Slide 1: Stock exchange filing cover letter
Date: 2nd June, 2022 To, The Manager, The Manager, Corporate Filings Department, Listing Compliance Department, BSE Limited, National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot no. C/1, G Block, Dalal Street, Bandra-Kurla Complex, Bandra (E), Mumbai- 400 001 Mumbai
Slide 2: SMS Pharmaceuticals Limited Investor Presentation June 2022
SMS Pharmaceuticals Limited Investor Presentation June 2022 1 1
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by SMS Pharmaceuticals 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
Slide 4: Table of Contents
Table of Contents Company Overview ………………………………………………………………………….04-13 Key Strategic Focus…….…………………………………………..………………..……...14-20 Financial Highlights ……………………………………………………………………….…21-25 Historical Performance at a Glance ………………………………………………….26-31 3
Slide 5: Company Overview
Company Overview 4
Slide 6: Company at a Glance
Company at a Glance Genesis CRAMS Business ▪ A 30-years old research-driven company headquartered in Hyderabad. ▪ Engaged in providing quality alternative manufacturing destination to multinationals for their contract research and manufacturing needs. ▪ API focused company with 2 world class operati
Slide 7: Transformation Over the Years
Transformation Over the Years Diversification + Value-Addition + Expansion Awards & Recognitions Way Forward Acquisition Got Listed Won the prestigious Scaling Up “Indian Pharma Bulk Successfully developed & Acquired a facility to SMS got listed on drug company of the Became the largest commercializ
Slide 8: Highly Competent Team…To Drive the Future Growth
Highly Competent Team…To Drive the Future Growth Mr. Ramesh Babu Potluri Mr. P. Sarath Kumar Sri Sarvepalli Srinivas Sri Sravan Kudravalli Mr. Vamsi Krishna Potluri Chairman & MD Director Director Director Executive Director • Post-graduate Technocrat. • Founder partner of the • Holds a B.Com. Degre
Slide 9: State-of-the-art Manufacturing Facilities
State-of-the-art Manufacturing Facilities Particulars Hyderabad Visakhapatnam Year of Establishment 2000 2010 Plant Area: 19,685 Plant Area: 3,45,007 Area (units in Sq. M) Built Up: 5,127 Built Up: 39,704 Capacity 120KL 3,000 KL Famotidine, Rizatriptan Benzoate, Ibuprofen, Tenofavir, Ranolazine, Key
Slide 10: Strong Thrust on R&D
Strong Thrust on R&D Product Development 01 ▪ Added 20 new products to the company’s product basket over the past few years. Technical Team 02 ▪ Comprises 100+ scientists & 8 PHDs; 45 scientists ensure disciplined adherence to regulatory standards and client specifications Quality Management 03 ▪ Op
Slide 11: Self-reliant Manufacturing Plants
Self-reliant Manufacturing Plants Particulars No. Total No. of Reactors 50 Minimum Size 50 L Maximum Size 3,000 L Total Capacity 57 KL Glass Lined Reactors 17 SS Reactors 31 Hydro-generators 2 Distillation Still 1 Glass Flasks 5 ➢ Pre-treatment plant capacity (MGF & Softner) 1750 Lts/ Hr. SS Centrif
Slide 12: …and a Wide Array of Manufacturing Capabilities
…and a Wide Array of Manufacturing Capabilities Capacity Equipment Name MOC (Min-Max) Stainless steel Reactors SS 50 L – 32 KL Glass lined Reactors MS-GL 63 L – 10 KL Leaf Filters SS 80 – 100 L Nutsch Filters SS 80 – 1500 L Agitated Nutsche Filter Drier SS 2500 – 15000 L Sparkler Filter SS 10-177 L
Slide 13: Supported by Comprehensive Chemicals and Process Capabilities
Supported by Comprehensive Chemicals and Process Capabilities… Distillation (Normal & Vaccum) Distillation (Normal & Vaccum) Condensation Oxidation Oxidations & Reductions Cyclisation Dehydration Nitration Fridel Craft Methylation Reduction Condensation Mesylation Silyation Electrophillic aromatic s
