Entero Healthcare Solutions Limited · NSE:ENTERO
Entero Healthcare Solutions — Q3 FY25 Earnings Presentation
36 slides from Entero Healthcare Solutions's earnings presentation, February 2025
Slide 1: Entero Healthcare Solutions Limited Investor Presentation February 2025
Entero Healthcare Solutions Limited Investor Presentation February 2025
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the which have been prepared by Entero Healthcare Solutions Limited (the have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall
Slide 3: Q3 & 9M FY25 Financial Highlights
Q3 & 9M FY25 Financial Highlights
Slide 4: Management Commentary
Management Commentary We are pleased to share yet another quarter of strong growth and consistent execution at Entero Healthcare. In Q3FY25, our consolidated revenue reached 1,359 crore, marking a robust 37% YoY growth. Our organic growth stood at 17%, significantly outpacing the Indian Pharmaceutic
Slide 5: Operational Highlights
Operational Highlights Outperforming Customers Relationship with Market Growth S (Retailers) healthcare product (9MFY25) manufacturers Entero: 30% 9MFY25: 86,200+ 9MFY25: 76,600+ 9MFY25: 2,500+ IPM: 8% 9MFY24: 79,400+ 9MFY24: 67,100+ 9MFY24: 1,900+ Customers Districts Covered* Warehouses (Hospital)
Slide 6: High base effect due to COVID-19
High base effect due to COVID-19 65% IPM Entero Organic Growth Entero Consolidated Growth 53% 40% 41% 38% 37% 35% 35% 32% 31% 31% 26% 27% 24% 21% 22% 19% 19% 19% 20% 16% 16% 17% 15% 15% 14% 18% 17% 17% 11% 16% 15% 10% 9% 10% 9% 9% 9% 7% 12% 8% 7% 6% 2% -2% Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q
Slide 7: Consolidated Financial Highlights
Consolidated Financial Highlights Revenue (Rs. Cr) Gross Profit (Rs. Cr) & Margin (%) EBITDA (Rs. Cr) & Margin (%) PAT (Rs. Cr) +37% +48% +75% +322% 1,359 133 50 29 993 90 29 9.1% 9.8% 3.7% 2.9% 7 2.2% 0.7% Q3FY24 Q3FY25 Q3FY24 Q3FY25 Q3FY24 Q3FY25 Q3FY24 Q3FY25 Revenue (Rs. Cr) Gross Profit (Rs. Cr
Slide 8: Key Balance Sheet Highlights
Key Balance Sheet Highlights Net Operating Working Capital (Days) RoCE (%) RoE (%) 68 69 69 12.3% 9.0% 11.0% 7.6% 9.8% 5.8% Q3 FY24 Q2FY25 Q3FY25 Q3 FY24 Q2 FY25 Q3 FY25 Q3 FY24 Q2 FY25 Q3 FY25 Net Operating Working Capital (Days) RoCE (%) RoE (%) 75 10.3% 10.5% 7.3% 70 5.5% 9M FY24 9M FY25 9M FY24
Slide 9: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Cr) Q3FY25 Q3FY24 YoY% 9MFY25 9MFY24 YoY% Revenue 1,359.0 992.6 37% 3,756.7 2,888.1 30% Cost of Goods Sold 1,225.6 902.4 3,401.2 2,628.8 Gross Profit 133.4 90.2 48% 355.5 259.3 37% Gross Margin (%) 9.8% 9.1% 73bps 9.5% 9.0% 48bps Employee Expense
Slide 10: Utilization of IPO Proceeds
Utilization of IPO Proceeds Amount to be funded Particulars (Rs. Cr) Utilized till date Unutilized from Net Proceeds Repayment/prepayment, in full or part, of certain borrowings availed of by our 142.5 142.5 - Company Funding of long-term working capital requirements of the Company and its 480.0 330
Slide 11: Award of Excellence in Healthcare Supply Chain and Logistics 2024
Award of "Excellence in Healthcare Supply Chain and Logistics- 2024" We are extremely thrilled to announce that Entero Healthcare Solutions has been honored with the Excellence in Healthcare Supply Chain & Logistics 2024 award at the ET Healthcare Awards this year! This prestigious recognition under
Slide 12: About Us
& Entero Healthcare Solutions Li "Sly
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 45* acquisitions Pan-India presence through our
Slide 14: Entero at a Glance
Entero at a Glance Geographical Reach of Distribution Network 86,200+ 3,200+ 2,500+ Customers Retail Pharmacies Hospital Supply relationships with catered to customers healthcare product manufacturers AMRITSAR PANCHKULA DEHRADUN KARNAL DELHI GHAZIABAD GURGAON FARIDABAD JAIPUR GORAKHPUR GUWAHATI BAST
Slide 15: Building a Highly Scalable Business Model
Building a Highly Scalable Business Model Consolidated Revenue (Rs. Cr) Customers (Retailers) Customers (Hospitals) FY22 64,200+ FY22 2,500+ 3,922 FY23 81,400+ FY23 3,400+ +30% CAGR FY24 86,300+ FY24 3,500+ 3,300 Relationship with healthcare product manufacturers 2,522 FY22 56,500+ FY22 1,700+ FY23
