Sms Pharmaceuticals Limited · NSE:SMSPHARMA
Sms Pharmaceuticals — Q2 FY2024 Earnings Presentation
42 slides from Sms Pharmaceuticals's earnings presentation, Nov 9, 2023
Slide 1: Exchange filing cover letter for investor presentation
Date: 09th November, 2023 To, The Manager, The Manager, Corporate Filings Department, Listing Compliance Department, BSE Limited, National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot no. C/1, G Block, Dalal Street, Bandra-Kurla Complex, Bandra (E), Mumbai- 400 001 Mu
Slide 2: SMS Pharmaceuticals Limited Investor Presentation November 2023
SMS Pharmaceuticals Limited Investor Presentation November 2023 1 1
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by SMS Pharmaceuticals 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
Slide 4: Table of Contents
Table of Contents Company Overview ………………………………………………………………………….04-20 Key Strategic Focus…….…………………………………………..………………..……...21-27 Financial Highlights ……………………………………………………………………….…28-33 Historical Performance at a Glance ………………………………………………….34-38 3
Slide 5: Company Overview
Company Overview 4
Slide 6: Company at a Glance
Company at a Glance Genesis CRAMS Business ▪ A 30-years old research-driven company headquartered in Hyderabad. ▪ Engaged in providing quality alternative manufacturing destination to multinationals for their contract research and manufacturing needs. ▪ API focused company with 2 world class operati
Slide 7: Transformation Over the Years
Transformation Over the Years Diversification + Value-Addition + Expansion Awards & Recognitions Way Forward Acquisition Got Listed Won the prestigious Scaling Up “Indian Pharma Bulk Successfully developed & commercialized Covid-19 Acquired a facility to SMS got listed on drug company of the treated
Slide 8: Highly Competent Team To Drive the Future Growth
Highly Competent Team…To Drive the Future Growth Mr. Ramesh Babu Potluri Mr. P. Sarath Kumar Sri Sarvepalli Srinivas Sri Sravan Kudravalli Mr. Vamsi Krishna Potluri Chairman & MD Director Director Director Executive Director • Post-graduate Technocrat. • Founder partner of the • Holds a B.Com. Degre
Slide 9: State-of-the-art Manufacturing Facilities
State-of-the-art Manufacturing Facilities Particulars Hyderabad Visakhapatnam Year of Establishment 2000 2010 Plant Area: 19,685 Plant Area: 3,45,007 Area (units in Sq. M) Built Up: 5,127 Built Up: 39,704 Capacity 120KL 3,000 KL Famotidine, Rizatriptan Benzoate, Ibuprofen, Tenofavir, Ranolazine, Key
Slide 10: Strong Thrust on R&D
Strong Thrust on R&D Product Development 01 ▪ Added 20 new products to the company’s product basket over the past few years. Technical Team 02 ▪ Comprises 100+ scientists & 8 PHDs; 45 scientists ensure disciplined adherence to regulatory standards and client specifications Quality Management 03 ▪ Op
Slide 11: Self-reliant Manufacturing Plants
Self-reliant Manufacturing Plants Particulars No. Total No. of Reactors 50 Minimum Size 50 L Maximum Size 3,000 L Total Capacity 57 KL Glass Lined Reactors 17 SS Reactors 31 Hydro-generators 2 Distillation Still 1 Glass Flasks 5 ➢ Pre-treatment plant capacity (MGF & Softner) 1750 Lts/ Hr. SS Centrif
Slide 12: Wide Array of Manufacturing Capabilities
…and a Wide Array of Manufacturing Capabilities Capacity Equipment Name MOC (Min-Max) Stainless steel Reactors SS 50 L – 32 KL Glass lined Reactors MS-GL 63 L – 10 KL Leaf Filters SS 80 – 100 L Nutsch Filters SS 80 – 1500 L Agitated Nutsche Filter Drier SS 2500 – 15000 L Sparkler Filter SS 10-177 L
Slide 13: Comprehensive Chemicals and Process Capabilities
Supported by Comprehensive Chemicals and Process Capabilities… Distillation (Normal & Vaccum) Distillation (Normal & Vaccum) Condensation Oxidation Oxidations & Reductions Cyclisation Dehydration Nitration Fridel Craft Methylation Reduction Condensation Mesylation Silyation Electrophillic aromatic s
Slide 14: Long Lasting Relationships with Marquee Clients
