Laurus Labs Ltd. · NSE:LAURUSLABS
Laurus Labs — Q4 FY2017 Earnings Presentation
27 slides from Laurus Labs's earnings presentation, May 18, 2017
Slide 1: Laurus Labs Limited Q4 & FY17 Results Presentation
LAURUS LABS LIMITED Q4 & FY17 RESULTS PRESENTATION 18 May - 2017
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: Introduction to Laurus Labs Ltd.
1. Introduction to Laurus Labs Ltd.
Slide 4: Genesis And Inspiration
Genesis And Inspiration Our genesis starts with our name Laurus Labs. We derived inspiration from Laurus Tree. Laurus family of trees not only has medicinal qualities but also survives in the toughest climatic conditions. Laurus leaves were adorned as crowns to the exceptional achievers and winners
Slide 5: Business Snapshot
Business Snapshot Overview • Development, • Development and • Contract development • Sale and manufacture of manufacture and sale of manufacture of oral solid and manufacturing specialty ingredients for active pharmaceutical formulations services for global use in nutraceuticals, ingredients (APIs)
Slide 6: Strategy in Motion
Strategy in Motion • Leverage API capabilities; capture operating efficiencies • Two Partnerships in place for commercialization of FDFs • Significant increase in HIV • Leverage process chemistry patient skills to strengthen presence in population with nutraceutical and revised WHO cosmeceutical sec
Slide 7: Performance Highlights
fe) “@ LAURUS Lab: 2. Performance Highlights
Slide 8: Business Highlights
Business Highlights Overall Prepayment of Loans from IPO proceeds resulted interest cost reduction apart from reduction in cost of funds Capex investments during FY 17 Rs.3,155 million. R & D opex of Rs.1,050 million and 5.6% as percentage of sales during FY 17. Operations at Sriam(100% subs
Slide 9: Financial Highlights
Financial Highlights During FY17 Laurus reported: o Total Revenue rose by 6.6% to Rs. 18,919 mn as compared to Rs. 17,746 mn o EBITDA higher by 19.3% at Rs. 4,461 mn from Rs. 3,740 mn o PAT increased 40.0% to Rs. 2,026 mn from Rs. 1,447 mn o EPS (Diluted) for the period stood at Rs. 20 per share o
Slide 10: Management Comments
Management Comments Commenting on the results announcement, Dr. Satyanarayana Chava - CEO said; “Laurus’ growth march continues with broadening of the market in key APIs across new geographies and novel therapeutic areas. The momentum in the Synthesis business is building post commissioning of the d
Slide 11: Financial Discussion
3. Financial Discussion
Slide 12: Abridged Profit & Loss Statement
Abridged Profit & Loss Statement Particulars (Rs. mn) Q4 FY17 Q4 FY16 Growth % FY17 FY16 Growth % Total Revenues (net of 4,666 4,831 -3.4% 18,919 17,746 6.6% taxes) Total Expenditure 3,894 4,164 16,762 15,994 EBITDA 1,274 1,213 5.0% 4,461 3,740 19.3% Margins 27.3% 25.1% 23.6% 21.1% PBT 861 681 26.5%
Slide 13: Abridged Balance Sheet
Abridged Balance Sheet As on As on Particulars (Rs. mn) 31.03.2017 31.03.2016 EQUITY AND LIABILITIES Shareholders' funds Share capital 1,058 824 Reserves and surplus 12,524 7,900 Non-current liabilities 1,720 4,830 Current liabilities 10,703 8,735 Total 26,005 22,288 ASSETS Non-current assets 1,840
Slide 14: Drivers of Revenue
Drivers of Revenue Q4 FY17 Revenue Break-up Rs. Mn FY17 has delivered growth in primary APIs , ARV, 2,872 Ingredients, 166 Synthesis and Ingredients business Synthesis, 264 o ARVs supplies to Europe began in FY 17 HepC, 489 and future upsides to come from newer API , 4,236 Oncology, 255 second lin
Slide 15: Drivers of Earnings
Drivers of Earnings EBITDA Margin (%) Operating margins during FY17 improved 5,000.0 30.0% 4,461 by 19.3% YoY on account of; 4,500.0 27.3% 3,740 25.0% Healthy gains in the primary APIs 4,000.0 o 25.1% 3,500.0 20.0% business over previous year 23.6% Rs. Mn 3,000.0 21.1% Boost from new product 2,5
Slide 16: Abridged Profit & Loss Statement (Consolidated)
Abridged Profit & Loss Statement ( Consolidated) Particulars (Rs. mn) FY17 FY16 Growth % Total Revenues 19,046 17,776 7.1% (net of taxes) Total Expenditure 17,029 16,129 EBITDA 4,396 3,641 20.7% Margins 23.1% 20.5% PBT 2,352 1,690 39.1% Margins 12.3% 9.5% PAT 1,903 1,337 42.3% Margins 10.0% 7.5% EPS
Slide 17: Outlook
4. Outlook
Slide 18: Outlook for FY18
Outlook for FY18 Healthy visibility of revenue enhancement on the back of preferred supplier status in key products together with Changing business mix to drive expansion in the long-standing customer relationships across businesses medium term • APIs business to deliver volume growth in key ARV and
Slide 19: Strategic Overview
5. Strategic Overview
Slide 20: Strong R&D Capabilities
Strong R&D Capabilities “Research-first” approach – Set up dedicated Key Accreditations R&D center in Hyderabad in 2006 prior to commissioning API manufacturing facility in 2007 R&D team comprising 600 plus scientists (25.0% of total employee strength) including 45 PhDs Kilo Lab at R&D center
Slide 21: Quality Focus & Regulatory Audits
Quality Focus & Regulatory Audits Laurus’ Philosophy “One Quality for all markets” We maintain consistent quality, efficiency and Regular Inspection at different product safety. manufacturing units We have adopted uniform manufacturing 2017 WHO / USFDA standards across all facilities to achieve stan
Slide 22: Facilities Overview
Facilities Overview Unit-I • Located at Jawaharlal Nehru Pharma Unit-IV City, Vishakapatnam, India. • API manufacturing facility and includes capacity for ingredients, synthesis and contract manufacturing. • 300 reactors, with 1140 Kilo Litres capacity. • Received approvals from US FDA, WHO- Geneva,
Slide 23: Renowned Management Team
Renowned Management Team Dr. Prafulla Kumar Nandi Chandrakanth Chereddi SVP, Global Regulatory Affairs ED & Head, Generics FDF and (Formulations) Synthesis G Venkateshwar Reddy Ravikumar V V CS and Sr. GM – Legal & Secretarial ED &CFO Dr. Lakshmana Rao C V Exec .VP – Quality Dr. Satyanarayana Chava
Slide 24: Corporate Governance
Corporate Governance Executive Directors Name Background Dr. Satyanarayana Chava Whole-time Director, Founder and Chief Executive Officer Dr. Raju Srihari Kalidindi Whole-time Director and Head of Generics – API & Ingredients Ravi Kumar V V Whole-time Director and CFO Chandrakanth Chereddi W
Slide 25: Awards and Recognition
Awards and Recognition “BEST MANAGEMENT BUSINESS EXCELLENCE NATIONAL SAFETY AWARD 2016” AWARD 2017 AWARD 2016 BY GOVERNMENT OF Laurus Labs Limited receives "HMTV Laurus Labs Limited has bagged the ANDHRA PRADESH. Business Excellence Award 2017" National Safety Award 2016. This award being conferred
Slide 26: Contact us
Contact us About Laurus Labs Ltd. Laurus 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 manu
Slide 27: Thank You
Thank You