Granules India Limited · NSE:GRANULES

Granules India — Q1 FY20 Earnings Presentation

24 slides from Granules India's earnings presentation, Jul 30, 2019

  1. Slide 1: Cover letter to stock exchanges

    @GRANULES REGISYERED OFFICE GRANULES INDIA LTD., 2nd Floor, 3rd Block, My Home Hub, Madhapur, Hyderabad , 500 081, Telangana, INDIA. Tel: +91 40 30660000, Fax: +91 40 23115145, mail@granulesindia.com, www.granulesindia,com CIN: L24110T61991PLC012471 Dated July 30, 2019 To, National Stock Exchange of

  2. Slide 2: Investor Presentation Q1 FY20

    Investor Presentation Q1 FY20

  3. Slide 3: Disclaimer

    Disclaimer The Presentation is to provide the general background information about the Company’s activities as at the date of the Presentation. The information contained herein is for general information purposes only and based on estimates and should not be considered as a recommendation that any i

  4. Slide 4: Q1 FY20 Updates

    G GRANULES Qi FY20 Updates

  5. Slide 5: Q1 Financial Performance Highlights

    Q1 Financial Performance Highlights SALES EBITDA PAT Rs 595 Crs, an increase of Rs 119 Crs, an increase of Rs 83 Crs, an increase of 31% over Q1FY19 63% over Q1FY19 61% over Q1FY19  EBITDA Margin – 19.9%  Cash to Cash Cycle – 112 Days  PAT Margin – 13.9%  Free Cash Flow – INR 60 Crs.  R&D cost

  6. Slide 6: Q1 Operational Performance Highlights

    Q1 Operational Performance Highlights Production Details Vertical wise 36% 48% 5,853 API PFI FD 16% 3,591 2,735 7% 8% Geography wise North America 13% Europe 50% India LATAM ROW 22% API in MT PFI in MT FD in Mn 5

  7. Slide 7: About Granules

    G GRANULES About Granules

  8. Slide 8: Granules at a Glance

    Granules at a Glance Building Blocks Installed Capacity Regulatory Approvals Business Divisions Global Reach  Regulatory Compliance  36,560 TPA of API  USFDA, EDQM, EU  Core Business  60+ countries  Operational Efficiency  285 KL GMP, COFEPRIS, WHO  US Generics  250+ customers  4,800 TPA (

  9. Slide 9: Group Structure and Manufacturing Presence

    Group Structure and Manufacturing Presence Incorporated in 1991, this is the only listed entity in the group, with 4 operational plants located in Hyderabad Granules India (Jeedimetla, Bonthapally and Gagillapur) and 1 in Vizag Pharma City 1 Granules USA Inc. 100% subsidiary, for front-end marketing

  10. Slide 10: Business Structure – Granules India

    Business Structure – Granules India  Focus on volume based products such as  Auxiliary growth engine to secure the Paracetamol, Metformin HCl, Ibuprofen, future. Guaifenesin, Methocarbamol, Naproxen and newly added Cetrizine and Fexofenadine.  Multiproduct and multi -stage API to FD manufacturing

  11. Slide 11: Core Business

    Core Business Overview Drivers Value Enablers  Present across the entire pharmaceutical  One of the World’s largest PFI and single site FD facility manufacturing value chain from API to  API capacity 36,560 MT, PFI 24,400 TPA & Finished Finished Dosages. Dosages 18 billion Scale  DMFs, Dossiers,

  12. Slide 12: Emerging Business: Multi APIs / Onco

    Emerging Business: Multi APIs / Onco Overview Drivers Value Enablers  Multiproduct and multi -stage API to FD  Multiproduct API and Oncology manufacturing facility manufacturing facilities in Vizag with with over 18 acre of land special focus in Oncology Infrastructure  Integrated API to FD facil

  13. Slide 13: US Generics

    US Generics Overview Drivers Value Enablers  Fully integrated infrastructure from R&D,  “Niche products,” hidden opportunities with different manufacturing to marketing enabling layers of complexities “Make in America”  Differentiated dosage forms; limited competition Portfolio  Complex generics

  14. Slide 14: JVs – Granules Omnichem & Granules Biocause

    JVs – Granules Omichem & Granules Biocause Granules Omnichem Overview Drivers Value Enablers 250 25% 19.1%  Granules Biocause, a venture with China  High margin opportunity in 200 20% 15.6% based Hubei Biocause operational since CRAMS with manufacturing for 2007. Objective is to enable core innova

  15. Slide 15: Core Management Team

    Core Management Team Mr. Prasad is the Founder of Granules India and has more then three decades of experience in pharmaceutical industry Mr. Krishna Prasad Chigurupati industry. A first generation entrepreneur with expertise in efficient manufacturing , process innovation and compliance. He has dee

  16. Slide 16: Operational Performance Metrics

    Operational Performance Metrics 15 15

  17. Slide 17: High volume based molecule business

    High volume based molecule business 3 Year CAGR 1,963 486 227 18% 1,201 48 Y-o-Y Growth in FY’19 33% Total Contribution Addition during Addition during Addition during Total Contribution in year - 2016 2017 2018 2019 in year - 2019 # High volume based molecule include Paracetamol; Metformin; Ibuprof

  18. Slide 18: Consolidated Operational Metrics

    Consolidated Operational Metrics Product Vertical wise Revenue Revenue share in FY’19 1,076 FD 675 API PFI 462 543 36% 387 FD API 387 343 418 47% 820 533 550 598 PFI 17% 2016 2017 2018 2019 110 Geography wise Revenue contribution 198 403 89 197 77 67 457 147 166 408 309 355 337 292 265 1,111 539 601

  19. Slide 19: Financial Performance Metrics

    Financial Performance Metrics 18 18

  20. Slide 20: Consolidated Financial Overview – Trends

    Consolidated Financial Overview – Trends Revenue EBITDA PAT PAT Margin EBITDA Margin 2,500 20.8% 35.0% 20.0% 16.8% 30.0% 2,000 16.5% 25.0% 1,500 20.0% 2,279 15.0% 1,000 11.4% 10.3% 8.9% 1,692 1,383 1,435 7.8% 10.0% 500 236 5.0% 123 165 133 384 276 299 278 - 0.0% FY'16 FY'17 FY'18 FY'19 Balance Sheet

  21. Slide 21: Consolidated Balance Sheet Highlights

    Consolidated Balance Sheet Highlights Net Debt to EBITDA (Times) 26.3% ROCE Asset Turnover (Times) 3.1 1.7 2.4 18.5% 2.1 16.1% 1.6 1.5 Mar-17 Mar-18 Mar-19 Mar-17 Mar-18 Mar-19 Mar-17 Mar-18 Mar-19 Net Debt to Equity (Times) ROE Cash to Cash Cycle (In Days) 119 0.7 21.0% 0.7 117 16.7% 12.0% 110 0.6

  22. Slide 22: Way Forward

    G GRANULES Way Forward

  23. Slide 23: Way Forward

    Way Forward Building Profitable Growth Steady Returns Blocks in Place through Execution to the Stakeholders  Integrated platform in place that can  Expanding portfolio range with  Financial discipline to a key focus address the entire value chain from addition of differentiated and intermediates

  24. Slide 24: For further information, please contact

    For further information, please contact: Company Investor Relations contact Sumanta Bajpayee Head - Corporate Finance, Treasury and Investor Relations 040-30663572 sumanta.bajpayee@granulesindia.com 532482 GRANULES GRAN:IN GRAN:NS 23

Granules India — Q1 FY20 Earnings Presentation on 6ix