Tarsons Products Limited · NSE:TARSONS
Tarsons Products — Q2 FY23 Earnings Presentation
34 slides from Tarsons Products's earnings presentation, Nov 6, 2022
Slide 1: Stock exchange cover letter for investor presentation
An ISO 9001 & ISO 13485 Certified Company Date: 6th November, 2022 To, To, The Manager The Manager Listing Department Listing Department BSE Limited, National Stock Exchange of India Phiroze Jee Jee Bhoy Towers, Limited, Dalal Street, Exchange Plaza, 5th Floor, Plot No. C/1, Mumbai – 400001 G Block,
Slide 2: Investor Presentation - November 2022
TARSONS PRODUCTS LIMITED arsons Investor Presentation - November 2022 TRUST DELIVERED Leading player in the domestic plastic labware market and presence over 40 countries across the Globe
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Tarsons Products Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secu
Slide 4: Tarsons – at a Glance
Tarsons – at a Glance One of the leading Indian labware company engaged in the designing, development, manufacturing and marketing of consumables, reusables and others (including benchtop equipment & instruments) Products used in laboratories across research organizations, academia institutes, pharm
Slide 5: Our Journey
Our Journey Acquired 5 acres of land in Panchla & 6 acres of land in Amta to develop another facility for capacity Incorporation of TPL with Expanded product line by Became an ISO 9001 Obtained ISO 13485:2016/NS- expansion, introduction of new manufacturing of reusable initiating manufacturing certi
Slide 6: Leading Indian Labware Supplier
Leading Indian Labware Supplier Ability to offer differentiated, user friendly, Trusted Brand for high quality Expertise in production of a wide range of reliable quality & cost-effective products products in the plastic labware market labware products & amongst the top has enabled strong brand with
Slide 7: Our Competitive Edge
Our Competitive Edge Geographical Presence Brand & Quality Wide geographic reach through a Leading Indian supplier to the life sciences strong sales & distribution network sector with strong brand recognition and high- quality diversified products across varied customer segments. 03 04 State of Art
Slide 8: Catering to diversified End User Industry
Catering to diversified End User Industry… arsons TRUST OELIVERED Measures to strengthen customer • nebs" relations N.tlon.'CentrffOfelologk,.ISc~eel r.t.ln.IIM.ofFund."...,'.IA .... 'ch Regular Feedback from Customers on quality, Academic Institutes & National Centre for Indian Institute of Rain Fo
Slide 9: Our State-of-the-art Manufacturing Facilities
Our State-of-the-art Manufacturing Facilities… Key Highlights of the High Precision Manufacturing Process ✓ Vertically integrated manufacturing capabilities with design & development being carried out in-house ✓ Automated manufacturing with use of robotics & other technologies developed in collabora
Slide 10: Widespread Domestic Sales & Distribution network
…with widespread Domestic Sales & Distribution network… Comprehensive Pan-India Distribution Network Long-standing relationships with Distributors North: 20% of FY22 Domestic Sales East: 19% of FY22 Domestic Sales 42 Distributors 42 Distributors West: 23% of FY22 Domestic Sales 18 Distributors South
Slide 11: Huge underlying Export Market Potential
…with huge underlying Export Market Potential… Huge Export Opportunity Market One of the very few players to have a Global Reach ✓ As of 31st March 2022, the company sold its products to 40+ countries via 45+ distributors Demand for plasticware expected to grow at ✓ Export operations are a blend of
Slide 12: Wide Range of High-Quality Products
