Sms Pharmaceuticals Limited · NSE:SMSPHARMA
Sms Pharmaceuticals — Q1 FY2025 Earnings Presentation
25 slides from Sms Pharmaceuticals's earnings presentation, Aug 6, 2024
Slide 1: Exchange filing cover letter
Date: 06th August, 2024 To, The Manager, The Manager, Corporate Filings Department, Listing Compliance Department, BSE Limited, National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot no. C/1, G Block, Dalal Street, Bandra-Kurla Complex, Bandra (E), Mumbai- 400 001 Mumb
Slide 2: Investor Presentation August 2024
Investor Presentation August 2024
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by SMS Pharmaceuticals Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 4: SMS at a Glance
SMS at a Glance Building a sustainable global business From a single unit-product facility to becoming a diversified API player with a global presence, we have… Global and domestic leadership in key APIs An integrated business model with accredited facilities Strong presence in regulatory mark
Slide 5: 35+ history of delivering value
SMS at a Glance 35+ history of delivering value 1989 1995 2000 2003 2007 Inception Scaling Up Building our USFDA audit IPO-listing SMS Pharma was Became the world’s portfolio • Successful first SMS Pharma got started with a single largest Acquired a facility to USFDA audit listed on NSE and unit-pro
Slide 6: Poised for growth
SMS at a Glance Poised for growth Growth drivers Market leadership in ibuprofen in the next 2-3 years ~20% revenue growth Ramp up of select products Cost optimisation through backward 20% EBITDA margin integration and process improvements Launch new products to drive incremental revenue 5
Slide 7: State-of-the-art, accredited manufacturing facilities
Our Strength State-of-the-art, accredited manufacturing facilities Hyderabad unit Vizag unit Hyderabad Visakhapatnam Manufacturing capacity: 120 KL for niche small-volume Manufacturing capacity: 3,000 KL for niche large- molecules volume molecules Regulatory approvals: USFDA,EUGMP, Regulatory approv
Slide 8: Healthy product mix of high-value and high-volume products
Our Strength Healthy product mix of high-value and high-volume products Therapeutic areas Key products Category High growth products Anti-inflammatory Anti Retro Viral (ARV) Ibuprofen Tenofovir High-volume High-volume 63:37 Sitagliptin, Empagliflozin, Anti-diabetic High-value Dapagliflozin, Vildagli
Slide 9: Strong thrust on R&D
Our Strength Strong thrust on R&D New product development Added 18 new products Consistent investment in R&D Allocation of 1.5-2% of sales to R&D Strong partnerships JV with Spanish pharma giant Chemo Iberica S.A. Large technical team 60+ scientists Focus on commercialisation 20+ DMFs filed 8
Slide 10: Diversified to mitigate risk and optimise growth
Our Strength Diversified to mitigate risk and optimise growth GEOGRAPHY THERAPEUTIC AREAS CUSTOMERS 9 7 Domestic Export 2 6 25 74% 15 9 50% 14 27% 20 76 10% 17 Largest client Top 10 Clients 87% contribution from regulated markets in FY24 Top five therapies contributed Largest customer contributed (E
Slide 11: Marquee customer base
Our Strength Marquee customer base 10
Slide 12: Strategy
Strategy Achieve global scale in Ibuprofen Leveraging diversified portfolio for growth Backward integration to drive profitability New Product Development for additional growth options Capacity expansion 11
Slide 13: Achieve global scale in Ibuprofen
Strategy Achieve global scale in Ibuprofen Winning the Ibuprofen market IBUPROFEN TARGET PRODUCTION Enabled by Asia’s largest single-block ibuprofen plant Fully integrated operations 1,000 MT/Month Globally accredited facility Diversified customer base Geographic expansion Why Ibuprofen Ibuprofen is
