Transcript Slide 1

Torrent Pharmaceuticals Ltd
Investor Presentation
Q2 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
Q2 10-11 Highlights
• Revenues at Rs. 5,815 Mn vs. Rs 4,796 Mn
• Revenue growth of 21% on the back of robust growth from India, Europe and US
operations.
• International sales boosted by noticeable performance in Europe and US
operations.
• PBT at Rs. 1012 Mn vs. Rs 1004 Mn
• Lower margins in Indian formulations business due to planned investments in
new therapeutic areas and expansion of Field Force
• International margins effected due to adverse currency movements
Financials
Sales Progression
Particulars
India
Gwth %
International
Gwth %
Latin America
Germany (Heumann)
USA
Europe (excl Heumann)
Rest of World
Russia & CIS
Contract Manufacturing
Gwth %
Total Sales
Gwth %
Rs. Mn
Q2
Q2
H1
H1
09 - 10
10 - 11 09 - 10 10 - 11 09 - 10
2,199
22%
2,752
23%
916
724
313
316
369
114
558
16%
5,519
21%
1,804
2,244
770
613
209
230
309
113
480
4,545
4,433
17%
5,317
20%
1,801
1,416
583
629
615
274
980
0%
10,767
17%
3,780
7,254
4,425
9,163
1,428
1,291
396
512
553
245
975
3,012
2,547
909
1,163
1,141
391
1,849
9,203
18,266
P&L
Particulars
Revenues
Cogs
% Revenues
SG&A Spend
% Revenues
R&D Spend
% Revenues
EBITDA
% Revenues
PBT
% Revenues
Tax
% PBT
PAT
% Revenues
PAT (Adj for MAT)
% Revenues
Rs. Mn
Q2
10 - 11
5,815
2,202
38%
2,083
36%
329
6%
1,201
22%
1,012
17%
250
25%
762
13%
762
13%
Q2
09 - 10
4,796
1,615
34%
1,732
36%
260
5%
1,190
26%
1,004
21%
264
26%
740
15%
740
15%
H1
10 - 11
11,225
4,171
37%
4,066
36%
644
6%
2,344
22%
1,988
18%
485
24%
1,504
13%
1,504
13%
H1
09 - 10
9,607
3,312
34%
3,489
36%
632
7%
2,174
24%
1,846
19%
955
52%
892
9%
1,420
15%
09 - 10
19,160
6,770
35%
6,979
36%
1,202
6%
4,209
23%
3,472
18%
1,160
33%
2,312
12%
2,840
15%
• Q2 FY 11 includes Rs. 100 Mn and Q2 FY 10 includes Rs. 150 Mn includes one time out-licensing income
Balance Sheet
Particulars
SOURCE OF FUNDS:
Shareholders' Funds
Loan Funds
NET DEFERRED TAX LIABILITY
Rs. Mn
31.Mar.10
%
30.Sep.10
%
∆
8,310
5,224
499
59%
37%
4%
9,827
5,116
502
64%
33%
3%
14,033
100%
15,444
100%
1,412
6,510
190
46%
1%
7,531
200
49%
1%
1,021
10
3,236
2,982
368
1,138
5,496
23%
21%
3%
8%
39%
4,113
3,904
474
1,325
7,056
27%
25%
3%
9%
46%
877
923
105
188
1,560
NET CURRENT ASSETS
2,228
16%
2,761
18%
533
Cash, Bank & Current Investments
5,105
36%
4,953
32%
(152)
14,033
100%
15,444
100%
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
1,517
(108)
3
1,412
Business Segments
India
India
Highlights & Growth Drivers
India
Revenues
% Growth
Q2
10 - 11
2199
22%
Q2
09 - 10
1804
H1
10 - 11
4433
17%
Rs. Mn
H1
09 - 10
3780
09 - 10
7254
16%
• Q2 FY Highlights
• Consistent sales gwth  09-10 Q2 15%; Q3 15%; Q4 20%; 10-11; Q1 13%; Q2 22%
• ORG MAT Aug 2010 gwth of 17% with volume 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
Business Segments
International Operations
International Operations – Expanding Share
FY 10 - Turnover
Cont. Manf
8%
ROW
5%
USA
5%
India
43%
Germany
13%
Europe (excl
Heumann)
6%
Russia
3%
Brazil
17%
Growing share of International – up from 26% to 50%
International Revenues
International
Revenues
% Growth
Q2
10 - 11
2,911
23%
Q2
09 - 10
2,359
H1
10 - 11
5,592
20%
Rs. Mn
H1
09 - 10
4,656
09 - 10
9839
17%
Brazil
Highlights & Growth Drivers
Brazil
Revenues
% Growth
Q2
10 - 11
924
17%
Q2
09 - 10
787
H1
10 - 11
1,811
24%
Rs. Mn
H1
09 - 10
1,456
09 - 10
3078
18%
• Q2 FY 11 Highlights
• Reai Volume growth 8%, New Introductions 7%, Price de-growth 1%.
