Vivimed Labs Limited · NSE:VIVIMEDLAB
Vivimed Labs — Q4 FY2014 Earnings Presentation
22 slides from Vivimed Labs's earnings presentation, May 29, 2014
Slide 1: Q4 and Full Year FY2014 Earnings Presentation
Vivimed Labs Limited Q4 and Full Year FY2014 Earnings Presentation May 29, 2014 1 www.vivimedlabs.com © Vivimed Labs Ltd 2010 All rights reserved
Slide 2: Important Notice
Important Notice No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after
Slide 3: Where Chemistry and Quality Matters
Where Chemistry and Quality Matters Unique Business Model Best-in-Class Operations • Uses chemistry to create ingredients which • 12 manufacturing facilities and 5 R&D touch human life on a daily basis centers across the world • Focused on the Health Care, Personal Care, • 4 US FDA approved sites Ho
Slide 4: Business Segments
Business Segments Healthcare Personal Care Home Care Industrials 67.9% of Q4 FY14 sales 18.4% of Q4 FY14 sales 11.4% of Q4 FY14 sales 2.3% of Q4 FY14 sales • Active • Sun Care • Antimicrobials • Photo Chromic Pharmaceutical • Skin Care • Specialty Dyes Ingredients (API) • Hair Care Intermediates • I
Slide 5: Consolidated Financial Performance
Consolidated Financial Performance Q4 FY2014 Highlights Attractive End User Markets Net Sales of Rs. 3,721 mn, an increase of 25.6% y-o-y 2.3% 11.4% EBITDA of Rs. 584 mn and margins of 15.7% Net Profit of Rs. 110 mn and margins of 3.0% FY2014 Highlights Chemistry 18.4% at the Net Sales of Rs
Slide 6: Consolidated Financial Performance: Management Commentary
Consolidated Financial Performance Management Commentary Commenting on the performance and outlook, Mr. Santosh Varalwar, Managing Director and CEO of Vivimed Labs said: “We have reported another year of improved operational performance which saw broad based revenue growth across both our business s
Slide 7: Financial Performance
Financial Performance Consolidated Financials Q4 y-o-y Q3 q-o-q Full Year y-o-y (Rs. million) FY2014 FY2013 Growth (%) FY2014 Growth (%) FY2014 FY2013 Growth (%) Net Sales 3,721 2,961 25.6% 3,358 10.8% 13,590 11,207 21.3% EBITDA 584 452 29.3% 536 9.0% 2,133 1,976 7.9% Margin (%) 15.7% 15.3% 16.0% 15
Slide 8: Segment Highlights
Segment Highlights Healthcare Segment Q4 FY14 Revenue: Rs. 2,498 mn • EBIT margins in the healthcare business increased to 7.1% during the quarter from 6.4% in Q3 FY14 as efforts on more efficient 2.3% procurement, higher revenue productivity and cost optimization 19.9% have started yielding results
Slide 9: Segment Highlights
Segment Highlights Home Care Segment Q4 FY14 Revenue: Rs. 421 mn • Antimicrobials sales gained traction from key customers 34.6% • Outlook for the segment remains strong with increasing off-take for new products such as Viv AG, BZC and better Viv 20 volumes expected in FY2015 65.4% Antimicrobials Sp
Slide 10: Segment Highlights
Segment Highlights Q4 y-o-y Q3 q-o-q Full Year y-o-y (Rs. million) FY2014 FY2013 Growth (%) FY2014 Growth (%) FY2014 FY2013 Growth (%) Segment Revenue 3,682 2,981 23.5% 3,353 9.8% 13,508 11,088 21.8% Specialty chemicals 1,184 1,029 15.1% 1,074 10.2% 4,143 3,704 11.9% Healthcare 2,498 1,952 28.0% 2,2
Slide 11: Quarterly Financial Trends
Quarterly Financial Trends Net Sales EBITDA and Margins 3,721 3,439 3,358 584 3,073 524 536 2,961 452 488 Rs. Million Rs. Million 17.0% 16.0% 15.3% 15.7% 14.2% Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 EBITDA Margin (%) Net Profit and Margins 200 190 164 Rs. Mil
Slide 12: Capital Markets
