Entero Healthcare Solutions Limited · NSE:ENTERO
Entero Healthcare Solutions — Q1 FY25 Earnings Presentation
37 slides from Entero Healthcare Solutions's earnings presentation, Aug 15, 2024
Slide 1: Regulation 30 filing cover letter to BSE and NSE
Ref: 45/SE/LC/2024-25 Date: 15/08/2024 To, Head, Listing Compliance Department Head, Listing Compliance Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Dalal Street, Exchange Plaza, Plot No. C/1. G Block, Mumbai - 400 001. Bandra -Kurla Complex, Bandra (East
Slide 2: Entero Healthcare Solutions Limited Investor Presentation – August 2024
Everything in Pharma… Everywhere in India… Entero Healthcare Solutions Limited Investor Presentation – August 2024
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Entero Healthcare Solutions Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe
Slide 4: Q1 FY25 Financial Highlights
Q1 FY25 Financial Highlights
Slide 5: Management Commentary
Management Commentary We are happy to report another quarter with industry leading growth. The company reported consolidated revenues of Rs. 1,097 crore, marking a 22% y-o-y increase from Rs. 899 crore in Q1FY24. This growth significantly outpaced the Indian Pharmaceutical Market (IPM) growth rate o
Slide 6: Operational Highlights
Operational Highlights Outperforming Customers Relationship with Market Growth (Retailers) SKU’s Handled healthcare product manufacturers Entero: 22% › Q1FY25: 60,300+ › Q1FY25: 64,100+ › Q1FY25: 2,000+ IPM: 9% › Q1FY24: 57,300+ › Q1FY24: 59,600+ › Q1FY24: 1,800+ Customers Districts Covered Warehous
Slide 7: Consolidated Financial Highlights
Consolidated Financial Highlights Revenue (Rs. Cr) Gross Profit (Rs. Cr) & Margin (%) +22% +26% 1,097 100 899 79 8.8% 9.1% Q1FY24 Q1FY25 Q1FY24 Q1FY25 EBITDA (Rs. Cr) & Margin (%) PAT (Rs. Cr) +17% +219% 30 21 26 2.9% 2.8% 6 0.7% 1.9% Q1FY24 Q1FY25 Q1FY24 Q1FY25 6
Slide 8: Acquisition Update
Acquisition Update On Track to meet INR 1,000 crore Revenue from acquisitions in FY25 Acquisition Objectives / Synergies 830 Rs. in crore 315 Consolidation in existing market 31% New Product Range 37% 433 82 32% Revenue of Deals Closed To be closed To be closed New Geographies Deals in Q2FY25 in Q3F
Slide 9: Key Balance Sheet Highlights
Key Balance Sheet Highlights Net Operating Working Capital (Days) RoCE (%) RoE (%) 71 10.1% 5.9% 5.9% 67 9.2% Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 RoCE: EBIT / Average Capital Employed (Capital Employed = Tangible Networth + Borrowings + Deferred Tax Liability) RoE: PAT / Average Tangible Netwo
Slide 10: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Cr) Q1FY25 Q1FY24 YoY% Revenue 1,097.0 899.2 22% Cost of Goods Sold 997.1 819.7 Gross Profit 100.0 79.5 26% Gross Margin (%) 9.1% 8.8% 27 bps Employee Expenses 42.8 36.0 ESOP Expenses 0.7 - Other Expenses 26.2 17.7 EBITDA 30.2 25.8 17% EBITDA Mar
Slide 11: Utilization of IPO Proceeds
Utilization of IPO Proceeds Amount to be funded Particulars (Rs. Cr) Utilized till date Unutilized from Net Proceeds Repayment/prepayment, in full or part, of certain borrowings availed of by our Company 142.5 142.5 - Funding of long-term working capital requirements of the Company and its Subsidiar
Slide 12: About Us
About Us
Slide 13: We are a Healthcare Supply Chain Solutions Specialist
We are a Healthcare Supply Chain Solutions Specialist Amongst the top three healthcare products distributors in India in terms of revenue Our Warehouses Fastest scale-up of operations among healthcare products distributors in India with track record of 44* acquisitions Pan-India presence through our
Slide 14: Entero at a Glance
