Torrent Pharmaceuticals Ltd
Investor Presentation
FY 2011
Caveat
This information may contain certain forward-looking statements/ details in
the current scenario, which is extremely dynamic and increasingly fraught
with risks and uncertainties. Actual results, performances, achievements or
sequence of events may be materially different from the views expressed
herein. Investors/shareholders/public are hence cautioned not to place
undue reliance on these statements/ details, and are advised to conduct
their own investigation and analysis of the information contained or referred
to in this section before taking any action with regard to their own specific
objectives. Further, the discussion following herein reflects the perceptions
on major issues as on date and the opinions expressed here are subject to
change without notice. The Company undertakes no obligation to publicly
update or revise any of the opinions or forward-looking statements
expressed in this section, consequent to new information, future events or
otherwise.
Contents
1.
Performance Highlights
2.
Financials
3.
Business Segments
4.
–
India
–
International
Facilities – Expansion Plan
10-11 Highlights
• Revenues at Rs. 21,970 Mn vs. Rs 18,998 Mn
• Revenue growth of 16% on the back of robust growth from India, US and
contract manufacturing operations.
• International sales boosted by noticeable performance in US, Brazil and
Heumann (Germany) operations.
• PBT at Rs. 3,427 Mn vs. Rs 3,472 Mn
• Adjusting for one – off’s in USA, Brazil & Investment spend in India & Overseas
markets PBT margins remained stable
• Lower margins in Indian formulations business due to investments in new
therapeutic areas and Field Force expansion
Financials
Sales Progression
Particulars
India
Gwth %
International
Gwth %
Brazil
Mexico
Germany (Heumann)
USA
Europe (excl Heumann)
Rest of World
Russia & CIS
Contract Manufacturing
Gwth %
Other
Total Sales
Gwth %
Rs. Mn
Q4
Q4
10 - 11 09 - 10
1,803
9%
2,551
8%
769
18
812
143
279
364
166
532
16%
12
4,898
9%
1,654
2,352
768
2
596
244
377
322
43
458
20
4,484
10 - 11
8,389
16%
10,702
17%
3,459
60
2,986
1,093
1,245
1,276
583
2,096
13%
32
21,220
16%
09 - 10
7,254
9,163
3,006
6
2,547
909
1,163
1,141
391
1,849
63
18,329
P&L
Particulars
Revenues
Cogs
% Revenues
SG&A Spend
% Revenues
Employee Cost
% Revenues
R&D Spend
% Revenues
EBITDA
% Revenues
PBT
% Revenues
Tax
% PBT
PAT
% Revenues
PAT (Adj for MAT)
% Revenues
Rs. Mn
Q4
10 - 11
5,264
1,722
33%
1,473
28%
1,028
20%
397
8%
646
13%
466
9%
37
8%
428
8%
428
8%
Q4
09 - 10
4,753
1,425
30%
1,180
25%
889
19%
291
6%
969
22%
661
14%
69
11%
591
12%
591
12%
10 - 11
22,265
6,965
31%
5,899
26%
3,920
18%
1,388
6%
4,092
19%
3,427
15%
725
21%
2,702
12%
2,702
12%
09 - 10
19,160
5,710
30%
4,879
25%
3,162
17%
1,202
6%
4,208
23%
3,472
18%
1,160
33%
2,312
12%
2,841
15%
Balance Sheet
Particulars
SOURCE OF FUNDS:
Shareholders' Funds
Loan Funds
Minority Interest
NET DEFERRED TAX LIABILITY
Rs. Mn
31.Mar.10
%
31.Mar.11
%
∆
8,310
5,224
499
59%
37%
0%
4%
11,011
5,721
16
480
64%
33%
0%
3%
2,701
497
14,033
100%
17,227
100%
3,194
6,510
190
46%
1%
8,541
200
50%
1%
2,031
10
3,236
2,982
368
1,138
5,496
23%
21%
3%
8%
39%
5,048
3,404
678
1,428
8,120
29%
20%
4%
8%
47%
1,812
422
310
290
2,624
NET CURRENT ASSETS
2,228
16%
2,438
14%
210
Cash, Bank & Current Investments
5,105
36%
6,048
35%
943
TOTAL
APPLICATION OF FUNDS:
Net Fixed Assets
Long Term Investments
WORKING CAPITAL:
Inventories
Sundry Debtors
Other Current Assets
Loans & Advances
Less: Current Liab. & Prov.
(19)
Business Segments
India
India
Highlights & Growth Drivers
India
Revenues
% Growth
Q4
10 - 11
1803
9%
Q4
09 - 10
1654
Rs. Mn
10 - 11
09 - 10
8389
16%
7254
16%
• FY 11 Highlights
• MAT March 2011 gwth of 17%, vol gwth 17%, New Introductions 2%, Price de-gwth 2%.
