GRANULES INDIA LTD
Q4 FY 20 INVESTOR PRESENTATION
UPDATE ON COVID-19
1.
EMPLOYEES :ENGAGED WITH INTERNATIONAL
CONSULTANTS FOR FORMULATING POLICIES
2.
PEOPLE LIMITED TO THOSE ESSENTIAL AND MAY
NOT BE ABLE TO WORK REMOTELY
3.
CUSTOMERS :WORKING WITH CUSTOMERS ON TIMELY
DELIVERY OF ESSENTIAL MEDICINE
4.
NORMAL SUPPLY LEVELD FOR MOST OF OUR
PRODUCTS; WILL REMAIN NORMAL IN FUTURE
5.
SUPPLY CHAIN : ALL PLANTS OPEN TO MEET
DEMAND FOR OUR ESSENTIAL MEDICINES
6.
ADEQUATE INVENTORY OF RAW MATERIALS AND
FINISHED PRODUCTS
7.
UNINTERRUPTED TRANSPORTATION
8.
BUSINESS CONTINUITY : CRITICAL OPERATIONS
CONTINUED AT 25% LEVEL DURING LOCK DOWN
9.
WORK FROM HOME FOR EMPLOYEES
10.
NO JOB LOSSES
11.
IMPACT OF COVID : INCREASE IN DEMAND;
STRONG ORDER BOOK
12.
DONATED Rs.3 cr;spent 17 cr for safety of
employees
13.
PRODUCT APPROVALS : Received 5 approvals in
Jan, Feb and Mar
14.
REVENUE : de-grew 2.2% due to restriction
on export of Paracetamol API, PFI and FDs, it was removed for PFI & FDs in
April and API in May
15.
Gross margin expanded by 750 bps yoy, due
to launch of new profitable products from GPI and increase in FD sales
16.
EBITDA impacted due to one time INT 217 Mn
impairment of investments in US Pharma
17.
PAT grew 44.2% YoY including exceptional
income of INR 597 MN from sale of OMNICHEM JV
18.
Gogillapur successfully inspected by USFDA
in 2020
19.
Unit 5 Vizag successfully inspected by
European
20.
FY 20 AT A GLANCE :
21.
Revenue up 14% YoY, EBITDA margin expanded
337 bps YoY (incl impairment of investments); PAT growth of 42 % YoY in FY 20 ,
growth driven by FD sales
22.
Reduction of net debt by 33%
23.
ROE and ROCE improved by 19.9% and 20.5%
due to improved profits
24.
Generated
Free Cash of INR 264 cr in FY 20 and a further addition of 112.3 cr from the
sale of Granules-Biocause
25.
The BUY Back of shares upto Rs.250 CR by
end of June
26.
Completed disinvestment of Biocause and
omnichem and received Rs.222 cr, out of
which 110 cr was realized in May
27.
Sandip Neogi as CFO
28.
Received 12 approvals; Total 29 approvals;
29.
Filed 45 ANDAs and 3 EU Dossiers and 16
CEPs and 20 US DMFs till date
30.
Launched 5 products in US
31.
More conservative approach in R&D from
Q3 FY 20
32.
Invested 40 cr for Mtce capex. Will yield
results from April 20
33.
USFDA inspection of Gogillapur over
34.
Completed Unit 5 Vizag in Q4
35.
US Pharma : Impaired INR 22 cr in addition
to write off of INR 11.2 cr against milestones paid to US Pharma for a few
products. BV is 41.3 cr Balance in Books
is 19 Cr
36.
Q4 FY 20
37.
Revenue degrew 2.2% due to restriction
imposed and disruption in logistics – since removed
38.
GPT GREW 13.9% from 281.8 cr to 320.8 cr in
q4 yoy
39.
Revenue fell from 613.3 cr in Q4 FY 19 to
599.9 Cr in Q4 FY 20 – 2.2%
40.
EBITDA increased 2.4% YOY from Q4 FY 19 to
Q4 FY 20 due to impairment of US Pharma one-off expense
41.
Q4 FY 20 PAT includes exceptional gain of
INR 59.7 Cr from sale of OMNICHEM JV and
Long term capital gains tax payable on the same is Rs.27.87 cr
42.
NET PAT WITHOUT ONE-OFF S AND EXCEPTIONAL
ITEMS 75.8 CR
43.
FY 19 REVENUE WAS 2279.2 CR; FY 20 REVENUE
WAS RS.2598.6 CR; 14% + YOY; SLIGHTLY IMPACTED IN q4 DUE TO LOCK DOWN
44. EBITDA
45.
WITH ONE TIME EXPENSE,EBITDA HAS INCREASED
FROM 16.8% TO 20.2% IN FY 19 TO FY 20;
46.
PAT HAS INCREASED FROM 10.4% TO 12.9%
(41.9% INCREASE)
47.
INCREASING CONTRIBUTION FROM HIGH MARGIN
FDs, GENERICS, WHILE REMAINING BACKWARD INTEGRATED IN APIs
48.
KEY FOCUS
49.
TO ENSURE TIMELY LAUNCHES OF 9 PRODUCTS IN
FY 21, WHILE INCREASING MKT SHARE OF EXISTING PRODUCTS
50.
EMPLOYEE SAFETY
51.
CASH CONSERVATION AND LIQUIDITY MANAGEMENT
52.
CASH FLOW GENERATION
53.
REDUCTION OF GROSS DEBT
54.
FOCUS ON PROFITABILITY BETTER CAPACITY
UTILIZATION
55.
ENHANCING PRODUCT MIX OPERATIONAL COST
EFFICIENCIES
56.
70% OF R&D WILL GO TO CORE AND EMERGING
BUSINESS
57.
30% WILL GO TOWARDS US GENERIC BUSINESS
58.
VERTICALLY INTEGRATED, HIGH GROWTH COMPANY
59.
APIS, PFIS, FDS, MARKETING AND DISTRIBUTION
60.
INCREASING CONTRIBUTION FROM FDs WHILE
REMAINING BACKWARD INTEGRATED IN APIs – 5 YEARS TRAJECTORY
61.
IMPROVING RETURNS; FOCUS ON FREE CASH FLOW
GENERATION
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