Morepen Laboratories Limited · NSE:MOREPENLAB
Morepen Laboratories — Q4 FY2024 Earnings Presentation
38 slides from Morepen Laboratories's earnings presentation, May 22, 2024
Slide 1: Revised Investors Presentation cover letter to exchanges
Date: 22/05/2024 To, National Stock Exchange of India Ltd. BSE Limited Exchange Plaza, Bandra Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (East), Mumbai- 400 051 Dalal Street, Mumbai- 400 001 Symbol: MOREPENLAB Scrip Code: 500288 Subject: Revised Investors Presentation (Q4’FY24) May, 2024 Dear
Slide 2: Q4 Investor Presentation - May 2024
Q4'INVESTOR Presentation - May 2024 Leading Player in Medical Devices and APIs MOREPEN LABORATORIES LIMITED
Slide 3: Safe Harbour
This investor presentation has been prepared for general information purposes in respect of Morepen Laboratories Limited (“Company”) together with its subsidiary, as applicable (together, with the Company, the “Group”) only, without regard to any specific objectives, suitability, financial situation
Slide 4: Index
INDEX 1 Executive Summary 2 Business Segments 3 Financial Overview 4 Expansion Playbook 5 Management Team
Slide 5: Executive Summary
INDEX 1 Executive Summary Outstanding Performance Medical Devices and APIs
Slide 6: Business Segments: Medical Devices & APIs
1 Executive Summary 80% Over Revenue comes from Business Segments: Medical Devices & APIs OTC Rx Formulation Rx 5.2% 12.8% API Medical Devices APIs OTC Products Devices 55.7% Point of Care Bulk Drugs 26.3% revenue split FY24
Slide 7: Company Positioning
1 Executive Summary Celebrating 40th year of the Journey Company Positioning: Market leader Leading BP Monitor Category Leaders Glucometers* manufacturer* in six APIs* Debt Free Company** With Robust Financials with 68% negligible interest burden Exporting to over 80 68% Export Consistent Growth in
Slide 8: Operational Performance: Revenue
1 Executive Summary 20% Revenue growth with remarkable Operational Perfomance: rise in Devices business Rs. in Crores Rs. in Crores Markets have stabilized after post-covid Annual Revenue Quarterly Revenue inventory build-ups and fresh buying is 2000 500 1704 427 happening 1424 20% 400 367 16.5% 150
Slide 9: Operational Performance: EBITDA and PAT
1 Executive Summary 101% Jump in the EDITDA with higher Operational Perfomance: revenues and better gross margins Rs. in Crores Rs. in Crores Annual EBITDA Annual PAT Cash 200 100 96.62 Generatration -pre tax 172.60 150 101% 80 150% 200 168.89 60 103% 100 85.67 38.67 150 40 100 83.69 50 20 50 0 0 0
Slide 10: Business Segments
INDEX 2 Business Segments Category Leader in Medical Devices and APIs
Slide 11: Category Leader in Medical Devices: BP Monitors and Glucometers
Business Segments 2 Medical Devices 95% Over Business comes from Glucometers Category Leader in Medical Devices : and BP Monitors 100% in-house production, started in Baddi at 2015 including injection moulding. Glucometers manufactured from bare PCBs, with low dependence on import Blood BloodGlucome
Slide 12: Medical Devices Operational Performance
Business Segments 2 Medical Devices 35% Increase in revenue with excellent Operational Perfomance: come back in Glucometers Rs. in Crores Rs. in Crores Annual revenue grew from Rs.327 cr Annual Revenue Quarterly Revenue 100 last year to Rs. 443 cr, recording a leap 500 89 443 of 35% in FY24. 400 35%
Slide 13: Glucometers: Meters and Strips Sold
