Torrent Pharmaceuticals Ltd
Investor Presentation
Q1 FY 2012
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
Q1 FY12 Highlights
• Revenues at Rs. 6,475 Mn vs. Rs 5,410 Mn
• Revenue growth of 20% on the back of growth from US, Brazil and Contract
manufacturing operations.
• Non recurring income of Rs. 170 Mn towards dossier out licensing income
• PAT grows by 38% at Rs. 1,025 Mn vs. Rs 742 Mn
• Lower margins in Indian formulations business due to higher manufacturing
overheads.
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
Q1
Q1
11 - 12 10 - 11
2,460
10%
3,061
19%
1,055
27
825
422
332
292
108
610
43%
3
6,134
17%
2,235
13%
2,565
18%
867
18
692
270
312
246
160
427
-14%
27
5,254
13%
10 - 11
8,389
16%
10,702
17%
3,459
60
2,986
1,093
1,245
1,276
583
2,104
14%
24
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 (after minority Int)
% Revenues
PAT (Adj for MAT)
% Revenues
Rs. Mn
Q1
11 - 12
6,475
1,959
30%
1,540
24%
1,115
17%
330
5%
1,531
25%
1,313
20%
287
22%
1,025
16%
1,025
16%
Q1
10 - 11
5,410
1,640
30%
1,411
26%
923
17%
315
6%
1,121
21%
977
18%
235
24%
742
14%
742
14%
10 - 11
22,265
6,965
31%
5,924
27%
3,895
17%
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.11
%
30.Jun.11
%
∆
10,224
5,721
16
480
62%
35%
0%
3%
11,258
5,491
16
494
65%
32%
0%
3%
16,440
100%
17,259
100%
818
8,541
200
52%
1%
8,822
200
51%
1%
281
-
5,048
3,404
678
1,428
8,907
31%
21%
4%
9%
54%
5,413
3,999
628
1,448
9,933
31%
23%
4%
8%
58%
365
595
(50)
20
1,027
NET CURRENT ASSETS
1,651
10%
1,555
9%
(96)
Cash, Bank & Current Investments
6,048
37%
6,681
39%
634
16,440
100%
17,259
100%
818
TOTAL
APPLICATION OF FUNDS:
Net Fixed Assets
Long Term Investments
WORKING CAPITAL:
Inventories
Sundry Debtors
Other Current Assets
Loans & Advances
Less: Current Liab. & Prov.
TOTAL
1,034
(229)
14
Business Segments
India
India
Highlights & Growth Drivers
India
Revenues
% Growth
Q1
11 - 12
2460
10%
Rs. Mn
Q1
10 - 11 09 - 10
10 - 11
2235
8389
7254
13%
16%
16%
• Q1 FY 12 Highlights
• Lower revenue growth on account of lower growth in gastro and pain therapies
• Lower margins on account of higher manufacturing overheads
• 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
Q1
11 - 12
3,184
19%
Q1
10 - 11
2,679
17%
Rs. Mn
10 - 11
11,158
15%
09 - 10
9,676
15%
Brazil
Highlights & Growth Drivers
Brazil
Revenues
% Growth
Q1
11 - 12
1,074
21%
Q1
10 - 11
887
33%
Rs. Mn
10 - 11
3,551
15%
09 - 10
3078
18%
• Q1 FY 12 Highlights
• Reai growth of ~ 10% with volumes growing 1%, New Introductions 14%, Price degrowth 5%.
• Adjusted for sales spill over in Q4 LY, sales in Reai de-grew by 16%
• Torrent growing at 8% vs. Covered Market growth of 9%
• Growth Drivers
• Existing Products & Introduction of new products (30-35 new launches by 2014-15)
Mexico
Highlights & Growth Drivers
Mexico
Revenues
% Growth
Q1
11 - 12
Q1
10 - 11
28
52%
Rs. Mn
10 - 11
18
61
892%
• Q1 FY 12 Highlights
• Actively marketing 4 molecules in CNS
• 2 new products lined up for launch in CNS for the year
• Field force of 30 people covering 70% of Mexican market.
• Growth Drivers
• Entry into CV segment deferred for next year
• Portfolio to grow to 30 products in 4 years with field force of 200 people
09 - 10
6
Highlights & Growth Drivers
USA
Revenues
% Growth
USA
Rs. Mn
Q1
Q1
10 - 11
09 - 10
11 - 12
10 - 11
443
281
1,143
943
58%
44%
21%
226%
• Q1 FY 12 Highlights
• Launched 2 new molecules in Q1 taking total number of molecules to 17
actively marketed
• Improved margins on account of higher revenues
• 28 ANDA's approved till date (17 actively marketed, 4 under patent)
• Growth Drivers
• 32 ANDA's pending for approval & 22 ANDA's under development
• Break-even likely by 2012-13
Germany - Heumann
Highlights & Growth Drivers
Germany
(Heumann)
Rs. Mn
Q1
11 - 12
Q1
10 - 11
10 - 11
Revenues
834
697
3,016
% Growth
20%
-2%
09 - 10
14%
2639
-1%
• Q1 FY 12 Highlights
• Euro sales growth of 8%, with continuous improvement in market share over last 4
quarters
• 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
Highlights & Growth Drivers
Europe
Q1
(exc Heumann) 11 - 12
Revenues
% Growth
Q1
10 - 11
383
5%
365
10%
Europe (excl Heumann)
Rs. Mn
10 - 11
1,476
5%
09 - 10
1400
12%
• Q1 FY 12 Highlights
• Sales growth affected by lower sales contribution from new product introductions
• 2 new products launched during the quarter
• Growth Drivers
• New Product Pipeline – 30 products till 2014-15
• Increasing geographical reach through direct field force presence in Romania and UK in
the immediate term.
ROW
Highlights & Growth Drivers
ROW
Q1
11 - 12
Revenues
% Growth
309
19%
Q1
10 - 11
261
2%
Rs. Mn
10 - 11
09 - 10
1,353
12%
1204
30%
• Q1 FY12 Highlights
• Top line growth of 19%, adjusted for currency movements top line grew by 22%
• 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