Piramal Pharma Limited · NSE:PPLPHARMA
Piramal Pharma — Piramal Enterprises — Q1 FY2023 Earnings Presentation
62 slides from Piramal Pharma's earnings presentation, Jul 29, 2022
Slide 1: Piramal Enterprises Limited Q1 FY2023 Results
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Piramal Enterprises Limited Q1 FY2023 Results 29th July 2022
Slide 2: Q1 FY2023 Key Highlights
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 2 Q1 FY2023 Key Highlights Q1 FY2023 Performance: On-track to complete the Pharma demerger Revenues of INR 3,548 Cr. and simplification of corporate structure by Q3 FY23 Net Profit of INR 486 Cr. Financial Services Pharma Total AUM of
Slide 3: PEL Q1 FY2023 Consolidated Revenues and Net Profit
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 3 PEL Q1 FY2023 Consolidated Revenues and Net Profit Total Revenues Net Profit In INR Cr. In INR Cr. 3,548 +22% 2,909 534 -9% 486 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23
Slide 4: Key Milestones: Demerger and Simplification of Corporate Structure
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 4 Key Milestones: Demerger and Simplification of Corporate Structure Key Milestones Status / Expected Timeline Board Approval Filing of Application with Stock Exchanges RBI Consent (on Scheme of Arrangement) Consent from the Fin
Slide 5: Financial Services
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 5 Financial Services
Slide 6: Financial Services: Business overview
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 6 Financial Services: Business overview As of Jun-2022 PEL – FINANCIAL SERVICES Retail Retail Lending Wholesale Alternative Life Lending (Off-balance sheet) Lending Assets Insurance INR 1,099 Cr. ~USD 1 billion INR 22,267 Cr. INR 17,4
Slide 7: Balance Sheet and P&L Performance: FS Lending
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 7 Balance Sheet and P&L Performance: FS Lending AUM Loan Book Mix Retail Loans In INR Cr. In % INR Cr. 64,590 Retail Wholesale +37% 22,267 Completed Growth primarily 47,181 the DHFL >4x through the acquisition in 63% DHFL acquisition
Slide 8: Robust Liability Management
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 8 Robust Liability Management Average cost of borrowings Average maturity of borrowings Fixed : Floating rate mix In %, for PEL Financial Services In years, weighted average on a residual basis As of Jun-2022 Fixed Rate Floating Rate
Slide 9: Asset Quality and Provisioning Trends
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 9 Asset Quality and Provisioning Trends GNPA ratio NNPA ratio Provisioning as a % of AUM In % In % In % 4.3% 3.7% 6.2% 3.4% 2.2% 5.8% 5.7% 1.8% 1.6% Jun-21 Mar-22 Jun-22 Jun-21 Mar-22 Jun-22 Jun-21 Mar-22 Jun-22 ◼ Marginal QoQ increas
Slide 10: Retail Lending
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 10 Retail Lending
Slide 11: Total Retail AUM: An at-scale lender in the affordable segment
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 11 Total Retail AUM: An at-scale lender in the affordable segment Retail loan book growth Breakdown of loan book by category INR Cr. 6% Secured 22,267 Unsecured 94% 4.3x Retail loan book growth primarily Breakdown of loan book by prod
Slide 12: Disbursements: Strong disbursement growth of 66% QoQ and 12x YoY
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 12 Disbursements: Strong disbursement growth of 66% QoQ and 12x YoY in Q1 FY23 Retail loans – Quarterly disbursements Retail disbursements vs. run-offs** In INR Cr. In INR Cr. Q1 FY23 Performance: Disbursements 2,459 ~13x YoY +66% Q
Slide 13: Yields: Disbursement yields continue to improve QoQ
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 13 Yields: Disbursement yields continue to improve QoQ Disbursements across product segments Disbursement origination Rising disbursement yields %, based on value for retail loans %, based on value for retail loans %, for retail loans
Slide 14: Products: A multi-product retail lending platform
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 14 Products: A multi-product retail lending platform across the risk-reward spectrum Product Segments Avg. disbursement Disbursement Share in Products (Retail Lending) ticket size (INR lacs) yield (%) disbursements (%) Affordable Hous
Slide 15: Microfinance: Launched in Q1 FY2023 through the BC model
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 15 Microfinance: Launched in Q1 FY2023 through the Business Correspondent (BC) model Launched Microfinance lending during the quarter Microfinance-BC: Key Highlights As of Jun-2022 ✓ Started in May-2022 from Jhunjhunu, Rajasthan Bihar
Slide 16: Distribution: Further expanded our branch network and presence
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 16 Distribution: Further expanded our branch network and presence in Q1 FY2023 India-wide distribution network (excl. Microfinance-BC branches) Branch additions since the DHFL acquisition in Sep-2021 As of Jun-2022 No. of branches, ex
