Zota Health Care Ltd. · NSE:ZOTA
Zota Health Care — Q3 FY2020 Earnings Presentation
33 slides from Zota Health Care's earnings presentation, Feb 18, 2020
Slide 1: Cover letter to NSE: Investor Presentation
A zoto' healthcare ltd. February t8,2020 To, The Manager Listing Department, The National Stock Exchange of tndia Limited Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai - 400051 Dear Sir/Madam, Trading Symbol: ZOTA 5ub: lnvestor Presentation Ref: Regulation 30(6) of SEBI (Listing ohligatio
Slide 2: Q3FY20 Performance Highlights
Q3FY20 PERFORMANCE HIGHLIGHTS FEBRUARY 2020
Slide 3: Safe Harbor
Safe Harbor This presentation has been prepared by the Zota Health Care Limited (the “Company”) only for information purpose to the stakeholders and does not contain any offer or invitation to subscribe the securities of the Company. No offering of securities shall be made except by means of offer d
Slide 4: Table Of Contents
Table Of Contents 1 Result Highlights 2 Operational Metrics 3 Davaindia 4 Business Outlook & Strategy 5 Financial Summary 3
Slide 5: Result Highlights
Result Highlights
Slide 6: Consol Quarterly Financial Highlights
Consol Quarterly Financial Highlights Revenues Gross Profit Gross Profit PAT (INR Lakhs) (INR Lakhs) (%) (INR Lakhs) 15.2% 11.9% -83bps 38.6% 2506.4 2,176. 720.0 38.0 5 29.6 643.4 28.7 27.4 Q3FY19 Q3FY20 Q3FY19 Q3FY20 Q3FY19 Q3FY20 Q3FY19 Q3FY20 5
Slide 7: 9M – Financial Highlights
9M – Financial Highlights Revenues Gross Profit Gross Profit PAT (INR Lakhs) (INR Lakhs) (%) (INR Lakhs) 10.8% -0.8% -344 bps -53.8% 7,203. 3 6,503. 0 2,140.4 2,122.6 439.9 32.9 203.2 29.5 9MFY19 9MFY20 9MFY19 9MFY20 9MFY19 9MFY20 9MFY19 9MFY20 6
Slide 8: Consol Profit & Loss Statement - Quarterly
Consol Profit & Loss Statement - Quarterly Particulars (Rs Lakhs) Q3FY20 Q3FY19 YoY % QoQ % Q2FY20 Export Sales (SEZ) 638.8 500.4 27.7 86.8 342.0 Dava India Sales 351.0 173.0 102.9 14.3 307.0 Domestic Sales 1,516.6 1,503.1 0.9 -19.3 1,879.7 Revenues from Operations 2,506.4 2,176.5 15.2 -0.9 2,528.7
Slide 9: Profit & Loss Statement – Half Yearly & 9M
Profit & Loss Statement – Half Yearly & 9M Particulars (Rs Lakhs) 9MFY20 9MFY19 YoY % H1FY20 H1FY19 YoY% Export Sales (SEZ) 1,452.50 1,302.40 11.5 803.9 801.9 1.5 Dava India Sales 888.4 408 117.7 537.4 230.6 133.0 Domestic Sales 4,862.4 4,792.6 1.5 3,355.6 3,294.1 8.9 Revenues from Operations 7,203.
