Aarti Drugs Limited · NSE:AARTIDRUGS
Aarti Drugs — Investor Presentation (September 2018)
39 slides from Aarti Drugs's investor presentation, September 2018
Slide 1: Aarti Drugs Limited Investor Presentation September 2018
AARTI DRUGS LIMITED Investor Presentation September 2018
Slide 2: Safe Harbour Statement
SAFE HARBOUR STATEMENT This investor presentation has been prepared by Aarti Drugs Limited(“ADL”) and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof) delivered or supplie
Slide 3: Table of content
Table of content Company Overview 03 - 15 Pharmaceutical Industry Overview & Growth Drivers 16 - 19 Investment Proposition & Outlook 20 - 22 R & D Product Pipeline 23 - 25 Result Summary 26 - 29 Financial Overview 30 - 35 Shareholder Information 36 - 37 AARTI DRUGS LIMITED | Investor Presentation |
Slide 4: Company Overview
Company Overview
Slide 5: Company Overview: Mission and Vision
Company Overview Aarti Drugs Limited was established in the year 1984 and forms part of $790 Million Aarti Group of Industries with robust R&D Division at Tarapur, Maharashtra Industrial Development Corporation (MIDC) in close vicinity to manufacturing locations. The Company is engaged in the manufa
Slide 6: Key facts and figures
Key facts and figures One of the leading producers of Metformin in the world 12 100 1,145 50+ Manufacturing Countries Employees API Molecules facilities Largest producer of One of the Largest Nimesulide in the producer in world Fluoroquinolones in the world #1 80+ ~37% 2,143 MT 43,852 Sq.M Largest p
Slide 7: Milestones
Milestones 1993 1998 2008 2014 2017 1984 1996 2003 2011 2015 Listed On BSE Limited Turnover of Approval of Turnover of Rs. 1000 Crore Rs. 100 Crores Turnover Rs. 100 Crores USFDA Plant Pinnacle Life Science Pvt. Ltd. 100% holdings in Pinnacle Life Science Pvt. Ltd. Pinnacle Life Science (Sikkim) Pla
Slide 8: Awards & Accolades
Awards & Accolades 1991-92 2001 2005 2006 2009 2012 CHEMEXCIL CHEMEXCIL AVAYA GLOBAL CONNECT AVAYA GLOBAL CONNECT PHARMEXCIL PHARMEXCIL Outstanding Performance in Export Outstanding Performance in ORGANIZATION OF Export Customer Responsiveness Customer Responsiveness Outstanding Performance in Outst
Slide 9: Corporate Social Responsibility
Corporate Social Responsibility Education Welfare Medical Welfare Dam Construction at Palghar AARTI DRUGS LIMITED | Investor Presentation | September 2018 Previous 9 Next
Slide 10: Board Of Directors & Management
Board Of Directors & Management Mr. Prakash M. Patil Mr. Harshit M. Savla Mr. Harit P. Shah Mr. Rashesh C. Gogri Mr. Adhish P. Patil Chairman, MD & CEO Joint Managing Director Whole Time Director Managing Director Chief Financial Officer Shri Prakash M. Patil is Chairman, Shri Harshit M. Savla is Jo
Slide 11: Business overview
Business overview Export Clientele is well diversified Domestic market share leader in with the topmost client contributing most of its top 10 products to only 4.06% of total export sales Local clientele is well diversified with the topmost client contributing to only 5.75% of local sales Business T
Slide 12: Segment-wise Revenue Split and Therapeutic wise Sales
Revenue Split Segment-wise Revenue Split 1% Period Ended Sept,18 3% FY 17-18 2% 2% 3% API 3% 10% API Formulation 11% Formulation Speciality Chemicals Speciality chemicals Intermediates Intermediates 83% Others Others 82% Therapeutic wise Sales of the API Segment Period Ended Sept,18 4% 1% FY 17-18 4
Slide 13: Plant Capacity
