Piramal Pharma Limited · NSE:PPLPHARMA
Piramal Pharma — Piramal Enterprises — Q1 FY2021 Earnings Presentation
35 slides from Piramal Pharma's earnings presentation, Jul 30, 2020
Slide 1: Piramal Enterprises Limited Q1 FY2021 Results
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Piramal Enterprises Limited Q1 FY2021 Results 30 July 2020
Slide 2: Key Highlights
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 2 Key Highlights Pharma Fund Raise Deleveraging Borrowings / Inflows Agreement with Carlyle for a fresh Net debt reduction of Raised ~INR 9,600 Cr. of long-term equity investment of USD 490m for a INR 13,902 Cr. since last one year; b
Slide 3: Balance Sheet Highlights
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 3 Balance Sheet Highlights Equity (INR Cr.) Net Debt (INR Cr.) Net Debt-to-Equity 2.0x 2.0x 1.9x 1.8x 1.6x 1.2x 1.2x 30,572 31,018 53,397 55,122 29,013 52,055 48,963 27,224 26,856 26,655 46,066 26,427 37,283 38,153 Dec-18 Mar-19 Jun-1
Slide 4: Pharma Fund-raise
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 4 Pharma Fund-raise Carlyle and Piramal Pharma signed an agreement for a strategic growth investment Deal valued at EV of USD 2,775m with an USD 490m for a 20% stake upside component of up to USD 360m depending to be invested by Carly
Slide 5: Revenues and Net Profits
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 5 Revenues and Net Profits (In INR Crores) Total Revenues1,2 Net Profit3 6-year CAGR: 21% 3,187 6-year CAGR: 44% YoY Change: -8% 2,937 YoY Change: 11% 2,624 496 448 2,002 382 1,507 302 1,153 231 957 169 55 Q1FY15 Q1FY16 Q1FY17 Q1FY18
Slide 6: Liquidity position, borrowings and capital inflows
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 6 Liquidity position, borrowings and capital inflows (in INR Crores) ■ Raised ~INR 9,600 Cr. of long-term borrowings (≥1 year Equity3 / Inflows1 in the last 1 year Borrowings Other inflows tenure) during Q1 FY2021 Long-term borrowings
Slide 7: Financial Services
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 7 Financial Services
Slide 8: Loan Book and Total Income
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 8 Loan Book and Total Income Loan book 1 Income from Financial Services (in INR Crores) (in INR Crores) 56,605 2,014 51,265 1,899 46,995 1,559 28,648 1,084 15,998 635 7,611 320 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Q1 FY16 Q1 FY17
Slide 9: Key strategic priorities
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 9 Key strategic priorities A Increasing granularity of the loan book Wholesale Lending B Taking proactive corrective actions to mitigate potential risks Retail Lending C Building a digitally-led, multi-product retail lending platform
Slide 10: Increasing granularity of the loan book
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 10 A Increasing granularity of the loan book (in INR Crores, unless otherwise stated) Wholesale Loan Book Top-10 exposures Single-borrower exposures No. of accounts >15% of net worth -11% -21% 3 51,436 18,404 45,805 14,458 1 Mar-19 Ju
Slide 11: Proactive corrective actions to mitigate potential risks
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 11 B Proactive corrective actions to mitigate potential risks Fundamental factors enabling healthy asset quality Domain expertise in Real Estate Entire portfolio is secured Escrow Control Conducted a Scenario Analysis Actions taken at
Slide 12: Building a multi-product retail lending platform
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 12 C Building a multi-product retail lending platform We have made 3 choices for our next rollout phase Product Strategy Channel Strategy Geography Selection ■ Pivot: From ‘Affluent Housing’ to ‘Mass ■ Phygital: Digital-at-the-core au
Slide 13: Building a multi-product retail lending platform (cont'd)
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 13 Building a multi-product retail lending platform (cont’d) Currently focused on building a strong foundation for the business Technology Talent pool Processes and Risk Management ■ Assembling future-ready tech stack for ■ Continue t
Slide 14: Developing fund-based platforms – Alternative AUM
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 14 D Developing fund-based platforms – Alternative AUM Alternative AUM JV Partner / Size / Initial Platform As on June-20 Co-investor Commitment (in INR crores) India RF – Stressed Asset Investing Bain Capital USD 629m1 2,122 Mezzanin
Slide 15: Asset Quality
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 15 Asset Quality
Slide 16: Conservative provisioning to manage any contingences
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 16 E Conservative provisioning to manage any contingences Total Provisions Provisioning for Standard Assets: In INR Crores Incremental provision of 3,013 ■ Provision against Stage 1 & 2 loans has INR 1,903 Cr. in Q4 FY20 2,963 in resp
Slide 17: Liabilities
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 17 Liabilities
Slide 18: Borrowing mix
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 18 F Borrowing mix Borrowing mix by type of instrument Borrowing mix by investor 9% 9% 9% 11% 11% 11% 2% 2% 6% 2% 7% 4% 6% 2% 2% 2% 2% 2% 17% 8% 9% 19% 19% 7% 29% 4% 20% 69% 68% 63% 62% 51% 55% Jun-18 Jun-19 Jun-20 Jun-18 Jun-19 Jun-2