Entero at a Glance Geographical Reach of Distribution Network 60,300+ 2,500+ 2,000+ Customers Retail Pharmacies Hospital Supply relationships with catered to customers healthcare product manufacturers AMRITSAR PANCHKULA DEHRADUN KARNAL DELHI GHAZIABAD GURGAON FARIDABAD JAIPUR GORAKHPUR GUWAHATI LUCK
Slide 15: Building a Highly Scalable Business Model
Building a Highly Scalable Business Model Consolidated Revenue (Rs. Cr) Customers (Retailers) Customers (Hospitals) FY22 64,200+ FY22 2,500+ 3,922 FY23 81,400+ FY23 3,400+ +30% CAGR FY24 86,300+ FY24 3,500+ 3,300 Relationship with healthcare SKU’s Handled product manufacturers 2,522 FY22 56,500+ FY2
Slide 16: Growing faster than Industry… Gaining Market Share
Growing faster than Industry… Gaining Market Share High base effect due to COVID-19 65% IPM Entero Organic Growth Entero Consolidated Growth 53% 40% 41% 38% 35% 35% 32% 31% 26% 27% 24% 21% 22% 19% 19% 19% 20% 16% 16% 17% 15% 15% 14% 18% 17% 11% 16% 10% 9% 10% 9% 9% 9% 7% 12% 6% 2% -2% Q1FY22 Q2FY22
Slide 17: Strong Board backed by a Healthcare-Focused Investors
Strong Board backed by a Healthcare-Focused Investors Prabhat Agrawal Sujesh Vasudevan Rajesh Shashikant Dalal Sandhya Gadkari Sharma Promoter, Managing Director and Chairperson and Non-Executive Non-Executive Independent Non-Executive Independent CEO Independent Director Director Director Prem Seth
Slide 18: Leadership Team
Leadership Team Prabhat Agrawal Prem Sethi CV Ram Promoter, Managing Director and CEO Promoter, Whole-time Director and COO Group Chief Financial Officer ◼ Previous experience as CEO with Alkem Laboratories, ◼ Previous experience as Director – Offering Development and ◼ Previous experience as CFO wi
Slide 19: Leadership Team
Leadership Team Jayant Prakash Sambit Mohanty Abhitesh Kumar Vice President - General Counsel, Company President - Institutional Business President - Retail Business & New Initiatives Secretary and Compliance Officer • Bachelor’s degree in corporate secretaryship from • Bachelor’s of science from Ut
Slide 20: Market Opportunity
Market Opportunity
Slide 21: Pharmaceutical Supply Chain in India is Highly Fragmented
Pharmaceutical Supply Chain in India is Highly Fragmented Player in Value Chain Typical Functions and Role No. of Players Typical Margin range Pharmaceutical and Healthcare Companies ~3,000 Products Manufacturer ▪ Manufacturing units supplying finished products 40 – 60% Man. Units 10,500 ▪ Marketer
Slide 22: Key Challenges in the Pharmaceutical Supply Chain
Key Challenges in the Pharmaceutical Supply Chain Pharmaceutical and Healthcare Products Manufacturer / High expiries due to multiple Complexity of dealing with Limited or no secondary sales No direct reach to retailers, Inadequate storage stock points and no data Marketer multiple sub-scale distrib
Slide 23: Healthcare Products Distribution Market Overview
Healthcare Products Distribution Market Overview Large and Growing Target Addressable Market… …Led by Increasing Share of Large / National Distributors Share of the total distributor sales for Large / National pharmaceutical distributors 20-30% CAGR $33.2bn 10-11% 25-30% 8-10% Target Addressable Mar
Slide 24: Key Strengths
Key Strengths
Slide 25: Key Strengths
Key Strengths We Operate in the Large and Highly Fragmented Indian Healthcare Products Distribution Market and Expect to Benefit from Market Consolidation We are One of India’s Largest and Fastest Growing Healthcare Products Distribution Platforms Track Record of Inorganic Expansion and Integration
Slide 26: Highly Fragmented Market… to Accelerate Consolidation
Highly Fragmented Market… to Accelerate Consolidation US China India(1) Germany Top 3: 90 – 95% Top 4: 40 – 45% Top 3: 8 – 10% Top 5: 95 – 97% Share of Large Players in the Pharma Distribution Top 3 Top 4 Top 3 Top 5 / All Share of Top x 2020 90 – 95% 40 – 45% 8 – 10% 95 – 97% in Total Pharma Distri
