Neuland Laboratories Ltd. · NSE:NEULANDLAB
Neuland Laboratories — Q1 FY2023 Earnings Presentation
32 slides from Neuland Laboratories's earnings presentation, 2022
Slide 1: Earnings Presentation Q1 FY23
Earnings Presentation Q1 FY 23 BSE CODE : 524558 | NSE SYMBOL : NEULANDLAB | BLOOMBERG: NLL:IN | REUTERS: NEUL.NS
Slide 2: Safe Harbour
Safe Harbour Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "
Slide 3: Table of Contents
Table of Contents Q1FY-23 1 HIGHLIGHTS 2 BUSINESS OVERVIEW 3 CAPABILITIES 4 FINANCIALS 5 OUTLOOK 3
Slide 4: Q1FY-23 Highlights
Q1FY-23 HIGHLIGHTS
Slide 5: Management Speak
Management Speak SUCHETH DAVULURI “We had a volatile quarter in which the GDS business saw a decline in revenue as the Prime segment performed below par and impacted EBITDA margins by around 300 bps. However, we witnessed an improved business mix as we saw GDS Specialty revenues from customer launch
Slide 6: Key Highlights Q1 FY23
Key Highlights Q1 FY23 Business Highlights Financial Highlights ❖ In Prime segment Levofloxacin, ❖ Total income was Rs. 221.7 crore in Ciprofloxacin, Mirtazapine and Q1FY23, an increase of 9.2% YoY Labetalol performed well ❖ EBITDA margin decreased by 50 bps ❖ Specialty had a decent growth quarter f
Slide 7: Profit & Loss Snapshot (Standalone)
Profit & Loss Snapshot (Standalone) QoQ YoY Particulars (Rs. Cr) Q1FY23 Q4FY22 Q1FY22 (%) (%) Total Income 221.7 256.5 (13.6)% 202.9 9.2 % EBITDA 29.0 39.3 (26.3)% 27.7 4.8% EBITDA Margin 13.1% 15.3% (220) Bps 13.6% (50) Bps Profit Before Tax 13.3 24.1 (44.7)% 12.0 11.2% Profit Before Tax Margin 6.0
Slide 8: Financials (Standalone)
Financials (Standalone) Revenue (Rs. Cr) 222 EBITDA (Rs. Cr) and EBITDA Margin (%) 258 203 257 16.7% 15.3% 29 14.3% 28 13.6% 13.1% 238 13.1% 222 43 39 34 29 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q1FY22 Q1FY23 Certain items classified as revenue in Q1 & Q3 have been reclassified as expenses to the tune of Rs.
Slide 9: Key Operating Metrics
Key Operating Metrics YoY Analysis Quarter on Quarter Movement 3% 4% 5% 4% 4% 4% 22% 27% 28% 31% 31% 40% 22% 23% 25% 26% 26% 20% 53% 45% 43% 39% 36% 39% Q1 FY 22 Q1 FY 23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Prime Specialty CMS Others 9
Slide 10: Business Salience (Overall Company)
Business Salience (Overall Company) PRODUCT YoY Analysis QoQ Movement 60% 64% 57% 61% 57% 57% TOP 10 36% TOP 5 39% 43% % of Total revenue 42% 40% 36% Q1 FY 22 Q1 FY 23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 CUSTOMER YoY Analysis QoQ Movement 52% 53% 53% 54% 53% 53% 37% 40% 40% 39% 41% 41% Q1 FY 22 Q1 FY 23
Slide 11: Business Salience (Prime)
Business Salience (Prime) Q1 Q1 Q2 Q3 Q4 Q1 53% 39% 45% 36% 43% 39% FY-22 FY-23 FY22 FY22 FY22 FY23 PRODUCT YoY Analysis QoQ Movement TOP 10 96% 95% 97% 97% TOP 5 92% 97% (of Prime revenue) 71% 73% 78% 70% 67% 73% Q1 FY 22 Q1 FY 23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 CUSTOMER YoY Analysis QoQ Movement 5
Slide 12: Business Salience (Specialty)
Business Salience (Specialty) Q1 Q1 Q2 Q3 Q4 Q1 FY-22 22% 26% 23% 20% 25% 26% FY-23 FY22 FY22 FY22 FY23 YoY Analysis QoQ Movement TOP 10 PRODUCT TOP 5 91% 87% 91% 89% 86% 87% (of Specialty Revenue) 64% 57% 57% 60% 67% 66% Q1 FY 22 Q1 FY 23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 CUSTOMER YoY Analysis QoQ Mo
Slide 13: Business Salience (CMS)
Business Salience (CMS) Q1 Q1 Q2 Q3 Q4 Q1 22% 31% 27% 40% 28% 31% FY-22 FY-23 FY22 FY22 FY22 FY23 PRODUCT YoY Analysis QoQ Movement TOP 10 99% 99% 97% TOP 5 93% 93% (of CMS revenue) 85% 92% 83% 78% 78% 84% 75% Q1 FY 22 Q1 FY 23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 CUSTOMER YoY Analysis QoQ Movement 99% 9
Slide 14: Key Operating Metrics – CMS Revenue Split
Key Operating Metrics – CMS Revenue Split Rs. In Cr Commercial Development YoY Analysis Quarter on Quarter Movement 95 69 70 72 69 38 44 14 42 38 42 23 56 57 27 34 21 27 Q1 FY22 Q1 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 14
Slide 15: Number of Active CMS Projects
Number of Active CMS Projects Q1 FY23 Pre-Clinical P-1 P-2 P-3 Development Commercial Grand Total API 16 4 7 7 7 9 50 Intermediate 7 5 2 0 8 12 34 Grand Total 23 9 9 7 15 21 84 Q1 FY22 Pre-Clinical P-1 P-2 P-3 Development Commercial Grand Total API 15 3 7 3 12 6 46 Intermediate 7 4 2 0 8 11 32 Grand
