Tarsons Products Limited · NSE:TARSONS
Tarsons Products — Q2 FY24 Earnings Presentation
36 slides from Tarsons Products's earnings presentation, Nov 11, 2023
Slide 1: Exchange filing cover letter for investor presentation
An ISO 9001 & ISO 13485 Certified Company Date: 11th November, 2023 To, To, BSE Limited (“BSE”), National Stock Exchange of India Limited (“NSE”) Corporate Relationship Department, “Exchange Plaza”, 5th Floor, 2nd Floor, New Trading Ring, Plot No. C/1, G Block, P.J. Towers, Dalal Street, Bandra-Kurl
Slide 2: Tarsons Products Limited Investor Presentation November 2023
TARSONS PRODUCTS LIMITED Investor Presentation November 2023 TRUST DELIVERED
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Tarsons Products 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 secu
Slide 4: Q2 FY24 Financial Highlights
Q2 FY24 Financial Highlights
Slide 5: Capex Update
Capex Update Panchla Plant Amta Plant • Introducing cell culture and existing • Constructing Radiation Plant: products capacity expansion • Signed the MOU with Board of • Civil Construction completed Radiation & Isotope Technology (BRIT) for radiation plant • First clean room is ready • Sterile (Rad
Slide 6: Q2FY24 Key Operational Highlights: Revenue Split
Q2FY24 Key Operational Highlights (in Rs. Crs) 71 Revenue Spilt – Domestic : 66 63 44 Export 43 38% 35% 45 Q2FY23 Q2FY24 62% 65% 27 23 17 Q2FY23 Q1FY24 Q2FY24 Domestic Exports ➢ Our revenues from domestic market for Q2FY24 stood at Rs. 43 crs as compared to Rs. 45 crs in Q1FY24 ➢ Our revenues from e
Slide 7: Q2FY24 Key Financial Highlights
Q2FY24 Key Financial Highlights Revenue (in Rs. Crs) Reported EBIDTA (in Rs. Crs) Profit After Tax (in Rs. Crs) 71.2 32.7 21.5 66.3 62.6 25.4 21.3 12.8 9.6 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 GP Margin (%) Reported EBIDTA Margin (%) PAT Margin (%) 76.8% 75.1% 74.7% 45.9% 3
Slide 8: Q2FY24 Profit & Loss Statement
Q2FY24 Profit & Loss Statement Profit and Loss (in Rs. Crs) Q2FY24 Q2FY23 YoY Q1FY24 QoQ H1FY24 H1FY23 YoY Revenue from Operations 66.3 71.2 -6.9% 62.6 6.0% 128.9 139.9 -7.9% Cost of Goods Sold 16.8 16.6 15.6 32.3 30.9 Gross Profit 49.5 54.7 -9.4% 47.0 5.4% 96.6 109.0 -11.4% Gross Profit Margin 74.7
Slide 9: Management Commentary
Management Commentary Commenting on the performance of the company Mr. Rohan Sehgal, Whole Time Director for Tarsons, said: “Our revenue for Q2FY24 was Rs. 66 crores, a 6% increase over the previous quarter. However, the life sciences sector is still experiencing a slight slowdown. Geopolitical tens
Slide 10: Balance Sheet
Balance Sheet Assets (in Rs. Crs) Sep-23 Mar-23 Equity & Liabilities (in Rs. Crs) Sep-23 Mar-23 Non - Current Assets 543.7 473.7 Total Equity 591.2 569.3 Property Plant & Equipment's 254.0 217.7 Share Capital 10.6 10.6 Other Equity 580.5 558.7 CWIP 146.9 119.0 Non-Current Liabilities 91.7 93.5 Other
Slide 11: Cash Flow Statement
Cash Flow Statement Particulars (in Rs. Crs) H1FY24 H1FY23 Net Profit Before Tax 30.2 56.0 Adjustments for: Non -Cash Items / Other Investment or Financial Items 19.9 11.2 Operating profit before working capital changes 50.0 67.3 Changes in working capital 8.6 -20.7 Robust Cashflow Cash generated fr
Slide 12: Historical Consolidated Financial Highlights
Historical Consolidated Financial Highlights REVENUE (in Rs. Crs) EBITDA (in Rs. Crs) PAT (in Rs. Crs) +17% +23% +26% 301 153 101 283 130 81 229 103 69 176 69 41 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 GP Margin EBITDA Margin PAT Margin 470 bps 640 bps 550 bps 79.1% 77.0% 50.8% 3
Slide 13: Historical Consolidated Profit & Loss Statement
