Sms Pharmaceuticals Limited · NSE:SMSPHARMA
Sms Pharmaceuticals — Q3 FY22 Earnings Presentation
43 slides from Sms Pharmaceuticals's earnings presentation, Feb 10, 2022
Slide 1: SMS Pharmaceuticals exchange cover letter
~ sms Pharmaceuticals Limited Registered & Corporate Office: Plot No. 72, H. No. 8-2-334/3 & 4, Road No.5, Opp. SSI Executive Enclave, Saniara Hills, Hyderabad - 500 034, Telangana, INDIA. Date: 10'h February, 2022 Tel: +91-40-2525 9999, Fax: +91-40-25259889 CIN : L24239TG1987PLC008066 Email: info@s
Slide 2: SMS Pharmaceuticals Reports its Q3 & 9M FY22 Financial Results
` Press Release SMS Pharmaceuticals Limited Reports its Q3 & 9M FY22 Financial Results 9MFY22 Revenue, EBITDA & PAT grew by 17%, 50% and 52%, respectively EBITDA Margins expanded by 590bps to 26.9%, driven by improved product mix and realisations for 9MFY22 Received non-exclusive license to manu
Slide 3: Molnupiravir license and management commentary
` Molnupiravir is the first oral, direct-acting antiviral shown to be highly effective at reducing nasopharyngeal SARS-CoV-2 infectious virus Will increase broad access of treatment in 105 low- and middle- income countries (LMIC). Important milestone and external validation to the company’s ab
Slide 4: SMS Pharma is a global player in API and intermediates manufacturing
` Established in 1990, SMS Pharma is a global player in API and intermediates manufacturing having a strong research and manufacturing team supported by state-of-the-art facilities. The Company has capabilities in wide range of APIs / intermediates and has handled varied process reactions and reacto
Slide 5: SMS Pharmaceuticals Limited Investor Presentation
SMS Pharmaceuticals Limited Investor Presentation February 2022 1 1
Slide 6: 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 7: Table of Contents
Table of Contents Company Overview ………………………………………………………………………….04-13 Key Strategic Focus…….…………………………………………..………………..……...14-20 Financial Highlights ……………………………………………………………………….…21-25 Historical Performance at a Glance ………………………………………………….26-31 3
Slide 8: Company Overview
Company Overview 4
Slide 9: Company at a Glance
Company at a Glance Genesis CRAMS Business ▪ A 30-years old research-driven company headquartered in Hyderabad. ▪ Engaged in providing quality alternative manufacturing destination to multinationals for their contract research and manufacturing needs. ▪ API focused company with 2 world class operati
Slide 10: Transformation Over the Years
Transformation Over the Years Diversification + Value-Addition + Expansion Awards & Recognitions Way Forward Acquisition Got Listed Won the prestigious Scaling Up “Indian Pharma Bulk Successfully developed & Acquired a facility to SMS got listed on drug company of the Became the largest commercializ
Slide 11: Highly Competent Team…To Drive the Future Growth
Highly Competent Team…To Drive the Future Growth Mr. Ramesh Babu Potluri Mr. P. Sarath Kumar Sri Sarvepalli Srinivas Sri Sravan Kudravalli Mr. Vamsi Krishna Potluri Chairman & MD Director Director Director Executive Director • Post-graduate Technocrat. • Founder partner of the • Holds a B.Com. Degre
Slide 12: State-of-the-art Manufacturing Facilities
State-of-the-art Manufacturing Facilities Particulars Hyderabad Visakhapatnam Year of Establishment 2000 2010 Plant Area: 19,685 Plant Area: 3,45,007 Area (units in Sq. M) Built Up: 5,127 Built Up: 39,704 Capacity 120KL 3,000 KL Famotidine, Rizatriptan Benzoate, Ibuprofen, Tenofavir, Ranolazine, Key
Slide 13: Strong Thrust on R&D
Strong Thrust on R&D Product Development 01 ▪ Added 20 new products to the company’s product basket over the past few years. Technical Team 02 ▪ Comprises 100+ scientists & 8 PHDs; 45 scientists ensure disciplined adherence to regulatory standards and client specifications Quality Management 03 ▪ Op
Slide 14: Self-reliant Manufacturing Plants
Self-reliant Manufacturing Plants Particulars No. Total No. of Reactors 50 Minimum Size 50 L Maximum Size 3,000 L Total Capacity 57 KL Glass Lined Reactors 17 SS Reactors 31 Hydro-generators 2 Distillation Still 1 Glass Flasks 5 ➢ Pre-treatment plant capacity (MGF & Softner) 1750 Lts/ Hr. SS Centrif