Slide 14: Leveraging diversified portfolio for growth
Strategy Leveraging diversified portfolio for growth Started providing commercial supplies in several of Anti- regulated countries in FY24 inflammatory Long-term strategy expected to payoff in FY25 Strong rebound expected to continue in FY25 ARV Sitagliptin expected to go off-patent in the U
Slide 15: Backward integration to drive profitability
Strategy Backward integration to drive profitability Progress Completed backward integration for key KSMs made Ongoing capex expected completion by mid-FY25 Way Deliver 20%+ EBITDA margin forward Vertical integration of select products 14
Slide 16: New Product Development for additional growth options
Strategy New Product Development for additional growth options Aim to add 8-10 products in the next 12-18 Strategy to disrupt months in existing and new therapeutic areas markets Leverage strengths to capitalise on process improvement opportunities Develop high-growth APIs across therapeutic areas A
Slide 17: Capacity expansion
Strategy Capacity expansion Expanding capacities to maintain growth • Capacity utilisation at ~70% in FY24; expected to reach ~80% in FY25 • Ongoing capex of ₹150 crore on backward integration and new product lines Expected growth in OCF to fund capex plans • Revenue growth and margin expansion • Wo
Slide 18: Experienced BoD to deliver on strategy
Experienced BoD to deliver on strategy Mr. Ramesh Babu Mr. P. Sarath Kumar Sri. Sarvepalli Sri. Sravan Mr. Vamsi Krishna Potluri Chairman & MD Director Srinivas Director Kudravalli Director Potluri Executive Director Post-graduate Founder partner of Seasoned business Partner in a renowned Bachelor’s
Slide 19: Robust growth is expected in revenue and profitability
Financial Performance Robust growth is expected in revenue and profitability REVENUE (₹ CR) Key Drivers: 709 563 Portfolio approach to drive revenue 520 522 164 Cost optimisation and enhanced operational efficiency FY21 FY22 FY23 FY24 Q1 FY25 EBITDA (₹ CR) MARGIN (%) 23% Improved profitability throu
Slide 20: Summary
Financial Performance Summary FY22 FY23 FY24 Q1 FY25 P&L Summary (₹ Cr) Revenue from operations 519.87 522.05 709.26 164.45 Gross Profit 249.62 132.56 211.56 58.29 EBITDA 119.53 54.48 116.62 33.51 PAT 62.22 (7.06) 49.83 16.48 Margins (%) Gross Margin 48% 25% 30% 35% EBITDA Margin 23% 10% 16% 20% PAT
Slide 21: Quarterly Performance Review
Quarterly Performanc e Review
Slide 22: Key operating metrics
Quarterly Performance Review Key operating metrics REVENUE BY THERAPEUTIC AREA (%) 1% 2% 6% 5% 9% 8% Others 8% 1% 5% 3% 7% 3% 4% 5% 11% 10% Anti-epileptic 8% 7% 13% 6% 11% 13% Anti-erectile dysfunction 14% 12% 19% 13% Anti-ulcer 18% 19% 26% Anti-migraine 18% 21% 16% Anti-inflammatory 33% 8% 10% Anti
Slide 23: Key operating metrics
Quarterly Performance Review Key operating metrics REVENUE BY GEOGRAP HY-W ISE (%) 16% 13% 12% 11% 10% 84% 87% 88% 89% 90% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Export Domestic REVENUE BY SEGMENT-WISE (%) 2% 2% 1% 2% 3% 98% 98% 99% 98% 97% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 API Intermediates & Others 2
Slide 24: Consolidated P&L statement
Quarterly Performance Review Consolidated P&L statement Particulars (₹ Cr) Q1FY25 Q1FY24 YoY% Q4FY24 QoQ% FY24 FY23 YoY% Revenue from operations 164.45 135.34 22% 245.80 (33%) 709.26 522.05 36% COGS 106.16 87.89 21% 182.54 (42%) 497.70 389.49 28% Gross profit 58.29 47.45 23% 63.26 (8%) 211.56 132.56
Slide 25: Thank You
Mr. Thirumalesh Tumma Aditya Dutta SMS Pharmaceuticals ltd EQSPONENT Partners LLP complianceofficer@smspharma.com smspharma.ir@eqsponent.com Thank You
SMS Pharmaceuticals — Q1 FY2025 Earnings Presentation on 6ix