Piramal Pharma Limited · NSE:PPLPHARMA
Piramal Pharma — Piramal Enterprises — Q3 FY2022 Earnings Presentation
55 slides from Piramal Pharma's earnings presentation, Feb 10, 2022
Slide 1: Q3 & 9M FY2022 Results Presentation
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Piramal Enterprises Limited Q3 & 9M FY2022 Results 10th February 2022
Slide 2: Key Highlights
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 2 Key Highlights Progressing well on Q3 FY22 revenue growth Q3 FY22 normalized net profit integration of DHFL and of 20% YoY to INR 3,816 Cr. growth of 14% INR 888 Cr. demerger of Pharma business Financial Services Pharma Pharma
Slide 3: Nine Months Revenue and Net Profit Trend
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 3 Nine Months Revenue and Net Profit Trend (In INR Crores) Total Revenues1,2 Net Profit3 7-year CAGR: 18% 7-year CAGR: 30% 9,727 9,830 9,408 1,978 8,474 1,864 1,749 6,672 1462 1176 5,089 941 3,743 3,000 712 321 9MFY15 9MFY16 9MFY
Slide 4: Demerger & Simplification of the Corporate Structure
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 4 Demerger & Simplification of the Corporate Structure
Slide 5: Demerger and Simplification of Corporate Structure
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 5 Demerger and Simplification of Corporate Structure Strategic Rationale Progress so far Key Milestones Status / Expected Timeline Simplifies the corporate structure: Creates two separate pure-play ✓ entities in Financial Service
Slide 6: Financial Services
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 6 Financial Services
Slide 7: Growth and Diversification: Transforming into a well-diversified lender
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 7 Growth and Diversification: Transforming into a well-diversified lender, focused on becoming retail-oriented Significant loan book growth Increasing loan book diversification INR Cr. Loan book mix (on book), % Wholesale Retail
Slide 8: DHFL Acquisition
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 8 DHFL Acquisition
Slide 9: Total Retail AUM: An at-scale lender in the affordable segment
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 9 Total Retail AUM: An at-scale lender in the affordable segment Loan book growth Off-Balance Sheet Retail assets acquired with DHFL Retail Loans (on-book), INR Cr. INR Cr. 21,544 20,134 Securitized assets1 now being 4x managed b
Slide 10: Scale: Significantly scaled-up our retail lending business
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 10 Scale: Significantly scaled-up our retail lending business Significant increase in scale and presence No. of branches No. of customers1 Created one of the leading HFCs in India, ~1 million 301 focused on affordable housing 43x
Slide 11: A highly transformative and value accretive business addition
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 11 A highly transformative and value accretive business addition Attractive ◼ Acquisition at <0.4x of gross value of assets purchase price ◼ Acquisition-led growth achieved without infusing or raising additional equity ◼ Healthy
Slide 12: DHFL Integration: Significant progress since completion of the acquisition
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 12 DHFL Integration: Significant progress since completion of the acquisition in Sep-2021 Integration of DHFL – Key milestones achieved Branch reactivation at DHFL % of ‘login-active’ branches 83% Branch 65% reactivation ▪ New lo
Slide 13: Retail Lending
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 13 Retail Lending
Slide 14: Strategy: Adopting a 'twin engine' strategy
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 14 Strategy: Adopting a ‘twin engine’ strategy to build the retail lending business Two Engines to drive scale and customer growth Digital lending originated ‘Phygital’ secured lending through digital assets & business partnershi
Slide 15: 'Phygital' Secured Lending: Financing the under-served 'Bharat' market
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 15 ‘Phygital’ Secured Lending: Financing the needs of the under-served ‘Bharat’ market Extensive distribution network Bridging the lending gap in the ‘Bharat’ market As of Dec-2021 Branches Self-employed Salaried Extensive distri
Slide 16: Embedded Finance: Scaling-up partnerships with Fintech and Consumer Tech firms
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 16 Embedded Finance: Scaling-up partnerships with Fintech and Consumer Tech firms Overview of our Digital Embedded Finance business Categories in Focus As of Dec-2021 ₹ Healthcare Education Payments 10 9,812 Live partnerships Pin
Slide 17: Q3 FY22 Business Highlights
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 17 Q3 FY22 Business Highlights: Our strategy execution is in progress Rolled-out several products since the launch of our platform in Nov-2020 Acquiring customers at a rapid pace – added ~55,000 new customers in Q3 Strongly scali
Slide 18: Products: rolled-out several products since Nov-2020
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 18 Products: We have rolled-out several products since the launch our multi-product retail lending platform in Nov-2020 Product Segments Key Products Average ticket size Disbursement (Retail Lending) (added since Nov-2020) (INR l
