Slide 1: Cover letter to stock exchanges
¢g GRANULES REGISTERED OFFICE GRANULES INDIA LTD., 2nd Floor, 3rd Block, My Home Hub, Madhapur, Hyderabad - 500 081, Telangana, India. Tel: +91 40 69043500, Fax: +91 40 23115145, mail@granulesindia.com, www.granulesindia.com CIN: L24110TG1991PLCO12471 Date: November 06, 2024 To, National Stock Excha
Slide 2: Earnings Presentation – Q2FY25
Granules India Limited Earnings Presentation – Q2FY25 06th November 2024 Embracing Change. Shaping Tomorrow. 1
Slide 3: Safe Harbour Statement
Safe Harbour Statement The Presentation is to provide the general background information about the Company’s activities as at the date of the Presentation. The information contained herein is for general information purposes only and based on estimates and should not be considered as a recommendatio
Slide 4: Key business updates for Q2 FY25
Key business updates for Q2 FY 25 ▪ Gagillapur facility Inspection: US FDA inspection conducted from 26th Aug to 6th Sep’24. Response was Submitted on 27th Sep’24. ▪ The Company has voluntarily paused production in the Gagillapur plant in Sep-24 to reassess the potential risk on account of the US FD
Slide 5: Quarterly Performance
Quarterly Performance Q2 FY 25 Earnings Presentation – Q2 FY 25 © 2024 Granules India Limited 4
Slide 6: Q2FY25 P&L: Y-o-Y Performance
Q2FY25 P&L: Y-o-Y Performance (In ₹ Mn) Q2 FY25 Q2 FY24 Y-o-Y Gr% Remarks on Y-o-Y performance Voluntary pause at Gagillapur facility due to the US FDA inspection. Revenue 9,666 11,895 -19% Continued demand issues in API/PFI driven by high customer inventory and price erosion in the market Better Ma
Slide 7: Q2FY25 P&L: Q-o-Q Performance
Q2FY25 P&L: Q-o-Q Performance (In ₹ Mn) Q2 FY25 Q1 FY25 Q-o-Q Gr% Remarks on Q-o-Q performance Voluntary pause at Gagillapur facility due to the US FDA inspection. Revenue 9,666 11,799 -18% Continued demand issues in API/PFI driven by high customer inventory and price erosion in the market Gross Mar
Slide 8: Q2FY25: Revenue split by Segments and Market
Q2FY25 : Revenue spilt by Segments and Market (In ₹ Mn) Division wise share Region wise share Q2 FY24 Q1 FY25 Q2 FY25 6% 4% 5% 5% 4% 4% 6% 5% 2% 10% 13% 18% ROW 12% 8% 8% LATAM 16% 15% India 25% Europe 74% 79% North America 62% 67% 76% 77% FD API PFI FD API PFI FD API PFI Q2 FY24 Q1 FY25 Q2 FY25 Q2
Slide 9: Q2FY25 Cashflow and Ratios: Q-o-Q
Q2FY25 Cashflow and Ratios : Q-o-Q (In ₹ Mn) Q2 Q1 Q2 Q1 Q2 Q1 FY25 FY25 FY25 FY25 FY25 FY25 Fixed Net debt/ ROCE% 16.9% 19.6% asset turn 1.56 1.74 EBITDA 0.86x 0.77x Decrease in EBIT Slightly lower due to sales decline from Decrease in EBITDA Gagillapur facility ROCE = Annualised EBIT / Average cap
Slide 10: Historical Performance
Historical Performance Earnings Presentation – Q2 FY 25 © 2024 Granules India Limited 9
Slide 11: Sales and profitability: Last 6 quarters
Sales and profitability : Last 6 quarters historical performance (In ₹ Mn) Sales Gross Margin and GM% 11,895 11,799 7,062 6,954 11,556 11,758 6,583 6,144 5,994 9,855 9,666 5,063 60.1% 62.0% 57.0% 58.9% 51.4% 51.7% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 EB
Slide 12: Cashflow and Ratios: Last 6 quarters
Cashflow and Ratios: Last 6 quarters historical performance (In ₹ Mn) ROCE% Asset turns Net debt and Net debt/EBITDA 9,895 1.75 1.78 1.77 9,285 19.6% 1.74 8,569 8,421 1.41 7,941 7,973 16.5% 16.9% 1.61 15.3% 1.56 1.57 1.16 12.8% 0.98 9.4% 0.86 0.77 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q1FY24 Q2F
Slide 13: Sales and profitability: Last 5 years
Sales and profitability : Last 5 years historical performance (In ₹ Mn) Sales Gross Margin and GM% EBITDA and EBITDA % PAT and PAT % Earnings Presentation – Q2 FY 25 © 2024 Granules India Limited 12 12
Slide 14: Cashflow and Ratios: Last 5 years
Cashflow and Ratios: Last 5 years historical performance (In ₹ Mn) ROCE% Asset turns Net debt and Net debt/EBITDA CCC days Operating Cash flow Capex Earnings Presentation – Q2 FY 25 © 2024 Granules India Limited 13 13
Slide 15: Committed to Shareholder Value Creation
Committed to Shareholder Value Creation 700 600 CAGR 27% 30% 500 40% 39% 42% 400 32% Sep-24 Sep-23 300 25% 19% 21% 3% 18% 9% 4% 200 6% 100 Promoter and Promoter Group Insurance Companies Public Shareholding 0 Mutual Funds & AIF Foreign Portfolio Investors Key Investors (as on 30th Sep. 2024) Holding
