Neuland Laboratories Ltd. · NSE:NEULANDLAB
Neuland Laboratories — Q2 FY25 Earnings Presentation
36 slides from Neuland Laboratories's earnings presentation, Nov 6, 2024
Slide 1: Cover letter to stock exchanges
November 6, 2024 To BSE Limited The National Stock Exchange of India Ltd Phiroze Jeejeebhoy Towers, Exchange Plaza, 25th Floor, Dalal Street, Bandra Kurla Complex Mumbai – 400 001 Bandra (E), Mumbai – 400 001 Scrip Code: 524558 Scrip Code: NEULANDLAB; Series: EQ Dear Sir/Madam, Sub: Investors/Analys
Slide 2: Neuland Laboratories Limited Investor Presentation Q2FY25 & H1FY25
Neuland Laboratories Limited Investor Presentation Q2FY25 & H1FY25
Slide 3: Safe Harbour
SAFE HARBOUR Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "
Slide 4: Table of Content
Table of Content Q1FY25 Highlights Company Overview Business Strategy Our Businesses Shareholder Information Q1FY25 Company Business Our Shareholder Annexure Annexure Highlights Overview Strategy Businesses Information 3
Slide 5: Q2FY25 & H1FY25 Highlights
Q2FY25 & H1FY25 Highlights 4
Slide 6: Management Commentary
Management Commentary SUCHETH DAVULURI “The numbers of this quarter are subpar relative to how the business has been performing over the last few quarters. However, they are in line with our commentary right at the beginning of the year as to how we see FY25 panning out. The inherent uneven nature o
Slide 7: Business and Financial Highlights
Business and Financial Highlights H1FY25 Business and Financial Highlights CMS CMS revenues driven by commercial molecules. Increasing interest from Biotech leading to increase in early-stage projects GDS Specialty business driven by Paliperidone In Prime segment Mirtazapine, Levetiracetam, Escitalo
Slide 8: Q2FY25 Financial Highlights
Q2FY25 Financial Highlights Total Income EBITDA PAT* EPS (Rs. Cr) (Rs. Cr) (Rs. Cr) (Rs.) 33.4% 22.1% 31.1% 28.9% 21.2% 20.4% 28.7% 17.3% 20.8% 10.1% 80.7 62.9 444.4 98.3 420.8 394.9 390.4 140.3 89.1 76.6 128.6 122.7 69.4 315.2 112.2 67.6 52.7 65.7 32.0 24.9 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24
Slide 9: H1FY25 Financial Highlights
H1FY25 Financial Highlights Total Income EBITDA PAT* EPS (Rs. Cr) (Rs. Cr) (Rs. Cr) (Rs.) 30.5% 19.3% 25.6% 17.2% 239.6 785.8 117.9 151.3 101.6 130.3 194.3 759.6 H1FY24 H1FY25 H1FY24 H1FY25 H1FY24 H1FY25 H1FY24 H1FY24 Financial Highlights • Total Income for H1FY25 at Rs. 759.6 crore (-3.3% YoY) • EB
Slide 10: Key Balance Sheet Metrics
Key Balance Sheet Metrics Current Ratio(x) ROCE (%) Fixed Asset Turnover (x) Debt to Equity (x) 32.8% 3.1 2.9 2.3 2.7 2.1 0.3 2.4 22.2% 21.3% 1.7 2.1 1.6 0.2 1.5 13.5% 9.7% 0.1 0.1 0.1 FY21 FY22 FY23 FY24 H1FY25 FY21 FY22 FY23 FY24 H1FY25 FY21 FY22 FY23 FY24 H1FY25 FY21 FY22 FY23 FY24 H1FY25 Particu
Slide 11: Key Operating Metrics Q2FY25
Key Operating Metrics Q2FY25 Segment Revenue Prime Specialty Top 10 & Top 5 Products Top 10 Top 10 & Top 5 Customers Top 10 CMS Others Top 5 Top 5 97% 97% 100% 3% 93% 6% 7% 6% 6% 92% 81% 94% 76% 68% 66% 69% 42% 70% 70% 55% 49% 46% 53% 55% 50% 48% 16% 20% 24% 14% 21% 36% 21% 25% 23% 27% Q2FY24 Q3FY24
Slide 12: Key Operating Metrics H1FY25