Slide 16: Business Overview
BUSINESS OVERVIEW
Slide 17: Our Journey – Key Milestones
Our Journey – Key Milestones Laying Strong Foundation Deepening Our Capabilities Increased Sustainable Growth 1984 - 2003 2004 - 2012 2013 - Today Successfully 1984 1986 1994 1997 2004 2007 2008 2009 cleared 15 USFDA Incorporated First API sale of Neuland First USA Japan R&D Centre PMDA, Japan inspe
Slide 18: Generic Drug Substance (GDS)
Generic Drug Substance (GDS) We started as a Prime API ..Added Speciality molecules for manufacturer… complex products.. Capability Capability ✓ 3 US FDA and EU GMP compliant ✓ High end complex chemistry capabilities manufacturing facilities ✓ Backend support by R&D department ✓ Collective capacity:
Slide 19: On path to being a preferred partner in CMS
On path to being a preferred partner in CMS.. Services ✓ Manufacturing API to customer specifications ✓ Designing and developing manufacturing processes ✓ Process optimization for competitiveness ✓ Complete CMC partner for the API ✓ Patent protection for processes Business Approach ✓ Local presence
Slide 20: Capabilities
CAPABILITIES
Slide 21: Scaled up Manufacturing Facilities over the years
Scaled up Manufacturing Facilities over the years UNIT-1 233 KL Bonthapally, Hyderabad UNIT-2 363 KL Pashamylaram, Hyderabad UNIT-3 305 KL Gaddapotharam, Hyderabad Year of 1994 2017* 1986 Establishment Block - 1, 2, 3, 4, H, KL & S 34 Block-1, 2, 3, FC, NMSM, Mini Block - 1, 2, 4, 5 Blocks plant 6 H
Slide 22: Backed up by sound R&D capabilities
Backed up by sound R&D capabilities R&D Facility, Hyderabad Infrastructure Significant R&D Achievements • 15 Development Labs with space for • Several NCE APIs added in NDA or commercial stage expansion drugs • 60 Fume hoods • Support for multiple APIs each year in Phase 2 • Analytical Labs and Phas
Slide 23: New capabilities built
New capabilities built FBRM HAZARDOUS & WET LABORATORY Dedicated area Particle size for hazardous check for chemical polymorph management achievement and wet lab expansion PEPTIDE LAB PID LABORATORY, To address 9800 sq. ft. new UNIT-III product quality lab with issues, additional 7 impurities hoods
Slide 24: Global Presence
Global Presence NORTH AMERICA EUROPE APAC 43% 41% 6% JAPAN MENA INDIA 4% 3% 2% BD Office in LATAM Princeton, New Jersey 4% Since 2004 Our BD Office in JAPAN Since 2007 % Refers to Q1 FY23 Sales by End market 24
Slide 25: Regulatory Filings Across Geographies
Regulatory Filings Across Geographies 30 Filings with Health Canada 10 20 Japanese DMF filed China DMF filed 62 DMFs with USFDA 19 233 filings with 23 ROW filings including Turkey, KFDA Korea filings with TGA Mexico, Brazil etc ~497 27 EUDMF filings across Germany, CEPs Received for different 916+ F
Slide 26: Financials
FINANCIALS
Slide 27: Continuous Growth…
Continuous Growth… Rs. In Cr FINANCIAL PERFORMANCE 163 HIGHLIGHTS 953 953 144 767 ▪ Revenue CAGR of 12.5% for FY 19-22 led by growth in all 3 businesses 670 105 80 ▪ EBITDA growth of 33.0% CAGR in FY 19-22 due to balanced contribution 61 from both GDS and CMS business 64 222 29 16 16 ▪ Shift to CMS
Slide 28: Stable Balance Sheet..
Stable Balance Sheet.. Particulars Mar-20 Mar-21 Mar-22 Jun-22 Current Ratio (x) ROCE (%) (Rs. Cr) Shareholde 1.60 13.51 706 782 836 846 1.57 rs' funds 1.47 8.89 9.70 1.42 6.38 Net Debt 214 152 212 160 2020 2021 2022 Q1FY23 2020 2021 2022 Q1FY23 Investments 8 7 4 4 Tangible 391 438 497 500 Assets Fi
Slide 29: Outlook
OUTLOOK
Slide 30: ..Laying Foundation for our Growth Strategy
..Laying Foundation for our Growth Strategy CREATE AN ORGANIZATION THAT RESULTS IN VALUE FOR ALL STAKEHOLDERS BUSINESS SCALE Extend capabilities to Invest into capacity to organically build a augment sales and sustainable GDS accelerate business and CMS business growth CHEMISTRY RELATIONSHIPS Deploy
Slide 31: Contact Us
Contact Us For over 38 Years, Neuland Laboratories Ltd. For further information contact (BSE:524558, NSE: NEULANDLAB) has been at the forefront of manufacturing APIs through its cGMP manufacturing facilities, working with customers in close IR Desk to 80 countries. Neuland Labs Neuland Labs has deve
Slide 32: Thank You
Thank You Confidential. © 2022 Neuland Laboratories Ltd. All rights reserved.
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