Slide 14: Long Lasting Relationships with Marquee Clients
…Resulting into Long Lasting Relationships with Marquee Clients 13
Slide 15: Certifications
Certifications .. « COUNCIL OF EUROPE * VO) a . Europes Deco Deon epee ( J BUTEA ERAEMRERS A forthe Quality | dela qualité Pharmaceuticals and Medical Devices Agency of Medicines: & HealthCare dumédicament &:soins de santé CONSEIL DE [EUROPE 14
Slide 16: CSR Activities
CSR Activities ✓ Sponsored & Constructed Z.P. High School at Poosapatriga Village, Andhra Pradesh ✓ Sponsored for Borewell drilling ✓ Donation of Oxygen cylinders at Kopperla Chinthapalli Village, Andhra Pradesh Village in aid of Covid 19 victims 15
Slide 17: CSR Activities
CSR Activities ✓ Sponsored & Constructed R.O water plant at Thammayapalem ✓ We also Donated INR 20 Lakh to the police Viliage, Andhra Pradesh force to support their selfless service during covid times. ✓ Extended financial support to Campus challenge 16
Slide 18: Awards/Accolades
Awards/Accolades Indo US NCGC Award Bulk Drug Company of the Year ❑ First Indian pharma company to ❑ India Pharma Bulk Drug Export Company of receive Indo-US GCNC award for the Year Award from Government of India. adopting green chemistry practices Pandit Jawaharlal Nehru ❑ Received the Indian Pharm
Slide 19: Key Strategies
Key Strategies 18
Slide 20: Key Strategic Focus
Key Strategic Focus Niche Product Portfolio Carved out a strong presence in complex, niche API therapies with a global leadership in multiple products Expansion Brownfield capex of Rs. 200 crores in FY21 to augment the next leg of growth Unique Value Proposition Global presence, Strong domain expert
Slide 21: Niche Product Portfolio
Niche Product Portfolio Leadership in Select High-Value, Complex APIs API portfolio comprises of specialized and profitable products Growing share of High Value Products in niche therapeutic areas. Reflects the strong ability to foray into other high-value, niche and complex products Currently devel
Slide 22: Expansion
Expansion With ~ Rs. 200 crores capex at Vishakhapatnam Facility in FY21, the company is fully geared up for the next level of growth. • The brownfield capex is aimed towards capacity augmentation of multiple products and therapies. • The incremental capacity addition through the capex is 1,300 KL,
Slide 23: Unique Value Proposition
Unique Value Proposition Global Presence ~80% Exports Revenue (including deemed exports) in 75+ countries across 5 continents – Lower dependency on single country/region Long-standing Relationships Long standing relationships with suppliers and customers - Cost-efficient, consistent, sustainable raw
Slide 24: Diversification
Diversification Well-diversified across Geographies, Markets, Therapies, Products and Customers = Risk Reduction and Multiple Growth Avenues 01 02 03 04 Geography Markets API Therapies Customers • Regulated Markets contributed • Top 5 therapies contributed • Domestic: Largest client • Domestic - Exp
Slide 25: De-risked & Integrated Value Chain
De-risked & Integrated Value Chain Backward Integration Verticle Integration Strategic ➢ Vertically integrated through VKT ➢ Over the years, SMS Pharma has Pharmaceuticals Pvt. Ltd. - An Associate strategically invested in backward Investments company integration to be self-reliant and reduce across
Slide 26: Financial Highlights
Financial Highlights 25
Slide 27: Consolidated Revenue Break-up – Financial Year Ended