Slide 10: Strategic Business Model
Strategic Business Model Ethical Marketing Marketing Representatives Franchise DOMESTIC Marketing Distributor Generic Marketing Astgen/Astcon EXPORT Manufacturing Export in foreign countries DAVAINDIA RETAIL CHAIN DAVAINDIA FRANCHISEES 9
Slide 11: Management Commentary
Management Commentary • Revenues for the Q3FY20 registered a double digit growth of 15.2% YoY at Rs 2,506.4 Lakhs, led by growth from domestic (davaindia) and exports market • Gross Profit grew 11.9% with marginal dip of 84 bps YoY as material cost increased by 16.5% • EBITDA margins at 4.2% with 13
Slide 12: Global Presence
Global Presence India Mali Nepal Turkmenistan Kenya Uganda Yemen Costa Rica Nigeria Sri Lanka South Africa Georgia Libya Myanmar Benin Bolivia Ethiopia Vietnam Ukraine Swaziland Tanzania Cambodia Uzbekistan Cameroon 11
Slide 13: Operational Metrics
Operational Metrics
Slide 14: Domestic Operational Metrics – Quarterly and 9M
Domestic Operational Metrics – Quarterly *Revenues EBITDA PAT (INR Lakhs) (INR Lakhs) (INR Lakhs) 1,898.3 Q3FY19 Q3FY20 3.7 -30.5 1,675.4 Q3FY19 Q3FY20 -41.5 Q3FY19 Q3FY20 -71.1 Domestic Operational Metrics – 9M Revenues EBITDA PAT (INR Lakhs) (INR Lakhs) (INR Lakhs) 541.4 280.8 5,848.9 5,318.3 188.
Slide 15: Export Operational Metrics – Quarterly and 9M
Export Operational Metrics - Quarterly Revenues EBITDA PAT (INR Lakhs) (INR Lakhs) (INR Lakhs) 638.8 100.4 58.3 500.4 67.5 37.4 Q3FY19 Q3FY20 Q3FY19 Q3FY20 Q3FY19 Q3FY20 Export Operational Metrics – 9M Revenues EBITDA PAT (INR Lakhs) (INR Lakhs) (INR Lakhs) 1,452.5 210.6 159.4 132.7 1,302.4 187.3 9M
Slide 16: Half Yearly Operational Metrics – Domestic and Exports
Half Yearly Operational Metrics - Domestic *Revenues EBITDA PAT (INR Lakhs) (INR Lakhs) (INR Lakhs) 9.0% -67.4% -67.8% 3,624.9 3,950.6 Note: Revenues 564.9 includes other income 311.3 184.4 141.76 H1FY19 H1FY20 H1FY19 H1FY20 H1FY19 H1FY20 Operational Metrics - Exports Revenues EBITDA PAT (INR Lakhs)
Slide 17: Management Commentary: Domestic Operations and Exports
Management Commentary Domestic Operations • Domestic Revenues witnessed a growth of 13.3% during the quarter at Rs 1,898.3 Lakhs, led by volume growth among key segments. • EBITDA margins came in at 0.2% due to higher increased cost associated with Davaindia promotional expenses • Domestic business
Slide 18: Zota Healthcare / Davaindia Generic Pharmacy
a zota healthcare Itd. davaindia® GENERIC PHARMACY
Slide 19: The Perfect Partnership
Gradually Building A Partnership THE PERFECT PARTNERSHIP “ Signing of the Legendary cricketer: The Haryana Hurricane Mr. Kapil Dev is regarded as one of India's finest and greatest all rounder's of the game of cricket. It gives us immense pleasure to have him associated as Our Brand Ambassador of Zo
Slide 20: Davaindia retail pharmacy stores focused on chronic ailments
• Davaindia retail pharmacy stores is focused chronic ailments – Cardiac, Diabetic, Thyroid etc as repeat orders from existing and new customers remains higher, thus aiding overall company growth and rendering the business model as a cash cow • The managements focus on Davaindia expansions has been
Slide 21: Davaindia
4 davaindia’ A zota healthcare Itd.