Business Segments 2 Medical Devices 11.6mn Customer base with repeat purchase of strips every year Glucometers: Numbers in Crores Rs. in Crores No of Meters and Strips Sold Glucometer & Strip Sales (Total) Number of meters installed has gone double in last three years and so is the number of strips
Slide 14: Blood Pressure Monitors
Business Segments 2 Medical Devices 1 million Over BP Monitors sold this year with Blood Pressure Monitors: increasing awareness Numbers in lakhs Rs. in Crores No. of BP Monitors Sold Sales Revenue Strong come back from post-covid drop with a substantial growth of 29% in the number of meters sold an
Slide 15: Manufacturing Cycle
Business Segments 2 Medical Devices STRIP Injection Manufacturing to begin in India in Manufactring Cycle: Moulding this fiscal at full swing Assembly In process Final Quality Bare PCB Mounting lines testing Tests PCB SMT A typical SMT Machine used for Mounting Bulk Sheet Strip Meter Sheets Cuting P
Slide 16: Growth Drivers
Business Segments 2 Medical Devices 100mn Estimated diabetic patients in India, Growth Drivers: only ~50% market is accessible now Capacity expansion to feed the growing demand of BP and Gluco meters Capacity Increased Reach in Direct exports and South India private label Expansion Increased market
Slide 17: R&D New Initiatives
Business Segments 2 Medical Devices R&D Three R&D Labs at Delhi, New Initiatives: Banglore and Baddi (HP) Long term focus on developing Continuous Glucose Monitoring (CGM) Continuous Glucose Cell Culture Immuno Monoclonal Antibodies Diagnostics Monitoring (CGM) Rapid tests for infectious diseases li
Slide 18: Category Leaders in Six Drugs
Business Segments 2 API Business 90% Over of API revenue comes from top Category Leaders in Six Drugs: six high value lead products Morepen 26% Morepen 35% Morepen Others #1 #1 #1 44% Market Market Market 8.7% Monte Share* Share* Others Share* Rosu Others 56% 10.9% 26.8% 65% Others 74% LORATADINE DE
Slide 19: Exporting to over 80 Countries
Business Segments 2 API Business 60% Over Repeat customers with more than 10 years of long relationship Exporting to over 80 Countries: S. America USA 4.1% 16.9% India 31.4% Europe 18.5% MENA Over Over 3.2% Asia 500 200 68% 25.9% Customers India Worldwide* Customers Export API revenue split FY’24
Slide 20: Region Wise Growth
Business Segments 2 API Business 32% Jump in Exports to US market Region Wise Growth: which is higly regulated Rs. in Crores USA Europe India APAC S. America 200 293 250 236 242 38 200 300 40 157 161 172 250 150 7% 250 17% 200 53% 119 150 30 32% 200 150 2% 25 100 100 150 20 100 100 50 50 50 10 50 0
Slide 21: API Operational Performance
Business Segments 2 API Business 300% Over Increase in revenue of Operational Perfomance: Fexofinadine with recent USFDA Rs. in Crores Rs. in Crores Annual Revenue Quarterly Revenue Qty in MT 300 271 1000 940 12 823 14% 250 217 10 800 25% 432 39% 200 8 600 311 150 6 400 100 4 200 50 2 0 0 0 FY23 FY2
Slide 22: Intellectual Property and USFDA Inspections
Business Segments 2 API Business NIL ‘483’ observation* for last three Intellectual Property: USFDA inspections in 2 Plants Long track record of Product Quality and customer relationships. 155 Patents Filed 249 DMFs^ Filed 26 US DMFs 55 Patents Granted Worldwide CEPs in Europe Strong team of 339 res
Slide 23: Brand Play and Distribution
Business Segments 2 Formulation & OTC Over 75 year of legacy of Burnol A synonyms for Burns Brand Play and Distribution : “Jalega to Burnol hi Chalega” All India distribution for OTC and twelve states for Formulation Separate dedicated teams reaching out to over ~35000 doctors. Dr. Morepen OTC produ