Consolidated Revenue Break-up – Financial Year Ended Q1FY21 FY21 FY22 Segment-wise 97% 96% 3% 4% API Intermediates & Others API Intermediates & Others Q1FY21 FY21 FY22 Geography-wise 81% 93% 7% 19% Domestic Exports Domestic Exports 26
Slide 28: Consolidated Revenue Break-up – Quarterly
Consolidated Revenue Break-up – Quarterly Q1FY21 Q4FY21 Q3FY22 Q4FY22 Q1FY22 Segment-wise 98% 94.7% 98% 2% 5.3% 2% API Intermediates & Others API Intermediates & Others API Intermediates & Others Q1FY21 Q4FY21 Q3FY22 Q4FY22 Q1FY22 Geography-wise 76% 95% 89% 5% 11% 24% Domestic Exports Domestic Expor
Slide 29: API Therapy-wise Revenue Break-up – Financial Year Ended
API Therapy-wise Revenue Break-up – Financial Year Ended FY21 FY22 6% 11% 14% 6% 23% 8% 8% 25% 7% 14% 38% 40% ARV Anti-Ulcer ARV Anti-Ulcer Anti-Epileptic Anti-Migraine Anti-Epileptic Anti-Migraine Anti-Erectile Dysfunction Others Anti-Erectile Dysfunction Others 28
Slide 30: API Therapy-wise Revenue Break-up – Quarterly
API Therapy-wise Revenue Break-up – Quarterly Q1FY21 Q4FY21 Q3FY22 Q4FY22 Q1FY22 6% 16% 14% 3% 1% 8% 41% 7% 30% 21% 30% 9% 14% 6% 35% 37% 10% 12% ARV Anti-Ulcer ARV Anti-Ulcer ARV Anti-Ulcer Anti-Erectile dysfunction Anti-Migraine Anti-Erectile dysfunction Anti-Migraine Anti-Erectile dysfunction Ant
Slide 31: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Crores) Q4FY22 Q4FY21 YoY% Q3FY22 QoQ% FY22 FY21 YoY% Net Revenue from Operations (Net of Excise) 60.9 171.3 -64% 121.3 -50% 519.9 563.2 -8% Other Income 0.4 1.3 2.1 5.2 3.5 Total Revenue 61.4 172.6 123.4 525.1 566.6 COGS 33.6 95.4 61.4 275.5 340
Slide 32: Historical Performance at a Glance
Historical Performance at a Glance 31
Slide 33: Strong Financial Performance
Strong Financial Performance Consolidat ed Revenue (Rs. Crores) EBITDA (Rs. Crores) PAT (Rs. Crores) +3% +6% 563 125 +18% 63 62 520 120 463 465 412 93 90 80 40 32 32 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 EBITDA Margin (%) PAT Margin (%) +480bps 22.1% 23.0% 13.1%
Slide 34: Strong Financial Performance
Strong Financial Performance Consolidat ed EPS (In Rs) Net Worth (In Crores) Leverage (X) +18% 7.4 7.4 494 0.58 +15% 0.53 428 0.48 348 0.42 0.41 4.7 322 285 3.8 3.7 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 ROCE (in %) ROE (in %) 22.8% 14.2% 13.8% 21.0% 13.4% 19.4% 1
Slide 35: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. crores) FY22 FY21 FY20 FY19 FY18 Net Revenue from Operations 519.9 563.2 411.9 464.9 462.7 Other Income 5.2 3.5 5.1 3.4 2.4 COGS 275.5 340.0 280.0 327.6 324.4 Gross Profit 249.6 226.6 131.9 137.4 138.3 Gross Margin (%) 48.0% 40.2% 32.0% 29.5% 29.
Slide 36: Consolidated Balance Sheet
Consolidated Balance Sheet Equities & Liabilities (Rs. crores) FY22 FY21 FY20 FY19 FY18 Assets (Rs. crores) FY22 FY21 FY20 FY19 FY18 Equity Non Current assets Equity Share capital 8.5 8.5 8.5 8.5 8.5 Property, Plant and Equipment 434.1 452.3 275.2 280.1 278.9 Other Equity 485.3 419.7 339.8 313.5 276
Slide 37: Consolidated Cashflow Statement
Consolidated Cashflow Statement Particulars (Rs. crores) FY22 FY21 FY20 FY19 FY18 Net Profit before Tax and Extraordinary items 68.7 91.1 50.8 62.4 60.3 Adjustments for: Non Cash Items / Other Investment or 45.8 27.8 28.7 26.8 31.1 Financial Items Operating profit before working capital changes 114.
Slide 38: For further information, please contact
For further information, please contact Company: Investor Relations Advisor: CIN: L24239TG1987PLC008066 CIN: U74140MH2010PTC204285 Mr. Thirumalesh Tumma Mr. Jigar Kavaiya / Mr. Chinmay Madgulkar Email: complianceofficer@smspharma.com E: jigar.kavaiya@sgapl.net / chinmay.m@sgapl.net Contact no.: +91