Historical Consolidated Profit & Loss Statement CAGR (FY20- Profit and Loss (in Rs. Crs) FY23 FY22 FY21 FY20 FY23) Revenue from Operations 283.2 300.8 228.9 175.9 17.2% Cost of Goods Sold 65.1 62.9 61.5 48.7 Gross Profit 218.2 237.9 167.4 127.2 19.7% Gross Profit Margin 77.0% 79.1% 73.1% 72.3% 470 B
Slide 14: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Assets (in Rs. Crs) Mar-23 Mar-22 Mar-21 Mar-20 Equity & Liabilities (in Rs. Crs) Mar-23 Mar-22 Mar-21 Mar-20 Non - Current Assets 473.7 299.7 183.1 128.9 Total Equity 569.3 489.9 244.3 197.6 Property Plant & Equipment's 217.7 181.4 113.7 87.6 Share Capital 10.6
Slide 15: Historical Consolidated Cash Flow Statement
Historical Consolidated Cash Flow Statement Particulars (in Rs. Crs) FY23 FY22 FY21 FY20 Net Profit Before Tax 108.7 135.0 92.4 53.1 Adjustments for: Non -Cash Items / Other Investment or Financial Items 27.5 23.7 15.8 20.0 Operating profit before working capital changes 136.2 158.7 108.2 73.1 Chang
Slide 16: Key Consolidated Historical Ratios
Key Consolidated Historical Ratios Return on Equity Return on Capital Employed^ Debt to Equity 28.2% 43.0% 0.2 0.2 34.0% 20.5% 20.6% 29.5% 0.1 25.9% 14.2% 0.0 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Current Ratio Working Capital* (in Rs. Crs) Working Capital Days* 7.0 171 178 135
Slide 17: About Tarsons
TRUST DELIVERED
Slide 18: Tarsons – at a Glance
Tarsons – at a Glance One of the leading Indian labware company engaged in the designing, development, manufacturing and marketing of consumables, reusables and others (including benchtop equipment & instruments) Products used in laboratories across research organizations, academia institutes, pharm
Slide 19: Our Journey
Our Journey Established Commenced Pioneered the first fully manufacturing facility Established line for PCR Expanding our product production of Pipette robotic clean room expanding into products in Jalan portfolio and adding Tips, thereby creating a plant for manufacturing production of fully Indust
Slide 20: Leading Indian Labware Supplier
Leading Indian Labware Supplier Trusted Brand for high quality Expertise in production of a wide range Ability to offer differentiated, user products in the plastic labware of labware products & amongst the friendly, reliable quality & cost-effective market with 40+ years vintage in the top 3 player
Slide 21: Our Competitive Edge
Our Competitive Edge Geographical Presence Brand & Quality Wide geographic reach through a Leading Indian supplier to the life sciences strong sales & distribution sector with strong brand recognition and network high-quality diversified products across varied customer segments. 03 04 State of Art F
Slide 22: Catering to diversified End User Industry
Catering to diversified End User Industry… Measures to strengthen customer relations Academic Institutes National Centre Indian Institute of Rain Forest KIIT Regular Feedback from Customers on quality, & Research for Biological Chemical Research Institute University 1 delivery & cost Sciences Techno
Slide 23: Our State-of-the-art Manufacturing Facilities
Our State-of-the-art Manufacturing Facilities… Key Highlights of the High Precision Manufacturing Process ✓ Vertically integrated manufacturing capabilities with design & development being carried out in-house ✓ Automated manufacturing with use of robotics & other technologies developed in collabora
Slide 24: Domestic Sales & Distribution network
…with widespread Domestic Sales & Distribution network… Comprehensive Pan-India Distribution Network Long-standing relationships with Distributors North: 17% of FY23 Domestic Sales East: 16% of FY23 Domestic Sales 41 Distributors 39 Distributors West: 25% of FY23 Domestic Sales 20 Distributors South
Slide 25: Huge Underlying Export Market Potential
