Granules India Limited · NSE:GRANULES
Granules India — Q2 FY2020 Earnings Presentation
27 slides from Granules India's earnings presentation, Oct 23, 2019
Slide 1: Cover letter to stock exchanges
G cranutes REGISTERED OFFICE GRANULESINDIALTD., 2nd Floor, 3rd Block, My Home Hub, Madhapur, Hyderabad - 500 081, Telangana, INDIA. Tel: +91 40 30660000,Fax: +91 40 23115145, mail@granulesindia.com, www.granulesindia.com CIN: L24110TG1991PLC012471 Dated October 23, 2019 To, National Stock Exchange o
Slide 2: Earnings Presentation Q2FY20
Granules India Limited Earnings Presentation Q2FY20
Slide 3: Agenda
Agenda 1 Q2FY20 update 2 About Granules 3 Performance metrics 4 Way forward Q2FY20 Earnings Presentation
Slide 4: Safe harbour
Safe harbour 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 5: Agenda: Q2FY20 update
Agenda 1 Q2FY20 update 2 About Granules 3 Performance metrics 4 Way forward Q2FY20 Earnings Presentation
Slide 6: Q2FY20 Financial highlights
Q2FY20 Financial highlights Revenues Gross Margin (%) Key Highlights (₹ Mn) 6,995 (₹ Mn) 3,401 • Gross Revenues: 20% 2,632 • Revenues were up 20% YoY on 48.6% 45.3% account of PFI sales growth of 5,809 37% and FD sales growth of 34% • Increase in regulated markets’ sales by 34% Q2FY19 Q2FY20 Q2FY19
Slide 7: Profit Reconciliation
Profit Reconciliation (₹ Mn) 1,400 1,200 1,151 1,151 1,000 836 800 706 600 400 200 130 - - PBT Share of JVs PBT excl JVs Q2FY19 Q2FY20 63% YoY growth in PBT despite divestment of JVs Q2FY20 Earnings Presentation 6
Slide 8: Segment Performance Highlights
Segment Performance Highlights Revenue mix ─ Segment Revenue mix ─ Geography Production (MT/Mn) Q2FY20 Q2FY20 8% 4% 31% 6,344 6,440 14% 50% 53% 20% 4,155 19% 3,257 3,134 2,381 API PFI FD North America Europe India LATAM ROW API PFI FD Q2FY19 Q2FY19 8% 5% Q2FY19 Q2FY20 API PFI FD 46% 22% 45% 39% 20%
Slide 9: Continued focus on improvement
Continued focus on improvement (INR Mn) Net Debt & Net debt-to-EBITDA (x) ROCE (%) ROE (%) (₹ Mn) 10,084 8,265 21.7% 22.2% 2.9x 17.6% 16.5% 1.6x Q2FY19 Q2FY20 Q2FY19 Q2FY20 Q2FY19 Q2FY20 Cash-to-Cash cycle (days) PAT FCF and FCF-to-EBITDA (₹ Mn) (₹ Mn) 354 124 958 603 35.0% 106 Q2FY19 Q2FY20 Q2FY19
Slide 10: Other Business Highlights
Other Business Highlights R&D Spend ANDA Filings (₹ Mn) 36 112 75 180 188 14 255 300 Q2FY19 Q2FY20 Total R&D Spend Charged to P&L Capitalised Filed ANDAs Approvals Received R&D Spend and % to Revenue • Two ANDAs filed during the quarter - One each R&D Spend R&D as % to Revenue from GPI and GIL 300 2
Slide 11: Agenda: About Granules
Agenda 1 Q2FY20 update 2 About Granules 3 Performance metrics 4 Way forward Q2FY20 Earnings Presentation
Slide 12: Granules at a glance
Granules at a glance Building Blocks Installed Capacity Regulatory Approvals Business Divisions Global Reach Regulatory compliance 39,360 TPA of API USFDA, EDQM, EU Core business 60+ countries Operational efficiency 290 KL GMP, COFEPRIS, WHO US generics 250+ customers GMP, TGA, KFDA, DEA, Customer c
Slide 13: Business Structure ─ Granules India
Business Structure ─ Granules India Core Business Multi APIs/Oncology US Generics Focus on volume based products Auxiliary growth engine to Fully integrated infrastructure such as Paracetamol, Metformin secure the future including R&D, manufacturing and HCl, Ibuprofen, Guaifenesin, marketing to enab
Slide 14: Excellence in quality & being best-in-class
Excellence in quality & being best-in-class Granules India 100% subsidiary with front-end marketing for OTC Incorporated in 1991, this is Granules USA Inc products in US the only listed entity in the 100% subsidiary focused on advanced formulation group, with 5 operational Granules Pharmaceuticals I
Slide 15: Core Business