Slide 15: …and a Wide Array of Manufacturing Capabilities
…and a Wide Array of Manufacturing Capabilities Capacity Equipment Name MOC (Min-Max) Stainless steel Reactors SS 50 L – 32 KL Glass lined Reactors MS-GL 63 L – 10 KL Leaf Filters SS 80 – 100 L Nutsch Filters SS 80 – 1500 L Agitated Nutsche Filter Drier SS 2500 – 15000 L Sparkler Filter SS 10-177 L
Slide 16: Supported by Comprehensive Chemicals and Process Capabilities
Supported by Comprehensive Chemicals and Process Capabilities… Distillation (Normal & Vaccum) Distillation (Normal & Vaccum) Condensation Oxidation Oxidations & Reductions Cyclisation Dehydration Nitration Fridel Craft Methylation Reduction Condensation Mesylation Silyation Electrophillic aromatic s
Slide 17: Long Lasting Relationships with Marquee Clients
…Resulting into Long Lasting Relationships with Marquee Clients 13
Slide 18: Certifications
Certifications COUNCIL OF EUROPE ® {a * ee European Directorate | Direction européenne forthe Quality | dela qualité of Medicines: & HealthCare dumédicament &:soins de santé CONSEIL DE [EUROPE AUITHRA ERREMRRS A Pharmaceuticals and Medical Devices Agency pharmaceuticals Itd. 14
Slide 19: CSR Activities
CSR Activities ✓ Sponsored & Constructed Z.P. High School at Poosapatriga Village, Andhra Pradesh ✓ Sponsored for Borewell drilling ✓ Donation of Oxygen cylinders at Kopperla Chinthapalli Village, Andhra Pradesh Village in aid of Covid 19 victims 15
Slide 20: CSR Activities
CSR Activities ✓ Sponsored & Constructed R.O water plant at Thammayapalem ✓ We also Donated INR 20 Lakh to the police Viliage, Andhra Pradesh force to support their selfless service during covid times. ✓ Extended financial support to Campus challenge 16
Slide 21: Awards/Accolades
Awards/Accolades Indo US NCGC Award Bulk Drug Company of the Year ❑ First Indian pharma company to ❑ India Pharma Bulk Drug Export Company of receive Indo-US GCNC award for the Year Award from Government of India. adopting green chemistry practices Pandit Jawaharlal Nehru ❑ Received the Indian Pharm
Slide 22: Key Strategies
Key Strategies 18
Slide 23: Key Strategic Focus
Key Strategic Focus Niche Product Portfolio Carved out a strong presence in complex, niche API therapies with a global leadership in multiple products Expansion Brownfield capex of Rs. 200 crores in FY21 to augment the next leg of growth Unique Value Proposition Global presence, Strong domain expert
Slide 24: Niche Product Portfolio
Niche Product Portfolio Leadership in Select High-Value, Complex APIs API portfolio comprises of specialized and profitable products Growing share of High Value Products in niche therapeutic areas. Reflects the strong ability to foray into other high-value, niche and complex products 10% By Value (%
Slide 25: Expansion
Expansion With ~ Rs. 200 crores capex at Vishakhapatnam Facility in FY21, the company is fully geared up for the next level of growth. • The brownfield capex is aimed towards capacity augmentation of multiple products and therapies. • The incremental capacity addition through the capex is 1,300 KL,
Slide 26: Unique Value Proposition
Unique Value Proposition Global Presence ~80% Exports Revenue (including deemed exports) in 75+ countries across 5 continents – Lower dependency on single country/region Long-standing Relationships Long standing relationships with suppliers and customers - Cost-efficient, consistent, sustainable raw
Slide 27: Diversification
Diversification Well-diversified across Geographies, Markets, Therapies, Products and Customers = Risk Reduction and Multiple Growth Avenues 01 02 03 04 Geography Markets API Therapies Customers • Regulated Markets contributed • Top 5 therapies contributes 86% • Domestic: Largest client • Domestic -
Slide 28: De-risked & Integrated Value Chain
De-risked & Integrated Value Chain Backward Integration Verticle Integration Strategic ➢ Vertically integrated through VKT ➢ Over the years, SMS Pharma has Pharmaceuticals Pvt. Ltd. - An Associate strategically invested in backward Investments company integration to be self-reliant and reduce across
Slide 29: Financial Highlights
pharmaceuticals Itd. Financial Highlights
Slide 30: 9MFY22 Result Highlights
