Neuland Laboratories Ltd. · NSE:NEULANDLAB
Neuland Laboratories — Q2 FY2023 Earnings Presentation
33 slides from Neuland Laboratories's earnings presentation, 2022
Slide 1: Earnings Presentation Q2 & H1 FY23
Earnings Presentation Q2 & H1 FY 23 BSE CODE : 524558 | NSE SYMBOL : NEULANDLAB | BLOOMBERG: NLL:IN | REUTERS: NEUL.NS
Slide 2: Safe Harbour
Safe Harbour Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "
Slide 3: Table of Contents
Table of Contents Q2 & H1 FY-23 1 HIGHLIGHTS 2 BUSINESS OVERVIEW 3 CAPABILITIES 4 FINANCIALS 5 OUTLOOK 3
Slide 4: Q2 & H1 FY-23 Highlights
Q2 & H1 FY-23 HIGHLIGHTS
Slide 5: Management Speak
Management Speak SUCHETH DAVULURI “We are pleased to report a record quarterly revenue of Rs.294 crores. The YoY revenue growth of 13.9% was powered by the Specialty and CMS verticals. We believe this sets us up firmly on the growth path for the rest of this year while providing a strong foundation
Slide 6: Key Highlights Q2 FY23
Key Highlights Q2 FY23 Business Highlights Financial Highlights ❖ Specialty business growth driven by ❖ Total income was Rs. 293.9 crore in products in pipeline, where customers Q2FY23, an increase of 13.9% YoY are preparing for launch. Key products being Paliperidone, Ezetimibe, ❖ EBITDA was Rs. 69
Slide 7: Key Highlights H1 FY23
Key Highlights H1 FY23 Business Highlights Financial Highlights ❖ Total income was Rs. 515.6 crore in ❖ Specialty business growth driven by H1FY23, an increase of 11.8% YoY Paliperidone, Donepezil and Apixaban ❖ EBITDA was Rs. 98.4 crore in H1FY23, an increase of 39.1% YoY ❖ CMS revenues driven by b
Slide 8: Profit & Loss Snapshot (Standalone)
Profit & Loss Snapshot (Standalone) QoQ YoY YoY Particulars (Rs. Cr) Q2FY23 Q1FY23 (%) Q2FY22 (%) H1FY23 H1FY22 (%) Total Income 293.9 221.7 32.6% 258.1 13.9% 515.6 461.1 11.8% EBITDA 69.4 29.0 139.4% 43.1 61.1% 98.4 70.7 39.1% EBITDA Margin 23.6% 13.1% 1050 bps 16.7% 690 bps 19.1% 15.3% 380 bps Pro
Slide 9: Financials (Standalone)
Financials (Standalone) Revenue (Rs. Cr) EBITDA (Rs. Cr) and EBITDA Margin (%) 516 461 19.1% 294 23.6% 258 257 15.3% 238 222 16.7% 14.3% 15.3% 13.1% 98 69 71 43 39 34 29 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 H1FY22 H1FY23 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 H1FY22 H1FY23 EBITDA EBITDA % EBITDA EBITDA %
Slide 10: Key Operating Metrics
Key Operating Metrics YoY Analysis QoQ Movement 4% 4% 5% 4% 4% 4% 4% 25% 27% 28% 32% 31% 33% 40% 25% 23% 25% 26% 30% 20% 33% 45% 45% 43% 36% 39% 34% 30% H1 FY22 H1 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Prime Specialty CMS Others 10
Slide 11: Business Salience (Overall Company)
Business Salience (Overall Company) PRODUCT YoY Analysis QoQ Movement 64% 64% 61% 60% 57% 57% 57% 38% 37% 40% 39% 43% 36% 45% TOP 10 TOP 5 H1 FY22 H1 FY 23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 CUSTOMER YoY Analysis QoQ Movement 60% 59% 53% 53% 54% 54% 53% 44% 43% 39% 41% 41% 40% 49% H1 FY22 H1 FY
Slide 12: Business Salience (Prime)
Business Salience (Prime) H1 H1 Q2 Q3 Q4 Q1 Q2 47% 34% 45% 36% 43% 39% 30% FY-22 FY-23 FY22 FY22 FY22 FY23 FY23 PRODUCT YoY Analysis QoQ Movement 99% 96% 97% 97% 100% 97% 95% TOP 10 76% 76% 78% 70% 67% 73% 79% TOP 5 H1 FY22 H1 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY22 CUSTOMER YoY Analysis QoQ Mo
Slide 13: Business Salience (Specialty)
Business Salience (Specialty) H1 H1 Q2 Q3 Q4 Q1 Q2 24% 30% 23% 20% 25% FY23 26% 33% FY-22 FY-23 FY22 FY22 FY22 FY23 YoY Analysis QoQ Movement PRODUCT 91% 88% 91% 89% 92% 86% 87% TOP 10 64% 64% 60% 67% 66% 57% 70% TOP 5 H1 FY 22 H1 FY 23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 CUSTOMER YoY Analysis Q
Slide 14: Business Salience (CMS)
Business Salience (CMS) H1 H1 Q2 Q3 Q4 Q1 Q2 25% 32% 27% 40% 28% 31% 33% FY-22 FY-23 FY22 FY22 FY22 FY23 FY23 YoY Analysis QoQ Movement PRODUCT 87% 85% 99% 97% 93% 92% 85% 75% 72% TOP 10 83% 84% 75% 78% 81% TOP 5 H1 FY 22 H1 FY 23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 CUSTOMER YoY Analysis QoQ Mov
Slide 15: Key Operating Metrics – CMS Revenue Split
Key Operating Metrics – CMS Revenue Split Rs. In Cr Commercial Development YoY Analysis QoQ Movement 167 95 97 114 92 70 38 72 69 49 37 14 38 42 76 56 57 75 48 34 27 H1 FY22 H1 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 15
Slide 16: Number of Active CMS Projects
Number of Active CMS Projects Q2 FY-23 Pre-Clinical P-1 P-2 P-3 Development Commercial Grand Total API 16 4 7 6 7 9 49 Intermediate 10 6 2 1 7 12 38 Grand Total 26 10 9 7 14 21 87 Q2 FY-22 Pre-Clinical P-1 P-2 P-3 Development Commercial Grand Total API 15 3 8 4 10 7 47 Intermediate 7 5 2 0 8 11 33 G
Slide 17: Business Overview
BUSINESS OVERVIEW
Slide 18: Our Journey – Key Milestones
Our Journey – Key Milestones Laying Strong Foundation Deepening Our Capabilities Increased Sustainable Growth 1984 - 2003 2004 - 2012 2013 - Today Successfully 1984 1986 1994 1997 2004 2007 2008 2009 cleared 15 USFDA Incorporated First API sale of Neuland First USA Japan R&D Centre PMDA, Japan inspe
Slide 19: Generic Drug Substance (GDS)
Generic Drug Substance (GDS) We started as a Prime API ..Added complex molecules for manufacturer… Speciality products.. Capability Capability ✓ 3 US FDA and EU GMP compliant ✓ High end complex chemistry capabilities manufacturing facilities ✓ Backend support by R&D department ✓ Collective capacity:
Slide 20: On path to being a preferred partner in CMS..