Core Business Overview Drivers Value enablers Presence across the entire pharmaceutical Among the world’s largest PFI and single-site FD facilities manufacturing value chain from API to finished API capacity 39,360 MT; PFI 24,640 TPA; finished dosages dosages 19.8 billion Scale Large-scale manufactu
Slide 16: Multi APIs/Oncology
Multi APIs/Oncology Value enablers Drivers Multiproduct API and oncology manufacturing facility on over 18 acres Overview of land Infrastructure Integrated API-to-FD facility for oncology IT-enabled infrastructure to ensure efficiency and compliance Multiproduct and multi-stage API-to-FD manufacturi
Slide 17: US Generics
US Generics Overview Drivers Value enablers “Niche products,” hidden opportunities with different layers of Fully integrated infrastructure from complexities R&D, manufacturing to marketing Differentiated dosage forms; limited competition enabling “Make in America” Portfolio Complex generics; produc
Slide 18: Joint Venture divestments
Joint Venture divestments Granules Omnichem Granules Biocause Investment sold to JV partner for Decision to sell investment to INR 1,098.5 mn JV partner Entered in 2012 Entered in 2007 INR 500 mn: Book value of investment INR 1436.5 Mn: Book value of as on 30 June 2019 investment as on 30 June 2019
Slide 19: Core management team
Core management team Mr Prasad’s journey as pharma entrepreneur began in 1984, when he set up a paracetamol API manufacturing facility that C Krishna Prasad focused on capital and process efficiency. Pharmaceutical formulations intermediates (PFIs) as a cost efficient product for Chairman and Managi
Slide 20: Agenda: Performance metrics
Agenda 1 Q2FY20 Updates 2 About Granules 3 Performance metrics 4 Way forward Q2FY20 Earnings Presentation
Slide 21: High volume molecules showing stable growth
High volume molecules showing stable growth (₹ Mn) 4,311 18,914 2,233 11,928 442 Total Addition Addition Addition Total Contribution FY17 FY18 FY19 Contribution FY16 FY19 High volume based molecule business contribution (₹ Mn) Revenue contribution from core molecules 2,724 11,138 8,414 Total Contrib
Slide 22: Consolidated financials overview
Consolidated financials overview (INR Mn) Sales: 3Y CAGR 18% EBITDA: 3Y CAGR 11.6% 5,000 33% 38% 40% 47% 3,840 4,000 28% 24% 25% 17% 2,763 2,988 2,784 3,000 39% 38% 35% 36% 2,000 FY16 FY17 FY18 FY19 20% 20.8% 1,000 16.5% 16.8% API PFI FD - 0 Revenue break-up (geography) FY16 FY17 FY18 FY19 PAT: 3Y C
Slide 23: Balance sheet trends
Balance sheet trends (₹ Mn) Total net worth 2,733 14,729 2,160 15,295 13,042 1,607 9,036 6,616 8,230 FY16 FY17 FY18 FY19 Net worth Total gross Change in gross Change in gross Change in gross Total gross block FY16 block FY17 block FY18 block FY19 block FY19 Capital employed 20,863 FY16 FY17 FY18 FY1
Slide 24: Continued focus on improvement
Continued focus on improvement (₹ Mn) Net Debt & Net debt-to-EBITDA (x) ROCE (%) ROE (%) 8,704 9,082 8,265 26.2% 22.2% 6,138 3.1x 21.7% 21.0% 2.4x 2.1x 1.6x 18.2% 16.7% 15.8% 12.0% FY17 FY18 FY19 Sep-19 FY17 FY18 FY19 Sep-19 FY17 FY18 FY19 YTD (₹ Mn) Cash-to-Cash cycle (days) PAT FCF 117 119 2,364 9
Slide 25: Agenda: Way forward
Agenda 1 Q2FY20 update 2 About Granules 3 Performance metrics 4 Way forward Q2FY20 Earnings Presentation
Slide 26: Way forward
Way forward Building blocks in place Huge Integrated platform in place to address the entire value chain from Economies intermediates to finished dosages of Scale Investments in FD including pulsatile drug release, orally disintegrating modified release and abuse deterrent technology platform for co
Slide 27: Thank you
Thank you Granules India Ltd Floor 2 Block 3 My Home Hub Madhapur Hyderabad 500081 CIN: L24110TG1991PLC012471 Voice: +91 40 30660000/30663600 Fax: +91 40 23115145/30663602 www.granulesindia.com | saiprasad.madishetti@granulesindia.com richa10.singh@in.ey.com 532482 GRANULES GRAN:IN GRAN:NS