Windlas Biotech Ltd. · NSE:WINDLAS
Windlas Biotech — Q4 FY2023 Earnings Presentation
40 slides from Windlas Biotech's earnings presentation, May 5, 2023
Slide 1: Stock exchange filing cover letter
Windlas Biotech Limited Reg. Off.: 40/1, Mohabewala Industrial Area Dehradun, Uttarakhand 248 110, India Tel.:+91-135-6608000-30, Fax:+91-135-6608199 Corp. Off.: 705-706, Vatika Professional Point, Sector-66, Golf Course Ext. Road, Gurgaon, Haryana 122 001, India Tel.:+91-124-2821030 CIN-L74899UR200
Slide 2: Windlas Biotech Limited Investor Presentation – May 2023
Windlas Biotech Limited Investor Presentation – May 2023
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Windlas Biotech Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secu
Slide 4: Managing Director’s Message
Managing Director’s Message “The overall Indian pharma market grew at 9.3% in FY23 while Windlas grew at a faster pace with revenues jumping 10% for the fiscal. I am delighted to announce that the company continued to achieve growth across various operational and financial parameters notwithstanding
Slide 5: CEO & CFO's Message
CEO & CFO's Message “The company witnessed its highest ever revenue and profitability numbers with Q4 and FY23 revenue standing at Rs. 141 Crores and Rs. 513 Crores respectively, up 15% and 10% YoY. EBITDA grew at an even faster pace registering a growth of 20% and 15% for the quarter and full year,
Slide 6: Financial Performance Highlights
Financial Performance Highlights 5
Slide 7: Key Highlights: FY2023
Key Highlights: FY2023 Generated net Entire Rs. 165 Buyback of Rs. 25 operating cash flows crores of IPO 01 crores successfully 02 of Rs. 61 crores 03 proceeds have completed during FY23 been utilized Dividend related Strong liquidity of to FY22: Payout of 04 Rs. 7.6 Crores (Rs. 05 Rs. 138 crores as
Slide 8: Quarterly Performance Highlights
Quarterly Performance Highlights Rs. Crores Revenue EBITDA & EBITDA Margin (%) 11.3% 13.4% 11.3% 11.2% 11.7% +15% 140.7 Consolidated 122.1 +19% Clocked in highest 16.4 13.8 ever quarterly Revenue and EBITDA Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Generic Formulations Trade Generics & Exports Vertical Revenu
Slide 9: Annual Performance Highlights
Annual Performance Highlights Rs. Crores Revenue EBITDA & EBITDA Margin (%) 13.4% 11.3% 11.2% 11.7% +10% 513.1 Consolidated 465.9 +15% 60.2 52.4 FY22 FY23 FY22 FY23 Generic Formulations Trade Generics & Exports Vertical Revenue CDMO Institutional +5% +49% -5% 398.3 90.5 20.9 379.7 19.8 60.8 FY22 FY2
Slide 10: Vertical Break-up
Vertical Break-up Q3FY23 Q4FY22 Q4FY23 20% 12% 16% 79% 78% 72% 7% 8% 5% Generic Formulations CDMO Generic Formulations CDMO Generic Formulations CDMO Trade Generics & Institutional Trade Generics & Institutional Trade Generics & Institutional Exports Exports Exports FY22 FY23 13% 18% 81% 78% 4% 4% G
Slide 11: Consolidated Profit & Loss Statement – Q4 & FY23
Consolidated Profit & Loss Statement – Q4 & FY23 Particulars (Rs. Crores) Q4FY23 Q4FY22 YoY% FY23 FY22 YoY% Net Revenue from Operations 140.7 122.1 15.2% 513.1 465.9 10.1% COGS 88.9 79.5 325.4 302.8 Gross Profit 51.8 42.7 21.5% 187.6 163.1 15.0% Gross Margin (%) 36.8% 34.9% 191 bps 36.6% 35.0% 160bp
Slide 12: EBITDA Bridge for Q4 & FY23
EBITDA Bridge for Q4 & FY23 Q4FY23 EBITDA Bridge (Rs. Crores) 2.7 1.6 4.9 6.5 16.4 13.8 Q4FY22 - EBITDA Higher/Lower Sales Gross Margin Employee Benefit Expenses Other Expenses Q4FY23 - EBITDA Impact on Gross Margins Improvement/ Reduction FY23 EBITDA Bridge (Rs. Crores) 8.0 6.9 9.8 60.2 16.5 52.4 F
Slide 13: Rewarding Shareholders – FY23
Rewarding Shareholders – FY23 • Buy Back: • Buyback of Rs. 25 Crs. successfully completed • The Board of Directors of the company in their meeting held on November 08, 2022, has decided for Buy-back of Equity shares for an amount not exceeding Rs. 25 Crs. at a price not exceeding Rs. 325/- per equit
Slide 14: Company Overview
Company Overview 13
Slide 15: Windlas Biotech at Glance
Windlas Biotech at Glance Scalability Durability Profitability ▪ Leading Domestic Generic Formulations CDMO ▪ Well aligned workforce with ESOPs and ▪ Consistently maintained Gross Margins in terms of Revenue variable pay above 35% since FY19 ▪ License to manufacture 5,370* Products (as of ▪ Digitali
