Laurus Labs Ltd. · NSE:LAURUSLABS
Laurus Labs — Q3 FY2017 Earnings Presentation
26 slides from Laurus Labs's earnings presentation, Feb 9, 2017
Slide 1: Laurus Labs Limited Q3 & 9M FY17 Result Presentation
LAURUS LABS LIMITED Q3 & 9M FY17 RESULT PRESENTATION 9 February - 2017
Slide 2: Disclaimer
Disclaimer Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments and many other factors that could cause our actual results to differ mate
Slide 3: Our Genesis And Inspiration
Our Genesis And Inspiration Our genesis starts with our name Laurus Labs. We derived inspiration from Laurus Tree. Laurus family of trees not only has medicinal qualities but also survives in the toughest climatic conditions. Laurus leaves were adorned as crowns to the exceptional achievers and winn
Slide 4: Contents
Contents 1 Business Snapshot 2 Laurus’ Strengths 3 Laurus’ Strategy 4 Management Comments 5 Business Highlights 6 Financial Highlights 7 Performance Highlights 8 Outlook for FY18 9 About Laurus Labs 10 Historical Financial Snapshot 4
Slide 5: Business Snapshot
Business Snapshot Leading R&D driven pharmaceutical Company Growth and Profitability (3) incorporated in 2005 Revenue (Rs. mn) Leadership position in generic active 17,914 pharmaceutical ingredients (APIs) for anti- retrovirals (“ARVs”) and Hepatitis C(1) Portfolio of products in Oncology and
Slide 6: Business Snapshot
Business Snapshot Overview • Development, • Development and • Contract development • Sale and manufacture of manufacture and sale of manufacture of oral solid and manufacturing specialty ingredients for active pharmaceutical formulations services for global use in nutraceuticals, ingredients (APIs)
Slide 7: Laurus' Strengths
Laurus’ Strengths LEADERSHIP IN APIs IN SELECT, HIGH GROWTH THERAPEUTIC AREAS Focus on ARV, Hepatitis C and Oncology Therapeutic Areas SIGNIFICANT INVESTMENTS IN GENERIC FDF BUSINESS Infrastructure ready, partnerships in place and filed 2 ANDAs STRONG R&D CAPABILITIES AND PROCESS CHEMISTRY SKILLS “R
Slide 8: Laurus' Strategy
Laurus’ Strategy • Leverage API capabilities; capture operating efficiencies • Partner for commercialization of 2 contracts • Significant increase in HIV • Leverage process chemistry patient skills to strengthen presence in population with nutraceutical and revised WHO cosmeceutical sectors as they
Slide 9: Management Comments
Management Comments Commenting on the results announcement, Dr. Satyanarayana Chava - CEO said; “It gives me immense pleasure to share the financial and operating performance of the Company as a listed entity. I extend a warm welcome to our public shareholders on board with us on this exciting journ
Slide 10: Business Highlights – 9M FY17
Business Highlights – 9M FY17 Overall Prepayment of long term loans of Rs. 2,263 million from IPO proceeds, Rs.585 million spent on general corporate purposes after meeting IPO expenses of Rs.150 million. Capex investments in first nine months Rs.2,584 million. R & D opex investments Rs.773 mi
Slide 11: Financial Highlights
Financial Highlights During 9M FY17 Laurus reported: o Total Revenue grew by 9.7% to Rs.14,459 mn from Rs. 13,179 mn o EBITDA increased by 23.1% to Rs. 3,199 mn as compared to Rs. 2,598 mn o PAT higher by 40.5% to Rs. 1,277 mn from Rs. 909 mn o EPS (Diluted) for the period stood at Rs. 12.9 per sh
Slide 12: Performance Highlights - Abridged Profit & Loss statement
Performance Highlights -Abridged Profit & Loss statement Particulars (Rs. mn) Q3 FY17 Q3 FY16 Growth % 9M FY17 9M FY16 Growth % Total Revenues 5,054 4,501 12.3% 14,459 13,179 9.7% Total Expenditure 4,622 4,030 13,063 12,132 EBITDA 1,115 1,019 9.4% 3,199 2,598 23.1% Margins 22.1% 22.6% 22.1% 19.7% PB
Slide 13: Performance Highlights - Abridged Balance Sheet
Performance Highlights -Abridged Balance Sheet As on As on Particulars (Rs. mn) 31.12.2016 31.03.2016 EQUITY AND LIABILITIES Shareholders' funds Share capital 1,058 824 Reserves and surplus 11,761 7,900 Non-current liabilities 2,251 4,766 Current liabilities 11,944 8,837 Total 27,014 22,327 ASSETS N
