Granules India Limited · NSE:GRANULES
Granules India — Q4 FY21 Earnings Presentation
18 slides from Granules India's earnings presentation, May 11, 2021
Slide 1: Cover letter to stock exchanges: Presentation to Analysts/Investors
G GRANULES REGISTERED OFFICE GRANULES INDIA LTD., 2nd Floor, 3rd Block, My Home Hub, Madhapur, Hyderabad - 500 081, Telangana, INDIA. Tel: +91 40 30660000, Fax: +91 40 23115145, mail@granulesindia.com, www.granulesindia.com CIN: L24110TG1991PLC012471 Dated May 11, 2021 To, National Stock Exchange of
Slide 2: Granules India Limited Earnings Presentation Q4 and FY21
Granules India Limited Earnings Presentation Q4 and FY21 1
Slide 3: Safe Harbor
Safe Harbor 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: Q4FY21 - Financial Highlights
Q4FY21 - Financial Highlights (In ₹ Mn) Income from Operations Gross Profit and Margins EBITDA and EBITDA Margins 33.2% 42.7% 4,578 7,993 102.1% 2,020 5,999 3,208 25.3% 57.3% 999 53.5% 16.7% Q4FY20 Q4FY21 Q4FY20 Q4FY21 Q4FY20 Q4FY21 PAT and Margins • Income growth driven by new launches and increase
Slide 5: FY21 - Financial Highlights
FY21 - Financial Highlights (In ₹ Mn) Revenue Gross Profit and Gross Profit Margin EBITDA and EBITDA Margins 18,463 8,552 40.1% 62.8% 24.6% 32,375 25,986 13,177 57.0% 5,253 26.4% 20.2% 50.7% FY20 FY21 FY20 FY21 FY20 FY21 PAT and PAT Margin Asset Turnover EPS (In ₹ ) 5,495 1.61 22.05 63.8% 3,354 13.1
Slide 6: Q4FY21 - Revenue split by Market and Segments
Q4FY21 - Revenue spilt by Market and Segments Strong growth momentum witnessed across geographies Finished Dosage and PFI segments grew 34% and 85% (In ₹ Mn) 5,999 7,993 7,993 5,999 Geographical Mix Segment Revenue 4,611 57.5% 57.0% 16.7% 3,440 14.5% 14.4% 13.5% 8.9% 8.4% 6.1% 1,444 2.9% 781 1,777 1
Slide 7: FY21 - Revenue split by Market and Segments
FY21 - Revenue spilt by Market and Segments Strong growth momentum witnessed across geographies Finished Dosage and PFI segments grew 25% and 49% (In ₹ Mn) 25,986 32,375 32,375 25,986 53.9% 53.4% Geographical Mix Segment Revenue 16,989 19.5% 17.5% 13,602 14.6% 14.0% 6,262 9.0% 8.1% 4,214 5.6% 4.5% 8
Slide 8: FY21 - Key Financial and Business Highlights (1/2)
FY21- Key Financial and Business Highlights (1/2) • FY21 revenues at INR 32,375 Mn, record growth of 25% YoY. EBITDA stood at INR 8,552 Mn, a growth of 63% YoY. EBITDA margins stood at 26%. PAT at INR 5,495 Mn a growth of 64% • Increased market penetration through existing approvals and new product
Slide 9: FY21 - Key Financial and Business Highlights (2/2)
FY21- Key Financial and Business Highlights (2/2) • API grew 12% YoY due to new customer additions • Strong growth momentum witnessed across geographies • Withdrawal of the MEIS scheme in H2FY21 had an impact of ~INR 390 Mn on profitability • Net Debt down by 5.1% YoY • As of March 2021, Net debt to
Slide 10: Q4FY21 - Key financial ratios, impressive and consistent quarter delivered
Q4FY21- Key financial ratios, impressive and consistent quarter delivered (In ₹ Mn) Net Debt & Net debt-to-EBITDA (x) ROE (%) Free Cash Flow 29.3% 1,168 29.0% 27.4% 6,058 5,998 6,133 6,121 5,752 19.9% 24.4% 522 1.2x 506 373 0.7x 0.7x 0.7x 214 0.8x Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q4FY20 Q1FY21 Q2F
Slide 11: Improving returns; focus on FCF generation: 5-year trajectory (1/2)
Improving returns; focus on FCF generation: 5-year trajectory (1/2) (In ₹ Mn) Net Debt & Net debt-to-EBITDA (x) Cash-to-Cash cycle (days) Free Cash Flow (FCF) 8,704 9,082 135 125 114 117 2,919 3.1x 109 1,615 6,138 6,058 5,752 2.4x 2.1x -1,284 -172 1.2x 0.7x -4,471 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21
Slide 12: Improving returns; focus on FCF generation: 5-year trajectory (2/2)
Improving returns; focus on FCF generation: 5-year trajectory (2/2) Gross Debt reduced on account of reduction of our long-term loans by INR 830 Mn, while our short-term loans went up due to our increase in inventory build-up for new launches Net Debt reduced mainly on account of better realisat
Slide 13: 5-year trajectory: unlocking value firmly underway
5-year trajectory: unlocking value firmly underway (In ₹ Mn) 5-year CAGR 19% 5-year CAGR 23% 32,375 50.7% 57.0% Gross Profit Margins Gross Profit and 25,986 44.9% 22,792 Revenue 16,918 52.6% 47.0% 13,177 18,463 14,353 10,236 7,955 7,556 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 5-year CAGR 2
Slide 14: Increasing share from FDs while remaining backward integrated in APIs
Increasing share from FDs while remaining backward integrated in APIs (In ₹ Mn) Higher revenue contribution coming from regulated market, 72% of total revenues Total Revenue 14,353 16,918 22,792 25,986 32,375 11,113 17,451 13,879 6,612 6,010 5,674 5,055 4,573 4,525 4,083 4,029 3,795 3,550 3,367 2,92
Slide 15: ESG Philosophy @Granules
ESG Philosophy @Granules Ethics, Transparency & Accountability Value Creation Stakeholder Engagements Environment Policy Adherence Well-being of Sustainability of Employees Product Lifecycle Inclusive Growth and Human Rights Mass Development The National Voluntary Guidelines on Social, Environmental
Slide 16: In Summary
In Summary 2-3 year Financial Goals: Revenue CAGR ~20%+ PAT CAGR ~20%+ Timely launches of products expected ROCE ~25%+ Focus on Cash conservation and FY22 while increasing the market share liquidity management of existing products by passing on cost Focus on Free cash flow generation and benefits re
Slide 17: Glossary
Glossary API: Active Pharmaceutical Ingredient PFI: Pharmaceuticals Formulation Intermediates FD: Finished Dosage OTC: Over the counter drugs Rx: Prescription drugs IR: Immediate Release ER: Extended Release CII: Control substances PFOS: Powder for oral suspensions and solutions MUPS: Multi-unit pel
Slide 18: Thank you
Thank you Granules India Ltd Granules India IR Richa Singh Floor 2 Block 3 My Home Hub Krishna Raghunathan Consulting Madhapur Hyderabad 500081 Granules India Ltd Ernst & Young Investor Relations Practice CIN: L24110TG1991PLC012471 VP Finance and Investor Relations Voice: +91 9167772135 Voice: +91 4