Laurus Labs Ltd. · NSE:LAURUSLABS
Laurus Labs — Q1 FY2019 Earnings Presentation
22 slides from Laurus Labs's earnings presentation, Aug 3, 2018
Slide 1: Laurus Labs Limited Q1 FY19 Results Presentation
LAURUS LABS LIMITED Q1 FY19 RESULTS PRESENTATION August 03, 2018 BSE: 540222 NSE : LAURUSLABS
Slide 2: Disclaimer
Disclaimer Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments and many other factors that could cause our actual results to differ mate
Slide 3: Business Snapshot
Business Snapshot Overview • Development, manufacture • Developing and manufacturing • Contract development and • Sale and manufacture of and sale of active oral solid formulations manufacturing services for specialty ingredients for use in pharmaceutical ingredients global pharmaceutical nutraceuti
Slide 4: Significant Investments in Generic FDF Business
Significant Investments in Generic FDF Business Approval from Global fund under ERP Leverage API production and R&D (Expert Review Panel) for DLT and will capabilities to forward integrate into able participate in WHO and in country FDF tenders (ROW) Capture significant operating Got product
Slide 5: Strategy in Motion
Strategy in Motion ARV & HEP-C Oncology & Other APIs FDFs Synthesis Ingredients • Significant increase in HIV • Leadership in select • Leverage API capabilities; • Focus on supply of key • Leverage process patient population with Oncology API. Launching capture operating starting materials and chemi
Slide 6: Transformation of Business Model
Transformation of Business Model • Crossed INR 20 billion of revenue • Commenced commercial operations from Unit 4 • Incorporated a subsidiary in Germany • Investment of • Incorporated First • Unit 2-Formulations, inspected by INR 600 Mn by Subsidiary in USA, • Successfully listed on BSE & USFDA wit
Slide 7: Strong R&D Capabilities
Strong R&D Capabilities “Research-first” approach – Set up dedicated R&D Key Accreditations center in Hyderabad in 2006 prior to commissioning API manufacturing facility in 2007 and further expansion completed in 2017. R&D team comprising 750 plus scientists (24.0% of total employee strength) in
Slide 8: Quality Focus & Regulatory Audits
Quality Focus & Regulatory Audits Laurus’ Philosophy “One Quality Standard for all markets” Regular Inspection at different manufacturing units 2018 USFDA We maintain consistent quality, efficiency and product safety. 2017 WHO, USFDA, EU (Germany) 2016 USFDA We have adopted uniform manufacturing sta
Slide 9: Manufacturing Facilities at Parawada, Vizag
Manufacturing Facilities at Parawada, Vizag Unit-I • Located at Jawaharlal Nehru Pharma City, Vishakhapatnam, India. • API manufacturing facility and includes capacity for ingredients, synthesis and contract manufacturing. • Commenced operations in 2007. • 315 reactors with 1,141 Kilo Liters capacit
Slide 10: Manufacturing Facilities at Achutapuram, Vizag
Manufacturing Facilities at Achutapuram, Vizag Unit-II • Located at APIIC, Achutapuram, Visakhapatnam, India. (SEZ) • FDF and API manufacturing facility • Commenced operations in 2017. • FDF - capacity of 5 bn tablets per year. • API block with 12 reactors with 84 Kilo Liters capacity. • Received ap
Slide 11: Business Highlights – Q1 FY19
Business Highlights – Q1 FY 19 Overall Total Income stood at INR 5,390 Mn, grew by 12.7 %. R & D spent of INR 345 Mn and 6.5 % as percentage of revenue in Q1 FY19. Generic API Successfully completed Russian GMP Inspection for Unit 1 & 3. Filed 227 patent applications and 63 patent granted as
Slide 12: Performance Highlights - Abridged Profit & Loss statement
Performance Highlights - Abridged Profit & Loss statement Growth % Growth % (Q1 FY19 Particulars (Rs. mn) Q1 FY18 Q4 FY18 Q1 FY19 (Q1 FY19 Vs. Vs. Q1 FY 18) Q4 FY 18) Revenue from Operations (Net) 4,784 5,602 5,390 12.7% -3.8% Gross Margin 2,327 2,693 2,439 4.8% -9.4% Margins 48.6% 48.1% 45.3% Total
Slide 13: Drivers of Revenue – Division wise revenue breakup
Drivers of Revenue – Division wise revenue breakup 3% 4% 1% 3% 4% 7% 7% Total Revenues grew by 13% Y-o-Y 8% 10% 8% 8% 8% 4% ARV Segment registered a healthy growth of over 35% in Q1 9% 8% 8% 7% FY19 (Y-o-Y) on the back of improved volumes 4% 7% 8% 16% HEP-C business continues to remain muted.