Slide 16: Windlas Biotech’s Presence in Pharma Value Chain
Windlas Biotech’s Presence in Pharma Value Chain * * * * Drug API Formulation Research Packaging Development Manufacturing Manufacturing Value Chain CRO Vertical Generic Formulations CDMO Vertical *Signifies Presence of Windlas Biotech in the Respective Verticals We invest in creating our own formul
Slide 17: Journey So Far…
Journey So Far… ▪ Commenced operations at ▪ Commenced operations at ▪ Received first USFDA inspection clearance • Revenues crossed ₹300 Crores for the FY 2016-17 Dehradun Plant – I and initiated Dehradun Plant – IV ▪ Revenues crossed ₹200 Crores for the FY • Launched first product in the United Stat
Slide 18: Strong Board of Directors…
Strong Board of Directors… ▪ 22+ years of experience in the ▪ Chairman of Confederation of Indian pharmaceutical industry, he has a Industries , Uttarakhand State Council, Bachelor’s degree in Law from the ▪ Established Windlas Biotech in 2001. Hemwati ▪ Led Windlas Biotech as MD till 2020 ▪ Nandan
Slide 19: …Coupled with Proficient Management Team
…Coupled with Proficient Management Team Mr. Ashok Kumar Windlass, Ms. Komal Gupta, Whole Time Director CEO & CFO Founded Windlass Biotech in 2001 Experience – 18+ Years; 54+ Years of Experience in the industry, he has led Windlas Educational Qualification - CA, CS & CWA Biotech as MD till 2020. Wor
Slide 20: Vertical Overview
Vertical Overview Generic Formulations Trade Generics Exports CDMO & Institutional ▪ Generic Formulations CDMO vertical ▪ This vertical consists of Trade Generics ▪ Export vertical is engaged in identifying focused on providing products & services which includes products sold to high growth opportun
Slide 21: Generic Formulations CDMO Business Highlights
Generic Formulations CDMO Business Highlights No. Of Customers 371 Brand Used Brand of the end CDMO Customer Products Fixed dosage, Fixed dosage plus modified release, Customized generics, chewable/ dispersible and plain oral solids Revenue Mix (% of FY23) 78% Amongst the leading Domestic Generic Fo
Slide 22: Well Diversified Product Portfolio
Well Diversified Product Portfolio Windlas provides Generic Formulations CDMO services & products ranging from product discovery, product development, licensing and commercial manufacturing of complex generic products in compliance with current GMP Company’s product portfolio predominantly overlaps
Slide 23: Large Marquee Customer Base
Large Marquee Customer Base ✓ Streamlined Client Acquisition Process Added New Customers at a rapid pace 371 Lead Proposal Contract Client +40% 285 Identification Negotiation Winning Management Creation 204 143 97 ✓ Key Factors that lead to Expansion of Customer base Audits by several MNC & Domestic
Slide 24: De-Risking the Customer Concentration
De-Risking the Customer Concentration Long-term nature of the relationships help in pre-plan the Capex and eventually help in achieving sustainable growth and profitability Long-term Relationships Ease is Increased Strengthened Competitive cost with Pre-Planning Economies of Purchasing Power structu
Slide 25: Underpinned by Strong Tailwinds for Organized Players
Underpinned by Strong Tailwinds for Organized Players Key Updates in Generic Formulations CDMO industry Scaled CDMOs shifting identity from “Supplier” to “Partner” Customers asking for higher quality systems in R&D as well as Generic Formulations CDMOs deploying superior R&D manufacturing infrastruc
Slide 26: Capex & Outlook For Injectables
Capex & Outlook For Injectables Multiple Triggers for Revenue Growth and Improved Return Ratios Key Highlights Key Growth Drivers Impact ▪ Ongoing mechanical ▪ Rise in chronic diseases ▪ Would help improve Foray into High Growth completion for injectables ▪ Emergence of New Drug economies of scale I
Slide 27: Domestic Trade Generics & Institutional Business Overview
Domestic Trade Generics & Institutional Business Overview Brand Used Company’s Brand Names Products Focus on Respiratory, Anti-diabetic, Gastroentology & other chronic + sub chronic TA’s Revenue Mix (% of FY23) 18% No. of Brands 278 26
