Aarti Drugs Limited · NSE:AARTIDRUGS
Aarti Drugs — Q1 FY2021 Earnings Presentation
41 slides from Aarti Drugs's earnings presentation, Aug 17, 2020
Slide 1: Stock exchange filing cover letter
Ref: ADL/SE/2020-21 August 17, 2020 To, To, Listing/ Compliance Department Listing/ Compliance Department BSE Limited National Stock Exchange of India Phiroze Jeejeebhoy Towers, Limited, Dalal Street, “Exchange Plaza”, Bandra - Kurla Mumbai – 400 001 Complex, Bandra (E), Mumbai – 400051 BSE CODE – 5
Slide 2: Investor Presentation June 2020
Investor Presentation June 2020
Slide 3: 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 4: Table Of Contents
Company Overview …………………………………………………………………………..…..04 - 16 Pharmaceutical Industry Overview & Growth Drivers …………………………..17 - 21 Table Of Contents Investment Proposition & Outlook ………………………………………………………..22 - 24 R & D Product Pipeline ………………………………………………………………………….25 - 27 Result Summary ………………………………………
Slide 5: Company Overview
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Slide 6: Company Overview, Vision and Mission
Company Overview Aarti Drugs Limited was established in the year 1984 and forms part of $1000 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 manuf
Slide 7: Key facts and figures
Key facts and figures Largest producer of One of the largest producers 12 100+ 1,536 50+ Nimesulide in the world Manufacturing Countries Employees of Metformin in the world API Molecules facilities One of the Largest producer in Fluoroquinolones in the #1 Largest producer of world Ketoconazole in th
Slide 8: Milestones
Milestones 1984 1993 1996 2003 2008 2011 2014 2015 2017 2019 2020 Listed On BSE Limited Listed On National Turnover of RS. 500 Aarti Drugs Limited -PBT Turnover of Rs. 1500 Crore Stock Exchange of Crore More than 100 Crores India Limited Incorporation Amalgamation of Rupal Approval of Turnover of Rs
Slide 9: Awards & Accolades
Awards & Accolades 1991-92 2001 2005-06 2009 2012 2013 CHEMEXCIL CHEMEXCIL AVAYA GLOBAL CONNECT PHARMEXCIL PHARMEXCIL ABBOTT Outstanding Performance in Outstanding Performance in Export Customer Responsiveness Outstanding Performance in Outstanding Performance in Best Vendor of the year Export Expor
Slide 10: Corporate Social Responsibility
Corporate Social Responsibility KOSBAD GIRL'S HOSTEL MURBE SMARAK AARTI DRUGS LIMITED | Investor Presentation | June 2020 9
Slide 11: 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, Managing Shri Harshit M. Sa
Slide 12: Business overview for FY20
Business overview for FY20 Domestic market share leader in Export Clientele is well diversified with the topmost client most of its top 10 products contributing to only 3.45% of total export sales Local clientele is well diversified with the topmost client Top 10 Export clients contribute to only 19
Slide 13: Revenue Split
Revenue Split Segment-wise Revenue Split Therapeutic wise Sales of the API Segment 1% Q1 FY 20-21 3% 2% Q1 FY 20-21 2% 4% 3% 5% Anti-biotic API 15% Anti-protozoals Formulation 11% 46% Anti-inflamatory Anti-diabetic Speciality Chemicals Anti-fungal Intermediates 13% Cardioprotectant Othe rs Specialit
Slide 14: Plant Capacity
Plant Capacity Monthly API Capacity 3588 Mt/m Particulars 2019-20 2018-19 2017-18 Units Mt Mt Mt Installed 43,060 29,758 25,714 Production 32,753 22,495 19,261 Captive 7,162 4,690 3,925 Net Production 25,591 17,805 15,337 AARTI DRUGS LIMITED | Investor Presentation | June 2020 13