Slide 22: Pre-Opening Store Activities For Davaindia
Pre-Opening Store Activities For Davaindia PAMPHLET DISTRIBUTION BULK SMS TO RESIDENTS IN AND AROUND THE VICINITY SOCIAL MEDIA INITIATIVES 21
Slide 23: Cost Incurred For Davaindia Store Opening
Cost Incurred For Davaindia Store Opening Initial cost (₹) - 3,60,000-4,00,000 Operating Cost (₹) - 40,000 p.m. INVENTORIES - MEDICINES ₹1,50,000-2,00,000 Initial Cost Includes Inventories Major Therapeutic Category PHARMACIST OTHER Cardiac Thyroid ailments RENT MANPOWER MISCELLANEOUS EXPENSES ₹15,0
Slide 24: Operational Metrics Of Davaindia
Operational Metrics Of Davaindia Promotions & Brand Product portfolio of building by ZHCL 1,333+ SKU’s Hoardings, bus-stands & Focused on Cardiac , much more Diabetic, Thyroid ailments 95% Private Label Brands 220 Stores Key brands – DavaIndia, Retail Generic Pharmacy Nutravedic, etc. Chain 82 agree
Slide 25: Davaindia Key Figures
Davaindia Key Figures Store roll-out Sales % 45 Analgesic/Anti-… 3.4% 39 Antacid 3.8% 33 29 29 Neuro Pysco 4.3% 28 Dermo 7.4% 17 Patent-Branded 7.6% Vitamins 8.0% OTC/Cosmetics 17.7% Cardiac & Diabetic 32.3% Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 0.0% 10.0% 20.0% 30.0% 40.0% 700 36% 40% 62
Slide 26: Davaindia Footprints
Davaindia Footprints HARYANA (4) NEW DELHI (2) Yamunanagar, Kurukshetra, Bhiwani, Hisar UTTARAKHAND (2) Dehradun RAJASTHAN (5) Jaipur, Jodhpur, Sikar, Shri Ganganagar UTTAR PRADESH (11) Firozabad, Ghaziabad, Lucknow, Varanasi, Jhansi, Amhora GUJARAT (99) Nadiad, Ahmedabad, Badoli, Gandhinagar, Himat
Slide 27: Sales Trend Of Matured Stores
Sales Trend Of Matured Stores 12+ Months 3.52 lakhs 9 – 11 Months The company also has vision to expand its chain 7–9 Months 1.90 lakhs 1.60 lakhs to 3000 stores by the end of Top 10 stores 11th to 20th store 21st to 30th store FY2022E Average month sales of the stores Average age of stores 26
Slide 28: Business Outlook & Strategy
ml a Business Outlook & Strategy
Slide 29: Business Performance Outlook
Business Performance Outlook • Domestic business will grow at constant rate of 12%-15% in FY20E, which will be a similar growth rate as previous year • Export revenues being a higher margin business are expected to grow at a faster rate of 30%-40% in FY20E, as your company has expanded its global fo
Slide 30: Financial Summary
a zota healthcare Itd. mE a Financial Summary
Slide 31: Profit & Loss Statement - Annually
Profit & Loss Statement - Annually Particulars (INR Lakhs) FY14 FY15 FY16 FY17 FY18 FY19 Income from Operations 5,011.2 5,646.3 6,473.3 7,158.0 7,785.2 8,562.9 Other Income 10.2 1.4 7.7 5.6 151.9 154.5 Total Income 5,021.4 5,647.8 6,481.0 7,163.6 7,937.0 8,717.4 Operating Expenses 4,362.0 4,796.5 5,
Slide 32: Balance Sheet & Key Ratios
Balance Sheet & Key Ratios Particulars (INR Lakhs) FY14 FY15 FY16 FY17 FY18 FY19 H1FY20 Share capital 1,196.9 1,436.3 1,436.3 1,436.3 1,754.3 1,754.3 2,456.0 Reserves and Surplus 384.2 395.7 707.8 1,262.0 5,223.4 5,138.5 4,318.1 Non-current liabilities 521.3 548.7 272.7 466.8 64.7 87.1 94.5 Current
Slide 33: Thank You
Contact Information Mr. Himanshu Zota / Mr. Ashvin Variya "ZOTA HOUSE", 2/896, Hira Modi Street, Sagrampura, Surat-395 002(Gujarat) Thank You cszota@zotahealthcare.com www.zotahealthcare.com