Tarsons Products Limited · NSE:TARSONS
Tarsons Products — Q4 FY2023 Earnings Presentation
36 slides from Tarsons Products's earnings presentation, May 28, 2023
Slide 1: Exchange filing cover letter for investor presentation
An ISO 9001 & ISO 13485 Certified Company Date: 28th May, 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-Kurla Com
Slide 2: Tarsons Products Limited Investor Presentation – May 2023
TARSONS PRODUCTS LIMITED Investor Presentation – May 2023 Leading player in the domestic plastic labware market and presence over 40 countries across the Globe
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: Q4 FY23 Financial Highlights
Q4 FY23 Financial Highlights
Slide 5: Q4 & FY23 Key Highlights
Q4 & FY23 Key Highlights ➢ Revenues for Q4 & FY23 were down by 3% & 6% respectively, dip in revenues were on majorly on account of; • Temporary Slowdown in the life science industry,. However, we are seeing early signs of revival and are optimistic on the long-term industry growth in domestic as wel
Slide 6: Key Financial Highlights
Key Financial Highlights Revenue (in Rs. Crs) EBIDTA (in Rs. Crs) Profit After Tax (in Rs. Crs) 300.8 152.7 100.7 +34% 283.2 84.9 82.1 +47% 129.8 80.7 44.3 +42% 61.3 39.3 29.5 22.8 26.7 16.1 Q4FY22 Q3FY23 Q4FY23 FY22 FY23 Q4FY22 Q3FY23 Q4FY23 FY22 FY23 Q4FY22 Q3FY23 Q4FY23 FY22 FY23 GP Margin (%) EB
Slide 7: Revenue Split – Domestic : Export
Q4 & FY23 Key Operational Highlights (in Rs. Crs) Revenue Spilt – Domestic : Export 29% 30% +34% 301 Q4FY22 Q4FY23 85 283 82 71% 70% 61 202 60 191 58 41 41% 33% 33% FY22 FY23 25 25 99 92 21 19% 67% 67% Q4FY22 Q3FY23 Q4FY23 FY22 FY23 Domestic Exports ➢ Our revenues from domestic market for Q4FY23 sto
Slide 8: Q4 & FY23 Profit & Loss Statement
Q4 & FY23 Profit & Loss Statement Profit and Loss (in Rs. Crs) Q4FY23 Q4FY22 YoY Q3FY23 QoQ FY23 FY22 YoY Revenue from Operations 82.1 84.9 -3.4% 61.3 33.8% 283.2 300.8 -5.8% Cost of Goods Solds 20.3 19.0 13.8 65.1 62.9 Gross Profit 61.7 66.0 -6.4% 47.5 29.9% 218.2 237.9 -8.3% Gross Profit Margin 75
Slide 9: Balance Sheet
Balance Sheet Assets (in Rs. Crs) Mar-23 Mar-22 Equity & Liabilities (in Rs. Crs) Mar-23 Mar-22 Non - Current Assets 473.7 299.7 Total Equity 569.3 489.9 Property Plant & Equipment's 217.7 181.4 Share Capital 10.6 10.6 Other Equity 558.7 479.2 CWIP 119.0 32.2 Non-Current Liabilities 93.5 19.5 Other
Slide 10: Cash Flow Statement
Cash Flow Statement Particulars (in Rs. Crs) Mar-23 Mar-22 Net Profit Before Tax 108.7 135.0 Adjustments for: Non -Cash Items / Other Investment or Financial Items 27.5 23.7 Operating profit before working capital changes 136.2 158.7 Changes in working capital -36.3 -41.8 Robust Cashflow from operat
Slide 11: Management Commentary
Management Commentary Commenting on the performance of the company Mr. Rohan Sehgal, Whole Time Director for Tarsons, said: “Our revenues for Q4FY23 stood at Rs. 82 crs with EBIDTA margins of ~48%. We have been seeing early signs of revival in the life science industry and there are encouraging indi
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 Profit and Loss (in Rs. Crs) FY23 FY22 FY21 FY20 CAGR (FY20-FY23) Revenue from Operations 283.2 300.8 228.9 175.9 17.2% Cost of Goods Solds 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
gz: Sons About Tarsons
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 Acquired 5 acres of land in Panchla & 6 acres of land in Amta to develop another facility for capacity Incorporation of TPL with Expanded product line by Became an ISO 9001 Obtained ISO 13485:2016/NS- expansion, introduction of new manufacturing of reusable initiating manufacturing certi
Slide 20: Leading Indian Labware Supplier
Leading Indian Labware Supplier Ability to offer differentiated, user friendly, Trusted Brand for high quality Expertise in production of a wide range of reliable quality & cost-effective products products in the plastic labware market labware products & amongst the top has enabled strong brand with
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 network sector with strong brand recognition and high- quality diversified products across varied customer segments. 03 04 State of Art
Slide 22: Catering to diversified End User Industry
Catering to diversified End User Industry… Measures to strengthen customer relations Regular Feedback from Customers on quality, Academic Institutes & National Centre for Indian Institute of Rain Forest KIIT 1 delivery & cost Biological Sciences Chemical Technology Research Institute University Rese
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: Widespread 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 ✓ Export operations are a blend of
Slide 26: Offering 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: Consumables (56% of FY23 Sales)
…diversified product portfolio of Plastic Labware Pipette Tips Centrifuge Tubes Petri Dishes Sterile Media Bottles Cryo Vials Storage Vials Serological Pipette Consumables (56% of FY23 Sales) • Mostly used in culture Designed for use with Disposable pipettes Perfect for versatile Suited to preparati
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 Product • Investment professional with 11+ years of experience Limited • Has over
Slide 31: Contribution towards Environmental, Social & Governance
Contribution towards Environmental, Social & Governance Clean room conditions Use of Medical Grade eliminates all chances of NO litigations faced for pollution contamination Plastics. Products are designed to or degradation of environment withstand critical use over the 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 2020-2025 Split of Global Market Size of Plastic Labware (2020) Certrifuge Global Laboratory Equipment Market Indian Laboratory Equipment Market ware ▪ Centrifuge & Liquid Handling market Size (INR Bn) Size (IN
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 ~45% EBITDA labware with an established brand & margins & high ROCE coupled with focus on high-quality products double-digit growth rates Presence in an industry with double- Highly automated state-of-the-art digit growth potential
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