Neuland Laboratories Ltd. · NSE:NEULANDLAB
Neuland Laboratories — Q3 FY2024 Earnings Presentation
37 slides from Neuland Laboratories's earnings presentation, Feb 8, 2024
Slide 1: Cover letter to stock exchanges
February 8, 2024 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 Q3FY24 & 9MFY24
Neuland Laboratories Limited INVESTOR PRESENTATION Q3FY24 & 9MFY24
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 Q3FY24 and Company Business Shareholder Appendix 9MFY24 Overview Strategy Information Highlights
Slide 5: Q3FY24 & 9MFY24 Highlights
Nee NEULAND Q3FY24 & IMFY24 Highlights
Slide 6: Management Commentary
Management Commentary SUCHETH DAVULURI “We are pleased to report another quarter of strong YoY topline growth of 46% to Rs 395 crores. The EBITDA margin of 31.1% is a factor of the business mix as well as improved operational leverage. Even as we see this as a validation of Neuland’s business model,
Slide 7: Business and Financial Highlights
Business and Financial Highlights 9MFY24 Business and Financial Highlights CMS CMS revenues driven by growth from commercial molecules and molecules close to commercialization. GDS Specialty business driven by Paliperidone , Ezetimibe, Apixaban and Dorzolamide In the Prime segment Mirtazapine and Es
Slide 8: Q3FY24 Financial Highlights
Q3FY24 Financial Highlights Total Income EBITDA PAT EPS (Rs. Cr) (Rs. Cr) 33.4% (Rs. Cr) 21.2% (Rs.) 20.4% 20.4% 30.8% 31.1% 27.2% 17.0% 84.5 65.9 20.3% 11.3% 127.8 140.3 89.1 420.8 415.1 69.4 394.9 122.7 80.7 62.9 365.0 62.2 99.3 48.5 270.2 54.9 30.4 23.7 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q
Slide 9: 9MFY24 Financial Highlights
9MFY24 Financial Highlights Total Income EBITDA PAT EPS (Rs. Cr) (Rs. Cr) (Rs. Cr) (Rs.) 30.7% 19.6% 19.5% 1,180.8 10.0% 180.8 362.3 232.0 785.8 153.3 61.3 78.6 9MFY23 9MFY24 9MFY23 9MFY24 9MFY23 9MFY24 9MFY23 9MFY24 Financial Highlights • Total Income for 9MFY24 at Rs. 1,180.8 crore (+50.3% YoY) •
Slide 10: Key Balance Sheet Metrics
Key Balance Sheet Metrics Current Ratio(x) ROCE (%)* Fixed Asset Turnover (x)** Debt to Equity (x) 3.1 34.6% 0.4 2.2 2.7 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 9MFY24 FY20 FY21 FY22 FY23 9MFY24 FY20 FY21 FY22 FY23 9MFY24 FY20 FY21 FY22 FY23 9MFY24 Parti
Slide 11: Key Operating Metrics Q3FY24
Key Operating Metrics Q3FY24 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% 100% 97% 4% 3% 95% 4% 5% 6% 89% 76% 91% 69% 35% 80% 67% 63% 45% 44% 49% 63% 55% 67% 57% 44% 25% 47% 24% 25% 20% 21% 36% 26% 26% 21% 25% Q3FY23 Q4FY23
Slide 12: Key Operating Metrics 9MFY24
Key Operating Metrics 9MFY24 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% 90% 89% 92% 4% 5% 79% 83% 79% 71% 33% 61% 64% 61% 66% 49% 57% 50% 52% 45% 28% 22% 35% 24% 9MFY23 9MFY24 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 Q3FY24 Pre-Clinical P-1 P-2 P-3 Pre-Reg/Reg* Commercial Total API 12 6 12 3 8 8 49 362 Intermediate 7 4 8 4 6 10 39 165 Grand Total 19 10 20 7 14 18 88 221 96 9MFY23 9MFY24 Q3FY23 Pre-Clinical P-1 P-2 P-3 Pre-Reg
Slide 14: Company overview
Nee NEULAND Company overview
Slide 15: Key Facts
Key Facts 40+ 972+ 100+ 76% Years of experience DMFs Filed API across 10 diverse Revenue from exports worldwide therapeutic areas 80+ 66 939KL 1637 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 32% APAC North America Sales Personnel in 3% 57% Lugano, Switzerland Since 2021 Japan 4% Sales office in US Sales office in Japan Since 2004 Since 2007 MENA India LATAM 1% 2% 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. 239 KL al Unit-1 USFDA, EDQM, 1994 6 KL 20KLD 15 KL PMDA, ANVISA 380 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 66 32 10 17 271 ROW filings DMFs with Filings with Health Japanese DMF filed China DMF filed including Turkey, USFDA Canada Mexico, Brazil etc 972+ Filings till date ~499 29 19 28 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 74% 68% 64% 64% 71% Biotech companies are more 59% 57% 58% 60% 55% 55% aggressive in focusing on small 41% 43% 42% 40% molecules, hence they have a 36% 36% 32% 26% 29% higher approval rate compared to 45% 45% Bi
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 31st Dec 2023) NSE Ticker NEULANDLAB BSE Ticker 524558 Others 38% Market Cap (Rs. Cr) 6,784 Promoters 33% % free-float 67.20% Free-float market cap (Rs. Cr) 4,559 Shares Outstanding 1,28,29,889 DII 3M Average Daily Traded Volume (ADTV) 59,654 FII 6% (Sha
Slide 33: Annexure
Annexure 5
Slide 34: Profit & Loss Snapshot (Standalone)
Profit & Loss Snapshot (Standalone) Particulars (Rs Cr) Q3FY24 Q3FY23 YoY (%) Q2FY24 QoQ (%) Total Income 394.9 270.2 46.2% 420.8 -6.1% EBITDA 122.7 54.9 123.5% 140.3 -12.6% EBITDA Margin 31.1% 20.3% 1080 bps 33.4% -230 bps Profit Before Tax 103.8 38.8 167.5% 121.4 -14.5% PBT Margin 26.3% 14.4% 1190
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: Contact and company information
Over 4 decades, 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 process
Neuland Laboratories — Q3 FY2024 Earnings Presentation on 6ix