Slide 27: One of India’s Largest & Fastest Growing Healthcare Supply Chain Company
One of India’s Largest & Fastest Growing Healthcare Supply Chain Company Geographical Reach of our Distribution Network Distribution Presence 19 States 41/502 Cities/Districts AMRITSAR Customer Network PANCHKULA DEHRADUN KARNAL GHAZIABAD DELHI Retail GURGAON FARIDABAD Hospital JAIPUR GORAKHPUR GUWAH
Slide 28: Successful track record of Acquisitions and Integration
Successful track record of Acquisitions and Integration Track Record of Growth of Acquired Companies Acquisition Strategy Distributor Name Date of Acquisition Location FY21-23 Growth R.S.M Pharma 14-Aug-2018 Bengaluru ~69% › Take advantage of market consolidation opportunities available Getwell Medi
Slide 29: Differentiated Business Model
Differentiated Business Model Offers both demand generation and demand fulfilment capabilities to healthcare brands and product manufacturers Demand Generation via Integrated Demand Fulfilment via end-to-end healthcare products distribution solutions Commercial Solutions Deploy Medical Representativ
Slide 30: Proprietary Technology Platform
Proprietary Technology Platform with Integrated Business Intelligence Tools and Solutions Technology-Focused Approach Anchored on Our Proprietary Integrated Tech …To Grow our Operations and Bring Efficiencies in the Healthcare Platforms and Business Intelligence Tools… Products Distribution Ecosyste
Slide 31: Key Growth Drivers
Key Growth Drivers Benefit from healthcare products distribution market consolidation with strategic acquisitions Strengthen market position through increases in customer base, wallet share and geographic penetration Pursue comprehensive marketing and distribution collaborations with healthcare prod
Slide 32: Historical Financials
Historical Financials
Slide 33: Historical Financial Highlights
Historical Financial Highlights Revenue (Rs. Cr) Gross Profit (Rs. Cr) and Margin (%) 8.0% 8.3% 8.1% 9.0% +30% 3,922 352 3,300 +35% 268 2,522 210 1,780 142 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 EBITDA (Rs. Cr) and Margin (%) Net Operating Working Capital (Days)* 1.2% 1.0% 1.9% 2.9% 112 71 71 64 67
Slide 34: Consolidated P&L Statement
Consolidated P&L Statement Particulars (Rs. Cr) FY24 FY23 FY22 FY21 Revenue 3,922.3 3,300.2 2,522.1 1,779.7 Cost of Goods Sold 3,570.4 3,031.9 2,312.4 1,638.1 Gross Profit 352.0 268.3 209.6 141.6 Gross Profit Margin 9.0% 8.1% 8.3% 8.0% Employee Cost 149.4 128.1 114.8 75.9 ESOP Expenses 1.8 0.0 0.0 0
Slide 35: Consolidated Balance Sheet
Consolidated Balance Sheet ASSETS (Rs. Cr) Mar-24 Mar-23 Mar-22 Mar-21 EQUITY AND LIABILITIES (Rs. Cr) Mar-24 Mar-23 Mar-22 Mar-21 ASSETS Equity Non-current assets Equity Share capital 43.5 4.1 3.9 0.1 Property, plant and equipment 41.0 43.2 45.7 40.9 Other equity 1,594.6 590.9 557.2 485.3 Capital w
Slide 36: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (Rs. Cr) FY24 FY23 FY22 FY21 Net Profit Before Tax 35.6 -3.7 -19.8 -10.8 Adjustments for: Non Cash Items / Other Investment or Financial Items 86.6 -71.2 -41.5 42.7 Operating profit before working capital changes 122.2 67.5 21.7 31.8 Changes in working ca
Slide 37: Company and Investor Relations Advisor contacts
Company: Investor Relations Advisor: CIN: L74999HR2018PLC072204 CIN: U74140MH2010PTC204285 Mr. CV Ram Mr. Jigar Kavaiya / Parin Narichania E: irentero@ehspl.com E: jigar.kavaiya@sgapl.net / parin.n@sgapl.net T: +91-22-69019100 T: +91 9920602034 / +91 9930025733 www.enterohealthcare.com www.sgapl.net
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