Slide 14: Performance Highlights - Drivers of Revenue
Performance Highlights -Drivers of Revenue Q3 FY17 Revenue Break-up Volume growth trajectory maintained across all Rs. Mn business in Q3FY17 o Supply of APIs under ARV, Hepatitis C programs and Oncology continues to grow Ingredients, 170 ARV, 3,535 ARV supplies to European markets API, 4,555 ini
Slide 15: Performance Highlights - Drivers of Earnings
Performance Highlights - Drivers of Earnings EBITDA Margin (%) 3,500.0 3,199 23.0% 22.5% 3,000.0 22.6% Operating Profits improved by 23.1% 2,598 22.0% 2,500.0 22.1% y-o-y to Rs. 3,199 mn in 9 months, on 22.1% 21.5% the back of Rs. Mn 2,000.0 21.0% 20.5% 1,500.0 o Operating leverage benefits of 1,1
Slide 16: Outlook for FY18
Outlook for FY18 Healthy visibility to revenue enhancement on the back Changing business mix to drive expansion in the of preferred supplier status in key products together with medium term long-standing customer relationships across businesses • APIs business to deliver volume growth in key ARV and
Slide 17: Renowned Management Team
Renowned Management Team Chandrakanth Chereddi ED & Head Synthesis G Venkateshwar Reddy Ravikumar V V CS and Sr. GM – Legal & Secretarial ED &CFO Dr. Lakshmana Rao C V SVP – Quality Dr. Satyanarayana Chava Founder & CEO Dr. GSR Anjaneyulu M. Bhaskaraiah Exec. VP & Head SCM SVP – SCM Dr. V Uma Mahesw
Slide 18: Our Quality Focus & Regulatory Audits
Our Quality Focus & Regulatory Audits Laurus’ Philosophy “One Quality for all markets” We maintain consistent quality, efficiency and product safety. Regular Inspection at different manufacturing units We have adopted uniform manufacturing standards across all facilities to achieve 2016 USFDA standa
Slide 19: Strong R&D Capabilities
Strong R&D Capabilities “Research-first” approach – Set up dedicated Key Accreditations R&D center in Hyderabad in 2006 prior to commissioning API manufacturing facility in 2007 R&D team comprising 600 scientists (25.0% of total employee strength)(1) including 45 PhDs Kilo Lab at R&D center ac
Slide 20: Facilities Overview
Facilities Overview Unit-I • Located at Jawaharlal Nehru Unit-V Pharma City, Vishakapatnam, India. • API manufacturing facility and includes capacity for ingredients, synthesis and contract manufacturing. • Received approvals from US FDA, WHO-Geneva, NIP Hungary, KFDA and PMDA. Unit-II • Located at
Slide 21: Awards and Recognition
Awards and Recognition Select Awards Received Industry Recognition Ministry of Labour & VC Circle Awards Employment, GoI - One of the 13 Hidden 2015 National Safety Gems in India Health Care Award (runner-up) for Forbes India Company Of Unit 1 for (September 2015) the year performance year 2014 Cert
Slide 22: Corporate Governance
Corporate Governance Executive Directors Name Background Dr. Satyanarayana Chava Wholetime Director, Founder and Chief Executive Officer Dr. Raju Srihari Kalidindi Wholetime Director and Head of Generics – API Ravi Kumar V V Wholetime Director and CFO Chandrakanth Chereddi Wholetime Director
Slide 23: Historical Financial Snapshot – Profit & Loss Statement
Historical Financial Snapshot – Profit & Loss Statement (Rs. mn) FY12 FY13 FY14 FY15 FY16 Income Revenue from operations (Gross) 4,541 7,225 11,657 13,379 18,172 Less: Excise duty 34 40 60 113 334 Revenue from operations (Net) 4,507 7,185 11,597 13,266 17,838 Other income 16 51 88 341 76 Total Reven
Slide 24: Financial Snapshot – Balance Sheet
Financial Snapshot – Balance Sheet (Rs. mn) FY12 FY13 FY14 FY15 FY16 Equity and liabilities Shareholders' funds Share capital 777 777 778 821 824 Reserves and surplus 915 1,816 2,806 6,400 7,694 Non-current liabilities Long-term borrowings 363 687 1,882 3,037 4,606 Deferred tax liabilities (net) - -
Slide 25: Contact us
Contact us About Laurus Labs Ltd. Laurus is a leading research and development driven pharmaceutical company in India. The Company has grown consistently to become one of the leading manufacturers of Active Pharmaceutical Ingredients (APIs) for anti-retroviral (ARV) and Hepatitis C. Laurus also manu
Slide 26: Thank You
Thank You