Slide 15: Overview of facilities
Overview of facilities 1. Pinnacle Life science Pvt Ltd. o Formulation Plant WHO-GMP 1. Aarti Drugs Ltd-Sarigam 2902-04 2. Aarti Drugs Ltd-Sarigam 211/213 o WHO-GMP o WHO-GMP / COFEPRIS / CEP 1. Aarti Drugs Ltd.E-22 3. Aarti Drugs Ltd.E-21 o Australian Government – o WHO-GMP 7. Aarti Drugs Ltd.E-120
Slide 16: Overview of Export - FY20
Overview of Export - FY20 Global 1 Afghanistan 41 Iraq 81 Spain 2 Africa 42 Ireland 82 Sri Lanka 3 Algeria 43 Israel 83 Sudan 4 Argentina 44 Italy 84 Sultanate Of Oman 5 Armenia 45 Japan 85 Switzerland 46 Jordan 86 Syria Europe 6 Australia 13% 7 Bahamas 47 Kenya 87 Taiwan 8 Bangladesh 48 Korea 88 Ta
Slide 17: Key local clientele
Key local clientele AARTI DRUGS LIMITED | Investor Presentation | June 2020 16
Slide 18: Pharmaceutical Industry Overview & Growth Drivers
Pharmaceutical Industry Overview & Growth Drivers
Slide 19: Indian Pharmaceutical industry
Indian Pharmaceutical industry Formulations Contract Research and Manufacturing Services (CRAMS) o Largest exporter of formulations in terms of volume, with 14 per o Fragmented market with more than 1,000 players cent market share and 12th in terms of export value. Drug formulation exports from Indi
Slide 20: Industry Going Forward
Industry Going Forward API IS THE LARGEST SEGMENT OF THE INDIAN PHARMACEUTICALS SECTOR Pharmaceutical Industry Manifold rise in public healthcare spending Increase in the size of middle class households Improvement in medical infrastructure US$ 33 Bn US$ 55 Bn Increase in the penetration of health i
Slide 21: Indian Pharmaceutical Industry
Indian Pharmaceutical Industry PHARMA EXPORT TO CONTINUE WITNESSING POSITIVE GROWTH Major Export Destinations in India’s Pharma Export in FY18 (%) o India, the third-largest pharmaceutical market in Asia, North America 15.30% o Supplies over 50 per cent of global demand for various vaccines, 40 per
Slide 22: Growth Drivers
Growth Drivers Pharma Vision 2020 by the government’s Department of India’s cost of production is approximately 33 per cent lower than Pharmaceuticals aims to make India a major hub for end-to-end that of the US. drug discovery Government has set aside an investment worth US$307.6 million (INR20 bil
Slide 23: Investment Proposition & Outlook
Investment Proposition & Outlook
Slide 24: Investment Proposition
Investment Proposition Around 75 to 100 cr CAPEX is STRONG PROCESS being done every year to Reliable in terms of IMPROVEMENT R&D, Newer capacities fuel growth for coming 5 years quality and timely COST LEADERSHIP, established since last GREEN FIELD considering higher gestation period deliveries. Hon
Slide 25: Outlook
Outlook ANTI DIABETIC: SPECIALITY CHEMICALS: o Started with the commercial operations, received WHOGMP, recently inspected by COFEPRIS o Incremental expansion of our multipurpose chloro-sulphonation line in existing block o CEP approval in 2016 which opened up European markets o Greenfield expansion
Slide 26: R & D and Product Pipeline
R & D and Product Pipeline
Slide 27: Research & Development Focus
Research & Development Focus Manufacturing facilities at Tarapur and Sarigam are supported by R&D section located at Tarapur, where R&D Expenses as % of Revenue focus is mainly on process developments STRENGTH AT R&D 0.46% Pilot plant facility at Tarapur, which is suitable to produce products on 01