Plant Capacity Particulars 2017-18 2016-17 Units mt mt Installed 25,714 22,582 Production 19,261 17,463 Monthly Capacity Captive 3,925 4,053 2143 Mt/m Net Production 15,337 13,410 AARTI DRUGS LIMITED | Investor Presentation | September 2018 Previous 13 Next
Slide 14: Overview of API facilities
Overview of API facilities 1. Aarti Drugs Ltd.E-22 3. Aarti Drugs Ltd.E-21 7. Aarti Drugs Ltd.E-120 1. Aarti Drugs Ltd-Sarigam 2902-04 • Australian Government – Department of • WHO-GMP • WHO-GMP • WHO-GMP Health and Ageing - Therapeutic Goods • K-FDA(Korean FDA) Administration 8. Aarti Drugs Ltd.E-9
Slide 15: Geographical Presence: API & Specialty Chemicals
Geographical Presence : API & Specialty Chemicals Global 1 Albania 40 Italy 80 Sri Lanka 2 Algeria 41 Ivory Coast 81 Sudan 3 Argentina 42 Jamaica 82 Sultanate of Oman 4 Australia 43 Japan 83 Switzerland 5 Bangladesh 44 Jordan 84 Syria 6 Belarus 45 Kenya 85 Taiwan Europe 15% 7 Belgium 46 Korea 86 Tan
Slide 16: Key local clientele
Key local clientele AARTI DRUGS LIMITED | Investor Presentation | September 2018 Previous 16 Next
Slide 17: Pharmaceutical Industry Overview & Growth Drivers
Pharmaceutical Industry Overview & Growth Drivers
Slide 18: Pharmaceutical industry
Pharmaceutical industry Active Pharmaceutical Formulations Ingredients (APIs) Contract Research and Biosimilars o India has become the third Manufacturing Services largest global generic API (CRAMS) o Largest exporter of formulations merchant market by 2016, with a in terms of volume, with 14 per 7.
Slide 19: Industry Going Forward
Industry Going Forward API is the largest segment of the Indian pharmaceuticals sector Pharmaceutical Exports Manifold rise in public healthcare spending Increase in the size of middle class households Industry CAGR: 5.98 % Growth Improvement in medical infrastructure US$ 16.8 Bn US$ 20 Bn Driver In
Slide 20: Growth Drivers
Growth Drivers o Over US$ 200 billion to be spent on medical o Rising levels of education to increase acceptability of infrastructure in the next decade pharmaceuticals o New business models expected to penetrate tier-2 o Patients to show greater propensity to self-medicate, and 3 cities boosting th
Slide 21: Investment Proposition & Outlook
Investment Proposition & Outlook
Slide 22: Investment Proposition
Investment Proposition Known brand in API space Strong process Phase-wise CAPEX to Green field projects Entry barrier improvement R&D, cost mitigating debt trap risks leadership, huge client base Reliable in terms of quality and Thus, fundamentals right from Newer capacities established Company has
Slide 23: Outlook
Outlook Anti diabetic Speciality chemicals o Started with the commercial operations, received WHOGMP, recently inspected by COFEPRIS Further expansion of our chloro-sulphonation line for multiple products planned in FY18-19. o CEP approval in 2016 which opened up European markets o Expected revenues
Slide 24: R & D and Product Pipeline
R & D and Product Pipeline
Slide 25: Research & Development Focus
Research & Development Focus Manufacturing facilities at Tarapur and Sarigam are supported by R&D section located at Tarapur, R&D Expenses as % of Revenue where focus is mainly on process developments Strength at R&D 0.94% 0.90% 02 70 09 18 10 Doctorates Master Graduates Graduates Engineer Technicia
Slide 26: Product Pipeline
Product Pipeline Product Under Development Product Under Pipeline Sr. No. Therapeutic Category Products Sr. No. Therapeutic Category Products 1 Alcoholism Treatment Acamprosate 1 Cardiovascular Olmesartan 2 Anticoagulant Dabigatran 2 Antidiabetic Teneligliptin 1 Anti Cholesterol Atorvastatin 3 Antid