Key Operating Metrics H1FY25 Segment Revenue Prime Specialty Top 10 & Top 5 Products Top 10 Top 10 & Top 5 Customers Top 10 CMS Others Top 5 Top 5 96% 97% 4% 90% 93% 6% 87% 90% 68% 71% 72% 67% 50% 48% 67% 63% 59% 55% 50% 47% 15% 22% 31% 24% H1FY24 H1FY25 Prime Specialty CMS Overall Company Prime Spe
Slide 13: CMS – Revenue Split & Number of Active Projects
CMS – Revenue Split & Number of Active Projects Rs. Cr No. of active CMS projects YoY Movement 281 Q2FY25 Pre-Clinical P-1 P-2 P-3 Pre-Reg/Reg* Commercial Total API 10 10 11 3 7 9 50 Intermediate 10 7 10 4 6 10 47 156 Grand Total 20 17 21 7 13 19 97 86 Q2FY24 Pre-Clinical P-1 P-2 P-3 Pre-Reg/Reg Com
Slide 14: Company Overview
Company Overview 13
Slide 15: Company Overview
Company Overview Manufacturing of generic Generic APIs non-exclusive APIs Established in Business 1984 verticals Contract development and 40 years in API manufacturing CDMO Services manufacturing of NCE API and development Total reactor volume of 941,000 Liters Facilities Inspected by Supported 3 ND
Slide 16: Key Facts
Key Facts 40+ 978+ 100+ 81% Years of experience DMFs Filed API across 10 diverse Revenue from exports worldwide therapeutic areas 80+ 69 941KL 1742 Countries Served Active US DMFs API Manufacturing Employees Capacity 15
Slide 17: Board Of Directors
Board Of Directors Dr. Davuluri D. Sucheth Rao D. Saharsh Rao Dr. Christopher M. Ms. Pallavi Joshi Rama Mohan Rao Vice Chairman & Vice Chairman & Cimarusti Bhakru Executive Chairman Chief Executive Managing Director Non-executive Independent Officer Director Director Ms. Nirmala Murthy Mr. Homi Rust
Slide 18: Key Milestones
Key Milestones Our Journey 2018 2019 2020 2021 2023 2024 Acquisition of Increased flow of projects 100 M+ revenue over Unit – III Crossed INR 10 bn US FDA audit advanced from CMS Japan. 75 live CMS projects Commercialization revenue. of Unit-I intermediates & Active emphasis on supply US FDA audit o
Slide 19: Our Global Presence
Our Global Presence* EUROPE BD office in Lugano, 50% Switzerland Since 2021 APAC NORTH AMERICA BD office in 2% 40% Princeton, New Jersey Since 2004 JAPAN BD office in 4% Tokyo, Japan Since 2007 LATAM INDIA 2% Headquarters in MENA 1% Hyderabad, India 3 Manufacturing Units Manufacturing and Developmen
Slide 20: Manufacturing Facilities Overview
Manufacturing Facilities Overview UNIT - I UNIT - II UNIT - III Bonthapally, Hyderabad 239 kL Pashamylaram, Hyderabad 381 kL Gaddapotharam, Hyderabad 321 kL Year of 1986 1994 2017 Establishment Blocks Block - 1, 2, 3, 4, H, kL & S Block-1, 2, 3, FC, NMSM, Mini plant(A&B) Block - 1, 2, 4, 5, 7 & 8 Hy
Slide 21: State-of-the-art R&D Centre
State-of-the-art R&D Centre Infrastructure Significant R&D achievements • 15 Development Labs with space • Several NCE APIs added in NDA or for expansion commercial stage drugs • 70 Fume hoods • Support for multiple APIs each year in • Analytical Labs Phase 2 and Phase 3 clinical candidates • Dedica
Slide 22: Regulatory Filings
Regulatory Filings 69 32 10 17 20 DMFs with Filings with Japanese China DMF Filings with USFDA Health Canada DMF filed filed KFDA Korea 28 274 ~499 29 978+ Filings with ROW filings EUDMF filings CEPs received Filings till date TGA including across Germany, for different Turkey, Mexico, France, Polan
Slide 23: Financial Highlights FY2015-2024
