Zota Health Care Ltd. · NSE:ZOTA
Zota Health Care — H1FY20 Earnings Presentation
27 slides from Zota Health Care's earnings presentation, Nov 23, 2019
Slide 1: Cover letter to NSE: Investor Presentation
A zoto' healthcare Itd. November 23,2019 To, The Manager Listing Department, The National Stock Exchange of lndia Limited Exchange Plaza, Bandra Kurla CompJex, Bandra (E), Mumbai - 400051 Dear Sir/Madam, Trading Symbol: ZOTA Sub: Investor Presentation Ref: Regulation 30(6) of SEB| (Listing Obligatio
Slide 2: H1FY20 Performance Highlights
H1FY20 PERFORMANCE HIGHLIGHTS NOVEMBER 2019
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 Result Highlights 4 Operational Metrics 9 Davaindia 12 Business Outlook & Strategy 21 Financial Summary 23 3
Slide 5: Result Highlights
Result Highlights
Slide 6: Quarterly Financial Highlights
Quarterly FINANCIAL HIGHLIGHTS Revenues Gross Profit Gross Profit PAT (INR Lakhs) (INR Lakhs) (%) (INR Lakhs) 4.4% -10.4% -480 bps -55.4% 2528.7 2422.3 33.8 819.5 733.9 245.9 29.0 109.6 Q2FY19 Q2FY20 Q2FY19 Q2FY20 Q2FY19 Q2FY20 Q2FY19 Q2FY20 5
Slide 7: Half Yearly Financial Highlights
HALF YEARLY FINANCIAL HIGHLIGHTS Revenues Gross Profit Gross Profit PAT (INR Lakhs) (INR Lakhs) (%) (INR Lakhs) 8.6% -6.3% -473 bps -59.9% 4,696. 4,326. 9 6 1,497.0 2 1,402.6 1 412.4 34.60 29.86 165.3 H1FY19 H1FY20 H1FY19 H1FY20 H1FY19 H1FY20 H1FY19 H1FY20 6
Slide 8: Profit & Loss Statement - Quarterly
PROFIT & LOSS STATEMENT- Quarterly Particulars (Rs Lakhs) Q2FY20 Q2FY19 YoY % QoQ % Q1FY20 Export Sales (SEZ) 342.0 532.1 -35.7 -25.9 461.8 Dava India Sales 307.0 143.0 114.7 33.2 230.4 Domestic Sales 1,879.7 1,747.2 7.6 27.4 1,475.9 Revenues from Operations 2,528.7 2,422.3 4.4 16.6 2,168.2 Cost of
Slide 9: Management Commentary
MANAGEMENT COMMENTARY • Revenues for the Q2FY20 increased by 4.4% YoY & 16.6%QoQ backed by sales growth in the domestic operations 7.6%/27.36 YoY/QoQ and DavaIndia sales growth of 114.7%/33.2% YoY/QoQ • Gross Profit margins for the quarter declined 481 bps YoY on account of higher material cost and
Slide 10: Operational Metrics
Operational Metrics
Slide 11: Operational Metrics - Domestic
OPERATIONAL METRICS - DOMESTIC Revenues EBITDA PAT (INR Lakhs) (INR Lakhs) (INR Lakhs) 9.0% -67.4% -67.8% 3,950.6 3,624.9 564.9 311.3 184.4 100.2 H1FY19 H1FY20 H1FY19 H1FY20 H1FY19 H1FY20 Note: Revenues includes other income 10
Slide 12: Operational Metrics - Exports
OPERATIONAL METRICS - EXPORTS Revenues EBITDA PAT (INR Lakhs) (INR Lakhs) (INR Lakhs) 1.5% -7.9% -35.8% 119.7 801.9 813.6 110.2 101.3 65.0 H1FY19 H1FY20 H1FY19 H1FY20 H1FY19 H1FY20 Note: Revenues includes other income 11
Slide 13: DavaIndia Generic Pharmacy
healthcare Itd. GY davaindia® GENERIC PHARMACY
Slide 14: DavaIndia retail pharmacy stores expansion and customers
• The retail pharmacy stores continues its stellar performance in terms of its expansion and total customers serviced, as awareness towards generic drugs usage keeping gaining traction • Being asset light in nature the store continues to remain focused on chronic ailments – Cardiac, Diabetic, Thyroi
Slide 15: Zota Healthcare Ltd.
a zota healthcare Itd.
Slide 16: 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 15
Slide 17: 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. Cardiac Diabetic PHARMACIST OTHER Thyroid ailments RENT MISCELLANEOUS MANPOWER EXPENSES ₹15,000 – ₹20,000 ₹15,000 ₹5,000 Dermo INVENTORIES - MEDICINES ₹1,50,000-2,00,000 Initial Cost Inclu
Slide 18: Operating Model of DavaIndia
OPERATING MODEL OF DAVAINDIA Promotions & Brand Product portfolio of building by ZHCL 1,340+ SKU’s Hoardings, Newspaper Focused on Cardiac , Advertisements & much Diabetic, Thyroid ailments more 95% Private Label Brands 202+ Stores Key brands – DavaIndia, Retail Generic Nutravedic, etc. Pharmacy Cha
Slide 19: DavaIndia Stores Roll Out
DAVAINDIA STORES ROLL OUT Store roll-out 39 144 Average Wallet Spend 33 29 29 202 28 27 Stores Opened 15 12 lakh Customers Served 2 H2FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 1st Oct - 15th Nov, 4,250 lakh 2019 Saved by our customers 18
Slide 20: DavaIndia Footprints
DAVAINDIA FOOTPRINTS NEW DELHI (1) HARYANA (4) UTTARAKHAND (2) Dehradun RAJASTHAN (3) Jaipur, Jodhpur, Sikat UTTAR PRADESH (9) GUJARAT (96) Firozabad, Ghaziabad, Lucknow, Varanasi, Jhansi, Amhora Surat, Navsari, Kheda, Vadodara, Rajkot, Ahmedabad, Gandhinagar, Mehsana, Sabarkantha, Banaskantha, Vapi
Slide 21: Sales trend of matured stores and expansion vision
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 20
Slide 22: Business Outlook & Strategy
healthcare Itd. J. Business Outlook & Strategy
Slide 23: 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 24: Financial Summary
Financial Summary
Slide 25: Profit & Loss Statement - Annually
PROFIT & LOSS STATEMENT- ANNUALLY Particulars (INR Lakhs) FY14 FY15 FY16 FY17 FY18 FY19 H1FY18 H1FY19 H1FY20 Income from Operations 5,011.2 5,646.3 6,473.3 7,158.0 7,785.2 8,562.9 3,913.7 4,326.6 4,696.9 Other Income 10.2 1.4 7.7 5.6 151.9 154.5 60.5 100.3 67.3 Total Income 5,021.4 5,647.8 6,481.0 7
Slide 26: 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 27: Thank You
CONTACT INFORMATION Thank You Mr. Himanshu Zota / Mr. Ashvin Variya "ZOTA HOUSE", 2/896, Hira Modi Street, Sagrampura, Surat-395 002(Gujarat) cszota@zotahealthcare.com cszota@zotahealthcare.com www.zotahealthcare.com