SHILPA MEDICARE LTD - Q1 FY 21 RESULTS REVIEW - DT 15.08.2020

 

SHILPA MEDICARE LTD

Q1 FY 21 RESULTS REVIEW DT 15.08.2020

Management

Omprakash Inani        Chairman

Vishnukant Chaturbhuj Bhutada Managing Director

 

About Shilpa Medicare Ltd.

 

Shilpa Medicare Limited (SML) started its operations as API manufacturer in 1989 at Raichur,

 

Shilpa Medicare has been on path of expansion ever since its inception.

 

It has regulatory recognized manufacturing set up and excellent scientific expert team.

 

It is one of the leaders in the Oncology market with a complete range of products spanning across APIs, formulations both in terms of R&D and manufacturing capabilities. It is striving to put in efforts in field of novel drug delivery systems and biotech products along with widening their focus to other therapy areas.

 

ANNUAL REPORT

Unleashing the power of research for better Medicare :

Over the years since its inception, SML has shifted its focus towards creating a niche in oncology generics. The Company has developed a strong capability in manufacturing oncology APIs and formulations

SML is investing in novel drug delivery systems (NDDS) and biotechnology, two R&D Centres with capabilities of NDAs, DMFs and NDDS.

SML is in the cusp of the major transformation by unleashing the power of research.

 SHILPA has :

265+Scientists

357Patents filed

44+High quality products

SML's product range includes over 44 oncology and non-oncology APIs. 

 

The Company’s formulation product range consists of 16 injectable dosage forms, 19 oral solid dosage forms under SML and 13 Formulations under SML’s wholly owned subsidiary Shilpa Therapeutics Private Limited.

 

How SHILPA Performed in FY 2019-20 :

SML made substantial growth in FY 2019-20. It launched important products and increased its capacity. Its key strategies includes organic and inorganic diversifications to strengthen its research and operations. 

Its total revenue on a consolidated basis improved 24 % year on year to 925 Crores. 

Profit After Tax in FY 2019-20 is 156 crores which is 39% growth year on year. 

Its revenue from APIs and Formulations increased 13% and 40% respectively year on year

 

While stepping into FY2021 It acquired FTF Pharma an integrated drug development company. Going forward it is also aggressively pursuing growth from biologicals, oral dissolving films, transdermal products and dermatological formulations

 

In FY 19-20, SML filed four ANDAs and one NDA [505(b)(2)] including one as a First to File (FTF).

• SML’s number of First to File products filings now stands at 6.

• Initiated settlement discussions for one ANDA and are nearing to execution.

• In FY 19-20, SML and its group companies have filed 72 patent applications taking the cumulative total to 357 patent applications in India and other countries. SML received grants for 14 patents during FY 19-20.

 

 Q1 FY 20 RESULTS SUMMARISED :

Shilpa Medicare (in Rs. Cr.)	Jun '20	Mar '20	Dec '19	Sep '19	Jun '19	YOY	QOQ
Net Sales	222.86	219.99	236.85	289.92	160.99	38.43	1.3
Consumption of Raw Materials	85.34	56.01	77.96	79.99	74.61	14.38	52.37
P/L Before Exceptional Items & Tax	54.9	41.95	64.76	62.34	18.66	194.21	30.87
Exceptional Items	60.84	--	--	--	--
P B T	115.74	41.95	64.76	62.34	18.66	520.26	175.9
Tax	29.14	7.55	10.53	11.19	4.06	617.73	285.96
Net Profit	86.6	34.4	54.24	51.16	14.61	492.74	151.74
Equity Share Capital	8.15	8.15	8.15	8.15	8.15	0	0
Basic EPS	10.59	4.24	6.75	6.23	1.93	448.7	149.76
MP	666
PE	15.72238

 

ANNUAL PROFIT AND LOSS ACCOUNT FOR 5 YEARS

P&L A/C	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
	12 mths	12 mths	12 mths	12 mths	12 mths
Total Revenue	925	747	811	799	728
EXPENSES
MATERIAL COST	287	249	308	411	368
Total Expenses	736	623	667	642	584
Profit/Loss For The Period	155	118	110	111	106
Consolidated Profit	156	112	105	108	108
Basic EPS (Rs.)	19	14	13	14	14

 

VOLUME    10,55,124 

MP 666                                                     

52 Wk L/H 190.8         689.4        

30.06.2020                                                                           

Shilpa Medicare gains 5% on launch of generic drug for kidney cancer

CHART

STARTED MOVING UP FROM APRIL 20 

SEP,19,IT HAD TOUCHED ITS LOWEST POINT, 208 OR SO                  

TECHNICAL RATING                           

Very Bullish                           

Valuation                            

Market Cap (Rs Cr.)      5,331.86                     

P/E   27.54                   

Book Value (Rs)    178.28                       

Dividend (%)   110                         

Industry P/E   35.55                       

EPS (TTM)        23.76                      

P/C                 23.33                        

Price/Book     3.67                          

Dividend Yield.(%)  0.17                          

Face Value (RS)     1                       

Deliverables (%)     49.68                         

 