Financial Highlights FY2015-2024 Rs. Cr FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Total Income 469.9 511.6 588.9 533.7 670.3 766.6 953.0 953.2 1,200.9 1,571.1 EBITDA 67.4 81.5 106.9 54.6 61.4 105.3 162.5 144.3 281.1 474.5 EBITDA Margin 14.3% 15.9% 18.1% 10.2% 9.2% 13.7% 1
Slide 24: Business Strategy
Business Strategy 23
Slide 25: Neuland Strategy Framework
Neuland Strategy Framework Strategic Priority - IV Strategic Priority - I Digitize planning to delivery processes, financial processes, Build deep competency in complementary new customer servicing processes and build company-wide technologies like bio-catalysis, flow chemistry, and dashboard provid
Slide 26: Our Businesses
Our Businesses 25
Slide 27: Generic APIs (GDS)
Generic APIs (GDS) • We are a preferred service provider in the • API manufacturing heritage of over 40 years manufacturing of Active Pharmaceutical Ingredients (APIs) • Flexible 100g to hundreds of tons capacity • Process Investigation Department (PID) • Non-competitive advantage (does not majorly
Slide 28: CDMO Services (CMS)
CDMO Services (CMS) cGMP manufacturing of RSMs/KSMs/Intermediates and APIs for clinical trials and commercial supply Chemistry & manufacturing capabilities Synthetic portion of Carbohydrate Process fermented molecules chemistry optimization IND/NDA filing Deuterated Cyclic and support molecules PEGy
Slide 29: Shareholder Information
Shareholder Information 28
Slide 30: Shareholding Details
Shareholding Details Share Information (as on 30th September 2024) NSE Ticker NEULANDLAB BSE Ticker 524558 Others 35% Market Cap (Rs. Cr) 15,898 Promoters 33% % free-float 67.36% Free-float market cap (Rs. Cr) 10,709 Shares Outstanding 1,28,29,889 DII 3M Average Daily Traded Volume (ADTV) 49,508 FII
Slide 31: Annexure
Annexure 30
Slide 32: Profit & Loss Snapshot (Standalone)
Profit & Loss Snapshot (Standalone) Particulars (Rs Cr) Q2FY25 Q2FY24 YoY (%) Q1FY25 QoQ (%) H1FY25 H1FY24 YoY (%) Total Income 315.2 420.8 -25.1 444.4 -29.1% 759.6 785.8 -3.3% EBITDA 65.7 140.3 -53.2 128.6 -48.9% 194.3 239.6 -18.9% EBITDA Margin 20.8% 33.4% -1260 bps 28.9% -810 bps 25.6% 30.5% -490
Slide 33: Revenue & PBT trend
Revenue & PBT trend Rs Cr Revenue 444 415 421 395 390 365 315 294 259 258 257 270 246 238 203 222 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 PBT 121 110 110 104 92 84 53 49 39 32 28 24 24 18 13 12 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22
Slide 34: Sustainability Framework
Sustainability Framework Our Key Goals (included in our Executives’ and Focus Our Priorities Our Commitments Goal Area Leaders’ Balanced Scorecard) • Effluent and Waste3’4 • Reduction in direct emissions Direct emissions • FY35: Carbon neutrality: 30%* reduction • Water3’4 • Efforts to water neutral
Slide 35: Glossary
Glossary Term Description Term Description Any substance that is intended for incorporation into a finished drug Drugs (small or large molecule) under development by a Pipeline drugs Active Pharmaceutical product and is intended to furnish pharmacological activity or other manufacturer Ingredient (A
Slide 36: Thank you
Thank you For further information contact IR Desk Neuland Labs Contact: +91 40 6761 1600 Email: mir@Neulandlabs.com Ravi Udeshi / Minakshi Machutre EY IR Contact: +91 22 6192 2000 Email: Ravi.udeshi@in.ey.com / Minakshi.Machutre@in.ey.com