Slide 17: Branch activation: All DHFL branches activated
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 17 Branch activation: All DHFL branches activated; focusing on optimization and productivity Branch activation at DHFL Breakdown of branches by no. of products sold % of ‘disbursement-active’ branches % of branches Product count by br
Slide 18: Digital Embedded Finance: Scaling-up partnerships with Fintech and Consumer Tech firms
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 18 Digital Embedded Finance: Scaling-up partnerships with Fintech and Consumer Tech firms Quarterly disbursements Categories in focus for Embedded Finance solutions In INR Cr. 556 332 Consumer Pre-owned Education Healthcare Fintech Ca
Slide 19: Asset Quality: Retail Portfolio
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 19 Asset Quality: Retail Portfolio As of Jun-2022 Average loan-to-value By stage of construction For Secured Lending Segments, % For Housing segment only Other highlights: ◼ Asset quality of the acquired Housing 62% DHFL book is in li
Slide 20: Wholesale Lending
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 20 Wholesale Lending
Slide 21: Progressing in line with our strategy to make the loan book more granular
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 21 Progressing in line with our strategy to make the loan book more granular Wholesale AUM (excl. DHFL)1 Top-10 exposures Single-borrower exposures In INR Cr. In INR Cr. No. of accounts >15% of net worth -21% -31% 51,436 3 40,851 18,4
Slide 22: Breakdown of the Wholesale portfolio
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 22 Breakdown of the Wholesale portfolio Wholesale loans by product segment 1,2,3 Wholesale RE exposure by cities 1,2,3 Breakdown of exposures by share in AUM As of Jun-2022 As of Jun-2022 As of Jun-2022 2% <1% Borrower’s share in AUM
Slide 23: Breakdown of the Wholesale portfolio (Cont'd)
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 23 Breakdown of the Wholesale portfolio1 (Cont’d) As of Jun-2022 By ticket size ( based on outstanding ) By tenure2 By coupon payment frequency Monthly <1 year 12% 14% 16% Quarterly < INR 200 Cr. 20% 1-2 years 25% 45% Semi-annually IN
Slide 24: Performance of Developer Clients: In line with overall residential real estate sector
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 24 Performance of Developer Clients: In line with overall residential real estate sector Residential RE Industry – Housing Units Sold Performance of our developer clients in FY 2022 Top-8 cities, ‘000 units Q1 FY23: Developer Sales De
Slide 25: Wholesale Lending: Established the foundational pillars for Wholesale 2.0
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 25 Wholesale Lending: Established the foundational pillars for Wholesale 2.0 Wholesale Lending Foundational pillars Granular Superior risk Proactive asset ALM Underwriting book management monitoring Building a Pro-active Strict adhere
Slide 26: Wholesale Lending 2.0: Recent developments and areas of focus
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 26 Wholesale Lending 2.0: Recent developments and areas of focus to scale-up the business Real Estate Lending ▪ Appointed CEO and hired Head of Credit Team ▪ Strengthening Mumbai, Delhi, Bangalore, Pune coverage ✓ Primarily focus on m
Slide 27: Liabilities
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 27 Liabilities
Slide 28: Asset-liability profile
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 28 Asset-liability profile (in INR crores) As on June 30th, 2022 (1) Cumulative Inflows Cumulative Outflows 1,25,990 1,13,311 80,814 65,103 52,589 40,902 33,323 24,696 18,172 10,273 13,360 10,182 6,856 8,585 6,300 484 1,777 3,280 up t
Slide 29: Diversifying the borrowing mix
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 29 Diversifying the borrowing mix Breakdown of borrowing mix by type of instruments1 Breakdown of borrowing mix by type of lender1,2 4% 6% 6% 5% 2% 2% 6% 8% 7% 1% 5% 1% 5% 2% 1% 17% 17% 17% 6% 21% 17% 5% 5% 4% 23% 24% 0.2% 23% 24% 12%
Slide 30: Financial Statements and ROA Tree – Financial Services
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 30 Financial Statements and ROA Tree – Financial Services
Slide 31: P&L Summary – Financial Services (Lending Business)
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 31 P&L Summary – Financial Services (Lending Business) (in INR crores) P&L Metrics Q1 FY23 Q4 FY22 Q1 FY22 Interest Income 2,042 1,982 1,485 Less: Interest Expense 1,149 1,283 998 Net Interest Income 893 699 487 Fee & Other Income 113
Slide 32: ROA Tree – Financial Services (Lending Business)
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 32 ROA Tree – Financial Services (Lending Business) KPIs (as a % of assets) Q1 FY23 Q4 FY22 Q1 FY22 Interest Income 11.7% 11.2% 12.5% Interest Expenses 7.1% 8.0% 8.4% Net Interest Income 4.6% 3.2% 4.1% Fees & Other Income 0.7% 0.6% 0.
