Tarsons Products Limited · NSE:TARSONS
Tarsons Products — Q3 FY2023 Earnings Presentation
34 slides from Tarsons Products's earnings presentation, Feb 12, 2023
Slide 1: Exchange filing cover letter for investor presentation
An ISO 9001 & ISO 13485 Certified Company Date: 12th February, 2023 To, To, BSE Limited (“BSE”), National Stock Exchange of India Limited (“NSE”) Corporate Relationship Department, “Exchange Plaza”, 5th Floor, 2nd Floor, New Trading Ring, Plot No. C/1, G Block, P.J. Towers, Dalal Street, Bandra-Kurl
Slide 2: Tarsons Products Limited Investor Presentation – February 2023
TARSONS PRODUCTS LIMITED arsons Investor Presentation – February 2023 TRUST DELIVERED Leading player in the domestic plastic labware market and presence over 40 countries across the Globe
Slide 3: Safe Harbor
Safe Harbor arsons TRUST DELIVERED 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
Slide 4: Financial Highlights
RELIABILITY •Presence in 40 countries *1,700 SKUs * Q3Products 300 FY23 Financial Highlights arsons TRUST DE:LIVERED
Slide 5: Q3 & 9M FY23 Key Highlights
Q3& 9M FY23 Key Highlights arsons TRUST DELIVERED ➢ Revenues for Q3 & 9MFY23 were lower by 13% & 7% respectively, dip in revenues were on account of; • Temporary Slowdown in the life science industry, since the industry is yet recovering from after effects of the Covid pandemic • Loss in revenues re
Slide 6: Q3 & 9M FY23 Key Financial Highlights
Q3 & 9M FY23 Key Financial Highlights arsons TRUST DELIVERED Revenue (in Rs. Crs) EBIDTA (in Rs. Crs) Profit After Tax (in Rs. Crs) 215.9 108.4 71.2 201.2 90.5 57.9 70.7 33.1 21.5 61.3 26.7 16.1 Q3FY22 Q3FY23 9MFY22 9MFY23 Q3FY22 Q3FY23 9MFY22 9MFY23 Q3FY22 Q3FY23 9MFY22 9MFY23 GP Margin (%) EBIDTA
Slide 7: Q3 & 9M FY23 Key Operational Highlights – Domestic : Export
Q3 & 9M FY23 Key Operational Highlights arsons TRUST DELIVERED 216 (in Rs. Crs) 201 Revenue Spilt – Domestic : Export 35% 34% Q3FY22 Q3FY23 65% 66% 149 133 71 62 31% 34% 46 41 9MFY22 9MFY23 67 68 69% 66% 25 21 Q3FY22 Q3FY23 9MFY22 9MFY23 Domestic Exports ➢ Our export business revenues was lower by 1
Slide 8: Q3 & 9M FY23 Profit & Loss Statement
Q3 & 9M FY23 Profit & Loss Statement arsons TRUST DELIVERED Profit and Loss (in Rs. Crs) Q3FY23 Q3FY22 YoY 9MFY23 9MFY22 YoY Revenue from Operations 61.3 70.7 -13.2% 201.2 215.9 -6.8% Cost of Goods Solds 13.8 15.6 44.7 43.9 Gross Profit 47.5 55.1 -13.7% 156.5 171.9 -9.0% Gross Profit Margin 77.5% 77
Slide 9: Management Commentary
Management Commentary TRUST DELIVERED Commenting on the Q3 FY23 performance of the company Mr. Rohan Sehgal, Whole Time Director for Tarsons, said: “Our revenues for Q3FY23 were lower by 13% on a Y-o-Y basis, this decline was majorly attributable to external macro-economic factors & overall slow dow
Slide 10: Historical Consolidated Financial Highlights
Historical Consolidated Financial Highlights arsons TRUST DELIVERED 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%
Slide 11: Historical Consolidated Profit & Loss Statement
Historical Consolidated Profit & Loss Statement arsons TRUST DELIVERED Profit and Loss (in Rs. Crs) 9MFY23 FY22 FY21 FY20 CAGR (FY20-FY22) Revenue from Operations 201.2 300.8 228.9 175.9 30.8% Cost of Goods Solds 44.7 62.9 61.5 48.7 Gross Profit 156.5 237.9 167.4 127.2 36.7% Gross Profit Margin 77.8
Slide 12: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet arsons TRUST DELIVERED Assets (in Rs. Crs) Sept-22 Mar-22 Mar-21 Mar-20 Equity & Liabilities (in Rs. Crs) Sept-22 Mar-22 Mar-21 Mar-20 Non - Current Assets 395.2 299.7 183.1 128.9 Total Equity 531.8 489.9 244.3 197.6 Property Plant & Equipment's 191.4 181.4 113.
Slide 13: Historical Consolidated Cash Flow Statement
Historical Consolidated Cash Flow Statement arsons TRUST DELIVERED Particulars (in Rs. Crs) Sept-22 FY22 FY21 FY20 Net Profit Before Tax 56.0 135.0 92.4 53.1 Adjustments for: Non -Cash Items / Other Investment or Financial Items 11.2 23.7 15.8 20.0 Operating profit before working capital changes 67.
Slide 14: Key Consolidated Historical Ratios
Key Consolidated Historical Ratios arsons TRUST DELIVERED 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
Slide 15: About Tarsons
arsons TRUST DELIVERED About Tarsons
Slide 16: 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 17: 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 18: Leading Indian Labware Supplier
Leading Indian Labware Supplier arsons TRUST DELIVERED 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 en
Slide 19: Our Competitive Edge
Our Competitive Edge arsons TRUST DELIVERED 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 segmen
Slide 20: Catering to diversified End User Industry
Catering to diversified End User Industry… arsons TRUST OELIVERED Measures to strengthen customer relations Plnebs" NltIonIICentfffofBlolooICIIScltn«. T.t.I""h~l.o'Fund.m,"I.IA... an:1I Regular Feedback from Customers on quality, Academic Institutes & National Centre for Indian Institute of Rain For
Slide 21: 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 22: Widespread Domestic Sales & Distribution network
…with widespread Domestic Sales & Distribution network… arsons TRUST DELIVERED 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 Sale
Slide 23: 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 24: Offering Wide Range of High-Quality Products
…offering Wide Range of High-Quality Products… TRUST DELIVERED 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
Slide 25: Consumables (63% of FY22 Sales)
…diversified product portfolio of Plastic Labware TRUST DELIVERED Pipette Tips Centrifuge Tubes Petri Dishes Sterile Media Bottles Cryo Vials Storage Vials Serological Pipette Consumables (63% of FY22 Sales) ( • Mostly used in culture Designed for use with Disposable pipettes Perfect for versatile S
Slide 26: 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 25
Slide 27: 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 28: 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 29: 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 30: 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 31: Plastic Labware Market
Plastic Labware Market arsons TRUST DELIVERED 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
Slide 32: Rapid Shift from Glassware to Plasticware in India
Rapid Shift from Glassware to Plasticware in India arsons TRUST DELIVERED 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: Superio
Slide 33: Key Takeaways
Key Takeaways TRUST DELIVERED 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 g
Slide 34: Thank You
Thank You arsons TRUST DELIVERED SGA 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