Tarsons Products Limited · NSE:TARSONS
Tarsons Products — Q1 FY24 Earnings Presentation
37 slides from Tarsons Products's earnings presentation, Aug 12, 2023
Slide 1: Tarsons Investor Presentation cover and exchange letter
arsons TRUST DELIVERED An1S0 9001 & ISO 13485 Certified Company Date: 12" August, 2023 To, To, BSE Limited (“BSE”), National Stock Exchange of India Limited (“NSE”) Corporate Relationship Department, “Exchange Plaza”, 5" Floor, 2" Floor, New Trading Ring, Plot No. C/1, G Block, P.J. Towers, Dalal St
Slide 2: Slide 2
Slide 3: Safe Harbor
Safe Harbor 6%0”5 OO0 This presentation and the accompanying slides (the “Presentation”), which have been prepared by Tarsons Products Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe fo
Slide 4: Financial Highlights
a Financial Hig
Slide 5: Capex Update
Capex Update GEI’ Sons OO0 Panchla Plant Introducing cell culture and existing Constructing Radiation Plant: products capacity expansion » Signed the MOU with Board of Civil Construction completed Radiation & Isotope Technology (BRIT) for radiation plant First clean room is ready « Sterile (Radiated
Slide 6: Q1FY24 Key Operational Highlights
Q1FY24 Key Operational Highlights 6?50”5 OO0 7 \_ (inRs.Crs) Revenue Spilt - Domestic : Export N e Q1FY23 Q1FY24 0 Domestic [l Exports Our revenues from domestic market for Q1FY24 stood at Rs. 45 crs as compared to Rs. 48 crs in Q1FY23 Our revenues from export market for Q1FY24 stood at Rs. 17 crs a
Slide 7: Key Financial Highlights
Key Financial Highlights fiafsms OO0 [ Revenue (in Rs. Crs) ] [ Adj. EBIDTA* (in Rs. Crs) ] [ Reported EBIDTA (in Rs. Crs) ] [ Profit After Tax (in Rs. Crs) ] Rs. 2.8 crores one off expenses on account of 68.6 31.1 due diligence ! for a for 31.1 20.3 62.6 potential acquisition 241 21.3 l . 9‘6 Q1FY23
Slide 8: Q1FY24 Profit & Loss Statement
Q1FY24 Profit & Loss Statement GHI’ Sons OO0 Profit and Loss (in Rs. Crs) Q1FY24 Q1FY23 Revenue from Operations 62.6 68.6 Cost of Goods Solds 15.6 14.4 Gross Profit 47.0 54.3 Gross Profit Margin 75.1% 79.1% Employee Cost 9.1 83 Other Expenses 13.8 149 Adj. EBITDA 241 31.1 Adj. EBITDA Margin 38.5% 45
Slide 9: Q1 FY24 Key Highlights
Q1 FY24 Key Highlights fiafsms O-0-0O > Revenues for Q1 FY24 were down by 9% y-o-y, dip in revenues were on majorly on account of; + Slowdown in the life science industry has resulted in subdued demand for plastic labware products in the Global & Domestic Markets + Inventory in the channel still pers
Slide 10: Management Commentary
Management Commentary 6?50”5 O-0-0O Commenting on the performance of the company Mr. Rohan Sehgal, Whole Time Director for Tarsons, said: “Our revenues for Q1FY24 stood at Rs. 63 crs. with Y-o-Y de-growth of ~9%. This decline is primarily attributable to deceleration in life science sector resulting
Slide 11: Balance Sheet
Balance Sheet fiar Sons OO0 Assets (in Rs. Crs) Mar-23 Mar-22 Equity & Liabilities (in Rs. Crs) Mar-23 Mar-22 Non - Current Assets 473.7 299.7 Total Equity 569.3 489.9 Property Plant & Equipment's 2177 181.4 Share Capital 10.6 10.6 Other Equity 558.7 479.2 CWIP 119.0 322 Non-Current Liabilities 93.5
Slide 12: Cash Flow Statement
Cash Flow Statement GBI’ Sons OO0 Particulars (in Rs. Crs) Net Profit Before Tax Adjustments for: Non -Cash Items / Other Investment or Financial ltems Operating profit before working capital changes Changes in working capital Robust Cashflow from operations despite being in Direct taxes paid (net o
Slide 13: Historical Consolidated Financial Highlights
Historical Consolidated Financial Highlights 6af50”5 OO0 ( REVENUE (in Rs. Crs) ] [ EBITDA (in Rs. Crs) ] ( PAT (in Rs. Crs) ] 301 283 153 . 101 229 103 81 69 176 69 Y FY20 Fy21 Fy22 FY23 FY20 FY21 FY22 FY23 FY20 FY21 Fy22 Fy23 ( GP Margin ] ( EBITDA Margin ] ( PAT Margin ] | 470 bps 1 640 bps l 550
Slide 14: Historical Consolidated Profit & Loss Statement
Historical Consolidated Profit & Loss Statement gJzsos OO0 Profit and Loss (in Rs. Crs) FY23 FY22 FY21 FY20 CAGFF\({gYZO- Revenue from Operations 283.2 300.8 228.9 175.9 17.2% Cost of Goods Solds 65.1 62.9 61.5 48.7 Gross Profit 218.2 237.9 167.4 127.2 19.7% Gross Profit Margin 77.0% 79.1% 73.1% 72.
