Aarti Pharmalabs Limited · NSE:AARTIPHARM
Aarti Pharmalabs — Q2 FY2024 Earnings Presentation
27 slides from Aarti Pharmalabs's earnings presentation, Nov 8, 2023
Slide 1: Stock exchange cover letter for results presentation
November 8, 2023 To, To, Listing/ Compliance Department Listing/ Compliance Department BSE LTD. National Stock Exchange of Phiroze Jeejeebhoy Towers, India Limited Dalal Street, “Exchange Plaza”, Plot No. C/1, Mumbai - 400 001 G Block, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051 SCRIP CODE: 5
Slide 2: Aarti Pharmalabs Q2 FY24 Results Presentation
Aarti Pharmalabs Limited Q2 FY 24 Results Presentation
Slide 3: Disclaimer
Disclaimer AARTI PHARMALABS LIMITED may, from time to time, make written and oral forward looking statements, in addition to statements contained in the company's filings with BSE Limited [BSE] and National Stock Exchange of India Limited [NSE], and our reports to shareholders. The company does not
Slide 4: Index
Index 1 Company Overview 2 Financial Performance 3 APL Growth Strategies
Slide 5: Company Overview
Company Overview
Slide 6: Aarti Pharmalabs at a Glance
Aarti Pharmalabs at a Glance Overview FY 23-24 Q2 - Consolidated Revenue Breakup (Rs Cr) ▪ Established by first generation technocrats in 1984 ▪ Specialized key business verticals ■ API & Intermediates, ■ CDMO & CMO Services ■ Xanthine derivatives & allied ▪ Strong R&D capabilities with IPRs for cus
Slide 7: Journey
Journey Expanded block •Unit 5 commissioned for CSD, Vapi and for Caffeine Production Oncology API, Tarapur. with a capacity of 100 block at Unit 4 Commissioning of first 1st Clearance of the Oncology block at MT per month audited by Acquired Land at Incorporated API manufacturing Unit USFDA & EUGMP
Slide 8: Manufacturing Facilities
Manufacturing Facilities Unit - II Custom Manufacturing Units Location synthesis division (CSD) Dombivali Unit - I (API & Intermediates) Location: Vapi Unit - II (API Intermediates & R&D Centers Vapi Custom Synthesis Unit) Location: Vapi, Unit – III (Xanthine Unit) Gujara Dombivali Tarapur Unit – IV
Slide 9: Key Business Verticals
Key Business Verticals APIs and Intermediates CDMO / CMO Services Xanthine derivatives & Allied (Caffeine and others) ❏ US FDA approved manufacturing facility ❏ CRAMs activity focused on API & intermediates ❏ Largest Indian Manufacturer for ❏ Exports to lucrative regulated markets - US, EU and Japan
Slide 10: Key Business Verticals
Key Business Verticals AARTI PHARMALABS. CMO CDMO 7.2% API & Intermidates Xanthine& Others
Slide 11: Strong Presence in API & Intermediates
Strong Presence in API & Intermediates 54 13 40 21 ~100 APIs have been New APIs are under US DMF approvals CEP approvals Generic Intermediates commercialized by APL development at APL’s obtained across available for sale in are available at R&D, since it entered the dedicated R&D facility/ multiple
Slide 12: CDMO / CMO
CDMO / CMO ❏ Sustainable supply for APIs/NCEs/Intermediates in commercial scale ❏ Global regulatory accreditations (USFDA ,EUGMP, EDQM, KFDA, COFEPRIS) ❏ EHS and Quality are the highest priority. Facilities were audited as per PSCI principles ❏ High potent molecules (Oncology/Cytotoxic) development
Slide 13: Manufacturing Capabilities & Strengths
Manufacturing Capabilities & Strengths Impeccable Strong expertise in regulatory track Hydrogenation 20+ years of development of HPAPI (Cytotoxic/ record (>15 years) Backward facilities from lab Cryogenic reactors experience in robust & cost- Oncology) and High temperature and facilities integration
Slide 14: Xanthine Derivatives
Xanthine Derivatives • Xanthine derivatives are synthetic End Use Certifications compounds that resemble natural occurring xanthines such as caffeine etc., • Commonly used as mild stimulants & Cola Drinks Energy Drinks bronchodilators, notably in the treatment of asthma or influenza symptoms • 2 ded
Slide 15: R&D Strengths & Capabilities
R&D Strengths & Capabilities 3 70+ 7 19 52 State-of-the-art R&D centres at Maharashtra & Scientists Patents Granted Process patents filed PHDs. Gujarat 150+ 50+ Process for more than 150 Intermediates developed More than 75 API and manufactured on kilo commercialized lab scale 160 39 crs R&D Spend i
Slide 16: Strong Focus on R&D & Process Innovation
Strong Focus on R&D & Process Innovation Innovation at various reactions ● Carbohydrate Chemistry ● Chiral Chemistry ○ Asymmetric Synthesis ○ Bio Catalysts ○ Chiral Epoxides ○ Kinetic Resolution ● Coupling Reactions Chemistry ○ C-C Coupling ○ C-N Coupling ● Isomerization Reactions ● Triphosgene Reac
Slide 17: ESG at APL
ESG at APL Environment - Highlights Social - Highlights Governance - Highlights ● ISO 14001 : 2015 certification ● Hazard Identification and Risk Assessment • Robust Compliance Monitoring (HIRA), Hazardous Area Classification Framework - implemented PWC’s ● All plants are Zero Liquid Discharge (HAC)
Slide 18: Financial Performance
Financial Performance ………………………………………………..
