Aarti Pharmalabs Limited · NSE:AARTIPHARM
Aarti Pharmalabs — Q4 FY2024 Earnings Presentation
31 slides from Aarti Pharmalabs's earnings presentation, May 15, 2024
Slide 1: Results Presentation cover letter to exchanges
May 15, 2024 To, To, Listing/ Compliance Department Listing/ Compliance Department BSE LTD. National Stock Exchange of Phiroze Jeejeebhoy Towers, India Limited Dalal Street, “Exchange Plaza”, Plot No. C/1, Mumbai - 400 001 G Block, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051 SCRIP CODE: 54374
Slide 2: Investor Presentation May 2024
INVESTOR PRESENTATION MAY 2024
Slide 3: Snapshot
SNAPSHOT 200+ Products 500+ Global Clients State-of-the-art 3 R&D facilities 56 Patents Filed 50+ Export Countries Manufacturing 6 Units 41 US DMF 2000+ Employees 3 USFDA Units 22 CEP Global 15-20% Market Share 0.14x Net Debt/Equity A+ Credit rating in Xanthine 2 Aarti Pharmalabs Limited
Slide 4: Company Overview
1 COMPANY 2 BUSINESS 3 STRATEGIC 4 FINANCIAL OVERVIEW OVERVIEW OVERVIEW OVERVIEW Aarti Pharmalabs Limited
Slide 5: Company Overview
COMPANY OVERVIEW • Aarti Pharmalabs Limited (APL) formerly known as Aarti Organics was established in 1984 as a wholly owned subsidiary of renowned Aarti Industries Limited. Got demerged in October 2022 CONSOLIDATED REVENUE (INR Mn) & into a separately listed entity (effective July 2021) EBITDA MARG
Slide 6: Key Milestones
2022 KEY MILESTONES • Expanded block for CSD in Vapi and API in Tarapur units • Acquired land at Atali for future growth • Demerged the pharmaceutical business of Aarti Industries Limited to Aarti Pharmalabs Limited 2017 12 Completed Cofepris, Mexico audits at Unit 4 11 2023 2013 • Operationalized t
Slide 7: Board of Directors
BOARD OF DIRECTORS Shri Rashesh C. Gogri Smt. Hetal Gogri Gala Shri Narendra Salvi Shri Rajendra V. Gogri Shri Parimal H. Desai Smt Nehal Garewal Chairman Vice Chairperson & MD Managing Director Non-Executive Director Non-Executive Director Non-Executive Director* Shri Rashesh Gogri was appointed Gr
Slide 8: Geographical Presence
GEOGRAPHICAL PRESENCE Sweden Russia Canada United Kingdom Netherlands Ireland Poland Germany France Austria Switzerland Slovenia Italy USA Spain Greece Turkey China Japan South Korea TunisiaLebanon Iraq Pakistan Nepal Saudi Egypt Mexico Arabia UAE INDIA Bangladesh Hong Kong Puerto Rico Yemen Thailan
Slide 9: Manufacturing Presence
MANUFACTURING PRESENCE Atali Vapi - Unit II Tarapur - Unit III, IV, V, VI Dombivli - Unit I Mumbai Gujarat Maharashtra LOCATION MANUFACTURING UNITS CERTIFICATIONS & AUDIT DATE Dombivali Unit - I (API, Intermediates, CDMO) USFDA - Jun 2022 Unit - II (API, Intermediates, CDMO) Vapi USFDA - Sep 2009, A
Slide 10: Manufacturing Capabilities
MANUFACTURING CAPABILITIES END TO END CAPABILITIES UNDER ONE UMBRELLA Hydrogenation facilities from lab-scale to 20+ years of experience in pharmaceuticals manufacturing scale (0.1-10 KL reactors) manufacturing for global clients Impeccable regulatory track record and facilities Cryogenic reactors o
Slide 11: Research & Development
RESEARCH & DEVELOPMENT 3 150+70+ 3 State of the art Process for more than 150 R&D Centers at intermediates developed Maharashtra & Gujarat and manufactured on kilo- lab scale 100+ 6% 70+ 3 7 3 New products to be R&D Spend (as a PhDs developed in next few percent of API & years CDMO sales) in FY24 70
Slide 12: Business Overview
1 COMPANY 2 BUSINESS 3 STRATEGIC 4 FINANCIAL OVERVIEW OVERVIEW OVERVIEW OVERVIEW Aarti Pharmalabs Limited
Slide 13: Key Business Segments
KEY BUSINESS SEGMENTS QUARTERLY REVENUE BREAK-UP Xanthine Derivatives & Allied Products 44.0% 50.2% 49.4% 48.9% API & Intermediates 37.6% 36.9% 43.5% 43.4% CDMO/CMO 18.4% 14.2% 6.3% 7.2% Q1FY24 Q2FY24 Q3FY24 Q4FY24 CDMO/CMO API & Intermediates Xanthine Derivatives 12 Aarti Pharmalabs Limited
Slide 14: Xanthine Derivatives & Allied Products
XANTHINE DERIVATIVES & ALLIED PRODUCTS • Aarti Pharmalabs is the largest Indian manufacturer of Xanthine Derivatives, including Caffeine, Theophylline Anhydrous, Aminophylline, Etophylline, and Theophylline that find applications in beverages, nutraceuticals, and pharmaceutical industries. • Largest
Slide 15: API & Intermediates
API & INTERMEDIATES • Aarti Pharmalabs specializes in the development and manufacturing of Highly Potent Active Pharmaceutical Ingredients (HPAPIs), catering to the demand for critical drugs used in oncology, corticosteroids, and cytotoxic medicines. MARKET SEGMENTATION (FY24) • Backward integrated