…offering Wide Range of High-Quality Products… Our products are made from high-quality medical grade DMF registered resins which are selected to minimize additives & reduce potential leachables Consumables Reusables Others 63% of FY22 33% of FY22 4% of FY22 Revenues Revenues Revenues • Portfolio of
Slide 13: Diversified product portfolio of Plastic Labware
…diversified product portfolio of Plastic Labware TRUST DELIVERED Pipette Tips Centrifuge Tubes Petri Dishes Cryo Vials Storage Vials Consumables (63% of FY22 Sales) Perfect for versatile applications, • Mostly used in the culture of Used for storage of biological Storage vials are designed for use
Slide 14: Glimpse of our product portfolio & processes
Glimpse of our product portfolio & processes TRUST DELIVERED Disco er a wide range of 'Lab are at Tarsons Video link – Click here Video link – Click here Video link – Click here Video link – Click here Video link – Click here For more information & videos please visit www.tarsons.com/video-new 13
Slide 15: Key Business Strategies
Key Business Strategies • Focus on branding & promotion to enhance visibility in the labware industry to increase brand awareness & loyalty • Manufacture New Products in the cell culture & robotic handled consumables and expand Enhance existing & expand into the import dominated markets of these pro
Slide 16: Experienced Board of Director & Managerial Team
Experienced Board of Director & Managerial Team TRUST DELIVERED Gaurav Podar Sanjive Sehgal Non-Executive Nominee Director Chairman & Managing Director • Currently, Director with ADV Partners • Chairman & Managing Director of Tarsons Product • Investment professional with 11+ years of experience Lim
Slide 17: Contribution towards Environmental, Social & Governance
Contribution towards Environmental, Social & Governance Clean room conditions Use of Medical Grade eliminates all chances of NO litigations faced for pollution contamination Plastics. Products are designed to or degradation of environment withstand critical use over the past five years Productivity
Slide 18: Industry Update
DELIVERING TRUST Across 40 countries, our range of quality labware products help achieve scientific discovery and improve healthcare. Industry Update HlGHUGHTS • An Indian company' engaged in the designing, development. manufacturing and marketing of labware products used in various laboratories and
Slide 19: Plastic Labware Market
Plastic Labware Market Indian plastic labware market is expected to grow at 16% CAGR from 2020-2025 Split of Global Market Size of Plastic Labware (2020) Certrifuge Global Laboratory Equipment Market Indian Laboratory Equipment Market ware ▪ Centrifuge & Liquid Handling market Size (INR Bn) Size (IN
Slide 20: Rapid Shift from Glassware to Plasticware in India
Rapid Shift from Glassware to Plasticware in India Indian Laboratory Equipment Market (Breakup of Glassware and Plasticware segments) INR 10.8 bn INR 11.3 bn INR 8.4 bn Key reasons for the shift: Market Size INR 7.5 bn INR 12.2 bn INR 25.8 bn ▪ Increased Applicability: Superior ability to handle rad
Slide 21: Q2 FY23 Financial Highlights
RELIABILITY •Presence in 40 countries *1,700 SKUs * Q2Products 300 FY23 Financial Highlights arsons TRUST DE:LIVERED
Slide 22: Q2 FY23 Key Financial Highlights
Q2 FY23 Key Financial Highlights Revenue (in Rs. Crs) EBIDTA (in Rs. Crs) Profit After Tax (in Rs. Crs) ➢ Revenue for Q2FY23 stood at Rs. 71.2 crs Commodity inflation, as compared to Rs. 76.0 crs in Q2FY22 Higher share of Higher share of Marketing expenses & Covid related sales conventional business
Slide 23: Revenue Split – Domestic : Export
Q2 FY23 Key Operational Highlights 145 (in Rs. Crs) 140 Revenue Spilt – Domestic : Export 32% 38% Q2FY22 Q2FY23 62% 68% 103 93 76 -10% 71 52 -14% 44 29% 34% 47 H1FY22 H1FY23 42 25 +11% 27 +12% 66% 71% Q2FY22 Q2FY23 H1FY22 H1FY23 Domestic Exports ➢ Our export business revenues grew by 11% & 12% on Y-
