Neuland Laboratories Ltd. · NSE:NEULANDLAB
Neuland Laboratories — Q3 FY2023 Earnings Presentation
33 slides from Neuland Laboratories's earnings presentation, February 2023
Slide 1: Earnings Presentation Q3 & 9M FY23
Earnings Presentation Q3 & 9M 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 Q3 & 9M FY-23 1 HIGHLIGHTS 2 BUSINESS OVERVIEW 3 CAPABILITIES 4 FINANCIALS 5 OUTLOOK 3
Slide 4: Q3 & 9M FY-23 Highlights
Q3 & 9M FY-23 HIGHLIGHTS
Slide 5: Management Speak
Management Speak SUCHETH DAVULURI “Over the 9-month period, we recorded healthy revenue increase led by continued growth in the high margin Specialty and CMS business. Further, the margin improvement reflects the operating leverage playing out. In line with our strategy, we are seeing a significant
Slide 6: Key Highlights Q3 FY23
Key Highlights Q3 FY23 Business Highlights Financial Highlights ❖ Specialty business driven by Apixaban and ❖ Total income was Rs. 270.2 crores in Ezetimibe Q3FY23, an increase of 13.3% YoY ❖ EBITDA was Rs. 54.9 crore in Q3FY23, an ❖ CMS business driven by commercial increase of 60.5% YoY molecules
Slide 7: Key Highlights 9M FY23
Key Highlights 9M FY23 Business Highlights Financial Highlights ❖ Total income was Rs. 785.8 crore in 9MFY23, an increase of 12.3% YoY ❖ Specialty business growth driven by Apixaban, Ezetimibe, Paliperidone, and Donepezil ❖ EBITDA was Rs. 153.3 crore in 9MFY23, an increase of 46.1% YoY ❖ CMS revenue
Slide 8: Profit & Loss Snapshot (Standalone)
Profit & Loss Snapshot (Standalone) QoQ YoY YoY Particulars (Rs. Cr) Q3FY23 Q2FY23 (%) Q3FY22 (%) 9MFY23 9MFY22 (%) 270.2 293.9 (8.1)% 238.4 13.3% 785.8 699.4 12.3% Total Income 54.9 69.4 (20.9)% 34.2 60.5% 153.3 104.9 46.1% EBITDA 20.3% 23.6% (330) bps 14.3% 600 bps 19.5% 15.0% 450 bps EBITDA Margi
Slide 9: Financials (Standalone)
Financials (Standalone) Revenue (Rs. Cr) EBITDA (Rs. Cr) and EBITDA Margin (%) 180 25.0% 786 19.5 160 % 23.6% 699 20.3% 140 20.0% 15.0 294 270 120 % 257 238 14.3% 15.3% 15.0% 222 13.1% 100 80 153 69 10.0% 55 60 105 34 39 40 5.0% 29 20 - 0.0% Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2
Slide 10: Key Operating Metrics
Key Operating Metrics YoY Analysis QoQ Movement 4% 4% 4% 4% 4% 4% 4% 28% 31% 30% 33% 33% 40% 35% 25% 24% 26% 28% 25% 20% 33% 42% 43% 36% 39% 35% 36% 30% 9M FY22 9M FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Prime Specialty CMS Others 10
Slide 11: Business Salience (Overall Company)
Business Salience (Overall Company) PRODUCT YoY Analysis QoQ Movement 64% 64% 61% 60% 58% 57% 55% 39% 34% 39% 43% 36% 45% 40% TOP 10 TOP 5 9M FY22 9M FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 CUSTOMER YoY Analysis QoQ Movement 59% 51% 54% 54% 53% 49% 52% 36% 40% 41% 41% 40% 49% 39% 9M FY22 9M FY2
Slide 12: Business Salience (Prime)
Business Salience (Prime) 9M 9M Q3 Q4 Q1 Q2 Q3 42% 35% 36% 43% 39% 30% 36% FY22 FY23 FY22 FY22 FY23 FY23 FY23 PRODUCT YoY Analysis QoQ Movement 98% 96% 100% 95% 97% 97% 94% TOP 10 76% 76% 70% 67% 73% 79% 78% TOP 5 9M FY22 9M FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY22 Q3 FY23 CUSTOMER YoY Analysis QoQ Move
Slide 13: Business Salience (Specialty)
Business Salience (Specialty) 9M 9M Q3 Q4 Q1 Q2 Q3 24% 28% FY22 20% 25% 26% 33% 25% FY22 FY23 FY22 FY23 FY23 FY23 YoY Analysis QoQ Movement PRODUCT 89% 92% 91% 89% 86% 87% 76% TOP 10 67% 66% 57% 70% 69% 49% 63% TOP 5 9M FY22 9M FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 CUSTOMER YoY Analysis QoQ M