• Lower margins on account of planned Therapeutic and Field force expansions
• Growth drivers
• Consolidate entry into newer geographies and therapeutic areas
• Brand building thru increased Specialty Coverage & Creeping Expansion in Customer
Base
• New Product Introductions including filling of Portfolio Gaps
• Entry into new therapeutic areas
Business Segments
International Operations
International Operations – Expanding Share
FY 11 - Turnover
Cont. Manf
10%
ROW
6%
USA
5%
India
39%
Germany
14%
Europe (excl
Heumann)
7%
Russia
3%
Brazil
16%
Growing share of International – up from 26% to 51%
International Revenues
International
Revenues
% Growth
Q4
10 - 11
2,653
5%
Q4
09 - 10
2,515
10 - 11
11,158
15%
Rs. Mn
09 - 10
9,676
15%
08 - 09
8413
Brazil
Highlights & Growth Drivers
Brazil
Revenues
% Growth
Q4
10 - 11
791
0%
Q4
09 - 10
792
Rs. Mn
10 - 11
3,551
15%
09 - 10
3078
18%
• FY 11 Highlights
• Reai growth of ~ 11% with volumes growing 9%, New Introductions 3%, Price degrowth 1%.
• Adjusted for one off effect, Sales in Reai grew by 19%
• Torrent growing at 10% vs. Covered Market growth of 11%
• Adjusting for sales spill over margins improved mainly on account higher marketing
spend productivity and lower R&D spend.
• Growth Drivers
• Existing Products & Introduction of new products (30-35 new launches by 2015-16)
• Entry into Mexico
• Piggy-back on Brazil portfolio
• Launch of Branded Generic (BG) model in CNS with 6 products and field force of 35
people
• Entry into CV segment in 2011-12
• Portfolio to grow to 30 products in 4 years with field force of 200 people
USA
Highlights & Growth Drivers
USA
Revenues
% Growth
Q4
Q4
10 - 11
09 - 10
152
253
-40%
Rs. Mn
10 - 11
1,143
21%
• FY 11 Highlights
• Adjusting for one time charge back’s sales grew by 60%
• Improving market share in commercialized molecules
• Citalopram ~ 30% (28%), Zolpidem ~ 22% (22%)
• 26 ANDA's approved till date (13 actively marketed, 9 under patent)
• Growth Drivers
• 32 ANDA's pending for approval & 16 ANDA's under development
• Break-even likely by 2012-13
09 - 10
943
226%
Germany - Heumann
Highlights & Growth Drivers
Germany
(Heumann)
Rs. Mn
Q4
10 - 11
Q4
09 - 10
10 - 11
Revenues
818
644
3,016
% Growth
27%
09 - 10
14%
• FY 11 Highlights
• Euro sales growth of 31%, with market share growing from 1.70% to 2.10%
• Stable margins
Growth Drivers
• Heumann successful in winning tenders
• New Products going off patent and Therapy coverage expansion
• Shift of manufacturing base to India to boost competitiveness in bidding
2639
-1%
Highlights & Growth Drivers
Europe
(exc Heumann)
Europe (excl Heumann)
Rs. Mn
Q4
10 - 11
Q4
09 - 10
10 - 11
Revenues
333
442
1,476
% Growth
-25%
5%
09 - 10
1400
12%
• FY 11 Highlights
- Euro sales growth of 19%
- Lower gross margins due to adverse product mix offset by forex gains
• Growth Drivers
- New Product Pipeline – 30 products till 2014-15
- Increasing geographical through direct field force presence in Romania and UK in the
immediate term.
ROW
Highlights & Growth Drivers
ROW
Q4
10 - 11
Revenues
% Growth
384
13%
Q4
09 - 10
340
Rs. Mn
10 - 11
09 - 10
1,353
12%
1204
30%
• FY11 Highlights
• Top line growth of 12% adjusted for currency movements top line grew by 16%
• Lower margins due increased spend for new geographies partially off set by favorable
currency movements.
• Growth Drivers
• Entry into semi-regulated markets like Thailand (Market Size of over USD 2 bio) –
Revenues expected to flow from FY13.
• Increased focus on existing territories with direct field force presence viz Philippines, Sri
Lanka, Vietnam & Myanmar
• Scale up of operations in regulated markets like Australia & semi-regulated markets like
South Africa.
• Minimize development costs by leveraging on R&D costs incurred for developed markets
Facilities – Expansion Plan
Facilities – Expansion Plan
Dahej SEZ
•
Nature: Formulation & API Capacity Enhancement
•
Project Cost: Rs. 800 crores
•
Planned capacities: 50 TPA plus 11,000 million tablets / capsules p.a.
•
Timelines for completion:
•
•
Phase I: Project cost of Rs. 500 crores, commissioning in FY 2014-15
•
Phase II: Project cost of Rs. 300 crores, commissioning in FY 2016-17
Justification:
–
With growing volumes in US / EU, API + Formulation capacity constraint is anticipated 2-3 years.
Thank You