Slide 27: Result Summary
Result Summary
Slide 28: Results Summary – Consolidated Q2FY19
Results Summary – Consolidated Q2FY19 (in ₹ Million) Particulars Q2 FY 19 Q1 FY 19 Q2 FY18 Y-o-Y (%) FY 18 FY 17 Y-o-Y (%) 3,474.10 3,742.89 3,192.69 9% Revenue from Operations 12,436.30 11,951.70 4% 0.98 9.20 0.83 17% Other Income 10.50 40.00 -74% 3,475.07 3,752.09 3,193.53 9% Total Income 12,446.8
Slide 29: Revenue Split – Consolidated Q2FY19
Revenue Split – Consolidated Q2FY19 Revenue EBITDA PAT 3,475 236 526 181 3,194 471 Q2 18 Q2 18 Q2 18 Q2 19 Q2 18 Q2 19 API Formulation Specialty Chemicals Intermediate & Others Q2’19 2,840 370 86 178 Q2’18 2,568 424 68 132 Note: 1.. On Consolidated Basis 2. Revenue excluding excise duty 3. EBITDA is
Slide 30: Results Summary – FY18
Results Summary – FY18 Revenue 12,436 EBITDA PAT 823 1,995 1,909 11,951 818 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 API Formulation Specialty Chemicals Intermediate & Others FY18 10,168 1,390 303 576 FY17 9,609 1,550 434 359 Note: On Consolidated Basis Number In ₹ Million EBITDA is including other incom
Slide 31: Financial Overview
Financial Overview
Slide 32: Robust Financial Performance
Robust Financial Performance Revenue EBITDA & EBITDA Margin 14,000 11,951 12,436 12,000 10,943 11,348 2,00 0 16. 20% 9,699 1,80 0 16.04%16. 00% 10,000 1,60 0 1,40 0 15.97% 15. 80% 8,000 15. 60% 1,20 0 15.48% 15.51% 1,00 0 15. 40% 6,000 800 15. 20% 4,000 15.09% 600 15. 00% 400 2,000 200 1,464 1,697 1
Slide 33: Robust Financial Performance: EPS, Gearing, Net Worth, RoE
Robust Financial Performance Earning Per Share Gearing Ratio (x) 1.51 1.44 1.36 50.97 1.15 1.19 31.90 33.46 34.41 28.38 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Net Worth RoE(%) & RoCE (%) 4,554 4,001 24.23% 25.07% 3,467 19.82% 20.44% 3,082 18.07% 2,509 RoE 17.59% 17.60% 17.72% 17.36% 16.27
Slide 34: Profit & Loss Statement
Profit & Loss Statement (in ₹ Million) Particulars 2018 2017 2016 2015 2014 Revenue from operations (gross) 12,625.70 12,880.80 12,283.05 11,796.03 10,443.46 Less : Excise duty -189.40 -929.10 -934.23 -853.31 -744.09 Revenue from operations (net) 12,436.30 11,951.70 11,348.82 10,942.72 9,699.37 Othe
Slide 35: Balance Sheet
Balance Sheet (in ₹ Million) Particulars 2018 2017 2016 2015 2014 Share Capital 235.80 238.60 242.17 242.17 121.09 Other Equity-Reserves & Surplus 4,318.50 3,762.80 3,224.45 2,839.36 2,387.95 Total Shareholders Fund 4,554.30 4,001.40 3,466.62 3,081.53 2,509.04 Non - Current Liabilities Long term bor
Slide 36: Cash Flow Statement
Cash Flow Statement (in ₹ Million) Particulars 2018 2017 2016 2015 2014 A Cash Flow from Operating Activities Net Profit before Tax and Extraordinary items 1,245.03 1,160.12 952.75 997.20 847.60 ADJUSTMENT FOR: - - - - - Depreciation & Amortisation 400.63 384.63 365.28 310.22 281.19 Provision for Ba
Slide 37: Shareholder Information
Shareholder Information
Slide 38: Shareholder Information
Shareholder Information Stock Data (As on 1st November 2018) Top Institutional Holders (As on 30th September 2018) Institutions OS (%) Market Capitalization (₹) 14,272 mn DSP BlackRock Investment Managers Pvt Ltd. 3.68 Shares Outstanding 23.58 mn Lakshmi Capital Investment Limited 0.43 Free Float 37
Slide 39: Thank You
Thank You Aarti Drugs Ltd Mahendra Inds. Estate, Ground Floor, Plot No. 109‐D Road No. 29, Sion (E), Mumbai‐400 022 (India) Tel: +91 22 24019025 / 24072249 Fax: +91 22 24073462 / 24070144 E‐mail: investorrelations@aartidrugs.com