Slide 33: Stage-wise breakdown of assets and provisioning
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 33 Stage-wise breakdown of assets and provisioning Total Assets (INR Cr.) Stage-wise breakdown Jun-2022 Mar-2022 Dec-2021 Stage-1 54,438 55,420 56,575 Stage-2 4,446 4,072 3,439 Stage-3 2,362 2,227 2,159 Sub-total 61,247 61,720 62,173
Slide 34: Credit costs and Provisioning
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 34 Credit costs and Provisioning TTM credit costs1 (Overall FS – Lending) Total Provisions (on Balance Sheet) In % p.a. Total Provisions (INR Cr.) Total Provisions as a % of AUM 4,008 3,735 4.1% 3.9% 3.8% 2,962 3,013 3,037 2,935 3.5%
Slide 35: Financial Services: FY2027 Aspirations
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 35 Financial Services: FY2027 Aspirations Key Parameters By end-FY2027 (5-year horizon) Retail : Wholesale Mix 60-70% Retail and 30-40% Wholesale AUM ~2x (vs. Mar-2022) Retail Disbursement Growth 40-50% (5-year CAGR) Leverage (Net Deb
Slide 36: Pharma
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 36 Pharma
Slide 37: Three-Pronged Business Model with Market Leading Positions
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 37 Three-Pronged Business Model with Market Leading Positions Contract Development and Manufacturing Organization Complex Hospital Generics India Consumer Healthcare (CDMO) (CHG) (ICH) 13 CDMO sites across North America, Europe and In
Slide 38: Strong Performance over a Sustained Period of Time
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 38 Strong Performance over a Sustained Period of Time Long-term revenue performance Revenue contribution across business segments Best-in-Class Quality Track Record since FY12 (In INR Crore) Annual Revenue1,2 EBITDA Margin India Consu
Slide 39: Q1 FY23 – Revenue and EBITDA performance
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 39 Q1 FY23 – Revenue and EBITDA performance Q1 FY23 Revenue performance (In INR Crore) ■ Revenue at INR 1,485 Cr, up 9% YoY; contributing 42% to PEL’s overall revenue 9% − CDMO: INR 773 Cr. (8% YoY growth) − Complex Hospital Generics:
Slide 40: CDMO business – Moderate growth during the quarter; investing for the future
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 40 CDMO business – Moderate growth during the quarter; investing for the future Long-term revenue performance Q1 FY23 performance Revenue mix in CDMO (In INR Crore) (In INR Crore) 10-year Revenue CAGR of 11% 8% Discovery Services Mark
Slide 41: CDMO: High Proportion of Commercial Revenues and Deep Pipeline of Development Projects
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 41 CDMO: High Proportion of Commercial Revenues and Deep Pipeline of Development Projects Strengthened Molecule Pipeline across Clinical Phases with 3.4x Growth High Proportion of Commercial and Phase 3 Development Revenue in Phase-II
Slide 42: CDMO: Attracting customers with differentiated offering and end-to-end model
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 42 CDMO: Attracting customers with differentiated offering and leveraging end-to-end model Leveraging our end-to-end model to offer integrated services Track record of executing over 170 projects Order book showing increasing traction
Slide 43: Appointment of Mr. Herve Berdou as Chief Operating Officer, CDMO
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 43 Appointment of Mr. Herve Berdou as Chief Operating Officer, CDMO Herve Berdou Chief Operating Officer, CDMO Former Global Head of Operations, Cell and Gene Technologies, Lonza Mr. Herve Berdou joins us from Lonza, where he was the
Slide 44: Steady growth during Q1 FY23 in Complex Hospital Generics
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 44 Steady growth during Q1 FY23 in Complex Hospital Generics Long-term revenue performance Q1 FY23 performance Revenue mix in CHG (In INR Crore) (In INR Crore) Others 10-year Revenue CAGR of 17% 9% 10% Market position: 4th largest inh
Slide 45: CHG: Differentiated portfolio and strong pipeline of products
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 45 CHG: Differentiated portfolio and strong pipeline of products Differentiated portfolio spanning inhalation anesthesia and injectable Strong market share in Key Regions #1 in Intrathecal portfolio in the US Inhalation Anesthesia I
Slide 46: CHG: Vertically Integrated Manufacturing and Commercial Infrastructure
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 46 CHG: Vertically Integrated Manufacturing and Well Built Out Commercial Infrastructure Key Starting Material Finished Products Distribution Direct Sales Vertically Integrated Manufacturing Capabilities1 with Global Regulatory Accred