Slide 15: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet fiar Sons OO0 Assets (in Rs. Crs) Mar-23 Mar-22 Mar-21 Mar-20 Equity & Liabilities (in Rs. Crs) Mar-23 Mar-22 Mar-21 Mar-20 Non - Current Assets 473.7 299.7 183.1 128.9 Total Equity 569.3 489.9 2443 197.6 Property Plant & Equipment's 2177 181.4 113.7 87.6 Share C
Slide 16: Historical Consolidated Cash Flow Statement
Historical Consolidated Cash Flow Statement GHI’ Sons OO0 Particulars (in Rs. Crs) FY23 FY22 FY21 Net Profit Before Tax 108.7 135.0 92.4 Adjustments for: Non -Cash Items / Other Investment or Financial ltems 27.5 237 15.8 Operating profit before working capital changes 136.2 158.7 108.2 Changes in w
Slide 17: Key Consolidated Historical Ratios
Key Consolidated Historical Ratios 6af50n5 TRUST DELIVERED OO0 [ Return on Equity ] [ Return on Capital Employed” ] [ Debt to Equity ] 28.2% 43.0% 02 0.2 0.1 0.0 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 [ Current Ratio ] [ Working Capital* (in Rs. Crs) J Working Capital Days* T\ e
Slide 18: Trust Delivered
TRUST DELIVERED The Smartest WordPress Theme.
Slide 19: Tarsons - at a Glance
Tarsons - at a Glance 6%0”5 OO0 One of the leading Indian labware company engaged in the designing, development, © A manufacturing and marketing of consumables, reusables and others (including benchtop fi, equipment & instruments) y ... Products used in laboratories across research organizations, aca
Slide 20: Our Journey
Our Journey arsons TRUST DELIVERED OO0 s ~ Ve ~ e ~ Ve ~ Ve ~ Established Commenced Pioneered the first fully manufacturing facility . . . production of Pipette robotic clean room expanding into Established line for PCR Expanding our product products in Jalan portfolio and adding Tips, thereby creat
Slide 21: Leading Indian Labware Supplier
Leading Indian Labware Supplier 6?50”5 OO0 Trusted Brand for high quality Expertise in production of a wide range Ability to offer differentiated, user products in the plastic labware of labware products & amongst the friendly, reliable quality & cost-effective market with 40+ years vintage in the t
Slide 22: Our Competitive Edge
Our Competitive Edge 6EFS°”S OO0 Geographical Presence Brand & Quality Wide geographic reach through a Leading Indian supplier to the life sciences strong sales & distribution sector with strong brand recognition and network high-quality diversified products across varied customer segments. State of
Slide 23: Catering to diversified End User Industry
Catering to diversified End User Industry.. 65[‘ Sons & @ Measures to strengthen customer £y " relations Academic Institutes National Centre Indian Institute of Rain Forest Kit Regular Feedback from Customers on quality, & Research for Biological Chemical Research Institute University delivery & cos
Slide 24: Our State-of-the-art Manufacturing Facilities
Our State-of-the-art Manufacturing Facilities.. fiarsans TRUST DELIVERED Key Highlights of the High Precision Manufacturing Process v Vertically integrated manufacturing capabilities with design & development being carried out in-house Automated manufacturing with use of robotics & other technologies
Slide 25: Widespread Domestic Sales & Distribution Network
..With widespread Domestic Sales & Distribution ¢ arsorns ngwork... TRUST DELIVERED Comprehensive Pan-India Distribution Network Long-standing relationships with Distributors North: 17% of FY23 Domestic Sales East: 16% of FY23 Domestic Sales 41 Distributors 39 Distributors S West: 25% of FY23 Domest
Slide 26: Huge Underlying Export Market Potential