Historical Prices
	1YR BEF	Current Price	%Gain / Loss
Open Price	327.50	635	76.88
Open Price	2 YRS BEF : 406.45	635	56.23
Open Price	3 YRS BEF : 643.15	635	-1.27
	3 MONTHS
Open Price	385.85	635	64.57
Share Holding Pattern in (%)
Standalone	Mar-20	Mar-19	Dec-18	Sep-18
Promoters	53.8	53.8	53.8	53.8
Pledged	10.26	11.91	10.04	10.28
FII/FPI	19.09	19.05	19.01	18.99
Total DII	16	16.22	16.23	16.31
Fin.Insts	0.47	0.03	0.01	0.02
Insurance Co	0	0	0	0
MF	0	0.12	0.17	0.17
Others DIIs	15.53	16.07	16.05	16.12
Others	11.1	10.92	10.95	10.89
Total	99.99	99.99	99.99	99.99

         

Established Business Segments

API

Formulations

Biologicals & Biosimilars

Novel Biologic

Dermatological Formulations

Oral Dissolving Films & Transdermal Products:

Biologicals Research & Development Competence      

R&D capabilities, a  vital component providing a sustainable, long-term competitive advantage

Patents     Filings     Granted     Pending

- API            201              35           166

- Formulation 104            11           93

- Films Topical & Transdermal 46     2     44

- Biologicals       7                 2             5

- Others              22               1             21

TOTAL               380             51           329

US -ANDA                          FILING  APPROVED  PENDING

- On SML’s Name                 22            13            9

- On Customer ’s Name         20            12            8

TOTAL (In US)                         42            25            17

- EU Filing 1                          9              13            6

TOTAL (In US & EU)            61            38            23

 

Manufacturing Excellence

Company’s Headquarters at Raichur, Karnataka, India

Manufacturing Facilities

2 API plants at Raichur, India

2 Formulation plants at Jadcherla and Hyderabad, India

1 API plant at Austria

• Currently 5 manufacturing facilities for API’s & Formulations

products in India & 1 manufacturing facility for API in Austria

• World-class manufacturing unit of Transdermal Patch and Oral Films at Bengaluru, Karnataka,

• The manufacturing equipment are state of the art and with all

necessary machine controls to maintain quality and consistency

• Four single use and one multi use best in class Bio reactor

4 R&D units. ( Bangalore, Dharwad Hubli and Raichur, India)

Facility         Location         Facility Type

Dharwad     Biologicals     Manufacturing plant

Bengaluru R & D (All segments except Biologics)

Raichur Unit I API (Onco – Non Oncology)

Raichur Unit II API (Onco – Non Oncology) and R & D API

Jadcherla Unit Formulat ions (Onco & Adjuvant Therapy

of Onco – Injectable & Oral)

Hyderabad Unit Formulations (Oral Dissolving Films)

Hubli Biologicals Manufacturing Site and R & D

Hyderabad Bio Analytical & Pharmaco vigilance R & D

Austria API Manufacturing

 

Results Snapshot

Key Highlights

• Formulation revenues were higher due to an increase in the sales of products

• API revenues were higher on account of delivering a better growth in the

Oncology API business

 

Managing Director ’s Message

 

Vishnukant Chaturbhuj Bhutada

Managing Director Shilpa Medicare Limited said

 

“We are pleased to deliver a steady performance during the quarter despite of facing a volatile and challenging macro-environment . We delivered a revenue growth of 40% and a net profit growth of 431%.

We continue to emphasize on driving our formulations business and are optimistic on gaining new order wins in the quarters to come. We also focusing on developing a special marketing team across the key markets of Russia, Europe, Brazil, and other geographies. Our efforts towards ensuring sustainable growth are resulting in better margins.

We continue to place importance on the investments in Biologicals and are optimistic that they will start showing results in the coming years. This business will be driven through our

wholly owned subsidiary where it can be scaled up to potential . Further our interest in other growth segments will support the enhancement in earnings as we go forward.

 WAY FORWARD

 API

 Plan to commercialize 3-4 new molecules each year

 To enhance capacity by 40 -70 % via debottlenecking in all Oncology product ion blocks

 To install dedicated intermediate blocks to make intermediates available in a shorter delivery period.

 FORMULATIONS

 To attain economies of scale by increasing batch sizes

 Expanding reach by entering different geographies /

markets

 Further optimizing costs by enhancing operational

efficiencies

 

FUTURE GROWTH BUSINESS

 Diversification into other therapeutic areas like

Biologics, portfolio expansion to Transdermal Dosage

Forms and Oral thin films formulations

 

Initiated a Biologics manufacturing plant equipped with

best in class technologies at Karnataka

        o Phase I of the facility is on schedule to be commissioned in Qtr-2 2020

 Planning for Powder Filling line in Oncology Segment.

Focus on expanding presence in emerging markets and ROW through strong business associations will be a growth driver going forward.

 In Formulations, developing other therapeutic areas like Dermatology and Ophthalmology