Piramal Pharma Limited · NSE:PPLPHARMA
Piramal Pharma — Piramal Enterprises — Q3 FY2021 Earnings Presentation
38 slides from Piramal Pharma's earnings presentation, Feb 11, 2021
Slide 1: Q3 & 9M FY2021 Results Presentation
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Piramal Enterprises Limited Q3 & 9M FY2021 Results February 11th, 2021
Slide 2: Key Highlights
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 2 Key Highlights ■ Q3 FY21 profit increased +27% QoQ and +10% YoY to INR 799 Cr. PEL Consolidated ■ Overall Equity of INR 35,467 Cr. (+30% since Mar-2019) Improved Balance Sheet strength & profitability ■ Net Debt reduced by INR
Slide 3: DHFL Acquisition – Transaction Highlights
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 3 DHFL Acquisition – Transaction Highlights ■ RBI referred DHFL to NCLT in Nov-2019 and the insolvency proceedings began ■ After getting delayed due to COVID-19, the bidding process began in Oct-2020 and ended in Dec-2020 ■ Commi
Slide 4: Revenues and Net Profits
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 4 Revenues and Net Profits (In INR Crores) Total Revenues1,2 Net Profit3 6-year CAGR: 21% 6-year CAGR: 35% 9,727 9,408 8,474 1,923 1,724 6,672 1462 5,089 1176 941 3,805 3,000 712 321 9MFY15 9MFY16 9MFY17 9MFY18 9MFY19 9MFY20 9MFY
Slide 5: Balance Sheet Highlights
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 5 Balance Sheet Highlights Net Debt-to-Equity (x) Overall Equity (INR Cr.) Net Debt (INR Cr.) 2.0x 1.9x 1.8x 1.6x 1.2x 1.2x 1.2x 0.9x 55,122 +30% 52,055 48,963 -44% 35,467 46,066 31,475 30,572 31,018 29,013 37,283 38,153 36,721 2
Slide 6: Equity allocation
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 6 Equity allocation (In INR Crores) Overall Equity Financial Services (Lending): 49% Pharma 1: 16% Capital Adequacy Ratio of 37%. In addition, provisions of INR 2,935 Cr. Built a differentiated business, valued at an EV of (equiv
Slide 7: Financial Services – Wholesale Lending
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 7 Financial Services – Wholesale Lending
Slide 8: Residential RE sector: Continued recovery across key markets
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 8 Residential RE sector: Continued recovery across key markets No. of housing units sold Jan-Mar'20 Apr-Jun'20 Jul-Sep'20 Oct-Dec'20 Overall Residential RE Industry Oct-Dec’20 sales as a % of 140% 153% 177% 75% 96% 124% 87% 70% 1
Slide 9: Performance of PEL’s Developer Clients
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 9 Performance of PEL’s Developer Clients Performance of our developer clients in Q3 FY2021 Factors driving residential real estate sales Changing customer preferences +82% YoY vs. Q3 FY20 sales by developers Sales Demand for
Slide 10: Progressing in line with our strategy to make the loan book more diversified and granular
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 10 Progressing in line with our strategy to make the loan book more diversified and granular (in INR Crores, unless otherwise stated) Wholesale Loan Book Top-10 exposures Single-borrower exposures No. of accounts >15% of net wort
Slide 11: Financial Services – Retail Lending
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 11 Financial Services – Retail Lending
Slide 12: Retail Lending – Expanding the product portfolio
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 12 Retail Lending – Expanding the product portfolio Added during the period Retail Lending - Product Portfolio P Partnerships (based on fresh disbursements) 6 Products added Digital Purchase Finance 2 P Digital Personal Loans 2 P
Slide 13: Multi-product Retail Lending platform launched in Nov-2020
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 13 Multi-product Retail Lending platform launched in Nov-2020 Monthly Disbursements in Q3 FY21 New business vs. overall book yields Average ticket size by products Under the new retail lending strategy Retail Loan book; % p.a. Fr
Slide 14: Retail Lending: Key milestones and progress so far
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 14 Retail Lending: Key milestones and progress so far Targeted Strategic Area Key Milestones Status Timeline Roll-out 4 product categories with 7 variants by Q3 FY21 Products Roll-out testing volumes of unsecured lending produc
Slide 15: Asset Quality
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 15 Asset Quality
Slide 16: Maintaining adequate provisions to manage any contingences
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 16 Maintaining adequate provisions to manage any contingences Total Provisions NPA ratio: In INR Crores ■ GNPA ratio (pro-forma) at 3.7% as of Dec-20, Incremental provision of 3,037 2,935 INR 1,903 Cr. was created in without the
Slide 17: Capital adequacy, leverage and ALM
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 17 Capital adequacy, leverage and ALM
Slide 18: Capital Adequacy and Leverage
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 18 Capital Adequacy and Leverage Capital Adequacy Ratio (%)1,2 Net Debt-to-Equity 2 37% 34% 4.4x 33% 31% 29% 3.9x 27% 3.7x 22% 22% 23% 2.8x 2.5x 2.3x 2.2x 2.1x 1.9x Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 D
Slide 19: Asset-liability profile
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 19 Asset-liability profile (in INR crores) As on Dec 31, 20201 77,502 Cumulative Inflows 62,560 58,715 Cumulative Outflows 44,218 36,351 31,663 19,318 12,317 12,205 5,447 5,748 2,540 7,570 5,050 6,913 3,449 502 1,730 up to 14d up