Slide 14: Established Track Record Of Delivering Growth – Efficient Use of Capital and Prudent Leverage
Established Track Record Of Delivering Growth – Efficient Use of Capital and Prudent Leverage Pre Tax Return on Capital Return on Equity(2) (%) Total Debt/Equity Ratio (x) Employed(1) (%) 16.5% 16.5% 17.0% 17.4% 1.2x 1.1x 14.5% 13.7% 12.7% 11.9% 0.7x 0.7x 0.6x 7.1% 4.4% FY15 FY16 FY17 FY 18 FY 19 FY
Slide 15: Management Team
Management Team Tom Versosky Chandrakanth Chereddi President FDF North America ED & Head, Generics FDF & Strategy Dr. Prafulla Kumar Nandi SVP, Global Regulatory Affairs Ravi kumar V V G Venkateshwar Reddy (Formulations) ED &CFO CS and Sr. GM – Legal & Secretarial Dr. GSR Anjaneyulu Exec. VP & Head,
Slide 16: Corporate Governance
Corporate Governance Executive Directors Name Background Dr Satyanarayana Chava Whole-time Director, Founder and Chief Executive Officer Ravi Kumar V V Whole-time Director and CFO Chandrakanth Chereddi Whole-time Director and Head of Generic FDF and Strategy Dr Lakshmana Rao C V Whole-time D
Slide 17: Ownership Structure
Ownership Structure Corporate Structure Laurus Labs Limited Laurus Synthesis Laurus Holdings All are 100% Sriam Labs Pvt Ltd. Inc. Ltd. Subsidiaries India USA UK Laurus Generics Laurus Generics Inc. GmbH. USA Germany Shareholding pattern * 32.1% 6.04% 10.85% 1.3% 0.14% 19.8% 11.6% 18.35% Promoter Fi
Slide 18: Fortune 500 Company, Great Place To Work
Laurus Labs is a Fortune 500 Company, Great Place To Work and one of the India’s Best Workplace in 2018 Laurus Labs is listed in the Fortune Laurus Labs is certified as Laurus Labs is recognized as 500 Companies List in India “Great Place to Work” for the one of the Best Work Places in year 2018. Bi
Slide 19: Laurus Labs Manufacturing Units Bags Good Green Governance Award
Laurus Labs Manufacturing Units Bags Good Green Governance Award Laurus Labs bags the prestigious 18th Annual “Greentech Environment Award 2018” in Pharmaceutical Sector. Mr. Suryadevara Srinivasa Rao, Vice President, Manufacturing, accompanied by and Mr. M. Srinivasa Rao, Deputy General Manager-EHS
Slide 20: Results Conference Call
Results Conference Call Results conference call on Saturday August 04, 2018 at 11:00 AM IST Details of the conference call are as follows: Timing 11:00 AM IST on Saturday, August 04, 2018 Conference dial-in Primary number +91 22 6280 1214 India Local access Number +91 22 7115 8115 Available all over
Slide 21: Contact us
Contact us About Laurus Labs Ltd. Laurus Labs is a leading research and development driven pharmaceutical company in India. The Company has grown consistently to become one of the leading manufacturers of Active Pharmaceutical Ingredients (APIs) for anti-retroviral (ARV) and Hepatitis C. Laurus also
Slide 22: Thank You
Thank You