Piramal Pharma Limited · NSE:PPLPHARMA
Piramal Pharma — Piramal Enterprises — Q1 FY2022 Earnings Presentation
45 slides from Piramal Pharma's earnings presentation, Aug 6, 2021
Slide 1: Piramal Enterprises Limited Q1 FY2022 Results
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Piramal Enterprises Limited Q1 FY2022 Results August 6th, 2021
Slide 2: Key Highlights
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 2 Key Highlights PEL Consolidated Financial Services Pharma 29% increase in Equity INR NCLT2 approval for the Approved Pharma Business +31% since Mar-2019 34,996 Cr DHFL acquisition in Jun’21 Q1 Revenue growth 50% reduction in Net Deb
Slide 3: Revenues and Net Profit
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 3 Revenues and Net Profit (In INR Crores) Total Revenues1 Net Profit2 7-year CAGR: +17% 7-year CAGR: +38% 3,187 2,937 2,909 534 496 2,624 448 Q1 FY22 revenues 2,002 broadly flat YoY, 382 despite fall in FS 302 1,507 revenues due to re
Slide 4: Balance Sheet Strengthening
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 4 Balance Sheet Strengthening Net Debt-to-Equity (x) Equity1 Net Debt In INR Crores In INR Crores 2.0x 1.2x 0.9x 0.8x +29% 34,996 34,018 55,122 30,572 -50% 27,224 37,283 30,154 27,677 Mar-19 Mar-20 Mar-21 Jun-21 Mar-19 Mar-20 Mar-21 J
Slide 5: Equity allocation
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 5 Equity allocation (In INR Crores) Overall Equity As of June 30, 2021 Financial Services (Lending): 53% Pharma1: 15% Capital Adequacy Ratio of 39% Built a differentiated business, valued at an EV of USD 2,775 million in Jun-2020 5,26
Slide 6: Financial Services
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 6 Financial Services
Slide 7: Financial Services – Executing on transformation agenda
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 7 Financial Services – Executing on transformation agenda Phase I: Phase II: Phase III: Consolidation Transition + Quantum Growth Sustainable Growth and Profitability From Mar-2019 to Jun-2021 From a wholesale-led to a well-diversifie
Slide 8: Retail Lending – Growth and Scale
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 8 Retail Lending – Growth and Scale Acquisition of DHFL
Slide 9: Significant growth and scale in Retail Lending through the DHFL acquisition
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 9 Significant growth and scale in Retail Lending through the DHFL acquisition PEL Retail + DHFL platform1 1 Significant increase in loan book and presence: Branches ■ Creates one of the top-5 HFCs in India 300+ (branches/micro-branche
Slide 10: DHFL acquisition process – Significant progress made in Q1 FY22
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 10 DHFL acquisition process – Significant progress made in Q1 FY22 Progress so far DHFL acquisition – Breakdown of total consideration Key Milestones Status Month / Timeline Approval from Committee of Creditors (COC) Jan-2021 INR 34
Slide 11: Retail Lending – Products, partnerships and customers, etc.
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 11 Retail Lending – Products, partnerships and customers, etc.