..With huge underlying Export Market Potential.. fiafsms OO0 Huge Export Opportunity Market One of the very few players to have a Global Reach i v As of 315t March 2023, the company sold its products to 40+ countries via . i 45+ distributors Demand for plasticware expected to 1 grow at 10% CAGR for d
Slide 27: Offering Wide Range of High-Quality Products
..offering Wide Range of High-Quality Products.. fi arsorns TRUST DELIVERED OO0 Our products are made from high-quality medical grade DMF registered resins which are selected to minimize additives & reduce potential leachables Consumables Reusables Others 56% of FY23 39% of FY23 5% of FY23 Revenues R
Slide 28: Consumables (56% of FY23 Sales)
..diversified product portfolio of Plastic Labwareg arsorns TRUST DELIVERED OO0 Centrifuge Sterile Media Pipette Tips Petri Dishes Bottles Cryo Vials Storage Vials Serological Pipette Tubes Consumables (56% of FY23 Sales) Disposable pipettes Used for storage of Designed for use Perfect for versatile
Slide 29: Wide range of products - videos
GBF SOons WIDE SPINOT™ Digital Magnetic RANGE OF SCIENCE ¥range of are at Tarsons Video link — Click here Video link — Click here onsumabl, presents Video link - Click here Video link - Click here For more information & videos please visit www.tarsons.com/video-new 28
Slide 30: Key Business Strategies
Key Business Strategies arsorns TRUST DELIVERED O-0-0O Focus on branding & promotion to enhance visibility in the labware industry to increase brand awareness & loyalty Manufacture New Products in the cell culture & robotic handled consumables and expand Enhance existing & expand into the import dom
Slide 31: Experienced Board of Director & Managerial Team
Experienced Board of Director & Managerial Teamfigggggg OO0 Gaurav Podar Sanjive Sehgal Non-Executive Nominee Director Chairman & Mangi Director « Currently, Director with ADV Partners + Chairman & Managing Director of Tarsons « Investment professional with 11+ years of experience Product Limited « H
Slide 32: Contribution towards Environmental, Social & Governance
Contribution towards Environmental, Social & 6 arsorns Gggcernance TRUST DELIVERED Clean room conditions eliminates all chances of Use of Medical Grade NO litigations faced for pollution or Plastics. Products are designed to degradation of environment over the contamination past five years withstand
Slide 33: Delivering Trust
DELIVERING TRUST
Slide 34: Plastic Labware Market
Plastic Labware Market fiar Sons O-0-0O Indian plastic labware market is expected to grow at 16% CAGR from 2020- Split of Global Market Size of Plastic Labware (2020) 2025 Certrifuge Centrifuge & Liquid Handling Global Laboratory Equipment Indian Laboratory Equipment ware market dominate the Laborato
Slide 35: Rapid Shift from Glassware to Plasticware in India
Rapid Shift from Glassware to Plasticware in India arsorns TRUST DELIVERED n Laboratory Equipment Market (Breakup of Glassware and Plasticware segments) . INR10.8bn INR11.3bn INR 8.4 bn Key reasons for the shift: MarketSize g7 5pn INR12.2bn INR25.8bn = Increased Applicability: Superior ability to ha
Slide 36: Key Takeaways
Key Takeaways 65[‘ Sons OO0 Financial profile with strong Leading Indian manufacturer of EBITDA margins & high ROCE labware with an established brand coupled with double-digit growth & focus on high-quality products rates Presence in an industry with Highly automated state-of-the-art double-digit gr
Slide 37: Thank You
Thank You arsons SG A Strategic Growth Advisors TRUST DELIVERED Tarsons Products Limited Strategic Growth Advisors Private Limited CIN: L51109WB1983PLC036510 CIN: U74140MH2010PTC204285 Mr. Santosh Agarwal — Chief Financial Officer Mr. Sagar Shroff/ Mr. Pratik Shah santosh@tarsons.in sagar.shroff@sga