Slide 16: Strong Board backed by 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 17: 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 with API H
Slide 18: Leadership Team
Leadership Team Sanu Kapoor Sambit Mohanty Abhitesh Kumar Vice President - General Counsel, Company President - Institutional Business President - Retail Business & New Initiatives Secretary and Compliance Officer Associate member of the Institute of Company Secretaries of science from Utkal Univers
Slide 19: Market Opportunity
eG Entero Healthcare Solutions Li | Market Opportunity
Slide 20: 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 for ph
Slide 21: 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 22: Healthcare Products Distribution Market Overview
Healthcare Products Distribution Market Overview Share of the total distributor sales for Large / National pharmaceutical distributors 20-30% CAGR $33.2bn 10-11% 25-30% 8-10% Target Addressable Market(1) (FY23) Market CAGR (FY23-FY28) FY23 FY28 Industry Dominated by Traditional Local Retailers Key T
Slide 23: Key Strengths
eG Entero Healthcare Solutions Li | Key Strengths
Slide 24: 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 Healthcare Products Distribution Platforms Track Record of Inorganic Expansion and Integration to Grow our Geographic Reach, Revenues and
Slide 25: Market consolidation: share of large players in pharma distribution
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 Distribution in: Pre-2015 85 90% 30 35% <3 5% 90 95% Market Consolidation is
Slide 26: Geographical Reach of our Distribution Network
Chain Company Geographical Reach of our Distribution Network Distribution Presence 20 States 45/492 Cities/Districts AMRITSAR Customer Network PANCHKULA DEHRADUN KARNAL GHAZIABAD DELHI Retail GURGAON FARIDABAD Hospital JAIPUR GORAKHPUR BASTI GUWAHATI 86,200+ Pharmacies catered to 3,200+ customers LU
Slide 27: 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 Medica
Slide 28: 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 29: Proprietary Technology Platform
Proprietary Technology Platform with Integrated Business Intelligence Tools and Solutions Technology-Focused Approach Anchored on Our Proprietary Integrated Tech Products Distribution Ecosystem Single-interface platform to pharmacies Real time visibility of products, pricing, inventory levels, order
Slide 30: 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 31: Historical Financials
eG Entero Healthcare Solutions Li | Historical Financials
Slide 32: Historical Financial Highlights
Historical Financial Highlights Revenue (Rs. Cr) Gross Profit (Rs. Cr) and Margin (%) 8.0% 8.3% 8.1% 9.0% +30% 3,922 352 3,300 +35% 268 2,522 210 1,780 142 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 EBITDA (Rs. Cr) and Margin (%) Net Operating Working Capital (Days)* 1.2% 1.0% 1.9% 2.9% 112 71 71 64 67
Slide 33: Consolidated P&L Statement
Consolidated P&L Statement Particulars (Rs. Cr) FY24 FY23 FY22 FY21 Revenue 3,922.3 3,300.2 2,522.1 1,779.7 Cost of Goods Sold 3,570.4 3,031.9 2,312.4 1,638.1 Gross Profit 352.0 268.3 209.6 141.6 Gross Profit Margin 9.0% 8.1% 8.3% 8.0% Employee Cost 149.4 128.1 114.8 75.9 ESOP Expenses 1.8 0.0 0.0 0
Slide 34: Consolidated Balance Sheet
Consolidated Balance Sheet ASSETS (Rs. Cr) Mar-24 Mar-23 Mar-22 Mar-21 EQUITY AND LIABILITIES (Rs. Cr) Mar-24 Mar-23 Mar-22 Mar-21 ASSETS Equity Non-current assets Equity Share capital 43.5 4.1 3.9 0.1 Property, plant and equipment 41.0 43.2 45.7 40.9 Other equity 1,594.6 590.9 557.2 485.3 Capital w
Slide 35: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (Rs. Cr) FY24 FY23 FY22 FY21 Net Profit Before Tax 35.6 -3.7 -19.8 -10.8 Adjustments for: Non Cash Items / Other Investment or Financial Items 86.6 -71.2 -41.5 42.7 Operating profit before working capital changes 122.2 67.5 21.7 31.8 Changes in working ca
Slide 36: Investor Relations Contacts
Company: Investor Relations Advisor: CIN: L74999HR2018PLC072204 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 FY25 Earnings Presentation on 6ix