Slide 16: CDMO / CMO
CDMO / CMO • Aarti Pharmalabs is one of the leading small molecule Contract Development and Manufacturing Organization (CDMO/CMO) in India. • Offers services for drug substance projects including NCEs, APIs, RSMs, and Intermediates to global innovative pharmaceutical and biotech companies, Currently
Slide 17: Strategic Overview
1 COMPANY 2 BUSINESS 3 STRATEGIC 4 FINANCIAL OVERVIEW OVERVIEW OVERVIEW OVERVIEW Aarti Pharmalabs Limited
Slide 18: Growth Drivers
GROWTH DRIVERS Increasing capacities of existing products and, adding 100+ new value-added products in next few years Developing and exploring more opportunities of CDMO Increasing presence & CMO with innovators for in regulated markets APIs and Intermediates 4 Ongoing Capex for the Atali project Se
Slide 19: Future Growth Strategy
FUTURE GROWTH STRATEGY FUTURE OUTLOOK Plan to strengthen API Fortify market leading Aim to achieve and CDMO segment by Expect EBITDA position in the long-term goal of introducing more growth of Xanthine segment by 15%+ annual value-added products approximately brownfield capacity growth in next 3 an
Slide 20: ESG
ESG E G • Hazard Identification and Risk Assessment (HIRA), Hazardous Area Classification (HAC) and work permit system in place • Safety Trainings - Induction, On ENVIRONMENT the job, Classroom, Demos GOVERNANCE • ISO 14001 : 2015 certification • Incident management - “Safety • Robust Compliance Mon
Slide 21: Financial Overview
1 COMPANY 2 BUSINESS 3 STRATEGIC 4 FINANCIAL OVERVIEW OVERVIEW OVERVIEW OVERVIEW Aarti Pharmalabs Limited
Slide 22: Quarterly Consolidated Income Statement
QUARTERLY CONSOLIDATED INCOME STATEMENT PARTICULARS (INR Mn) Q4-FY24 Q3-FY24 Q-o-Q Q4-FY23 Y-o-Y Operational Revenue 5,058 4,487 12.7% 4,851 4.3% Operating Expenses 3,882 3,530 10.0% 4,051 (4.2)% EBITDA 1,176 957 22.9% 800 47.0% EBITDA Margin (%) 23.25% 21.33% 192 Bps 16.49% 676 Bps Depreciation and
Slide 23: Annual Consolidated Income Statement
ANNUAL CONSOLIDATED INCOME STATEMENT PARTICULARS (INR Mn) FY24 FY23 Y-o-Y Operational Revenue 18,526 19,452 (4.8)% Total Expenses 14,666 16,031 (8.5)% EBITDA 3,860 3,421 12.8% EBITDA Margins (%) 20.84% 17.59% 325 Bps Other Income 49 23 NA Depreciation 732 625 17.1% Finance Cost 172 211 (18.5)% PBT 3
Slide 24: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET ASSETS (INR Mn) FY24 FY23 EQUITY & LIABILITIES (INR Mn) FY24 FY23 Non-current assets Equity share capital 453 453 Property, plant and equipment 9,942 9,227 Capital work-in-progress 785 622 Equity Share Capital Pending allotment - Right-to-use assets 205 11 Other equity 17,
Slide 25: Quarterly Standalone Income Statement
QUARTERLY STANDALONE INCOME STATEMENT PARTICULARS (INR Mn) Q4-FY24 Q3-FY24 Q-o-Q Q4-FY23 Y-o-Y Operational Revenue 4,148 3,730 11.2% 3,743 10.8% Operating Expenses 3,075 2,848 8.0% 2,975 3.4% EBITDA 1,073 882 21.7% 768 39.7% EBITDA Margin (%) 25.87% 23.65% 222 Bps 20.52% 535 Bps Depreciation and amo
Slide 26: Annual Standalone Income Statement
ANNUAL STANDALONE INCOME STATEMENT PARTICULARS (INR Mn) FY24 FY23 Y-o-Y Operational Revenue 15,021 15,112 (0.6)% Total Expenses 11,560 12,028 (3.9)% EBITDA 3,461 3,084 12.2% EBITDA Margins (%) 23.04% 20.41% 263 Bps Other Income 110 13 NA Depreciation 660 558 18.3% Finance Cost 166 205 (19.0)% PBT 2,
Slide 27: Standalone Balance Sheet
STANDALONE BALANCE SHEET ASSETS (INR Mn) FY24 FY23 LIABILITIES (INR Mn) FY24 FY23 Assets Equity & Liabilities Non-current assets Equity share capital 453 453 Property, plant and equipment 9,160 8,471 Equity Share Capital Pending allotment - - Capital work-in-progress 785 622 Right-to-use assets 205
Slide 28: Consolidated Financial Highlights
CONSOLIDATED FINANCIAL HIGHLIGHTS OPERATIONAL INCOME (INR Mn) EBITDA (INR Mn) & EBITDA MARGINS (%) PAT (INR Mn) & PAT MARGINS (%) 19,452 18,526 3,860 3,421 2,169 20.84% 1,935 11.71% 17.59% 9.95% FY23 FY24 FY23 FY24 FY23 FY24 EBITDA Margins (%) PAT Margins (%) NET DEBT TO EQUITY (x) RoCE(%) & RoE(%)
Slide 29: Capital Markets Information
CAPITAL MARKETS INFORMATION SHARE PRICE PERFORMANCE UP TO 31ST March, 2024 100% 80% 60% 40% 20% 0% Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Aarti Pharma Sensex MARKET DATA (AS ON 31ST March, 2024) INR SHAREHOLDING PATTERN (AS ON 31ST March, 2024) Face Value
Slide 30: Disclaimer
DISCLAIMER Aarti Pharmalabs Limited No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all event
Slide 31: Thank You
THANK YOU AARTI PHARMALABS LIMITED