Slide 14: Business Salience (CMS)
Business Salience (CMS) 9M 9M Q3 Q4 Q1 Q2 Q3 30% 33% 40% 28% 31% 33% 35% FY22 FY23 FY22 FY22 FY23 FY23 FY23 PRODUCT YoY Analysis 97% QoQ Movement 93% 92% 95% 87% 82% 85% TOP 10 75% 68% 84% 75% 78% 81% 80% TOP 5 9M FY22 9M FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 CUSTOMER YoY Analysis QoQ Movemen
Slide 15: Key Operating Metrics – CMS Revenue Split
Key Operating Metrics – CMS Revenue Split Rs. In Cr Commercial Development YoY Analysis QoQ Movement 260 209 97 95 94 165 75 38 72 69 49 74 38 42 134 57 48 95 34 27 20 9M FY22 9M FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 15
Slide 16: Number of Active CMS Projects
Number of Active CMS Projects Q3 FY-23 Pre-Clinical P-1 P-2 P-3 Development Commercial Grand Total API 17 4 7 5 8 9 50 Intermediate 10 4 4 2 7 12 39 Grand Total 27 8 11 7 15 21 89 Q3 FY-22 Pre-Clinical P-1 P-2 P-3 Development Commercial Grand Total API 15 3 8 5 10 7 48 Intermediate 7 5 2 0 8 11 33 G
Slide 17: Business Overview
BUSINESS OVERVIEW
Slide 18: 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 19: Generic Drug Substance (GDS)
Generic Drug Substance (GDS) We started as a Prime API ..Added complex molecules for manufacturer… Speciality 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 20: 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 21: Capabilities
CAPABILITIES
Slide 22: 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 23: 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 24: 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 25: Global Presence
Global Presence NORTH AMERICA EUROPE APAC 43% 38% 8% JAPAN MENA INDIA 2% 3% 1% BD Office in LATAM Princeton, New Jersey 3% Since 2004 Our BD Office in JAPAN Since 2007 % Refers to 9M FY23 Sales by End market 25
Slide 26: Regulatory Filings Across Geographies
Regulatory Filings Across Geographies 31 Filings with Health 10 20 Canada Japanese DMF filed 62 China DMF filed DMFs with USFDA 248 19 26 ROW filings including filings with Turkey, Mexico, Brazil etc KFDA Korea filings with TGA ~499 28 EUDMF filings across Germany, France, CEPs Received for differen
Slide 27: Financials
FINANCIALS
Slide 28: Continuous Growth…
Continuous Growth… Rs. In Cr 163 953 953 153 FINANCIAL PERFORMANCE 144 HIGHLIGHTS 767 786 670 105 ▪ Revenue CAGR of 12.5% for FY 19-22 led by growth in all 3 businesses 80 79 61 64 ▪ EBITDA growth of 33.0% CAGR in FY 19-22 due to balanced contribution from both GDS and CMS business 16 16 ▪ Shift to
Slide 29: Stable Balance Sheet..
Stable Balance Sheet.. Particulars Mar-20 Mar-21 Mar-22 Dec-22 Current Ratio (x) ROCE (%) (Rs. Cr) Shareholde 1.60 706 782 836 906 1.58 13.51 rs' funds 14.60 1.47 1.42 8.89 9.70 Net Debt 214 152 212 72 2020 2021 2022 9MFY23 2020 2021 2022 9MFY23 Investments 8 7 4 2 Tangible 391 438 497 508 Assets Fi
Slide 30: Outlook
OUTLOOK
Slide 31: ..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 32: Contact Us
Contact Us For over 39 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 33: Thank You
Thank You Confidential. © 2022 Neuland Laboratories Ltd. All rights reserved.
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