Windlas Biotech Ltd. · NSE:WINDLAS
Windlas Biotech — Q3 FY2024 Earnings Presentation
40 slides from Windlas Biotech's earnings presentation, Feb 8, 2024
Slide 1: Regulation 30 filing cover letter to stock exchanges
Windlas Biotech Limited Reg. Off.: 40/1, Mohabewala Industrial Area Dehradun, Uttarakhand 248 110, India Tel.:+91-135-6608000-30, Fax:+91-135-6608199 Corp. Off.: 705-706, Vatika Professional Point, Sector-66, Golf Course Ext. Road, Gurgaon, Haryana 122 001, India Tel.:+91-124-2821030 CIN-L74899UR200
Slide 2: Investor Presentation – February 2024
Windlas Biotech Limited Investor Presentation – February 2024
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Windlas Biotech 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: Managing Director’s Message
Managing Director’s Message I am pleased to declare that the company has delivered YoY revenue growth of 36% quarterly and 23% in 9MFY24. The Indian pharmaceutical market (IPM) grew by 8% in 9MFY24, with increase in sales prices by 4% and volume growth of 1%. This indicates the price increase has be
Slide 5: CEO & CFO's Message
CEO & CFO's Message We are delighted to announce Rs. 162 Cr revenue and Rs. 20 Cr EBITDA in Q3FY24 - consecutive fourth quarter of highest ever revenue and EBITDA. The Indian Pharmaceutical Market (IPM) growth in 9MFY24 was mainly driven by price realization growth, while volume growth which is rele
Slide 6: Financial Performance Highlights
Financial Performance Highlights 5
Slide 7: Key Highlights: Q3 and 9M FY2024
Key Highlights: Q3 and 9M FY2024 Crossed 160 Cr. milestone, Revenue Q3 & 9M Highest ever EBITDA 01 highest revenue 02 FY24 YoY growth 03 Rs 20 Cr. & Rs 56 Cr. in consecutive 4 quarters 36% & 23% Q3 & 9M FY24 9MFY24 EPS Rs. 19.79 Strong liquidity of Highest PAT Q3 & 9M surpassed 12MFY23 04 FY24 YoY g
Slide 8: Quarterly Performance Highlights
Quarterly Performance Highlights Rs. Crores Revenue EBITDA & EBITDA Margin (%) 11.7% 13.4% 11.3% 11.2% 12.5% +36% 162.2 Consolidated Crossed 160 Cr revenue +46% 20.3 119.7 milestone & consistent highest quarterly 13.9 revenue four quarters in a row. Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 Generic Formulatio
Slide 9: Nine-Monthly Performance Highlights
Nine - Monthly Performance Highlights Rs. Crores Revenue EBITDA & EBITDA Margin (%) 11.8% 13.4% 11.3% 11.2% 12.2% +23% 459.7 Consolidated 372.4 +28% Clocked in highest 56.2 ever nine monthly 43.8 Revenue & EBITDA 9M FY23 9M FY24 9M FY23 9M FY24 Generic Formulations Trade Generics & Exports Vertical
Slide 10: Vertical Break-up
Vertical Break-up Q2FY24 Q3FY23 Q3FY24 20% 18% 19% 77% 73% 77% 4% 7% 5% CDMO CDMO CDMO Trade Generics & OTC Trade Generics & OTC Trade Generics & OTC Exports Exports Exports 9MFY23 9MFY24 18% 19% 78% 77% 3% 4% CDMO Trade Generics & OTC Exports CDMO Trade Generics & OTC Exports 9
Slide 11: Consolidated Profit & Loss Statement – Q3 & 9M FY24
Consolidated Profit & Loss Statement – Q3 & 9M FY24 Particulars (Rs. Crores) Q3FY24 Q3FY23 YoY% 9MFY24 9MFY23 YoY% Net Revenue from Operations 162.2 119.7 35.5% 459.7 372.4 23.4% COGS 101.6 75.7 289.0 236.6 Gross Profit 60.6 44.0 37.7% 170.7 135.8 25.7% Gross Margin (%) 37.3% 36.7% 60bps 37.1% 36.5%
Slide 12: EBITDA Bridge for Q3 & 9M FY24
EBITDA Bridge for Q3 & 9M FY24 Q3FY24 EBITDA Bridge(Rs. Crores) 1.0 5.0 5.2 20.3 15.6 13.9 Q3FY23 Higher/Lower Sales Gross Margin Employee Benefit Expenses Other Expenses Q3FY24 Impact on Gross Margins Improvement/ Reduction 9MFY24 EBITDA Bridge (Rs. Crores) 3.0 12.5 31.8 10.0 56.2 43.8 9MFY23 Highe
Slide 13: Rewarding Shareholders
Rewarding Shareholders • Highest ever EPS in Q3 and 9M FY24 post listing. The earnings per share (EPS) experienced a growth i.e. in Q3 FY24 the EPS stood Rs 7.26 a growth of 71% YoY and in nine months of fiscal year 2024, the EPS stood at Rs.19.79 YoY growth of 38%. • Dividend: • In line with our po
Slide 14: Company Overview
Company Overview 13
Slide 15: Windlas Biotech at Glance
Windlas Biotech at Glance Scalability Durability Profitability Leading Domestic Generic Formulations CDMO Well aligned workforce with ESOPs and Consistently maintained Gross Margins in terms of Revenue variable pay above 35% since FY19 License to manufacture 5,370* Products (as of Digitali