Slide 47: Continued robust performance in the India Consumer Healthcare Business
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 47 Continued robust performance in the India Consumer Healthcare Business Long-term revenue performance Q1 FY23 performance Revenue by Category (In INR Crore) (In INR Crore) Covid Others Women's Protect 1% 10-year Revenue CAGR of 18%
Slide 48: ICH: Focus on Power Brands with Continuous Investments in Brand Promotion
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 48 ICH: Focus on Power Brands with Continuous Investments in Brand Promotion and Marketing Investments in Brand Promotion and Marketing… Kareena Kapoor Priyanka Mohan Sourav Ganguly Amyra Dastur Ajay Devgan Subodh Bhave Little’s Lacto
Slide 49: ICH: Launching New Products and Strengthening Alternate Distribution Channels
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 49 ICH: Launching New Products and Strengthening presence in Alternate Distribution Channels Launching multiple new products and brand extensions #4 #1 #2 #2 #3 40 New Products during FY22 New Products Hygiene Menstrual Diaper Activit
Slide 50: PPL Key Strategic Priorities
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 50 PPL Key Strategic Priorities 1 Note: (1) PPL – Piramal Pharma Limited
Slide 51: PPL Key Strategic Priorities
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 51 PPL Key Strategic Priorities 1 Delivering consistent revenue growth and improving profitability 2 Pursuing organic and inorganic growth opportunities leveraging fresh capital Track record of building scalable ✓ Capacity expansion a
Slide 52: Augmented the PPL Board with Non-Executive / Independent Directors
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 52 Augmented the PPL Board with Non- Executive / Independent Directors
Slide 53: Well Diversified and Globally Experienced PPL Board of Directors
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 53 Well Diversified and Globally Experienced PPL Board of Directors Nandini Piramal Peter DeYoung S. Ramadorai Executive Director, Piramal Chief Executive Officer, Non-Executive, Independent Director Enterprises Limited & Chairperson,
Slide 54: Augmented the PPL Board with Non-Executive / Independent Directors
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 54 Augmented the PPL Board with Non-Executive / Independent Directors Strengthened PPL Board by inducting three new board members Peter Stevenson Non-Executive, Independent Director Mr. Peter Stevenson was a member of Pfizer’s Global
Slide 55: Financials
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 55 Financials
Slide 56: Diversified Revenue Mix
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 56 Diversified Revenue Mix (In INR Crores or as stated) Quarter ended % Sales for Net Sales break-up 30-Jun-22 31-Mar-2022 QoQ % Change 30-Jun-21 YoY % Change Q1 FY2023 Financial Services 2,063 2,024 2% 1,547 33% 58% Pharma 1,485 2,13
Slide 57: Consolidated Profit & Loss
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 57 Consolidated Profit & Loss (In INR Crores or as stated) Quarter ended Particulars 30-Jun-22 31-Mar-22 QoQ % Change 30-Jun-21 YoY % Change Net Sales 3,548 4,163 -15% 2,909 22% Non-operating other income 178 238 -25% 103 73% Total in
Slide 58: Appendix
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 58 Appendix
Slide 59: Equity allocation
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 59 Equity allocation (In INR Crores) Overall Equity As of March 31, 2022 Pharma1: 15% Financial Services (Lending): 48% Built a differentiated business, valued at an EV of Capital Adequacy Ratio of 21% USD 2,775 million in Jun-2020 by
Slide 60: Dial-in details for Q1 FY2023 Earnings Conference Call
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 60 Dial-in details for Q1 FY2023 Earnings Conference Call Event Location & Time Telephone Number +91 22 6280 1264 / +91 22 7115 8165 (Primary Number) India – 5:30 PM IST 1800 120 1221 (Toll free number) USA – 8:00 AM Toll free number
Slide 61: Disclaimer
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 61 Disclaimer Except for the historical information contained herein, statements in this presentation and any subsequent discussions, which include words or phrases such as 'will', 'aim', 'will likely result', 'would', 'believe', 'may
Slide 62: For Investors
Piramal Enterprises Limited – Q1 FY2023 Results Presentation Page 62 For Investors : Hitesh Dhaddha Chief Investor Relations Officer Email : hitesh.dhaddha@piramal.com Phone : +91 22 3046 6306 Aditya Sharma Gagan Borana Chief Manager – IR (Financial Services) General Manager – IR (Pharma) Email : ad
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