Segments and Market
Q4FY24 Revenue spilt by Segments and Market (In ₹ Mn) Division wise share Region wise share 73% 66% 70% 63% 58% 51% 24% 31% 20% 17% 25% 18% 6% 6% 3% 6% 5% 5% 6% 3% 5% 14% 12% 13% North Europe India LATAM ROW API PFI FD America Q4 FY23 % Q3 FY24 % Q4 FY24 % Q4 FY23 % Q3 FY24 % Q4 FY24 % Q4 FY23 Q4 FY
Slide 17: Last 6 quarters historical performance – Sales and profitability
Last 5 quarters historical performance – Sales and profitability (In ₹ Mn) Sales VA and VA % 11,955 11,895 11,758 7,062 11,461 11,556 6,583 6,144 60% 9,855 5,544 5,720 48% 48% 5,063 57% 51% 52% Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 EBITDA and EBITDA % PA
Slide 18: Last quarters historical performance – Cashflow and Ratios
Last 5 quarters historical performance – Cashflow and Ratios (In ₹ Mn) ROCE% Asset turns Net debt and Net debt/EBITDA 21.4% 21.2% 9,895 9,285 8,940 8,569 8,421 15.3% 16.5% 2.09 2.06 7,671 1.57 12.8% 1.75 1.78 1.77 1.41 9.4% 1.61 1.16 0.98 0.98 0.84 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q3FY23 Q4
Slide 19: Yearly Performance
Yearly Performance 18
Slide 20: FY24: Y-o-Y performance highlights – P&L
FY24: Y-o-Y performance highlights – P&L (In ₹ Mn) FY24 FY23 Y-o-Y Gr% Y-o-Y performance Despite a cyber incident and decline in Para API Volume and price erosion, transformative focus into formulations Revenue 45,064 45,119 0% including GPI manufactured products enabled the company to sustain the s
Slide 21: FY24: Y-o-Y performance highlights – Cashflow and Ratios
FY24: Y-o-Y performance highlights – Cashflow and Ratios (In ₹ Mn) FY23 FY24 FY23 FY24 FY23 FY24 Fixed Net debt/ ROCE% 21.2% 16.5% asset turn 2.06 1.77 EBITDA 0.84x 0.98x Decrease in EBIT, decrease in asset Affected due to sales price erosion turnover and increase in CCC days has and Investments in
Slide 22: FY24 Revenue split by Segments
FY24 Revenue spilt by Segments (In ₹ Mn) Division wise share Region wise share 64% 57%66% 50% 23% 30% 22% 19% 20% 14% 6% 5% 8% 5% 6% 5% North Europe India LATAM ROW API PFI FD America FY23 % FY24 % FY23 % FY24 % FY23 FY24 Y-o-Y Gr% FY23 FY24 Y-o-Y Gr% API 13,414 9,866 (26%) North America 25,880 29,8
Slide 23: Last 5 years historical performance – Sales and profitability
Last 5 years historical performance – Sales and profitability (In ₹ Mn) Sales: 5yr CAGR: 15% VA and VA%: 5yr CAGR: 19% 45,119 45,064 24,851 37,649 57% 22,046 32,375 51% 18,463 18,813 45% 25,986 55% 22,792 13,177 50% 49% 10,236 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 EBITDA and EB
Slide 24: Last 5 years historical performance – Cashflow and Ratios
Last 5 years historical performance – Cashflow and Ratios (In ₹ Mn) ROCE% Asset turns Net debt and Net debt/EBITDA 28.6% 9,082 8,421 21.2% 2.00 1.98 2.02 2.06 7,671 1.89 6,966 19.3% 1.77 6,058 5,752 17.4% 16.5% 13.1% 2.36 1.15 0.97 0.84 0.98 0.67 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY2
Slide 25: ANDA/Dossier filing status
ANDA/Dossier filing status GPI IP GRANULES Filing Status Others (SA, Belarus, Total USA USA Europe Canada UK Israel & India) Approved 26 36 9 6 4 2 83 Tentatively Approved 1 1 - - - - 2 Filed 5 8 1 - 6 - 20 Total Products 32 45 10 6 10 2 105 ANDA/Dossier filed - Therapeutic area wise CNS 24 Analgesi
Slide 26: Granules at a Glance
Granules at a Glance 25
Slide 27: Granules Purpose, Vision & Values
Granules Purpose, Vision & Values 26
Slide 28: An Illustrious Journey Spanning Four Decades
An Illustrious Journey Spanning Four Decades Building A World Class, Vertically Integrated Pharmaceutical Manufacturing Platform From being a paracetamol API manufacturing facility to a multi-faceted global pharmaceutical company, we have consistently achieved manufacturing success, set new standard
Slide 29: Manufacturing Network & Capacity
Manufacturing Network & Capacity 28
Slide 30: Sustainability at Granules: Pioneering Innovation for Supply Chain Decarbonization
Sustainability at Granules : Pioneering Innovation for Complete Supply Chain Decarbonization of Pharmaceuticals 27.8 % Scope1 and Scope2 Intensity* *Over last year 22.8 % Scope1 and Scope2 Absolute Reduction* *Over last year 47.7 % Share of Renewable Energy of Electricity Consumed Including PPA & I-
Slide 31: ESG / Sustainability Disclosure
ESG / Sustainability Disclosure 1. Baselining & Estimation : Granules Carbon footprint ▪ Scope 1 & 2 emissions for FY 24 : 86,854 tCo2 eq (22.8% reduction Y-0-Y). ▪ 47.2% RE share in Purchased electricity using PPAs & I-RECs ▪ Scope 3: comprehensive assessment completed for FY 23 ▪ Total Emission :
Slide 32: Sustainability at Granules: Adopting Green Chemistry and Sustainable Formulation manufacturing
Sustainability at Granules : Adopting Green Chemistry and Sustainable Formulation manufacturing Adopting Green Chemistry Principles Innovation & Sustainability built into product development Sustainable Formulations Manufacturing Plant based Excipients Biodegradable Plastic Solvent / Polymer free Ph
Slide 33: Social Impact Initiative: Pharma Pathshala @ Swarna Bharat Trust
Social Impact Initiative : Pharma Pathshala @ Swarna Bharat Trust Granules initiative to train a rural workforce through the Swarna Bharat Trust 32
Slide 34: Corporate address and investor relations contacts
For investor relation – Granules IR desk Email: investorrelations@granulesindia.com www.granulesindia.com Ms. Payal Dave payal.dave@linkintime.co.in Mr. Irfan Raeen +91 97737 78669 Irfan.raeen@linkintime.co.in www.orientcap.com 532482 GRANULES Corporate address: GRAN:IN Floor 2 Block 3 My Home Hub M