…Resulting into Long Lasting Relationships with Marquee Clients 13
Slide 15: Certifications
Certifications .. « COUNCIL OF EUROPE * VO) a .. Europes Deco Deon epee ( J BUTEA ERREMRERS A forthe Quality | dela qualité Pharmaceuticals and Medical Devices Agency of Medicines: & HealthCare dumédicament &:soins de santé CONSEIL DE [EUROPE 14
Slide 16: CSR Activities
CSR Activities ✓ Society Service ✓ Educational Infrastructure ✓ Empowering Differently Abled Children 15
Slide 17: CSR Activities
CSR Activities ✓ Sponsored & Constructed Z.P. High School at Poosapatriga Village, Andhra Pradesh ✓ Sponsored for Borewell drilling ✓ Donation of Oxygen cylinders at Kopperla Chinthapalli Village, Andhra Pradesh Village in aid of Covid 19 victims 16
Slide 18: CSR Activities
CSR Activities ✓ Sponsored & Constructed R.O water plant at Thammayapalem ✓ We also Donated INR 20 Lakh to the police Viliage, Andhra Pradesh force to support their selfless service during covid times. ✓ Extended financial support to Campus challenge 17
Slide 19: CSR Activities
CSR Activities ✓ Sponsored & Constructed: AP Balayogi Gurukulam, Kopperala, Vizinagaram, Andhra Pradesh 18
Slide 20: CSR Activities
CSR Activities ✓ Sponsored & Constructed MPUP School, Ayyanapet, Vizianagaram, Andhra Pradesh 19
Slide 21: Awards/Accolades
Awards/Accolades Indo US NCGC Award Bulk Drug Company of the Year ❑ First Indian pharma company to ❑ India Pharma Bulk Drug Export Company of receive Indo-US GCNC award for the Year Award from Government of India. adopting green chemistry practices Pandit Jawaharlal Nehru ❑ Received the Indian Pharm
Slide 22: Key Strategies
Key Strategies 21
Slide 23: Key Strategic Focus
Key Strategic Focus Niche Product Portfolio Carved out a strong presence in complex, niche API therapies with a global leadership in multiple products Expansion Brownfield capex of Rs. 200 crores in FY21 to augment the next leg of growth Unique Value Proposition Global presence, Strong domain expert
Slide 24: Niche Product Portfolio
Niche Product Portfolio Leadership in Select High-Value, Complex APIs API portfolio comprises of specialized and profitable products Growing share of High Value Products in niche therapeutic areas. Reflects the strong ability to foray into other high-value, niche and complex products Currently devel
Slide 25: Expansion
Expansion With ~ Rs. 200 crores capex at Vishakhapatnam Facility in FY21, the company is fully geared up for the next level of growth. • The brownfield capex is aimed towards capacity augmentation of multiple products and therapies. • The incremental capacity addition through the capex is 1,300 KL,
Slide 26: Unique Value Proposition
Unique Value Proposition Global Presence ~83% Exports Revenue (including deemed exports) in 75+ countries across 5 continents – Lower dependency on single country/region Long-standing Relationships Long standing relationships with suppliers and customers - Cost-efficient, consistent, sustainable raw
Slide 27: Diversification
Diversification Well-diversified across Geographies, Markets, Therapies, Products and Customers = Risk Reduction and Multiple Growth Avenues 01 02 03 04 Geography Markets API Therapies Customers • Regulated Markets contributed • Top 5 therapies contributed • Domestic: Largest client • Domestic - Exp
Slide 28: De-risked & Integrated Value Chain
De-risked & Integrated Value Chain y Backward Integration Verticle Integration g er De yn -ris tS kin Cos Strategic ➢ Vertically integrated through VKT g ➢ Over the years, SMS Pharma has Pharmaceuticals Pvt. Ltd. - An Associate strategically invested in backward Investments company integration to be
Slide 29: Financial Highlights
Financial Highlights 28
Slide 30: Consolidated Revenue Break-up – Quarterly
Consolidated Revenue Break-up – Quarterly Q1FY21 Q2FY23 Q1FY24 Q2FY24 Q1FY22 Segment-wise 99.8% 98% 98% 0.2% 2% 2% API Intermediates & Others API Intermediates & Others API Intermediates & Others Q2FY23 Q1FY24 Q2FY24 Geography-wise 80% 84% 87% 20% 16% 13% Domestic Exports Domestic Exports Domestic E
