Granules India Limited · NSE:GRANULES
Granules India — Q2 FY24 Earnings Presentation
26 slides from Granules India's earnings presentation, Nov 9, 2023
Slide 1: Presentation to Analysts/Investors cover letter
© GRANULES REGISTERED OFFICE GRANULES INDIA LTD., 2nd Floor, 3rd Block, My Home Hub, Madhapur, Hyderabad - 500 081, Telangana, India. Tel: +91 40 69043500, Fax: +91 40 23115145, mail@granulesindia.com, www.granulesindia.com CIN: L24110TG1991PLC012471 Date: November 09, 2023 To, National Stock Exchan
Slide 2: Granules India Limited Earnings Presentation Q2FY24
Granules India Limited Earnings Presentation Q2FY24
Slide 3: Safe harbour
Safe harbour The Presentation is to provide the general background information about the Company’s activities as at the date of the Presentation. The information contained herein is for general information purposes only and based on estimates and should not be considered as a recommendation that any
Slide 4: Key Business Updates
Key Business Updates ▪ Production and Sales restored to normalcy IT Incident Update ▪ Enhanced security environment ▪ Continuous improvement process for systems and security are put in place ▪ ANVISA audit completed for Gagillapur formulations plant and Bonthapally Regulatory Inspection API plant an
Slide 5: Medicine with near Net Zero Carbon footprint
▪ Third Party Technical Feasibility Report received – under final review, Discussion with AM Green (Greenko) in-progress. ▪ Identified and finalized two sites at Vizag (12 Acres) and at Kakinada (100 Acres) ▪ Phase I at Vizag: ▪ DCDA pilot plant – Projected completion: Q4 FY24 Medicine with near Net
Slide 6: Q2FY24: Y-o-Y performance highlights – P&L
Q2FY24: Y-o-Y performance highlights – P&L (In ₹ Mn) Q2 FY24 Q2 FY23 Y-o-Y Gr% Y-o-Y performance Volumes growth was higher as compared to value growth. Revenue 11,895 11,507 3% Sales in the US region grew well, partially offset by the decline in the LATAM and European regions 6,144 5,722 VA% has imp
Slide 7: Q2FY24: Q-o-Q performance highlights – P&L
Q2FY24: Q-o-Q performance highlights – P&L (In ₹ Mn) Q2 FY24 Q1 FY24 Q-o-Q Gr% Q-o-Q performance Revenue 11,895 9,855 21% Grew significantly from the lower base of Q1 which was impacted heavily by the IT incident Value Added 6,144 5,063 VA% is marginally better due to better product mix 21% (increas
Slide 8: Q2FY24: Revenue split by market
Q2FY24: Revenue split by market (In ₹ Mn) Region wise share Q2 Q2 Y-o-Y Q1 Q-o-Q FY24 FY23 Gr% FY24 Gr% 64% North 7,989 7,167 11% 6,017 33% 58% 58% America Europe 2,128 2,320 (8%) 2,405 (12%) 18% 24% LATAM 429 822 (48%) 481 (11%) 20% 7% 4% 4% 3% 6% 5% 5% 4% 5% 6% 5% 5% India 673 631 7% 504 34% USA C
Slide 9: Q2FY24: Revenue split by division
Q2FY24: Revenue split by division (In ₹ Mn) Division wise share Q2 Q2 Y-o-Y Q1 Q-o-Q FY24 FY23 Gr% FY24 Gr% 62% API 3,021 3,303 (9%) 3,000 1% 55% 51% PFI 1,457 2,349 (38%) 1,482 (2%) 25% 29% 30% 20% 15% FD 7,417 5,856 27% 5,373 38% 12% API PFI FD Q2 FY24 % Q2 FY23 % Q1 FY24 % ➢ Y-o-Y decline in API
Slide 10: Q2FY24: Cashflow metrics and Ratios
Q2FY24: Cashflow metrics and Ratios (In ₹ Mn) Q2 FY24 Q1 FY23 Q2 FY24 Q1 FY24 Q2 FY24 Q1 FY24 Fixed Net debt/ ROCE% 12.8% 9.3% asset turn 1.75 1.61 EBITDA 1.41x 1.57x ROCE% improved QoQ because of Net debt has increased by Rs.1323 Higher asset turns are primarily on improvement in EBIT due to increa
Slide 11: Last 5 years performance: Sales and profitability
Last 5 years performance: Sales and profitability (In ₹ Mn) Sales: 5yr CAGR: 22% VA and VA%: 5yr CAGR: 23% 45,119 22,046 37,649 18,463 18,813 51% 32,375 47% 45% 13,177 57% 25,986 50% 49% 22,792 10,236 16,918 7,955 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 EBITDA and EBITDA%: 5yr CA
Slide 12: Last 5 years performance: Cashflow and ratios