Slide 12: Pivoting to a multi-product retail lending strategy
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 12 Pivoting to a multi-product retail lending strategy Key Areas Strategic Focus Progress so far Differentiated products where banks are less interested, Increased product suite from Products or less significant 2 to 7 products Geogra
Slide 13: Expanding the product portfolio
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 13 Expanding the product portfolio Retail Lending - Product Portfolio Products added V Variants launched 7 P Partnerships2 Used Car Loans P Products Digital Purchase Finance P 4 Digital Personal Loans P Mass Affluent Housing Mass Affl
Slide 14: Retail Lending – Operating Performance
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 14 Retail Lending – Operating Performance Retail loans – Monthly disbursements New business vs. overall book yields Average ticket size by products Under the new retail lending strategy, in INR Cr. Retail Loan book; % p.a. Jun-2021 16
Slide 15: Wholesale Lending
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 15 Wholesale Lending
Slide 16: Progressing in line with our strategy to make the loan book more granular
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 16 Progressing in line with our strategy to make the loan book more granular (in INR Crores, unless otherwise stated) Wholesale Loan Book Top-10 exposures Single-borrower exposures No. of accounts >15% of net worth -27% -30% 3 51,436
Slide 17: Asset quality remained stable QoQ despite headwinds
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 17 Asset quality remained stable QoQ despite headwinds Performance of PEL’s developer clients in Q1 FY22 GNPA ratio1: Overall FS Parameter YoY Change QoQ Change Q1 FY22 Gross slippage ratio2 0.3% Q1 FY22 Net slippage ratio3 0.1% Signi
Slide 18: Maintaining adequate provisions to manage any contingences
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 18 Maintaining adequate provisions to manage any contingences Provisioning as a % of total AUM ■ At the onset of the COVID crisis, adopted a Incremental provision of 5.8% 5.8% conservative & prudent approach to INR 1,903 Cr. was creat
Slide 19: Liabilities Side
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 19 Liabilities Side
Slide 20: Asset-liability profile
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 20 Asset-liability profile (in INR crores) As on Jun 30 2021 (1) Cumulative Inflows 80,967 Cumulative Outflows 64,470 63,407 Significant positive GAP in short-term buckets due to the liquidity buffer created for the DHFL transaction 4
Slide 21: Borrowing mix
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 21 Borrowing mix As on Jun 30, 2021 Breakdown of borrowing mix by type of instruments Breakdown of borrowing mix by type of investors 1% 0.5% 1% 7% Loans 1% 7% Banks 0.5% 1% 5% NCDs / Bonds FIIs / FPIs 7% ECB Insurance 42% CP MFs 17%
Slide 22: Maiden retail bond issuance
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 22 Maiden retail bond issuance Public issue of NCDs by PCHFL (closed in Jul-2021) Investor participation by category 2% Amount raised INR 804 Cr. 34% Weighted average tenure 4.15 years 64% Weighted average coupon 8.69% Retail HNIs Cor
Slide 23: Capital Adequacy and Leverage
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 23 Capital Adequacy and Leverage Capital Adequacy Ratio (%)1 Net Debt-to-Equity 39% 3.9x 36% 31% 2.3x 22% 1.8x 1.6x Mar-19 Mar-20 Mar-21 Jun-21 Mar-19 Mar-20 Mar-21 Jun-21 Financial Services has sufficient growth capital for the next
Slide 24: Resilient QoQ performance in Q1 FY22
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 24 Resilient QoQ performance in Q1 FY22 Key Performance Indicators: PEL Financial Services Commentary on key movements Particulars1 Q1 FY22 Q4 FY21 ■ Total Loan Book: Wholesale book reduction in line with Total AUM2 47,181 48,891 the
Slide 25: Expected improvement in ROE in near term
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 25 Expected improvement in ROE in near term ■ Average cost of borrowings to decline to ~9.5% post the DHFL transaction Immediate decline in (vs. 10.8% in FY21) – the deal is partly funded by 10-year NCDs worth cost of borrowings INR 1
Slide 26: Pharma
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 26 Pharma
Slide 27: Robust Revenue Growth during the quarter
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 27 Robust Revenue Growth during the quarter Long term performance track record Q1 FY22 performance Full Year Revenue1,2 (In INR Crore) 10-year Revenue CAGR of 14% +31% 5,776 5,419 1,362 4,786 1,038 4,322 Strong revenue growth 3,893 ac
Slide 28: Pharma Business EBITDA
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 28 Pharma Business EBITDA EBITDA Margin Trend Q1 FY22 performance Q1 Average: 13% H1 Average: 18% 9M Average: 19% FY Average: 22% +56% 30% 170 109 Revenue growth translates to higher EBITDA margins Q1 FY21 Q1 FY22 ■ EBITDA of INR 170
Slide 29: CDMO: Delivering in line with long term performance track record
