Neuland Laboratories Ltd. · NSE:NEULANDLAB
Neuland Laboratories — Q2 FY24 and H1 FY24 Earnings Presentation
37 slides from Neuland Laboratories's earnings presentation, Nov 7, 2023
Slide 1: Stock exchange intimation letter
November 7, 2023 To BSE Limited The National Stock Exchange of India Ltd Phiroze Jeejeebhoy Towers, 25th Floor, Exchange Plaza, Dalal Street, Mumbai – 400 001 Bandra Kurla Complex Bandra (E), Mumbai – 400 001 Scrip Code: 524558 Scrip Code: NEULANDLAB; Series: EQ Dear Sir/Madam, Sub: Investors/Analys
Slide 2: Neuland Laboratories Limited Investor Presentation Q2FY24 & H1FY24
Neuland Laboratories Limited INVESTOR PRESENTATION Q2FY24 & H1FY24
Slide 3: Safe Harbour
SAFE HARBOUR Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "
Slide 4: Table of Contents
Table of Contents 1 2 3 4 5 Q2FY24 and Company Business Shareholder Appendix H1FY24 Overview Strategy Information Highlights
Slide 5: Q2FY24 & H1FY24 Highlights
Nee NEULAND Q2FY24 & H1FY24 Highlights
Slide 6: Management Commentary
Management Commentary SUCHETH DAVULURI “We are pleased to report record quarterly revenue of Rs 421 crores. The YoY revenue growth of 43% driven by the CMS vertical is a culmination of the efforts we have put in over several years. The EBITDA margin of 33.4% therefore is a result of not only the rev
Slide 7: Business and Financial Highlights
Business and Financial Highlights H1FY24 Business and Financial Highlights CMS segment CMS revenues driven by commercial molecules. Significant contribution from molecules in the pipeline also Specialty business Specialty business driven by Paliperidone, Apixaban and Donepezil Prime segment In Prime
Slide 8: Q2FY24 Financial Highlights
Q2FY24 Financial Highlights Total Income EBITDA PAT EPS (Rs. Cr) (Rs. Cr) (Rs. Cr) 21.2% (Rs.) 33.4% 20.4% 30.8% 27.2% 17.0% 23.6% 20.3% 13.0% 11.3% 140.3 89.1 420.8 415.1 69.4 84.5 127.8 65.9 365.0 293.9 62.2 99.3 48.5 270.2 69.4 54.9 38.3 29.9 30.4 23.7 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3
Slide 9: H1FY24 Financial Highlights
H1FY24 Financial Highlights Total Income EBITDA PAT EPS (Rs. Cr) (Rs. Cr) (Rs. Cr) (Rs.) 30.5% 19.3% 19.1% 9.3% 117.9 239.6 785.8 151.3 515.6 98.4 37.5 48.2 H1FY23 H1FY24 H1FY23 H1FY24 H1FY23 H1FY24 H1FY23 H1FY24 Financial Highlights • Total Income for H1FY24 at Rs. 785.8 crore (+52.4% YoY) • EBITDA
Slide 10: Key Balance Sheet Metrics
Key Balance Sheet Metrics Current Ratio(x) ROCE (%)* Fixed Asset Turnover (x)** Debt to Equity (x) 3.2 35.4% 0.4 2.7 2.0 2.4 2.3 1.7 2.1 21.3% 1.6 1.5 1.4 0.2 0.2 13.5% 8.9% 9.7% 0.1 0.1 FY20 FY21 FY22 FY23 H1FY24 FY20 FY21 FY22 FY23 H1FY24 FY20 FY21 FY22 FY23 H1FY24 FY20 FY21 FY22 FY23 H1FY24 Parti
Slide 11: Key Operating Metrics Q2FY24
Key Operating Metrics Q2FY24 Segment Revenue Prime Specialty Top 10 & Top 5 Products Top 10 Top 10 & Top 5 Customers Top 10 CMS Others Top 5 Top 5 99% 97% 94% 89% 4% 4% 4% 5% 3% 85% 87% 82% 73% 67% 67% 70% 33% 35% 66% 45% 44% 55% 59% 57% 47% 47% 33% 25% 24% 25% 21% 30% 36% 26% 26% 21% Q2FY23 Q3FY23
Slide 12: Key Operating Metrics H1FY24
Key Operating Metrics H1FY24 Segment Revenue Prime Specialty Top 10 & Top 5 Products Top 10 Top 10 & Top 5 Customers Top 10 CMS Others Top 5 Top 5 98% 92% 92% 89% 4% 4% 80% 72% 82% 77% 32% 70% 62% 62% 64% 50% 59% 51% 44% 44% 30% 22% 34% 24% H1FY23 H1FY24 Prime Specialty CMS Overall Company Prime Spe