Slide 16: Windlas Biotech’s Presence in Pharma Value Chain
Windlas Biotech’s Presence in Pharma Value Chain * * * * Drug API Formulation Research Packaging Development Manufacturing Manufacturing Value Chain CRO Vertical Generic Formulations CDMO Vertical *Signifies Presence of Windlas Biotech in the Respective Verticals We invest in creating our own formul
Slide 17: Journey So Far…
Journey So Far… Commenced operations at Commenced operations at Received first USFDA inspection clearance • Revenues crossed ₹300 Crores for the FY 2016-17 Dehradun Plant – I and initiated Dehradun Plant – IV Revenues crossed ₹200 Crores for the FY • Launched first product in the United Stat
Slide 18: Strong Board of Directors…
Strong Board of Directors… 22+ years of experience in the Chairman of Confederation of Indian pharmaceutical industry, he has a Industries , Uttarakhand State Council, Bachelor’s degree in Law from the Established Windlas Biotech in 2001. Hemwati Led Windlas Biotech as MD till 2020 Nandan
Slide 19: …Coupled with Proficient Management Team
…Coupled with Proficient Management Team Mr. Ashok Kumar Windlass, Ms. Komal Gupta, Whole Time Director CEO & CFO Founded Windlass Biotech in 2001 Experience – 18+ Years; 54+ Years of Experience in the industry, he has led Windlas Educational Qualification - CA, CS & CWA Biotech as MD till 2020. Wor
Slide 20: Vertical Overview
Vertical Overview Generic Formulations Trade Generics Exports CDMO & Institutional Generic Formulations CDMO vertical This vertical consists of Trade Generics Export vertical is engaged in identifying focused on providing products & services which includes products sold to high growth opportun
Slide 21: Generic Formulations CDMO Business Highlights
Generic Formulations CDMO Business Highlights No. Of Customers 371 Brand Used Brand of the end CDMO Customer Products Fixed dosage, Fixed dosage plus modified release, Customized generics, chewable/ dispersible and plain oral solids Revenue Mix (% of FY23) 78% Amongst the leading Domestic Generic Fo
Slide 22: Well Diversified Product Portfolio
Well Diversified Product Portfolio Windlas provides Generic Formulations CDMO products & services ranging from product discovery, product development, licensing and commercial manufacturing of complex generic products in compliance with current GMP Company’s product portfolio predominantly overlaps
Slide 23: Large Marquee Customer Base
Large Marquee Customer Base Streamlined Client Acquisition Process Added New Customers at a rapid pace 371 Lead Proposal Contract Client +40% 285 Identification Negotiation Winning Management Creation 204 143 97 Key Factors that lead to Expansion of Customer base Audits by several MNC & Domestic
Slide 24: De-Risking the Customer Concentration
De-Risking the Customer Concentration Long-term nature of the relationships help in pre-plan the Capex and eventually help in achieving sustainable growth and profitability Long-term Relationships Ease is Increased Strengthened Competitive cost with Pre-Planning Economies of Purchasing Power structu
Slide 25: Underpinned by Strong Tailwinds for Organized Players
Underpinned by Strong Tailwinds for Organized Players Key Updates in Generic Formulations CDMO industry Scaled CDMOs shifting identity from “Supplier” to “Partner” Customers asking for higher quality systems in R&D as well as Generic Formulations CDMOs deploying superior R&D manufacturing infrastruc
Slide 26: Capex & Outlook For Injectables
Capex & Outlook For Injectables Multiple Triggers for Revenue Growth and Improved Return Ratios Key Highlights Key Growth Drivers Impact Achieved mechanical Foray into High Growth completion for injectables Rise in chronic diseases Would help improve and are on track for Emergence of New Dru
Slide 27: Domestic Trade Generics & Institutional Business Overview
Domestic Trade Generics & Institutional Business Overview Brand Used Company’s Brand Names Products Focus on Respiratory, Anti-diabetic, Gastroentology & other chronic + sub chronic TA’s Revenue Mix (% of FY23) 18% No. of Brands 278 26