Last 5 years performance: Cashflow and ratios (In ₹ Mn) ROCE% Asset turns Net debt and Net debt/EBITDA 28.6% 8,704 9,082 2.00 1.98 2.02 2.06 7,671 1.89 6,966 21.1% 1.75 2.36 6,058 5,752 19.3% 3.13 17.4% 13.1% 1.15 0.97 11.4% 0.67 0.84 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 FY18
Slide 13: ANDA and Dossier Filing status
ANDA and Dossier Filing status GPI IP GIL IP Filing Status South Total USA USA Europe Canada UK Others Africa Approved 26 59 5 6 2 2 1 75 Tentatively Approved - 2 - - - - - 2 To be approved 4 10 3 1 4 - 3 21 Total Products 30 72 8 7 6 2 4 98 ANDA/Dossier filed - Therapeutic area wise Analgesics 29 C
Slide 14: Strategic Priorities and Organizational Transformation
Strategic Priorities and Organizational Transformation
Slide 15: Our Purpose, Vision & Values
Our Purpose, Vision & Values Q) Challenging Limits through pioneering @) Futuristic Thinking green science ©) Empowering Employees @) Customer Driven To establish ourselves as a world leader in green chemical and ©) Quality Everywhere pharmaceutical industry by harnessing cutting-edge technologies t
Slide 16: Strategic Priorities
Strategic. Priorities
Slide 17: Strengthening the core: Building & sustaining our competitive advantage
Strengthening the core Building & sustaining our competitive advantage Manufacturing Excellence Backward integration Process Innovation and KSMs and advanced improvements intermediates Scale & Large Volume MUPS Capacity & Global Leadership in Controlled Substances Core Molecules facilities 16
Slide 18: Strengthening the core: Our manufacturing network & capabilities
Strengthening the core Our manufacturing network & capabilities Bonthapally Jeedimetla Bonthapally II Vizag (Unit 4) Vizag (Unit 5) API: 4,800 TPA API (Intermediate): API: 15 KL PA API: 34,560 TPA API: 380 KL PA PFI: 1,440 TPA 61.5 KL PA FD: 1.1 Bn Gagillapur Virginia, USA GPAK, USA FD: 26.8 Bn 2 OT
Slide 19: R&D and Innovation: Expanding capabilities
R&D and Innovation: Expanding capabilities Strengthened headcount to ̴ 300 across spectrum of R&D centers with complementary capabilities Integrated Product Development 1,424 1,002 1,164 Genome Valley – MN Park 722 789 R&D facility for Integrated Product Development 525 3% 3% 3% 3% 4% 3% ▪ ̴ 170 sci
Slide 20: R&D and Innovation: Becoming an innovation and science-led enterprise
R&D and Innovation: Becoming an innovation and science-led enterprise 19
Slide 21: Sustainability at Granules
Sustainability at Granules One Planet. One Purpose. Embracing green science. 0! Ee) GRANULES CZRG Building our flagship green pharmaceu tical
Slide 22: Demonstrating action against a shared commitment
Demonstrating action against a shared commitment 21
Slide 23: Medicine with near Net Zero Carbon footprint
Medicine with near Net Zero Carbon footprint
Slide 24: Commitment towards Net Zero
GRANULES CZR Medicine with near Net | Commitment towards Net Zero Zero Carbon footprint Genes greenks green g GRANULES Develop and Promote State- Supply of Carbon Free Green | To build a green field facility of-the-art Integrated Green Energy and Green Molecules | for large scale manufacturing Pharm
Slide 25: Collaborative Research Initiatives
Collaborative Research Initiatives MOU with NIPER Mohali For Centre of Excellence in Innovative and Sustainable Pharmaceutical Development The center will focus on crucial areas that will enable us to aid our focus on green initiatives
Slide 26: Corporate address
Mr. Puneet Varshney GM Business Finance and Head Investor Relations Email: puneet.varshney@granulesindia.com www.granulesindia.com Ms. Payal Dave payal.dave@linkintime.co.in Mr. Irfan Raeen +91 97737 78669 Irfan.raeen@linkintime.co.in www.orientcap.com 532482 GRANULES Corporate address: GRAN:IN Floo