Slide 31: Consolidated Revenue Break-up – Half-Yearly
Consolidated Revenue Break-up – Half-Yearly Q1FY21 H1FY23 H1FY24 Segment-wise 99.7% 97.9% 0.3% 2.1% API Intermediates & Others API Intermediates & Others Q1FY21 H1FY23 H1FY24 Geography-wise 80% 86% 20% 14% Domestic Exports Domestic Exports 30
Slide 32: API Therapy-wise Revenue Break-up – Quarterly
API Therapy-wise Revenue Break-up – Quarterly Q1FY21 Q2FY23 Q1FY24 Q2FY24 Q1FY22 24% 33% 58% 1% 3% 26% 11% 13% 15% 19% 8% 8% 10% 11% 3% 4% 21% 11% 4%3% 13% ARV Anti-Ulcer ARV Anti-Ulcer ARV Anti-Ulcer Anti-Erectile Dysfunction Anti-Migraine Anti-Erectile dysfunction Anti-Migraine Anti-Erectile dysfu
Slide 33: API Therapy-wise Revenue Break-up – Half-Yearly
API Therapy-wise Revenue Break-up – Half-Yearly H1FY23 H1FY24 44% 29% 6% 17% 20% 15% 8% 6% 2% 16% 16% 4%5% 12% ARV ARV Anti-Ulcer Anti-Ulcer Anti-Epileptic Anti-Epileptic Anti-Migraine Anti-Migraine Anti-Erectile Dysfunction Anti-Erectile Dysfunction Anti-Diabetic Anti-Diabetic Others Others 32
Slide 34: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. crores) Q2FY24 Q2FY23 YoY% Q1FY24 QoQ% H1FY24 H1FY23 QoQ% Net Revenue from Operations (Net of Excise) 166.6 159.4 5% 135.3 23.1% 302.0 223.8 35% COGS 116.5 128.3 87.9 204.4 176.1 Gross Profit 50.1 31.1 61% 47.5 6% 97.6 47.7 105% Gross Margin (%)
Slide 35: Consolidated Balance Sheet
Consolidated Balance Sheet Equities & Liabilities (Rs. crores) Sept-23 Mar-23 Assets (Rs. crores) Sept-23 Mar-23 Equity Non Current assets Equity Share capital 8.5 8.5 Property, Plant and Equipment 404.10 409.5 Other Equity 470.5 452.1 Capital work in progress 42.86 33.2 Non Controlling Interest 0.0
Slide 36: Consolidated Cashflow Statement
Consolidated Cashflow Statement Particulars (Rs. crores) Sept-23 Sept-22 Net Profit before Tax and Extraordinary items 27.8 -12.0 Adjustments for: Non Cash Items / Other Investment or Financial Items 27.2 26.1 Operating profit before working capital changes 55.0 14.1 Changes in working capital -15.7
Slide 37: Historical Performance at a Glance
Historical Performance at a Glance 36
Slide 38: Historical Financial Performance
Historical Financial Performance Consolidated Revenue (Rs. Crores) EBITDA (Rs. Crores) PAT (Rs. Crores) 125 120 63 62 563 520 522 463 465 93 90 40 412 80 32 32 55 -7 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 EBITDA Margin (%) Net Worth (In Crores) Leve
Slide 39: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. crores) FY23 FY22 FY21 FY20 FY19 FY18 Revenue from Operations 522.1 519.9 563.2 411.9 464.9 464.9 COGS 389.5 330.5 379.4 280.0 327.6 326.6 Gross Profit 132.6 189.4 183.8 131.9 137.4 138.3 Gross Profit Margin 25.4% 36.4% 32.6% 32.0% 29.5% 29.7% Em
Slide 40: Consolidated Balance Sheet
Consolidated Balance Sheet Equities & Liabilities (Rs. crores) FY23 FY22 FY21 FY20 FY19 FY18 Assets (Rs. crores) FY23 FY22 FY21 FY20 FY19 FY18 Equity Non Current assets Equity Share capital 8.5 8.5 8.5 8.5 8.5 8.5 Property, Plant and Equipment 409.5 434.1 452.3 275.2 280.1 278.9 Other Equity 452.1 4
Slide 41: Consolidated Cashflow Statement
Consolidated Cashflow Statement Particulars (Rs. crores) FY23 FY22 FY21 FY20 FY19 FY18 Net Profit before Tax and Extraordinary items 5.4 68.5 91.1 50.8 62.4 60.3 Adjustments for: Non Cash Items / Other Investment 53.0 49.9 27.8 28.7 26.8 31.1 or Financial Items Operating profit before working capita
Slide 42: For further information, please contact
For further information, please contact Company: Investor Relations Advisor: CIN: L24239TG1987PLC008066 CIN: U74140MH2010PTC204285 Mr. Thirumalesh Tumma Mr. Jigar Kavaiya / Mr. Parin Narichania Email: complianceofficer@smspharma.com E: jigar.kavaiya@sgapl.net / parin.n@sgapl.net Contact no.: +91 910
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