Vivimed Labs Limited · NSE:VIVIMEDLAB
Vivimed Labs — Q2 FY2015 Earnings Presentation
20 slides from Vivimed Labs's earnings presentation, Nov 12, 2014
Slide 1: Vivimed Labs Limited Q2 FY2015 Earnings Presentation
Vivimed Labs Limited Q2 FY2015 Earnings Presentation November 12, 2014© Vivimed Labs Ltd 2010 All rights reserved 1 www.vivimedlabs.com
Slide 2: Important Notice
Important Notice No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after
Slide 3: Where Chemistry and Quality Matters
Where Chemistry and Quality Matters Unique Business Model Best-in-Class Operations • Uses chemistry to create ingredients which • 12 manufacturing facilities and 5 R&D touch human life on a daily basis centers across the world • Focused on the Health Care, Personal Care, • 4 US FDA approved sites Ho
Slide 4: Business Segments
Business Segments Healthcare Personal Care Home Care Industrials 68.5% of Q2 FY15 sales 15.0% of Q2 FY15 sales 12.5% of Q2 FY15 sales 3.8% of Q2 FY15 sales • Active • Sun Care • Antimicrobials • Photo Chromic Pharmaceutical • Skin Care • Specialty Dyes Ingredients (API) • Hair Care Intermediates • I
Slide 5: Consolidated Financial Performance
Consolidated Financial Performance Performance Highlights Q2 FY2015 Revenue Breakup 3.8% Net Sales of Rs. 3,168 million 12.5% 68.5% o Increased 3.1% y-o-y 15.0% EBITDA of Rs. 518 million (flat y-o-y) o EBITDA margin of 16.3% Healthcare Personal Care Net Profit of Rs. 164 million and margins of
Slide 6: Financial Performance
Financial Performance Consolidated Financials Q2 y-o-y Q1 q-o-q H1 y-o-y (Rs. million) FY2015 FY2014 Growth (%) FY2015 Growth (%) FY2015 FY2014 Growth (%) Net Sales 3,168 3,073 3.1% 3,678 (13.9)% 6,846 6,512 5.1% EBITDA 518 524 (1.1)% 581 (10.8)% 1,099 1,012 8.5% Margin (%) 16.3% 17.0% 15.8% 16.0% 1
Slide 7: Segment Highlights
Segment Highlights Healthcare segment Revenue Breakup (Q2 FY2015) • Total revenue of Rs. 2,150 million up 3.7% y-o-y; EBIT margin of 5.5% 3.8% • In the API segment, manufacturing volume showed 23.4% consistent improvement over Q2 FY2014 based on the current generic pipeline. Growth in Spain (23% y-o
Slide 8: Segment Highlights
Segment Highlights Specialty Chemicals segment Revenue Breakup (Q2 FY2015) • Total revenue of Rs. 987 flat y-o-y but up 11.3% q-o-q; EBIT margin of 23.8% (up 256 bps) 12.4% 47.5% • Margins have improved due to portfolio rationalization, cost optimization and efficient capacity utilization. Increased
Slide 9: Segment Highlights
Segment Highlights Q2 y-o-y Q1 q-o-q H1 y-o-y (Rs. million) FY2015 FY2014 Growth (%) FY2015 Growth (%) FY2015 FY2014 Growth (%) Segment Revenue 3,136 3,066 2.3% 3,665 (14.4)% 6,802 6,474 5.1% Specialty chemicals 987 994 (0.7)% 886 11.3% 1,873 1,977 (5.3)% Healthcare 2,150 2,073 3.7% 2,779 (22.6)% 4,
Slide 10: Quarterly Financial Trends
Quarterly Financial Trends Net Sales EBITDA and Margins 3,721 3,678 584 581 3,358 536 3,073 3,168 524 518 Rs. Million Rs. Million 17.0% 16.3% 16.0% 15.7% 15.8% Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 EBITDA Margin (%) Net Profit and Margins 190 164 171 164 Rs.