Slide 16: Granules at a glance
Granules at a glance Earnings Presentation – Q2 FY 25 © 2024 Granules India Limited 15
Slide 17: Granules Purpose, Vision & Values
Granules Purpose, Vision & Values Earnings Presentation – Q2 FY 25 © 2024 Granules India Limited 16
Slide 18: An Illustrious Journey Spanning Four Decades
An Illustrious Journey Spanning Four Decades Building A World Class, Vertically Integrated Pharmaceutical Manufacturing Platform From being a paracetamol API manufacturing facility to a multi-faceted global pharmaceutical company, we have consistently achieved manufacturing success, set new standard
Slide 19: Manufacturing Network & Capacity
Manufacturing Network & Capacity FD: 2.5 Bn dosage (Phase I) FD: 7.5 Bn dosage (upcoming Phase II) Earnings Presentation – Q2 FY 25 © 2024 Granules India Limited 18
Slide 20: Business Strategy Update
Business Strategy Update Earnings Presentation – Q2 FY 25 © 2024 Granules India Limited 19
Slide 21: Moving up the value-chain and Product Diversification
Business Strategy : Moving up the value-chain and Product Diversification Earnings Presentation – Q2 FY 25 © 2024 Granules India Limited 20
Slide 22: Strengthening Business in North America
Business Strategy : Strengthening Business in North America Unique Manufacturing Platform of Optimizing “Make in India” (GIL) and “Make in America” (GPI , GPAK) Market leadership in CNS/ADHD (GPI operations), adding to the leadership position in large volume molecules Prioritizing OTC business throu
Slide 23: Expanding Reach Through Commercial Excellence
Business Strategy : Expanding Reach Through Commercial Excellence Replicate commercial success of North America in other key markets Strengthening Teams | Building Commercial Excellence Processes ▪ Revamped and augmented Commercial leadership team ▪ Formulation Driven Growth in Europe through key pa
Slide 24: Building R&D Capability and Product Pipeline
Business Strategy: Building R&D Capability and Product Pipeline Integrated Product Development # Scientists Genome Valley – MN Park ~400 Across API & FD R&D R&D facility for Integrated Product Development ▪ Fast tracking product development through seamless coordination & shared analytical resource
Slide 25: Business Strategy: Portfolio Expansion
Business Strategy: Portfolio Expansion Earnings Presentation – Q2 FY 25 © 2024 Granules India Limited 24
Slide 26: ANDA/Dossier filing status
ANDA/Dossier filing status Tentatively ANDA/Dossier filed - Therapeutic area wise Filing Status Approved Filed Total Products Approved CNS 25 GPI IP USA 28 0 5 33 Analgesics 25 Other areas 12 USA 37 1 12 50 Anti-diabetic 11 Europe 8 0 4 12 Cardiovascular 10 Anti-Inflammatory 8 GIL IP Canada 7 0 0 7
Slide 27: Building & Sustaining Key Product Leadership
Business Strategy: Building & Sustaining Key Product Leadership Key Operations and R&D Initiatives to Strengthen and Sustain Our Cost and Market Leadership Backward Integration Process Improvement Formulation Technologies Bio Catalysis + Cont. Mfg. Minimizing Carbon Footprint Earnings Presentation –
Slide 28: Sustainability at Granules
Sustainability at Granules : Pioneering Innovation for Complete Supply Chain Decarbonization of Pharmaceuticals 27.8 % Submitted our climate target for 1.5oC pathway and Net Zero goal to SBTi for the validation Scope1 and Scope2 Intensity* *Over last year 22.8 % Scope1 and Scope2 Absolute Reduction*
Slide 29: GHG Emission Disclosure
GHG Emission Disclosure Our emission disclosures for FY 23 has been updated during FY 24 disclosure cycle to include emissions for all our subsidiaries and now includes disclosure of our comprehensive scope 3 emissions in addition to previously disclosed Scope 1 and Scope 2 emissions. Granules scope
Slide 30: Social Impact Initiative: Pharma Pathshala
Social Impact Initiative : Pharma Pathshala at Swarna Bharat Trust Granules initiative to train a rural workforce through the Swarna Bharat Trust Earnings Presentation – Q2 FY 25 © 2024 Granules India Limited 29
Slide 31: Corporate address and investor relations
For investor relation – Granules IR desk Email: investorrelations@granulesindia.com www.granulesindia.com Ms. Payal Dave payal.dave@linkintime.co.in Mr. Irfan Raeen +91 97737 78669 532482 Irfan.raeen@linkintime.co.in GRANULES www.orientcap.com GRAN:IN GRAN:NS Corporate address: Floor 2 Block 3 My Ho