14 slides from Solara Active Pharma Sciences's earnings presentation, May 2, 2022
Slide 1: Cover letter to stock exchanges: Updated Investor Presentation
Communication Address: Solara Active Pharma Sciences Limited 2nd Floor, Admin Block 27, Vandaloor Kelambakkam Road, Keelakottaiyur Village, Melakottaiyur (Post) Chennai – 600 127, India Tel : +91 44 43446700 Fax : +91 44 47406190 E-mail : investors@solara.co.in www.solara.co.in May 2, 2022 The BSE L
Slide 2: Solara announces Q4'22 and FY22 earnings; calls off merger with Aurore
SOLARA ANNOUNCES Q4’22 AND FY22 EARNINGS; COMPANY DECIDES TO CALL OFF MERGER WITH AURORE AND FOCUS ON ORGANIC GROWTH AND RESET Solara Active Pharma Sciences | Q4'22 Earnings Presentation April 29, 2022
Slide 3: Board decision not to proceed with the Aurore merger
Background ► In April 2021, Solara announced a significant corporate action to merge with Aurore Life Sciences (Aurore) and build Solara into India’s second-largest pure-play API Company. ► The merger was designed to further accelerate Solara’s Global reach by combining the two companies. Headwinds
Slide 4: Change in leadership
Change in leadership ► Given the decision on the proposed merger, Rajender Rao Juvvadi, the incumbent Managing Director & Chief Executive Officer of Solara and co-founder of Aurore, has decided to resign from the Board of Solara. ► Jitesh Devendra, the Former CEO and Managing Director(MD) of Solara
Slide 5: Resetting Solara for a stronger bounce back
Resetting Solara for a stronger bounce back
Slide 6: Course correction strategy for each business vertical during the year
Our course correction strategy will play out for each of the business verticals during the year Core R&D Led Growth P&L Enhance capacity use at Vizag Business Business ▸ Base Ibuprofen and Ibuprofen ▸ High R&D velocity to deliver new ▸ Phase 1 of the Vizag facility was derivative business with 30+ y
Slide 7: Q4'22 and FY22 performance by business
Our key focus in FY23 remains to resolve for the under-recoveries in the Vizag facility Core Business R&D Led Vizag Led Particulars Total (Ex-Vizag) Growth Business Business Revenue 3,669 - - 3,669 Q4'22 EBITDA 404 (119) (109) 176 Performance EBITDA % 11% 5% Profit Before Tax 2 (148) (164) (310) Pro
Slide 8: Q4'22 and FY22 Financial Results
Q4’22 and FY22 Financial Results
Slide 9: Q4'22 performance on expected lines, with signs of recovery across verticals
Q4’22 Performance is on the expected lines and our business has shown sign of recovery across all the verticals Business Performance ► Q4’22 performance has been on the expected lines as revenues stood at ₹3,669m, a 249% growth over Q3’22 and a 19% decline versus Q4’21. ► Reported EBITDA at ₹176m fo
Slide 10: Business and Operations Update: QoQ performance
Q4’22 has seen positive signs of demand recovery, Solara tracking at an operating EBITDA of 19.7% in Q4’22 QoQ Performance (₹ In Million) Positive Signs of demand recovery in Ibuprofen business especially in the Particulars Q4’22 Q3’22 Change Regulated markets. Revenue 3,669 1,051 249% Demand re
Slide 11: Business and Operations Update: YoY performance
One off commercial reset impact fully factored, the focus remains on driving strong growth starting from H2’23 YoY Performance (₹ In Million) Commercial strategy reset in the Less regulated market in Q3’22 impacted FY22 performance Particulars FY22 FY21 Change New products contributed 5% of FY22
Slide 12: Net Debt to EBITDA is ~10x in FY22 and expected to reduce
We expect the Net Debt to EBITDA to be at the historical levels by the end of FY23 Sources of funds (₹ In Million) Net Debt movement (₹ In Million) Particulars Mar’20 Mar’21 Dec’21 Mar’22 Particulars Term Loan Working Capital Cash incl. ICD Net Debt Shareholders' funds 10,860 15,885 15,291 15,272 Op
Slide 13: Solara Earnings Conference Call on 29 April 2022
Solara Earnings Conference Call on Friday, 29th April 2022 at 3:30 pm IST Solara Leadership Participants Arun. Kumar Jitesh Devendra S. Hariharan Founder Managing Director Executive Director & CFO 1530hrs , IST Friday, April 29 +91 22 6280 1346 Pre-register here for +91 22 7115 8247 diamond pass* ht
Slide 14: Thank you
Thank you REGISTERED OFFICE 201, Devavrata, Sector 17, Vashi, Navi Mumbai - 400 703. Tel.: +91 22 2789 2924 Fax No. +91 22 2789 2942 Email: investors@solara.co.in Website: www.solara.co.in CIN: L24230MH2017PLC291636