Slide 19: Customers: acquiring customers at a rapid pace
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 19 Customers: We are acquiring customers at a rapid pace through branch re-activation and digital initiatives Active Customer Base Launched Mobile App # of customers New customer additions during the period 6,00,000 ~0.4 million
Slide 20: Disbursements: retail loan disbursements grew +386% YoY
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 20 Disbursements: Our retail loan disbursements significantly grew by +386% YoY under the ‘twin engine’ strategy Retail loans – Quarterly disbursements In INR Cr. +386% 739 +44% 513 405 COVID-19 2nd wave 195 152 Q3 FY21 Q4 FY21 Q
Slide 21: Yields: Continuous improvement in yields QoQ
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 21 Yields: Continuous improvement in yields QoQ, driven by disbursement growth across all product segments 99% of Loan Book Exposure is Secured Disbursements across Product Segments Improvement in Disbursement Yield %, based on v
Slide 22: Investing for future: capability-building initiatives
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 22 Investing for future: We are working on several capability-building initiatives to deliver sustainable growth in the long term People Technology & Analytics Scale Establishing the right team Investing in tech infrastructure Br
Slide 23: Wholesale Lending
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 23 Wholesale Lending
Slide 24: Wholesale Credit: Aided by pick up in residential real estate and capex
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 24 Wholesale Credit: Aided by pick up in residential real estate and recovery of capex cycle Residential RE Industry – Housing Units Sold Revival of the capex cycle Top-8 cities, ‘000 units Capex1, INR Lakh Cr. Centre + State Gov
Slide 25: Wholesale Lending: making the loan book more granular
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 25 Wholesale Lending: Progressing in line with our strategy to make the loan book more granular Top-10 exposures Single-borrower exposures Wholesale Lending Strategy In INR Cr. No. of accounts >15% of net worth -32% Aim to cater
Slide 26: Asset Quality and Provisioning
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 26 Asset Quality and Provisioning
Slide 27: Maintaining adequate provisions to manage any contingencies
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 27 Maintaining adequate provisions to manage any contingencies Gross NPA Ratio (as a % of AUM) Net NPA Ratio (as a % of AUM) Total provisions In % In % INR Cr. 3.4% 3.3% 2,935 2,683 2,655 2.9% 1.7% 1.8% 1.5% Dec-2020 Sep-2021 Dec
Slide 28: Liabilities
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 28 Liabilities
Slide 29: Asset-liability profile
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 29 Asset-liability profile (in INR crores) As on December 31, 2021 (1) Cumulative Inflows 1,42,902 Cumulative Outflows 1,13,839 83,500 60,514 59,025 45,138 25,002 17,342 20,408 10,526 12,293 14,316 12,014 8,698 7,467 652 2,624 3,
Slide 30: Borrowing mix – Financial Services
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 30 Borrowing mix – Financial Services As on Dec 31, 2021 Breakdown of borrowing mix by type of instruments Breakdown of borrowing mix by type of investors 1.4% 0.9% NCDs / Bonds Banks 0.2% 5% 7% 10% 5% Loans FIIs / FPIs CP Insura
Slide 31: FS Performance metrics
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 31 FS Performance metrics
Slide 32: Financial Services: Balance Sheet Metrics
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 32 Financial Services: Balance Sheet Metrics As of As of As of Particulars Dec-2020 Sep-2021 Dec-2021 AUM1 (on-balance sheet) 49,860 66,986 65,792 Total Loan Book 46,370 62,215 60,640 Total Equity 17,384 17,857 18,292 Net Debt 33
Slide 33: Financial Services: P&L Performance Ratios
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 33 Financial Services: P&L Performance Ratios Particulars Q3 FY21 Q2 FY221 Q3 FY22 Yields2,3 13.8% 12.0% 11.4% Average Cost of Borrowings 10.9% 9.9%4 9.1% Net Interest Margin2 5.9% 3.8% 3.5% Cost to Income Ratio (CIR) 19% 35% 32%
Slide 34: Pharma
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 34 Pharma
Slide 35: Strong Revenue Growth during 9M FY22
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 35 Strong Revenue Growth during 9M FY22 Long term revenue performance 9M and Q3 FY22 performance EBITDA (In INR Crore) Annual Revenue1,2 EBITDA Margin (In INR Crore) (In INR Crore) 7% 7% 11% 14% 14% 15% 17% 18% 21% 26% 22% +18% 2
Slide 36: CDMO: Strategically shifting towards high value clients
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 36 CDMO: Strategically shifting towards high value clients across niche capabilities in regulated markets Long term revenue performance 9M and Q3 FY22 performance Increasing Revenue Share from Large Clients (In INR Crore) (In INR
Slide 37: Attractive customer metrics and comprehensive range of services
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 37 Attractive customer metrics and comprehensive range of services Diversified blue-chip global customer base Attractive Customer Mix Low Revenue Concentration FY21 Revenue #1 6% #2 Generics 6% #3 25% Big Pharma 5% 38% #4 5% Over
Slide 38: Continuing to expand presence across niche capabilities and integrated offerings