Slide 19: Q2 FY24: Highlights (Consolidated)
Q2 FY24 : Highlights (Consolidated) Revenue from EBITDA Highlights of Q2 FY 24 operations INR 440 crs -3.9% QoQ INR 89 crs 4.7 % QoQ ❏ Revenues declined slightly on account of a drop in prices of some Products. The decrease in Selling price was to a significant extent was compensated by increase in
Slide 20: Q2 FY24 Highlights (Consolidated)
Q2 FY24 Highlights (Consolidated) Revenues EBITDA Profit After Tax
Slide 21: Q2 FY24 – Consolidated Profit & Loss
Key Performance Indicators Q2 FY24 – Consolidated Profit & Loss Particulars (Rs. Crore) Q2 FY24 Q1 FY24 Q-o-Q (%) Q2 FY23 Y-o-Y (%) Gross Income from Operations 440 458 -3.9% 532 -17.4% Exports 198 169 17.1% 229 -13.4% % of Total Income 45.0% 36.9% 42.9% EBITDA 89 85 4.7% 91 -2.2% EBITDA Margin (%)
Slide 22: Q2 FY24 – Standalone Profit & Loss
Key Performance Indicators Q2 FY24 – Standalone Profit & Loss Particulars (Rs. Crore) Q2 FY24 Q1 FY24 Q-o-Q (%) Q2 FY23 Y-o-Y (%) Gross Income from Operations 356 363 -1.9% 405 -12.0% Exports 172 143 20.3% 192 -10.4% % of Total Income 48.3% 39.4% 47.5% EBITDA 74 82 -9.5% 82 -9.4% EBITDA Margin (%) 2
Slide 23: Q2 FY24 other highlights
Q2 FY 24 other highlights ➢ The Company continues to have similar breakup of all three vertices of the businesses. ➢ The API+Intermediates regulated business remains the focus growth driver for the company inching 58% for Q2. ➢ The CDMO / CMO pipeline remains strong and would continue to remain a si
Slide 24: Growth Strategies
Growth Strategies ………………………………………………..
Slide 25: Our Growth Strategy
Our Growth Strategy Increase in capacities of existing products & Adding new 40+ Value added product each year. Atali Project ● ~ 80 acres of land in Gujarat (between Dahej & Bharuch) Growth Develop and explore more Initiatives under ● Adding 400+KL reactor volume in opportunities for innovator for
Slide 26: Outlook
Outlook ◆ Rampup of new expended blocks at Unit IV, Tarapur & Xanthine Derivatives FY24 ◆ Expected EBIDTA Growth to be about 10-15% ◆ Commissioning of Blocks at Atali in phased manner from FY25. FY25 and ◆ Rampup @ Atali project will bring in operating leverages in FY26 and beyond beyond ◆ Expecting
Slide 27: Thank You
THANK YOU Aarti Pharmalabs Limited #204, Udyog Kshetra, 2nd Floor, Mulund Goregaon Link Road, Mulund West, Mumbai - 400080, Maharashtra, India. Email: investorrelations@aartipharmalabs.com Contact: +91 22 67976666