Slide 24: Formulation & OTC Operational Performance
Business Segments 2 Formulation & OTC Focus Is on increasing the reach by adding Operational Perfomance: new teams at uncovered HQs Rs. in Crores Rs. in Crores Annual Revenue Quarterly Revenue 350 80 71 72 OTC 307 300 279 10% 28.7% 60 2% 250 200 40 150 100 Rx 20 71.3% 50 0 0 FY23 FY24 Q4'FY23 Q4'FY2
Slide 25: Distribution
Business Segments 2 Distribution 5100+ Distributors and 3.28 lakhs retail touch points across product portfolio 5,100+ distributors and 3.28 lakhs retail touch points in 28 states and 1 UT across product portfolio* Separate dedicated teams for Med. Devices, Rx and OTC businesses Total all sales team
Slide 26: Integrated Pharma Complex at Baddi (HP)
erg integrated pharma complex at baddi (HP) INDIA
Slide 27: Manufacturing Plants
Business Segments 2 Manufacturing Plants Facilities at par with Interntional Standards: Location : Baddi (1998) Masulkhana (1984) Parwanoo (1996) Parwanoo (2007) APIs, Med. Devices APIs Products Formulations Formulations Product Lines: Formulations Approvals:
Slide 28: Financial Overview
INDEX 3 Financial Overview Improved Revenue and EBITDA Margins
Slide 29: Quarterly Performance
3 Financial Overview 249% Increase in the Profit after Tax on Quarterly Performance: the back of 182% increase in EBITDA Rs. in Crores Gross Revenue EBITDA PBT PAT 28.74 500 367 427 60 52.62 50 30 42.20 400 16.5% 50 12.31% 182% 40 279% 25 249% 40 9.88% 20 6.73% 300 30 30 15 200 18.68 20 8.24 20 10 1
Slide 30: Annual Performance
3 Financial Overview Double 101% increase in the EBITDA on the Annual Performance: back of higher revenue and margins Rs. in Crores Gross Revenue EBITDA PBT PAT 96.62 2000 1704 200 172.60 200 135.42 100 1500 1424 20% 150 101% 150 143% 80 150% 7.95% 5.67% 10.13% 55.76 60 1000 100 85.67 100 40 38.67 5
Slide 31: Financial Ratios
3 Financial Overview 144% Increase in the Earning per share Financial Ratios: (EPS) on the expanded equity base EPS (Rs) RoE RoCE Fixed Asset Turover Debt Equity Ratio (Basis Net Asset Block) (Debt Free Company) 2.0 1.88 20 12 11.35% 10 9.02 8.85 144% 15.56% 1.5 10 15 8 8 6 1.0 0.77 6 5.14% 10 7.31%
Slide 32: Expansion Playbook: 2X Growth Plan
INDEX 4 Expansion Playbook 2X Growth Plan
Slide 33: Growth Engine: Reach, Expand
4 Expansion Playbook 2X Growth Plan Reach Expand with new products, market, Growth Engine: 15-20% growth year on year with new products and markets customers with focus on sales force Expand capacities, size and scale for optimum cost structure Medical Devices API Business Expand sales team with top
Slide 34: Management Team
INDEX 5 Managment Team
Slide 35: Management Team
sanjay SURI kushal SURI EXecutive director & CEO- API Director-API Sales & MKTG SUSHIL SURI CHairman & Managing Director API- SALES team
Slide 36: Management Team
varun SURI anubhav SURI amita sharma ceo- consumer care ceo-medical devices C0O- API AJAY SHArma cFo SENIOR MANAGEMENT FINANCE TEAm API- SALES team
Slide 37: Senior Management
Vipul Srivastava Vikas Sharma Manju Nath Pyush Tandon Vivan Prashar COmpany Secretary Head Talent Acquisition Chief of R&D (Devices) VP- Sales & Mktg (API) VP- project & ENGG. ashutosh sharma SUMIT BHAtnagar NISHANt DOSHI Naresh Sharma MK Sharma VP- Sales & Mktg (RX) VP-FINANCE & ACC VP- CORP FINANC
Slide 38: Thank you
Looking for a Fruitful Partnership Thank you www.morepen.com
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