On path to being a preferred partner in CMS.. Services ✓ Manufacturing API to customer specifications ✓ Designing and developing manufacturing processes ✓ Process optimization for competitiveness ✓ Complete CMC partner for the API ✓ Patent protection for processes Business Approach ✓ Local presence
Slide 21: Capabilities
CAPABILITIES
Slide 22: Scaled up Manufacturing Facilities over the years
Scaled up Manufacturing Facilities over the years UNIT-1 233 KL Bonthapally, Hyderabad UNIT-2 363 KL Pashamylaram, Hyderabad UNIT-3 305 KL Gaddapotharam, Hyderabad Year of 1994 2017* 1986 Establishment Block - 1, 2, 3, 4, H, KL & S 34 Block-1, 2, 3, FC, NMSM, Mini Block - 1, 2, 4, 5 Blocks plant 6 H
Slide 23: Backed up by sound R&D capabilities
Backed up by sound R&D capabilities R&D Facility, Hyderabad Infrastructure Significant R&D Achievements • 15 Development Labs with space for • Several NCE APIs added in NDA or commercial stage expansion drugs • 60 Fume hoods • Support for multiple APIs each year in Phase 2 • Analytical Labs and Phas
Slide 24: New capabilities built
New capabilities built FBRM HAZARDOUS & WET LABORATORY Dedicated area Particle size for hazardous check for chemical polymorph management achievement and wet lab expansion PEPTIDE LAB PID LABORATORY, To address 9800 sq. ft. new UNIT-III product quality lab with issues, additional 7 impurities hoods
Slide 25: Global Presence
Global Presence NORTH AMERICA EUROPE APAC 43% 41% 6% JAPAN MENA INDIA 4% 4% 2% BD Office in LATAM Princeton, New Jersey 3% Since 2004 Our BD Office in JAPAN Since 2007 % Refers to H1FY23 Sales by End market 25
Slide 26: Regulatory Filings Across Geographies
Regulatory Filings Across Geographies 30 Filings with Health 10 20 Canada Japanese DMF filed 62 China DMF filed DMFs with USFDA 238 19 25 ROW filings including filings with Turkey, Mexico, Brazil KFDA Korea filings with TGA etc ~499 28 EUDMF filings across Germany, France, Poland, CEPs Received for
Slide 27: Financials
FINANCIALS
Slide 28: Continuous Growth…
Continuous Growth… Rs. In Cr FINANCIAL PERFORMANCE 163 HIGHLIGHTS 953 953 144 767 ▪ Revenue CAGR of 12.5% for FY 19-22 led by growth in all 3 businesses 670 105 98 80 516 ▪ EBITDA growth of 33.0% CAGR in FY 19-22 due to balanced contribution 61 from both GDS and CMS business 64 48 16 16 ▪ Shift to C
Slide 29: Stable Balance Sheet..
Stable Balance Sheet.. Particulars Mar-20 Mar-21 Mar-22 Sep-22 Current Ratio (x) ROCE (%) (Rs. Cr) Shareholde 1.60 13.51 14.10 706 782 836 877 1.57 rs' funds 1.47 8.89 9.70 1.42 Net Debt 214 152 212 181 2020 2021 2022 H1FY23 2020 2021 2022 H1FY23 Investments 8 7 4 4 Tangible 391 438 497 503 Assets F
Slide 30: Outlook
OUTLOOK
Slide 31: ..Laying Foundation for our Growth Strategy
..Laying Foundation for our Growth Strategy CREATE AN ORGANIZATION THAT RESULTS IN VALUE FOR ALL STAKEHOLDERS BUSINESS SCALE Extend capabilities to Invest into capacity to organically build a augment sales and sustainable GDS accelerate business and CMS business growth CHEMISTRY RELATIONSHIPS Deploy
Slide 32: Contact Us
Contact Us For over 38 Years, Neuland Laboratories Ltd. For further information contact (BSE:524558, NSE: NEULANDLAB) has been at the forefront of manufacturing APIs through its cGMP manufacturing facilities, working with customers in close IR Desk to 80 countries. Neuland Labs Neuland Labs has deve
Slide 33: Thank You
Thank You Confidential. © 2022 Neuland Laboratories Ltd. All rights reserved.
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