Capital Markets Shareholding Structure Key Institutional Investors 32.1% 38.1% 2.3% 27.5% Promoters FII DII Others Shareholding Pattern Trend Shareholders Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Promoters1 39.7% 39.8% 37.8% 37.8% 38.1% FII / FDI 27.5% 27.4% 27.5% 27.5% 27.5% DII 0.3% 2.5% 2.4% 2.4% 2.3%
Slide 13: Strategic Direction
Strategic Direction Continue to strengthen engagements with marquee customer base through superior product development and delivery capabilities Where Chemistry and Quality Matters Move up the value chain through vertical integration in Healthcare (R&D to manufacturing of API / FDF / brands) and tar
Slide 14: Global Reach
Global Reach A multinational global platform that provides Vivimed access to markets and significant cost advantage Kashipur, Uttarakhand Haridwar, Uttarakhand Sant Celoni, Spain Lliçà de Vall, Spain Kolkata Cuernavaca, Mexico Bonthapally, Hyderabad Bidar, Karnataka Bolarum, Hyderabad Jeedimetla, Hy
Slide 15: Strong Transnational Management Team
Strong Transnational Management Team Key Management Profile Santosh Varalwar • First generation entrepreneur Managing Director & • Business growth strategy and leadership; Focus on key global client relationships Chief Executive Officer • Previously associated with Shipping Corporation of India Subh
Slide 16: Annexure – Annual Consolidated P&L Statement
Annexure – Annual Consolidated P&L Statement Profit & Loss Statement (Rs. million) FY 2012 FY 2013 FY 2014 Revenues Revenue from Operations 6,683 11,088 13,508 Other Operating Income 27 119 82 Total revenues 6,710 11,207 13,590 Expenditure Cost of Materials Consumed 3,557 5,374 6,637 Changes in Inve
Slide 17: Annexure – Quarterly Consolidated P&L Statement
Annexure – Quarterly Consolidated P&L Statement Profit & Loss Statement (Rs. million) Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Revenues Net Sales / Income from Operations (Net of Excise Duty) 2,981 3,408 3,066 3,353 3,682 Other Operating Income (19) 32 6 5 39 Total Revenues 2,961 3,439 3,073 3,358 3,
Slide 18: Annexure – Consolidated Balance Sheet
Annexure – Consolidated Balance Sheet Liabilities (Rs. million) FY 2012 FY 2013 FY 2014 Assets (Rs. million) FY 2012 FY 2013 FY 2014 Shareholders funds Non current assets Share capital Tangible and Intangible assets 5,953 7,090 8,079 Equity share capital 139 161 162 Capital work in progress 84 269 3
Slide 19: Annexure – Working Capital Cycle
Annexure – Working Capital Cycle 171 159 155 147 Number of days 135 112 115 74 86 39 55 54 112 121 101 94 FY 2011 FY 2012 FY 2013 FY 2014 Debtor days Creditor days Inventory days Working Capital Cycle days 19
Slide 20: Annexure – Key Ratios
Annexure – Key Ratios FY2012 FY2013 FY2014 Net Worth (Rs. million) 4,748 5,091 5,604 Net Debt (Rs. million) 5,079 5,741 7,775 Fixed Assets (Rs. million) 5,953 7,090 8,079 ROE (%) 18.4% 18.8% 13.4% ROCE (%) 8.1% 9.4% 7.7% Interest Coverage Ratio (x) 3.74 3.39 2.44 Net Debt to EBITDA (x) 3.82 2.91 3.6
Slide 21: Glossary
Glossary • ANDA: Abbreviated New Drug Application • API: Active Pharmaceutical Ingredients • CEP: Certificates of Suitability to the monographs of European Pharmacopoeia • CMO: Contract Manufacturing Organization • DMF: Drug Master File • FDF: Finished Dosage Formulation • H&PC: Home and Personal Ca
Slide 22: Thank You
Thank You Contact Details: Vivimed Labs Limited Veernag Towers, Habsiguda, Hyderabad 500 007 www.vivimedlabs.com Raghu Iyer +91 40 2717 6005 Vivimed Labs Limited [email protected] Saket Somani +91 22 3953 7444 Churchgate Partners [email protected]