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 29 CDMO: Delivering in line with long term performance track record Long term revenue performance Q1 FY22 performance 10-year Revenue CAGR of 13% (In INR Crore) +17% Market position: 13th largest CDMO globally 3,616 719 3,154 614 2,78
Slide 30: CDMO: Comprehensive range of services lead to healthy growth in order book
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 30 CDMO: Comprehensive range of services lead to healthy growth in order book Our unique business proposition enabling healthy traction in order book Number of integrated Patent development Commercial products projects program, phase
Slide 31: Complex Hospital Generics: Strong recovery during the quarter
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 31 Complex Hospital Generics: Strong recovery during the quarter Long term revenue performance Q1 FY22 performance 10-year Revenue CAGR of 16% (In INR Crore) +43% Market position: 4th largest inhaled 1,853 anesthesia player globally 1
Slide 32: Robust performance in the India Consumer Healthcare Business
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 32 Robust performance in the India Consumer Healthcare Business Long-term revenue performance Q1 FY22 performance 10-year Revenue CAGR of 15% +73% (In INR Crore) ■ Strong performance driven by key Market position: #11 rank in OTC segm
Slide 33: Strategic initiatives help strong performance in a challenging period
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 33 Strategic initiatives help strong performance in a challenging period Revenue growth last four quarters 2 Launched new products Despite global pandemic, ~20 new products and ~40 SKUs launched since Mar’20 40% YoY growth over last 5
Slide 34: Key strategic priorities: Pharma
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 34 Key strategic priorities: Pharma
Slide 35: Key strategic priorities: Pharma
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 35 Key strategic priorities: Pharma 1 Delivering consistent revenue growth and improving profitability 2 Pursuing organic and inorganic growth opportunities leveraging fresh capital Track record of building scalable Capacity expansi
Slide 36: Financials
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 36 Financials
Slide 37: Diversified Revenue Mix
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 37 Diversified Revenue Mix (In INR Crores or as stated) Quarter I ended % Sales for Net Sales break-up 30-Jun-21 30-Jun-20 % Change Q1 FY2022 Financial Services 1,547 1,899 -19% 53% Pharma 1,362 1,038 31% 47% Pharma CDMO 719 614 17% 2
Slide 38: Consolidated Profit & Loss
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 38 Consolidated Profit & Loss (In INR Crores or as stated) Quarter I ended Particulars 30-Jun-21 30-Jun-20 % Change Net Sales 2,909 2,937 -1% Non-operating other income 103 65 57% Total income 3,012 3,003 0% Other Operating Expenses 1
Slide 39: Appendix
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 39 Appendix
Slide 40: CDMO: Large market with an attractive growth profile
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 40 CDMO: Large market with an attractive growth profile Global CDMO Market Size expected to grow 1.7x over 8 years (In USD Bn) 169 159 150 142 133 125 115 99 106 2018 2019 2020 2021E 2022E 2023E 2024E 2025E 2026E Underpenetrated and f
Slide 41: Large markets with high entry barriers; witnessing recovery post vaccinations
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 41 Large markets with high entry barriers; witnessing recovery post vaccinations Complex Hospital Generics: Market Size Injectables Inhalation Anti- Blood- Other hospital Anesthesia Pain management Cardiovascular Nutritionals anesthes
Slide 42: Capital Raise and Investments across Businesses
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 42 Capital Raise and Investments across Businesses One of the largest PE deals in the Indian pharma sector with The Carlyle Group Balance Sheet Strengthening post fund raise (in INR Crs) Net Debt (Pharma) Net Debt-to-EBITDA (Pharma) U
Slide 43: Stage-wise provisioning
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 43 Stage-wise provisioning Particulars (in INR Cr., unless otherwise stated) As on Jun-2020 As on Mar-2021 As on Jun-2021 Gross Stage 1 & 2 Assets 50,413 46,873 45,152 Provision - Stage 1 & 2 Assets 2,518 1,766 1,710 Provision Coverag
Slide 44: Dial-in details for Q1 FY2022 Earnings Conference Call
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 44 Dial-in details for Q1 FY2022 Earnings Conference Call Event Location & Time Telephone Number +91 22 6280 1264 / +91 22 7115 8165 (Primary Number) India – 6:00 PM IST 1800 120 1221 / 1800 266 1221 (Toll free number) USA – 8:30 AM T
Slide 45: For Investors
Piramal Enterprises Limited – Q1 FY2022 Results Presentation Page 45 For Investors : Hitesh Dhaddha Chief Investor Relations Officer Email : hitesh.dhaddha@piramal.com Phone : +91 22 3046 6306 Aditya Sharma Mayank Kumar Chief Manager – IR (Financial Services) Chief Manager – IR (Pharma) Email : inve
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