Slide 11: Capital Markets
Capital Markets Shareholding Structure Key Institutional Investors 33.9% 38.1% 0.3% 27.7% Promoters FII DII Others Shareholding Pattern Trend Shareholders Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Promoters1 37.8% 37.8% 38.1% 38.1% 38.1% FII / FDI 27.5% 27.5% 27.5% 27.6% 27.7% DII 2.4% 2.4% 2.3% 2.3% 0.3%
Slide 12: Strategic Direction
Strategic Direction Continue to strengthen engagements with marquee customer base through superior product development and delivery capabilities Where Chemistry and Quality Matters Move up the value chain through vertical integration in Healthcare (R&D to manufacturing of API / FDF / brands) and tar
Slide 13: Global Reach
Global Reach A multinational global platform that provides Vivimed access to markets and significant cost advantage Kashipur, Uttarakhand Haridwar, Uttarakhand Sant Celoni, Spain Lliçà de Vall, Spain Kolkata Cuernavaca, Mexico Bonthapally, Hyderabad Bidar, Karnataka Bolarum, Hyderabad Jeedimetla, Hy
Slide 14: Strong Transnational Management Team
Strong Transnational Management Team Key Management Profile Santosh Varalwar • First generation entrepreneur Managing Director & Chief • Business growth strategy and leadership; Focus on key global client relationships Executive Officer • Previously associated with Shipping Corporation of India Subh
Slide 15: Annexure – Quarterly Consolidated P&L Statement
Annexure – Quarterly Consolidated P&L Statement Profit & Loss Statement (Rs. million) Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Revenues Net Sales / Income from Operations (Net of Excise Duty) 3,066 3,353 3,682 3,665 3,136 Other Operating Income 6 5 39 12 32 Total Revenues 3,073 3,358 3,721 3,678 3,16
Slide 16: Annexure – Consolidated Balance Sheet
Annexure – Consolidated Balance Sheet Mar 31, Sep 30, Mar 31, Sep 30, Liabilities (Rs. million) 2014 2014 Assets (Rs. million) 2014 2014 Shareholders funds Non current assets Share capital Tangible assets 7,078 7,013 Equity share capital 162 162 Intangible assets 1,001 978 Prefrence share capital 63
Slide 17: Annexure – Working Capital Cycle
Annexure – Working Capital Cycle 171 159 156 141 147 Number of days 135 112 121 115 74 86 39 55 54 68 112 121 101 94 88 FY 2011 FY 2012 FY 2013 FY 2014 H1 FY15 Debtor days Creditor days Inventory days Working Capital Cycle days 17
Slide 18: Annexure – Key Ratios
Annexure – Key Ratios FY2012 FY2013 FY2014 H1 FY2015 Net Worth (Rs. million) 4,748 5,091 5,604 5,330 Net Debt (Rs. million) 5,079 5,741 7,606 7,578 Fixed Assets (Rs. million) 5,953 7,090 8,079 7,991 ROE (%) 18.4% 18.8% 13.4% 13.6% ROCE (%) 8.1% 9.4% 7.8% 8.2% Interest Coverage Ratio (x) 3.74 3.39 2.
Slide 19: Glossary
Glossary • ANDA: Abbreviated New Drug Application • API: Active Pharmaceutical Ingredients • CEP: Certificates of Suitability to the monographs of European Pharmacopoeia • CMO: Contract Manufacturing Organization • DMF: Drug Master File • FDF: Finished Dosage Formulation • H&PC: Home and Personal Ca
Slide 20: Thank You
Thank You Contact Details: Vivimed Labs Limited (CIN: L02411KA1988PLC009465) Veernag Towers, Habsiguda, Hyderabad 500 007 www.vivimedlabs.com Phone: +91 40 2717 6005 / 06 Fax: +91 40 2715 0599 Ajay Mogili +91 40 2717 6005 Vivimed Labs Limited Ajay.Mogili@vivimedlabs.com Saket Somani +91 22 3953 7444