Slide 24: Q2 & H1 FY23 Profit & Loss Statement
Q2 & H1 FY23 Profit & Loss Statement Profit and Loss (in Rs. Crs) Q2FY23 Q2FY22 YoY Q1FY23 QoQ H1FY23 H1FY22 YoY Revenue from Operations 71.2 76.0 -6.3% 68.6 3.8% 139.9 145.2 -3.7% Cost of Goods Solds 16.6 15.9 14.4 30.9 28.3 Gross Profit 54.7 60.1 -9.1% 54.3 0.8% 109.0 116.9 -6.8% Gross Profit Marg
Slide 25: Balance Sheet
Balance Sheet Assets (in Rs. Crs) Sept-22 Mar-22 Equity & Liabilities (in Rs. Crs) Sept-22 Mar-22 Non - Current Assets 395.2 299.7 Total Equity 531.8 489.9 Property Plant & Equipment's 191.4 181.4 Share Capital 10.6 10.6 CWIP 74.0 32.2 Other Equity 521.1 479.2 Other Intangible assets 0.6 0.7 Non-Cur
Slide 26: Cash Flow Statement
Cash Flow Statement Particulars (in Rs. Crs) Sep-22 Sep-21 Net Profit Before Tax 56.0 66.9 Adjustments for: Non -Cash Items / Other Investment or Financial Items 11.2 11.9 Operating profit before working capital changes 67.3 78.8 Changes in working capital -20.7 -36.0 Cash generated from Operations
Slide 27: Management Commentary
Management Commentary TRUST DELIVERED Commenting on the Q2 FY23 performance of the company Mr. Rohan Sehgal Said: “Our revenues for Q2FY23 were down by 6% on a Y-o-Y basis and up by 4% on a Q-o-Q basis. If we compare on a like to like basis i.e. negating the high base of covid related revenues in H1
Slide 28: Historical Consolidated Financial Highlights
Historical Consolidated Financial Highlights REVENUE (in Rs. Crs) EBITDA (in Rs. Crs) PAT (in Rs. Crs) +31% 301 153 101 +48% +58% 229 103 69 176 69 41 FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 GP Margin EBITDA Margin PAT Margin 676 bps 1,139 bps 1,042 bps 79.1% 50.8% 33.5% 72.3% 73.1% 45.2% 30.1%
Slide 29: Historical Consolidated Profit & Loss Statement
Historical Consolidated Profit & Loss Statement Profit and Loss (in Rs. Crs) FY22 FY21 FY20 CAGR Revenue from Operations 300.8 228.9 175.9 30.8% Cost of Goods Solds 62.9 61.5 48.7 Gross Profit 237.9 167.4 127.2 36.7% Gross Profit Margin 79.1% 73.1% 72.3% 676 bps Employee Cost 31.4 24.4 20.1 Other Ex
Slide 30: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Assets (in Rs. Crs) Mar-22 Mar-21 Mar-20 Equity & Liabilities (in Rs. Crs) Mar-22 Mar-21 Mar-20 Non - Current Assets 299.7 183.1 128.9 Total Equity 489.9 244.3 197.6 Property Plant & Equipment's 181.4 113.7 87.6 Share Capital 10.6 0.2 0.2 CWIP 32.2 21.5 19.3 Oth
Slide 31: Historical Consolidated Cash Flow Statement
Historical Consolidated Cash Flow Statement Particulars (in Rs. Crs) FY22 FY21 FY20 Net Profit Before Tax 135.0 92.4 53.1 Adjustments for: Non -Cash Items / Other Investment or Financial Items 23.7 15.8 20.0 Operating profit before working capital changes 158.7 108.2 73.1 Changes in working capital
Slide 32: Key Ratios
Key Ratios Return on Equity Return on Capital Employed Return on Asset Debt to Equity 28.2% 34.3% 23.3% 0.2 25.4% 27.2% 18.5% 0.1 20.5% 20.6% 16.3% 0.0 FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 Current Ratio Working Capital (in Rs. Crs) Working Capital Days* Asset Turnover 7.0 135
Slide 33: Key Takeaways
Key Takeaways Leading Indian manufacturer of Financial profile with ~45% EBITDA labware with an established brand & margins & high ROCE coupled with focus on high-quality products double-digit growth rates Presence in an industry with double- Highly automated state-of-the-art digit growth potential
Slide 34: Thank You
Thank You arsons TRUST DELIVERED SG A Strategic Growth Advisors Tarsons Products Limited Strategic Growth Advisors Private Limited CIN: L51109WB1983PLC036510 CIN: U74140MH2010PTC204285 Mr. Santosh Agarwal – Chief Financial Officer Mr. Sagar Shroff/Mr. Pratik Shah santosh@tarsons.in sagar.shroff@sgap