…with huge underlying Export Market Potential… Huge Export Opportunity Market One of the very few players to have a Global Reach ✓ As of 31st March 2023, the company sold its products to 40+ countries via 45+ distributors Demand for plasticware expected to grow at 10% CAGR for developing ✓ Export op
Slide 26: Wide Range of High-Quality Products
…offering Wide Range of High-Quality Products… Our products are made from high-quality medical grade DMF registered resins which are selected to minimize additives & reduce potential leachables Consumables Reusables Others 56% of FY23 39% of FY23 5% of FY23 Revenues Revenues Revenues • Portfolio of
Slide 27: Diversified product portfolio of Plastic Labware
…diversified product portfolio of Plastic Labware Centrifuge Sterile Media Pipette Tips Petri Dishes Cryo Vials Storage Vials Serological Pipette Tubes Bottles Consumables (56% of FY23 Sales) • Mostly used in culture Designed for use Disposable pipettes Suited to preparation Used for storage of Perf
Slide 28: Glimpse of our product portfolio & processes
Glimpse of our product portfolio & processes Video link – Click here Video link – Click here Video link – Click here Video link – Click here Video link – Click here For more information & videos please visit www.tarsons.com/video-new 27
Slide 29: Key Business Strategies
Key Business Strategies • Focus on branding & promotion to enhance visibility in the labware industry to increase brand awareness & loyalty • Manufacture New Products in the cell culture & robotic handled consumables and expand Enhance existing & expand into the import dominated markets of these pro
Slide 30: Experienced Board of Director & Managerial Team
Experienced Board of Director & Managerial Team Gaurav Podar Sanjive Sehgal Non-Executive Nominee Director Chairman & Managing Director • Currently, Director with ADV Partners • Chairman & Managing Director of Tarsons • Investment professional with 11+ years of experience Product Limited • Has over
Slide 31: Contribution towards Environmental, Social & Governance
Contribution towards Environmental, Social & Governance Clean room conditions eliminates all chances of Use of Medical Grade NO litigations faced for pollution or contamination Plastics. Products are designed to degradation of environment over the withstand critical use past five years Productivity
Slide 32: Industry Update
DELIVERING TRUST
Slide 33: Plastic Labware Market
Plastic Labware Market Indian plastic labware market is expected to grow at 16% CAGR from 2020- Split of Global Market Size of Plastic Labware (2020) 2025 Certrifuge ▪ Centrifuge & Liquid Handling Global Laboratory Equipment Indian Laboratory Equipment ware market dominate the Laboratory Market Size
Slide 34: Rapid Shift from Glassware to Plasticware in India
Rapid Shift from Glassware to Plasticware in India Indian Laboratory Equipment Market (Breakup of Glassware and Plasticware segments) INR 10.8 bn INR 11.3 bn INR 8.4 bn Key reasons for the shift: Market Size INR 7.5 bn INR 12.2 bn INR 25.8 bn ▪ Increased Applicability: Superior ability to handle rad
Slide 35: Key Takeaways
Key Takeaways Leading Indian manufacturer of Financial profile with Historical labware with an established brand strong EBITDA margins & high & focus on high-quality products ROCE coupled with double-digit growth rates Presence in an industry with Highly automated state-of-the-art double-digit growt
Slide 36: Thank You
Thank You Tarsons Products Limited Strategic Growth Advisors Private Limited CIN: L51109WB1983PLC036510 CIN: U74140MH2010PTC204285 Mr. Santosh Agarwal – Chief Financial Officer Mr. Sagar Shroff/ Mr. Pratik Shah santosh@tarsons.in sagar.shroff@sgapl.net / p.s.shah@sgapl.net +91 98205 19303 / +91 9870