Slide 13: CMS – Revenue Split & Number of Active Projects
CMS – Revenue Split & Number of Active Projects YoY Movement No. of active CMS projects Q2FY24 Pre-Clinical P-1 P-2 P-3 Pre-Reg/Reg* Commercial Total API 12 6 12 3 9 8 50 235 Intermediate 6 4 8 4 6 11 39 91 Grand Total 18 10 20 7 15 19 89 156 75 H1FY23 H1FY24 Q2FY23 Pre-Clinical P-1 P-2 P-3 Pre-Reg/
Slide 14: Company Overview
Nee NEULAND Company overview
Slide 15: Key Facts
Key Facts 39+ 966+ 100+ 76% Years of experience DMFs Filed API across 10 Revenue from exports worldwide therapeutic areas 80+ 65 907KL 1600+ Countries Served Active US DMFs API Manufacturing Employees Capacity 14
Slide 16: How We Got Here: Key Milestones
How We Got Here: Key Milestones First API sale of Salbutamol Sulphate / Albuterol Sulphate First US FDA Audit Japan Subsidiary R&D Centre established; EDQM Incorporation Neuland goes Public USA Operation Audit of Unit-1 1984 1986 1994 1997 2004 2007 2008 2023 2021 2020 2017 2016 2013 2009 Crossed Rs
Slide 17: Our Reach
Our Reach Europe 42% APAC North America Sales Personnel in 3% 42% Lugano, Switzerland Since 2021 Japan 4% Sales office in US Sales office in Japan Since 2004 Since 2007 MENA India LATAM 1% 3% 1% Headquarters in Hyderabad 3 Manufacturing Units Manufacturing and development partner to customers in ove
Slide 18: Manufacturing Capabilities
Manufacturing Capabilities Solvent Cryogenic Hydrogenation Total Reactor Established Recovery Reaction Regulatory Reaction Volume Volume System Volume USFDA, EDQM, 1986 7.4KL 100KLD 25KL CFDA, PMDA, et. 233 KL al Unit-1 USFDA, EDQM, 1994 6 KL 20KLD 15 KL PMDA, ANVISA 363 KL et. al Unit-2 US FDA, EDQ
Slide 19: Focused R&D Framework
Focused R&D Framework Infrastructure Significant R&D Achievements 15 Development Labs with space for Several NCE APIs added in NDA or expansion commercial stage drugs 60 Fume hoods Support for multiple APIs each year in Phase 2 and Phase 3 clinical candidates Analytical Labs Generic API
Slide 20: Regulatory Filings across geographies
Regulatory Filings across geographies 65 32 10 17 268 ROW filings DMFs with Filings with Health Japanese DMF filed China DMF filed including Turkey, USFDA Canada Mexico, Brazil etc 966+ Filings till date ~499 29 19 27 EUDMF filings across CEPs Received for filings with Germany, France, filings with
Slide 21: Financial Highlights FY2014-2023
Financial Highlights FY2014-2023 Rs. Cr FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Total Income 469.1 469.9 519.3 582.3 533.7 670.3 766.6 953.0 953.2 1,200.9 EBITDA 74.0 67.4 89.7 97.6 56.3 61.4 105.3 162.5 144.3 281.1 EBITDA Margin 15.8% 14.3% 17.3% 16.8% 10.6% 9.2% 13.7%
Slide 22: Business Strategy
Nee NEULAND Business Strategy
Slide 23: Neuland Strategy Framework – Strategic Priorities
Neuland Strategy Framework – Strategic Priorities Strategic Priority – IV Strategic Priority – I Digitize Planning to Delivery processes (like Rolling Plan & Build deep competency (through organic & inorganic Inventory), Financial processes (like Payables, Receivables, means) in complementary new te
Slide 24: GDS Strategy
Nee NEULAND GDS Strategy
Slide 25: Global Outlook of Pharmaceutical Industry
Global Outlook of Pharmaceutical Industry Global Pharmaceuticals Global Generic Drugs FY24 FY30 Global Generics Global Generics API Market Size API Market Size $70 $115 2,172 Bn Bn 1,444 760 477 GDS Portfolio GDS Portfolio Market Size Market Size 2023 FY24 2030 FY30 The GLOBAL PHARMACEUTICALS MARKET
