Alkem Laboratories Ltd. · NSE:ALKEM
Alkem Laboratories — Q4 FY2017 Earnings Presentation
17 slides from Alkem Laboratories's earnings presentation, May 26, 2017
Slide 1: Alkem Laboratories Ltd. Investor Presentation Q4FY17
Alkem Laboratories Ltd. Investor Presentation Q4FY17 26th May 2017
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements and information that involve risks, uncertainties and assumptions. Forward- looking statements are all statements that concern plans, objectives, goals, strategies, future events or performance and underlying assumptions and
Slide 3: Key highlights for the year
Key highlights for the year • India Business: FY17 was a challenging year for the Indian Pharma Industry with DPCO led price cuts and impact from demonetization. However led by robust strategy and strong execution, the Company delivered healthy mid teen growth, thus outperforming the industry • US B
Slide 4: Key Financial Highlights of Q4FY17 (Consolidated)
Key Financial Highlights of Q4FY17 (Consolidated) All figures in INR mn Total Revenue from Operations India sales 8,563 8,004 12,514 11,486 Q4FY16 Q4FY17 International sales 3,853 3,364 Q4FY16 Q4FY17 Q4FY16 Q4FY17
Slide 5: Key Financial Highlights of Q4FY17 (Consolidated)
Key Financial Highlights of Q4FY17 (Consolidated) All figures in INR mn Gross Profit and Gross Margin EBITDA and EBITDA Margin 7,906 1,559 1,493 7,180 62.5% 63.2% 13.6% 11.9% Q4FY16 Q4FY17 Q4FY16 Q4FY17 PBT (before Minority Interest) PAT (after Minority Interest) 1,370 2,252 867 1,361 Q4FY16 Q4FY17
Slide 6: Key Financial Highlights – FY17 (Consolidated)
Key Financial Highlights – FY17 (Consolidated) Particulars (INR mn) FY17 FY16 YoY growth Income from Operations 58,525 50,479 15.9% Gross Profit 36,310 30,841 17.7% Gross Profit margin 62.0% 61.1% EBITDA 9,990 8,533 17.1% EBITDA margin 17.1% 16.9% PBT 9,646 9,284 3.9% PBT margin 16.5% 18.4% PAT (Aft
Slide 7: India Business – Continued Outperformance
India Business – Continued Outperformance India Business: Q4FY17 Sales of Rs.8,563 million (7.0% growth YoY) • India sales contributed 69.0% to total sales for Q4FY17 • During the quarter, Company’s secondary sales1 grew by 4.7% – lower than corresponding IPM growth of 6.6%. While the Company outper
Slide 8: Secondary sales performance in Q4FY17
Secondary sales performance in Q4FY17 Company outperformed across major therapies, however weak anti-infective season pulled down the overall growth Change in Therapy Market Industry Therapy Area Our Rank Our Growth Rank Contribution Share Growth Anti-infectives 1 39% 10.7% -3.9% -4.5% Gastro Intest
Slide 9: Secondary sales performance in FY17
Secondary sales performance in FY17 Continued outperformance across key therapies leading to market share gain and improvement in ranking Change in Therapy Market Our Industry Therapy Area Our Rank Rank Contribution Share Growth Growth Anti-infectives 1 42% 11.3% 9.4% 4.8% Continued outperformance G
Slide 10: Investments in the India OTC market
Investments in the India OTC market Alkem Health Care • India OTC (Over-the-counter) market size estimated to be around Rs.145bn A quick and easy-to-use pregnancy detection kit Condoms made up of high quality • Alkem can leverage its vast natural latex distribution reach and proven brand building ca
Slide 11: US Business – Healthy growth largely led by market share gains
US Business – Healthy growth largely led by market share gains US Business: Q4FY17 Sales of Rs.2,907 million (19.4% growth YoY) • US sales contributed 23.4% to total sales for Q4FY17 • Growth was driven by market share gains in the existing products as well contribution from new product launches – 7
Slide 12: Update on US FDA inspections
Update on US FDA inspections Facility Scope Inspection Date Update September 2016 – received 13 Daman (India) Formulation EIR Report received in December 2016 observations Baddi (India) Formulation March 2017 - received 3 observations EIR Report received in May 2017 December 2016 - received 3 Ankles
Slide 13: Other International Markets – Focusing on select markets
Other International Markets – Focusing on select markets Other International Markets : Q4FY17 Sales of Rs.946 million (1.6% growth YoY) • Other International sales contributed 7.6% to total sales for Q4FY17 • During FY17, Company’s key markets of Australia, Chile and Kazakhstan recorded healthy grow
Slide 14: Financials – Key Ratios and Balance Sheet items (Consolidated)
Financials – Key Ratios and Balance Sheet items (Consolidated) Particulars (INR mn) FY17 FY16 Return on Capital Employed (Post Tax) 21.8% 21.7% Return on Net Worth 20.0% 20.1% Book Value per share (Rs.) 374 309 Receivable days 45 38 Inventory days* 75 67 Payable days* 46 42 Net Working Capital days
Slide 15: Strategy going forward
Strategy going forward 1 India Sales: Consolidate our leadership position in the acute segment by driving growth in our mega brands 2 India Sales: Increase our market share in the chronic segment through market share acquisition and new product introductions 3 Improve our field force productivity th
Slide 16: Latest Shareholding Pattern
Latest Shareholding Pattern Shareholding pattern as on 31th March 2017 Non-Institution, 26.28% Promoter & Institution, Promoter Group, 6.75% 66.97% Institution – Mutual Funds, Foreign Portfolio Investors, Financial Institutions / Banks Non-Institution – Public, Other Bodies Corporates, Clearing Memb
Slide 17: Thank You
Thank You Contact Gagan Borana Investor Relations Tel: +91 22 39829960 / +91 98190 56333 Email: gagan.borana@alkem.com