Slide 28: Leveraging Trade Generics & Institutional Market Opportunity
Leveraging Trade Generics & Institutional Market Opportunity Highlights Key Drivers Fastest Growing SBV in the last three years chart INR Crores Rs. 91 Crores Trade Generics & Institutional Revenue 91 Low costs compared to branded Trade Generics & Institutional SBV +35% generics revenue (FY23) 61 44
Slide 29: Export Business Overview
Export Business Overview No. Of Customers Focused on Emerging & Semi-Regulated Markets Brand Used Own Brands and End Customer Brands Products Exported 74 Products during FY23 which includes Generic Medicines & Health Supplements Revenue Mix: 3.9% of FY23 Revenue from Operations Exports SBV: INR of 2
Slide 30: Robust R&D Capabilities
Robust R&D Capabilities Robust R&D capabilities help in Customize and Market Complex; Generic Products to Customers and differentiate from Competition Consistent in R&D Expenditure Robust Growth in Complex Generics R&D INR Crores Key Highlights R&D Expenditure No. of Variations in Complex Generics 8
Slide 31: Competencies in Manufacturing Facilities
Competencies in Manufacturing Facilities Efficiency & Effectiveness in Regulatory & Quality Compliance act as solid Entry Barriers Dehradun Plant 1 commenced Dehradun Plant 2 commenced Dehradun Plant 3 commenced Dehradun Plant 4 commenced operations in 2001 operations in 2014 operations in 2018 oper
Slide 32: Strategies & Way Forward…
Strategies & Way Forward… Strategic Investments/ Acquisitions • Leading in Generic Formulations CDMO status benefits the company from the Industry consolidation trend in an already highly fragmented market with 400 Organized and 15,000 unorganized players Injectables • On going new plant for ampoule
Slide 33: Historical Financial Snapshot
Historical Financial Snapshot 32
Slide 34: Financial Snapshot
Financial Snapshot Consolidated Revenue (Rs. Crores) EBITDA (Rs. Crores) PAT (Rs. Crores) +14% 513 +12% 43 466 60 38 428 55 +31% 52 329 29 307 38 34 16 14 FY19 FY20 FY21 FY22 FY23 FY19* FY20 FY21* FY22 FY23 *FY19 FY20 *FY21 FY22 FY23 EBITDA Margin (%) PAT Margin (in %) EPS 12.7% 8.2% 8.3% 12.3% 19.7
Slide 35: Financial Snapshot
Financial Snapshot Consolidated Asset Turnover Ratio Net Worth (Rs. Crores) Net Debt to Equity (x) 4.9 4.8 4.7 0.1 4.4 395 402 0.0 0.0 3.2 194 210 199 FY19 FY20 FY21 FY22 FY23 -0.1 -0.3 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 ROCE (In %) ROE (In %) 26% Net Debt to EBITDA (x) 29% 0.3 0.1 18
Slide 36: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Consolidated Particulars (Rs. Crores) FY23 FY22 FY21 FY20 FY19 Net Revenue from Operations 513.1 465.9 427.6 328.9 307.3 COGS 325.4 302.8 274.4 211.6 191.9 Gross Profit 187.6 163.1 153.2 117.3 115.3 Gross Margin (%) 36.6% 35.0% 35.8% 35.7% 37.5% Employee Expenses
Slide 37: Consolidated Balance Sheet
Consolidated Balance Sheet Consolidated Assets (Rs. Crores) FY23 FY22 FY21 FY20 FY19 Equities & Liabilities (Rs. Crores) FY23 FY22 FY21 FY20 FY19 Non Current assets Equity Property, Plant and Equipment 102.6 88.4 92.5 66.1 59.7 Capital work in progress Equity Share capital 10.5 10.9 6.4 6.4 6.4 13.8
Slide 38: Consolidated Cash Flow
Consolidated Cash Flow Consolidated Particulars (Rs. Crores) FY23 FY22 FY21 FY20 FY19 Net Profit before Tax and Extraordinary items 57.0 45.6 21.7 24.7 76.1 Adjustments for: Non Cash Items / Other Investment or 7.3 10.0 36.3 17.3 -33.9 Financial Items Operating profit before working capital changes
Slide 39: IPO Proceeds Utilization
IPO Proceeds Utilization Utilized as on 31st Particulars (Rs. Crores) Proposed Balance March 2023 Purchase of equipment required for (i) capacity expansion of our existing facility at our Dehradun Plant – IV 50.0 50.0 0.0 (ii) addition of injectables dosage capability at our existing facility at Deh
Slide 40: Contact Us
Contact Us Company: Investor Relations Advisor: CIN: 74899UR2001PLC033407 CIN: U74140MH2010PTC204285 Ms. Komal Gupta Mr. Jigar Kavaiya Email: komal@windlasbiotech.com E: jigar.kavaiya@sgapl.net Contact no.: +91 124 2821034 T: +91 9920602034 www.windlas.com www.sgapl.net