Slide 26: Focus Area
Focus Area 1. Maximizing Current Portfolio 2. Growing Pipeline Increase wallet share from existing customers Commercialization of pipeline molecules through New leads identification and conversion Focus on regulated markets/ quality conscious customers Aim for first sourcing and NCE-1 opportunities
Slide 27: CMS Strategy
CMS Strategy
Slide 28: Global Outlook of CDMO Industry
Global Outlook of CDMO Industry CDMOs are strengthening their position as indispensable partners and creating strategic, integrated partnerships with innovators API CDMO Market Size ($Bn) 166 CDMOs are becoming more agile to meet increasing demand for diverse projects Rise in M&A and PE investments
Slide 29: Big Pharma vs Biotech Drug Approval Trend
Big Pharma vs Biotech Drug Approval Trend Small Molecules & Synthetic Peptides Approvals 67% 74% 71% Biotech companies are more 68% 64% 65% 58% 58% 55% 55% 60% aggressive in focusing on small 42% molecules, hence they have a 36% 32% higher approval rate compared to 42% 45% 45% 33% 35% 40% Big Pharma
Slide 30: Focus Areas
Focus Areas Continue to invest in R&D capabilities and manufacturing technologies to attract more 1 RFPs while improving conversion rate 2 Lifecycle management of commercial products 3 Continue to focus on molecules in Phase II and later stages of development 4 Continue business development focus on
Slide 31: Shareholder Information
Nee NEULAND Shareholder Information
Slide 32: Shareholding Details
Shareholding Details Share Information (as on 30th Sep 2023) NSE Ticker NEULANDLAB BSE Ticker 524558 Others 35% Market Cap (Rs. Cr) 4,734 Promoters 36% % free-float 64.03% Free-float market cap (Rs. Cr) 3,031 Shares Outstanding 1,28,29,889 3M Average Daily Traded Volume (ADTV) 52,234 FII DII (Shares
Slide 33: Annexure
Annexure 5
Slide 34: Profit & Loss Snapshot (Standalone)
Profit & Loss Snapshot (Standalone) Particulars (Rs Cr) Q2FY24 Q2FY23 YoY (%) Q1FY24 QoQ (%) Total Income 420.8 293.9 43.2% 365.0 15.3% EBITDA 140.3 69.4 102.2% 99.3 41.3% EBITDA Margin 33.4% 23.6% 980 bps 27.2% 620 bps Profit Before Tax 121.4 53.1 128.8% 83.5 45.4% PBT Margin 28.9% 18.1% 1080 bps 2
Slide 35: Sustainability at Neuland
Sustainability at Neuland Climate change Corporate Governance Reducing greenhouse gas (GHG) Maintain an effective governance and emissions intensity and moving decision-making structure towards a balanced portfolio of low carbon energy management Empowering our people and Ethical Business and Compli
Slide 36: Glossary
Glossary Term Description Term Description Any substance that is intended for incorporation into a finished drug Drugs (small or large molecule) under development by a Pipeline drugs Active Pharmaceutical product and is intended to furnish pharmacological activity or other manufacturer Ingredient (A
Slide 37: About Neuland Laboratories and IR contact
For over 39 Years, Neuland Laboratories Ltd. (BSE:524558, NSE: NEULANDLAB) has been at the forefront of For further information contact manufacturing APIs through its cGMP manufacturing facilities, working with customers in close to 80 countries. IR Desk Neuland Labs has developed more than 300 proc
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