Slide 28: 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 Antidiabetic Vildagliptin 2 Anticoagulant Dabigatran 2 Antidiabetic Teneligliptin 1 Anti Cholesterol Atorvastatin 3 Antid
Slide 29: Result Summary
Result Summary —
Slide 30: Results Summary – Consolidated Q1FY21 and FY20
Results Summary – Consolidated Q1FY21 and FY20 (in ₹ Million) Particulars Q1 FY21 Q4 FY20 Q1 FY20 Y-o-Y (%) FY 20 FY 19 Y-o-Y (%) Revenue from Operations 5,447 4,496 4,054 34.34% 18,061 15,609 15.71% Other Income 13 10 1 15 24 Total Income 5,459 4,506 4,055 34.63% 18,076 15,634 15.62% Cost of Materi
Slide 31: Revenue Split – Consolidated Q1 FY21
Revenue Split – Consolidated Q1 FY21 Revenue EBITDA PAT 5,447 1,352 855 4,054 34% 9% .6 3% 34. 146 .8 80 548 2 225 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 API Formulation Specialty Chemicals Intermediate & Others Q1FY21 4296 811 203 137 Q1FY20 3293 428 150 183 Note: 1.. On Consolidated Basis
Slide 32: Results Summary – FY20
Results Summary – FY20 Revenue EBITDA PAT 18,061 2,678 1414 2,135 4% 1 % 9 % 57.5 1 5.7 2 5.3 898 15,609 FY 19 FY 20 FY 19 FY 20 FY 19 FY 20 API Formulation Specialty Chemicals Intermediate & Others FY20 14,414 2,084 566 997 FY19 13,086 1,498 434 591 Note: On Consolidated Basis Number In ₹ Million E
Slide 33: Financial Overview
Financial Overview
Slide 34: Robust Financial Performance
Robust Financial Performance Revenue EBITDA & EBITDA Margin CAGR-12.22% CAGR-11.11% 16.03% 15.92% 1 6 .5 0 % 2 ,6 0 0 15.41% 1 6 .0 0 % 1 5 . 0 % 2 ,1 0 0 14.81% 1 5 .0 0 % 1 ,6 0 0 1 4 .5 0 % 13.63% 1 4 .0 0 % 1 ,1 0 0 1 3 .5 0 % 1 3 .0 0 % 6 0 11,398 11,992 12,447 15,634 18,076 1,757 1,909 1,995 2
Slide 35: Robust Financial Performance
Robust Financial Performance Earning Per Share (in ₹) Gearing Ratio (x) 1.36 60.57 1.15 1.19 0.93 38.48 33.46 34.41 28.38 0.58 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Net Worth (in ₹ million) RoE(%) & RoCE (%) RoE RoCE 6,525 23.69% 5,435 19.82% 20.44% 18.07% 17.97% 4,554 4,001 20.60% 3,467
Slide 36: Profit & Loss Statement – Last 5 years
Profit & Loss Statement – Last 5 years (in ₹ Million) Particulars 2020 2019 2018 2017 2016 Revenue from operations (gross) 18,061 15,609 12,626 12,881 12,283 Less : Excise duty - - -189 -929 -934 Revenue from operations (net) 18,061 15,609 12,436 11,952 11,349 Other Income 15 24 11 40 50 Total Reven
Slide 37: Balance Sheet – Last 5 years
Balance Sheet – Last 5 years Particulars 2020 2019 2018 2017 2016 Share Capital 233.00 235.82 235.82 238.57 (in ₹ Million) 242.17 Other Equity 6,291.89 5,198.64 4,318.46 3,762.75 3,224.45 Total Equity Attributable to Equity Holders of the Company 6,524.89 5,434.46 4,554.28 4,001.32 3,466.62 Non- Con
Slide 38: Cash Flow Statement – Last 5 years
Cash Flow Statement – Last 5 years (in ₹ Million) Particulars 2020 2019 2018 2017 2016 A Cash Flow from Operating Activities Net Profit before Tax and Extraordinary items 1,852.88 1,310.23 1,245.03 1,160.12 952.75 ADJUSTMENT FOR: Depreciation & Amortisation 487.53 425.62 400.63 384.63 365.28 Provisi
Slide 39: Shareholder Information
Shareholder Information
Slide 40: Shareholder Information
Shareholder Information Stock Data (As on 30th June 2020) Market Capitalization (₹) Shares Outstanding Free Float Symbol (NSE/ BSE) 29,603 mn 23.30 mn 39.49% AARTIDRUGS / 524348 Stock Performance Chart (As on 30th June 2020) Ownership Summary Base = 100 ADRG.NS NIPHARM 6.91 241.78 240 230 220 210 20
Slide 41: 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