9MFY22 Result Highlights Rs. crores Revenue EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) 21.0% 26.9% 9.9% 12.8% +17% +50% +52% 459 123 59 392 82 39 9MFY21 9MFY22 9MFY21 9MFY22 9M FY21 9M FY22 26 26
Slide 31: Q3FY22 Result Highlights
Q3FY22 Result Highlights Rs. crores Revenue EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) 23.7% 27.6% 24.1% 12.3% 14.3% 8.5% 175 48 25 149 35 18 121 29 10 Q3FY21 Q2FY22 Q3FY22 Q3FY21 Q2 FY22 Q3FY22 Q3 FY21 Q2 FY22 Q3 FY22 27 27
Slide 32: Consolidated Revenue Break-up – Nine-Months Ended
Consolidated Revenue Break-up – Nine-Months Ended Q1FY21 9MFY21 9MFY22 Segment-wise 96% 96% 4% 4% API Intermediates & Others API Intermediates & Others Q1FY21 9MFY21 9MFY22 Geography-wise 82% 92% 8% 18% Domestic Exports Domestic Exports 28
Slide 33: Consolidated Revenue Break-up – Quarterly
Consolidated Revenue Break-up – Quarterly Q1FY21 Q3FY21 Q2FY22 Q3FY22 Q1FY22 Segment-wise 96% 99.6% 95% 4% 0.4% 5% API Intermediates & Others API Intermediates & Others API Intermediates & Others Q1FY21 Q3FY21 Q2FY22 Q3FY22 Q1FY22 Geography-wise 91% 92% 89% 9% 8% 11% Domestic Exports Domestic Export
Slide 34: API Therapy-wise Revenue Break-up – Nine-Months Ended
API Therapy-wise Revenue Break-up – Nine-Months Ended 9MFY21 9MFY22 5% 9% 12% 6% 8% 23% 9% 6% 23% 14% 40% 44% ARV Anti-Ulcer ARV Anti-Ulcer Anti-Epileptic Anti-Migraine Anti-Epileptic Anti-Migraine Anti-Erectile Dysfunction Others Anti-Erectile Dysfunction Others 30
Slide 35: API Therapy-wise Revenue Break-up – Quarterly
API Therapy-wise Revenue Break-up – Quarterly Q1FY21 Q3FY21 Q2FY22 Q3FY22 Q1FY22 5% 5% 14% 14% 3% 32% 8% 7% 10% 3% 7% 30% 15% 15% 9% 50% 37% 37% ARV Anti-Ulcer ARV Anti-Ulcer ARV Anti-Ulcer Anti-Erectile dysfunction Anti-Migraine Anti-Erectile dysfunction Anti-Migraine Anti-Erectile dysfunction Anti
Slide 36: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Crores) Q3FY22 Q3FY21 YoY% Q2FY22 QoQ% 9MFY22 9MFY21 YoY% Net Revenue from Operations (Net of Excise) 121.3 148.9 (19)% 174.7 (31)% 459.0 391.9 17% Other Income 2.1 0.9 1.4 4.8 2.2 Total Revenue 123.4 149.7 176.1 463.7 394.0 COGS 61.4 89.5 95.1 2
Slide 37: Historical Performance at a Glance
Historical Performance at a Glance 33
Slide 38: Strong Financial Performance
Strong Financial Performance Consolidated Revenue (Rs. Crores) EBITDA (Rs. Crores) PAT (Rs. Crores) +6% 563 +13% 121 63 463 465 +22% 447 93 412 90 75 80 40 32 32 29 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 EBITDA Margin (%) PAT Margin (%) +480bps 21.5% 11.1% 20.2% +
Slide 39: Strong Financial Performance
Strong Financial Performance Consolidated EPS (In Rs) Net Worth (In Crores) Leverage (X) 7.4 558 0.36 +14% +21% 0.29 416 384 0.25 4.7 356 329 0.20 3.8 3.7 0.19 3.4 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 ROCE (in %) ROE (in %) +90 bps 21.3% +400bps 15.2% 19.3% 17.4
Slide 40: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. crores) FY21 FY20 FY19 FY18 FY17 Net Revenue from Operations 563.2 411.9 464.9 462.7 446.7 Other Income 3.5 5.1 3.4 2.4 1.4 COGS 379.4 280.0 327.6 324.4 332.8 Gross Profit 183.8 131.9 137.4 138.3 113.9 Gross Margin (%) 32.6% 32.0% 29.5% 29.9% 25.
Slide 41: Consolidated Balance Sheet
Consolidated Balance Sheet Equities & Liabilities (Rs. crores) FY21 FY20 FY19 FY18 FY17 Assets (Rs. crores) FY21 FY20 FY19 FY18 FY17 Equity Non Current assets Equity Share capital 8.5 8.5 8.5 8.5 8.5 Property, Plant and Equipment 452.3 275.2 280.1 278.9 290.0 Other Equity 402.1 339.8 313.5 276.0 246
Slide 42: Consolidated Cashflow Statement
Consolidated Cashflow Statement Particulars (Rs. crores) FY21 FY20 FY19 FY18 FY17 Net Profit before Tax and Extraordinary items 91.1 50.8 62.4 60.3 41.6 Adjustments for: Non Cash Items / Other Investment or 27.8 28.7 26.8 31.1 31.58 Financial Items Operating profit before working capital changes 118
Slide 43: For further information, please contact
For further information, please contact Company: Investor Relations Advisor: CIN: L24239TG1987PLC008066 CIN: U74140MH2010PTC204285 Mr. V. S. Venkatish Mr. Jigar Kavaiya / Mr. Chinmay Madgulkar Email: cs@smspharma.com E: jigar.kavaiya@sgapl.net / chinmay.m@sgapl.net Contact no.: ++91 9989322673 T: +9