Slide 20: Borrowing mix
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 20 Borrowing mix As on Dec 31, 2020 Breakdown of borrowing mix by type of instrument Breakdown of borrowing mix by type of investor 1% 1% Loans Banks 3% 3% 1% 5% 3% 2% 5% NCDs / Bonds FIIs / FPIs 7% ECB Insurance CP MFs 50% 39% 1
Slide 21: Performance metrics
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 21 Performance metrics Key Performance Indicators: PEL Financial Services Particulars 9M FY2021 Total Loan Book size INR 46,370 Cr. Total Equity INR 17,384 Cr. Net Debt INR 33,145 Cr. Net Debt-to-Equity 1.9x Average Yield on Loan
Slide 22: Financial Services: Executing on our strategic priorities
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 22 Financial Services: Executing on our strategic priorities 1 Increasing diversification and granularity of the loan book 2 Taking proactive corrective actions to mitigate potential risks 3 Scaling the digitally-led, multi-produ
Slide 23: Pharma
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 23 Pharma
Slide 24: Resilient revenue performance
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 24 Resilient revenue performance ■ Delivered revenue of INR 1,374 Cr. (+5% YoY) in Q3, contributing 43% to Consistent Revenue growth PEL’s overall revenue. Revenues (INR Cr.) Q3 EBITDA Margin − CDMO revenues at INR 846 Cr, growin
Slide 25: Key operational developments during the quarter
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 25 Key operational developments during the quarter CDMO Complex Hospital Generics India Consumer Products ■ Strong growth in development order • COVID-19 impacted demand of product • Strong demand of self care and baby book durin
Slide 26: Key strategic priorities: Pharma
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 26 Key strategic priorities: Pharma 1 Delivering consistent revenue growth and improving profitability 2 Pursuing organic and inorganic growth opportunities leveraging fresh capital Capacity expansion across multiple sites Ac
Slide 27: Key investment initiatives during the year
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 27 Key investment initiatives during the year
Slide 28: CDMO: Investing in both organic and inorganic growth initiatives
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 28 CDMO: Investing in both organic and inorganic growth initiatives Acquired Solid Oral Dosage facility in Sellersville Announced investment of $32 mn in Riverview facility Acquired Solid Oral Dosage facility in Additional capaci
Slide 29: Complex Hospital Generics: Investing for backward integration
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 29 Complex Hospital Generics: Investing for backward integration Announced acquisition of 49% remaining stake in Convergence Chemicals at INR 65 Cr. Dahej facility ■ Convergence Chemicals develops and manufactures specialty fluor
Slide 30: India Consumer Products: Launched multiple new products/brand extension
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 30 India Consumer Products: Launched multiple new products/brand extension Products launched in response to COVID-19 Other Launches Pulse Oximeters LactoCalamine Tri-Activ Spray – Neko Disinfectant Lacto Calamine JM Doodle Waterz
Slide 31: Financials
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 31 Financials
Slide 32: Diversified Revenue Mix
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 32 Diversified Revenue Mix (In INR Crores or as stated) Quarter III ended % Sales 9M ended % Sales for Net Sales break-up for Q3 31-Dec-20 31-Dec-19 % Change 31-Dec-20 31-Dec-19 % Change 9M FY2021 FY2021 Financial Services 1,795
Slide 33: Consolidated Profit & Loss
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 33 Consolidated Profit & Loss (In INR Crores or as stated) Quarter III ended 9M ended Particulars 31-Dec-20 31-Dec-19 % Change 31-Dec-20 31-Dec-19 % Change Net Sales 3,169 3,270 -3% 9,408 9,727 -3% Non-operating other income 96 1
Slide 34: Appendix
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 34 Appendix
Slide 35: Stage-wise provisioning
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 35 Stage-wise provisioning Particulars (in INR Cr., unless otherwise stated) As on Dec-2019 As on Sep-2020 As on Dec-2020 Gross Stage 1 & 2 Loans 50,485 50,243 44,663 Provision - Stage 1 & 2 loans 717 2,542 2,028 Provision Covera
Slide 36: Retail Lending: Strategy for Organic Growth
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 36 Retail Lending: Strategy for Organic Growth A Product Strategy B Geography Selection C Partnerships ■ Pivot from ‘Affluent Housing’ to ‘Mass ■ ‘Bharat’– Tier 2/3 locations in small & mid- ■ Strategic partnerships for customer
Slide 37: Dial-in details for Q3 & 9M FY2021 Earnings Conference Call
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 37 Dial-in details for Q3 & 9M FY2021 Earnings Conference Call Event Location & Time Telephone Number +91 22 6280 1264 / +91 22 7115 8165 (Primary Number) +91 70456 71221 (Local Number) India – 6:00 PM IST 1800 120 1221 / 1800 26
Slide 38: For Investors
Piramal Enterprises Limited – Q3 & 9M FY2021 Results Presentation Page 38 For Investors : Hitesh Dhaddha Chief Investor Relations Officer Email : hitesh.dhaddha@piramal.com Phone : +91 22 3046 6306 Aditya Sharma Chief Manager – IR (Financial Services) Email : investor.relations@Piramal.com Phone : +
Piramal Enterprises — Q3 FY2021 Earnings Presentation on 6ix