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 38 Continuing to expand presence across niche capabilities and integrated offerings Large part of the revenue sticky in nature Commercial products Discovery Witnessing significant growth in products under patent and phase III mol
Slide 39: Adding capabilities in large molecules with investment in Yapan Bio
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 39 Adding capabilities in large molecules with investment in Yapan Bio Expanding into large molecules Acquired minority stake in Yapan Bio, CDMO providing expertise in biologics and vaccines ✓ Added new technologies and capabilit
Slide 40: Complex Hospital Generics: Significant recovery during 9M FY22
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 40 Complex Hospital Generics: Significant recovery during 9M FY22 Long term revenue performance 9M and Q3 FY22 performance Robust commercial infrastructure (In INR Crore) (In INR Crore) 10-year Revenue CAGR of 16% +25% Market pos
Slide 41: Differentiated portfolio and strong pipeline of products
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 41 Differentiated portfolio and strong pipeline of products Differentiated portfolio spanning inhalation anesthesia and injectable Inhalation Anesthesia Injectable Anesthesia (Sevoflurane, Isoflurane, and pain management No of pr
Slide 42: Continued robust performance in the India Consumer Healthcare Business
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 42 Continued robust performance in the India Consumer Healthcare Business Long term revenue performance 9M and Q3 FY22 performance Further investing to enhance Brand Strength (In INR Crore) (In INR Crore) Consolidated Media and T
Slide 43: Robust Growth during Covid-19 Led by Strategic Initiatives
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 43 Robust Growth during Covid-19 Led by Strategic Initiatives Strong Growth Demonstrated Against Headwinds Revenue (INR Crore) 671 456 (1) (1) LTM Dec'20 LTM Dec'21 1 Investing in Brand Promotion and Marketing 2 Launched New Prod
Slide 44: Launched direct to customer e-commerce website
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 44 Launched direct to customer e-commerce website Piramal’s own e-commerce website, Wellify.in
Slide 45: Key strategic priorities: Piramal Pharma
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 45 Key strategic priorities: Piramal Pharma
Slide 46: Key strategic priorities: Piramal Pharma
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 46 Key strategic priorities: Piramal Pharma 1 Delivering consistent revenue growth and improving profitability 2 Pursuing organic and inorganic growth opportunities leveraging fresh capital Track record of building scalable ✓ Cap
Slide 47: Financials – PEL Consolidated
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 47 Financials – PEL Consolidated
Slide 48: Diversified Revenue Mix
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 48 Diversified Revenue Mix (In INR Crores, or as stated) Quarter III ended % Sales Nine Months ended % Sales for Net Sales break-up for Q3 31-Dec-21 31-Dec-20 % Change 31-Dec-21 31-Dec-20 % Change 9M FY2022 FY2022 Financial Servi
Slide 49: Consolidated Profit & Loss
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 49 Consolidated Profit & Loss (In INR Crores, or as stated) Quarter III ended Nine Months Ended Particulars 31-Dec-21 31-Dec-20 % Change 31-Dec-21 31-Dec-20 % Change Net Sales 3,816 3,169 20% 9,830 9,408 4% Non-operating other in
Slide 50: Appendix
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 50 Appendix
Slide 51: Financial Services: Stage-wise provisioning
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 51 Financial Services: Stage-wise provisioning Particulars (in INR Cr., unless otherwise stated) As on Dec-2020 As on Sep-2021 As on Dec-2021 Gross Stage 1 & 2 Assets 48,153 65,035 63,633 Provision - Stage 1 & 2 Assets 2,028 1,68
Slide 52: DHFL Transaction Overview
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 52 DHFL Transaction Overview Breakdown of DHFL’s Assets Breakdown of Consideration Paid Particulars Amount Particulars Gross Value Value at which As of 30th Sep-2021 (INR Cr.) As of 30th Sep-2021 of DHFL’s assets were In INR Cr.
Slide 53: Corporate Structure: Post demerger and simplification
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 53 Corporate Structure: Post demerger and simplification of the corporate structure PEL Structure – Post-Demerger PPL Structure – Post-Demerger Shareholders Promoters Shareholders Promoters Investor4 56% 44% 45% 35% 20% Piramal E
Slide 54: Dial-in details for Q3 & 9M FY2022 Earnings Conference Call
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 54 Dial-in details for Q3 & 9M FY2022 Earnings Conference Call Event Location & Time Telephone Number +91 22 6280 1264 / +91 22 7115 8165 (Primary Number) India – 6:00 PM IST 1800 120 1221 (Toll free number) USA – 7:30 AM Toll fr
Slide 55: For Investors
Piramal Enterprises Limited – Q3 & 9M FY2022 Results Presentation Page 55 For Investors : Hitesh Dhaddha Chief Investor Relations Officer Email : hitesh.dhaddha@piramal.com Phone : +91 22 3046 6306 Aditya Sharma Mayank Kumar Chief Manager – IR (Financial Services) Chief Manager – IR (Pharma) Email :
Piramal Enterprises — Q3 FY2022 Earnings Presentation on 6ix