Slide 28: Leveraging Trade Generics & Institutional Market Opportunity
Leveraging Trade Generics & Institutional Market Opportunity Highlights Key Drivers Fastest Growing SBV in the last three years chart INR Crores Rs. 91 Crores Trade Generics & Institutional Revenue 91 Low costs compared to branded Trade Generics & Institutional SBV +35% generics revenue (FY23) 61 44
Slide 29: Export Business Overview
Export Business Overview No. Of Customers Focused on Emerging & Semi-Regulated Markets Brand Used Own Brands and End Customer Brands Products Exported 74 Products during FY23 which includes Generic Medicines & Health Supplements Revenue Mix: 3.9% of FY23 Revenue from Operations Exports SBV: INR of 2
Slide 30: Robust R&D Capabilities
Robust R&D Capabilities Robust R&D capabilities help in Customize and Market Complex; Generic Products to Customers and differentiate from Competition Consistent in R&D Expenditure Robust Growth in Complex Generics R&D INR Crores Key Highlights R&D Expenditure No. of Variations in Complex Generics 8
Slide 31: Competencies in Manufacturing Facilities
Competencies in Manufacturing Facilities Efficiency & Effectiveness in Regulatory & Quality Compliance act as solid Entry Barriers Dehradun Plant 1 commenced Dehradun Plant 2 commenced Dehradun Plant 3 commenced Dehradun Plant 4 commenced operations in 2001 operations in 2014 operations in 2018 oper
Slide 32: Strategies & Way Forward…
Strategies & Way Forward… Strategic Investments/ Acquisitions • Leading in Generic Formulations CDMO status benefits the company from the Industry consolidation trend in an already highly fragmented market with 400 Organized and 15,000 unorganized players Injectables • On going new plant for ampoule
Slide 33: Historical Financial Snapshot
Historical Financial Snapshot 32
Slide 34: Financial Snapshot
Financial Snapshot Consolidated Revenue (Rs. Crores) EBITDA (Rs. Crores) PAT (Rs. Crores) +14% 513 +12% 43 466 60 38 428 55 +31% 52 329 29 307 38 34 16 14 FY19 FY20 FY21 FY22 FY23 FY19* FY20 FY21* FY22 FY23 *FY19 FY20 *FY21 FY22 FY23 EBITDA Margin (%) PAT Margin (in %) EPS 12.7% 8.2% 8.3% 12.3% 19.7
Slide 35: Financial Snapshot
Financial Snapshot Consolidated Asset Turnover Ratio Net Worth (Rs. Crores) Net Debt to Equity (x) 4.9 4.8 4.7 0.1 4.4 395 402 0.0 0.0 3.2 194 210 199 FY19 FY20 FY21 FY22 FY23 -0.1 -0.3 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 ROCE (In %) ROE (In %) 26% Net Debt to EBITDA (x) 29% 0.3 0.1 18
Slide 36: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Consolidated Particulars (Rs. Crores) FY23 FY22 FY21 FY20 FY19 Net Revenue from Operations 513.1 465.9 427.6 328.9 307.3 COGS 325.4 302.8 274.4 211.6 191.9 Gross Profit 187.6 163.1 153.2 117.3 115.3 Gross Margin (%) 36.6% 35.0% 35.8% 35.7% 37.5% Employee Expenses
Slide 37: Consolidated Balance Sheet
Consolidated Balance Sheet Consolidated Assets (Rs. Crores) FY23 FY22 FY21 FY20 FY19 Equities & Liabilities (Rs. Crores) FY23 FY22 FY21 FY20 FY19 Non Current assets Equity Property, Plant and Equipment 102.6 88.4 92.5 66.1 59.7 Capital work in progress Equity Share capital 10.5 10.9 6.4 6.4 6.4 13.8
Slide 38: Consolidated Cash Flow
Consolidated Cash Flow Consolidated Particulars (Rs. Crores) FY23 FY22 FY21 FY20 FY19 Net Profit before Tax and Extraordinary items 57.0 45.6 21.7 24.7 76.1 Adjustments for: Non Cash Items / Other Investment or 7.3 10.0 36.3 17.3 -33.9 Financial Items Operating profit before working capital changes
Slide 39: IPO Proceeds Utilization
IPO Proceeds Utilization Utilized as on 31st Particulars (Rs. Crores) Proposed Balance March 2023 Purchase of equipment required for (i) capacity expansion of our existing facility at our Dehradun Plant – IV 50.0 50.0 0.0 (ii) addition of injectables dosage capability at our existing facility at Deh
Slide 40: Contact Us
Contact Us Company: Investor Relations Advisor: CIN: 74899UR2001PLC033407 CIN: U74140MH2010PTC204285 Ms. Komal Gupta Mr. Jigar Kavaiya / Parin Narichania Email: komal@windlasbiotech.com E: jigar.kavaiya@sgapl.net / parin.n@sgapl.net Contact no.: +91 124 2821034 T: +91 9920602034 / +91 9930025733 www