Slide 19: Asset-liability profile
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 19 Asset-liability profile (in INR crores) As on June 30, 2020 73,055 Cumulative Inflows 59,824 Cumulative Outflows 50,248 35,495 32,649 24,068 14,979 8,468 9,761 4,377 5,616 5,639 3,803 2,662 1,996 474 743 107 up to 14d up to 1m up t
Slide 20: Improved ALM – increase in positive GAP
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 20 Improved ALM – increase in positive GAP Cumulative ALM GAP - up to 1-year (period-end) Significant improvement in positive gap Cumulative GAP as a % of Cumultative Outflows (up to 1 year) Cumulative GAP up to 1 year (INR Cr.) +5,21
Slide 21: Capital Adequacy and Leverage
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 21 G Capital Adequacy and Leverage Capital Adequacy Ratio (%)1,2 Net Debt-to-Equity 2 In 2Q20 equity of ~INR 1,700 Cr. 33% allocated from In 4Q20 equity of 31% 29% stake sale in STFC ~INR 2,000 Cr. 27% 4.4x allocated to the FS 3.9x bu
Slide 22: Performance metrics
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 22 Performance metrics Key Performance Indicators: PEL Financial Services (Lending Business) Particulars Q1 FY2021 Total Loan Book size INR 51,265 Cr. Total Equity on Lending (utilized synergies from reverse merger) INR 16,192 Cr. Net
Slide 23: Pharma
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 23 Pharma
Slide 24: Delivered resilient revenue performance despite COVID-19 global pandemic
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 24 Delivered resilient revenue performance despite COVID-19 global pandemic Pharma Performance ■ Q1 FY21 performance: Despite global COVID-19 pandemic impact, delivered revenues1 of INR 1,038 Cr. i.e. ~90% of Q1 FY20 revenues Revenue1
Slide 25: Continued improvement in the profitability over the years
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 25 Continued improvement in the profitability over the years Significant improvement in EBITDA over the last few years Performance Highlights 26% ■ EBITDA of Pharma business crossed INR 1,400 Cr. with EBITDA EBITDA1,2 (INR Crore) EBIT
Slide 26: COVID-19: PEL well-positioned despite pandemic-related challenges
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 26 COVID-19: PEL well-positioned despite pandemic-related challenges ■ Contribution of the Pharma sector even more critical in the times of health emergencies Pharma – an essential ■ Playing an extremely important role by enabling the
Slide 27: COVID-19: Measures taken to overcome the challenges
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 27 COVID-19: Measures taken to overcome the challenges ■ Alternative vendor management was proactively accelerated 21+ months ago Securing ■ Reduced location & supplier-concentration risks supply chain ■ Hence, no major negative impac
Slide 28: Financials
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 28 Financials
Slide 29: Diversified Revenue Mix
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 29 Diversified Revenue Mix (In INR Crores or as stated) Quarter I ended % Sales Net Sales break-up 30-June-20 30-June-19 % Change for Q1 FY2021 Financial Services 1,899 2,014 -6% 65% Pharma2 1,038 1,172 -11% 35% Pharma Solutions 614 6
Slide 30: Consolidated Profit & Loss
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 30 Consolidated Profit & Loss (In INR Crores or as stated) Quarter I Ended Particulars 30-Jun-20 30-Jun-19 % Change Net Sales 2,937 3,187 -8% Non-operating other income 65 64 2% Total income 3,003 3,251 -8% Other Operating Expenses 1,
Slide 31: Appendix
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 31 Appendix
Slide 32: Stage-wise provisioning
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 32 Stage-wise provisioning Particulars (in INR Cr.) As of Jun-2019 As on Mar-2020 As on Jun-2020 Gross Stage 1 & 2 Loans 56,120 49,761 49,984 Provision - Stage 1 & 2 loans 887 2,479 2,518 Provision Coverage Ratio - Stage 1 & 2 1.6% 5.
Slide 33: Strengthened the balance sheet in FY2020
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 33 Strengthened the balance sheet in FY2020 Inflows from key transactions during FY20: ~INR 14,500 Cr. (~US$ 2bn) ■ Fresh investment by CDPQ – an existing long-term investor / partner Preferential Allotment: − CDPQ had also participat
Slide 34: Dial-in details for Q1 FY2021 Earnings Conference Call
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 34 Dial-in details for Q1 FY2021 Earnings Conference Call Event Location & Time Telephone Number +91 22 6280 1264 / +91 22 7115 8165 (Primary Number) +91 70456 71221 (Local Number) India – 6:00 PM IST 1800 120 1221 / 1800 266 1221 (To
Slide 35: For Investors
Piramal Enterprises Limited – Q1 FY2021 Results Presentation Page 35 For Investors : Hitesh Dhaddha Chief Investor Relations Officer Email : hitesh.dhaddha@piramal.com Phone : +91 22 3046 6306 Aditya Sharma Sarang Nakadi Chief Manager – IR (Financial Services) Chief Manager – IR (Pharma Business) Em
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