• Torrent growing at 8% vs. Covered Market growth of 10%
• Improved margins on the back of lower R&D spend partially set off by increased
marketing spend for the quarter
• Growth Drivers
• Existing Products & Introduction of new products (35-40 new launches by 2014-15)
• Increase in field force to support portfolio expansion
• 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
Q2
10 - 11
328
51%
Q2
09 - 10
217
H1
10 - 11
609
48%
Rs. Mn
H1
09 - 10
411
• Q2 FY 11 Highlights
• Improving market share in all commercialized molecules
• Citalopram ~ 28% (26%), Zolpidem ~ 21% (22%) as per WKH retail
• 24 ANDA's approved till date (9 actively marketed, 12 under patent)
• Planned launch of 4 products in H2 FY11
• Growth Drivers
• 27 ANDA's pending for approval & 35 ANDA's under development
• Break-even likely by 2011-12
09 - 10
943
226%
Germany - Heumann
Highlights & Growth Drivers
Germany
(Heumann)
Revenues
% Growth
Q2
10 - 11
735
Q2
09 - 10
629
17%
Rs. Mn
H1
10 - 11
H1
09 - 10
1,432
1,336
09 - 10
2639
7%
-1%
• Q2 FY 11 Highlights
• Approx 70% of the covered market under tenders
• Trend expected to continue with more insurance companies in the process of
announcing tenders
• Euro sales growth of 38%, volume growth of 66%, price de-growth of 46% and New
product 18%
• Adjusted for currency margins improve on the back of lower marketing spend
partially offset by lower prices on tender sales.
• 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
(exc Heumann)
Revenues
% Growth
Q2
Q2
10 - 11 09 - 10
388
278
40%
Europe (excl Heumann)
H1
H1
10 - 11 09 - 10
753
610
23%
Rs. Mn
09 - 10
1400
12%
• Q2 FY 11 Highlights
- Euro sales growth of 60% on the back of increased sales from major products.
- Improved margins on the back of lower R&D spend partially offset by higher marketing
spend for new markets.
• Growth Drivers
- New Product Pipeline – 50 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
Revenues
% Growth
Q2
Q2
10 - 11
09 - 10
393
326
20%
H1
H1
10 - 11
09 - 10
653
583
12%
Rs. Mn
09 - 10
1204
30%
• Q2 FY11 Highlights
• Top line growth of 20% adjusted for currency movements top line grew by 27%
• Stable margins despite adverse currency movements
• Growth Drivers
• Entry into semi-regulated markets like Thailand (Market Size of over USD 2 bio) –
Revenues expected to flow from FY12.
• 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.
Facilities – Expansion Plan
Facilities – Expansion Plan
Sikkim
Chatral
Chatral
•
•
•
Nature: New Formulation
Nature: Formulation Capacity
Enhancement
Facility
Nature: API Capacity
Enhancement
•
Project Cost: Rs. 135 crores
•
Project Cost: Rs. 56 crores
•
Project Cost: Rs. 113 crores
•
Planned capacities: 3900
•
Planned capacities: 1800 million
•
Planned capacities: 60 TPA
million tablets p.a.
•
Timelines for completion:
•
Justification:
•
IT and Excise exemption for 10
•
plus separate facility for exhibit
Timelines for completion: 2010-
batch manufacturing
•
11
2010 - 2011
•
tablets / capsules p.a.
•
2010-11
Justification:
–
With growing international
Timelines for completion:
•
Justification:
–
years
sales capacity constraint in
With growing domestic market,
existing facility is anticipated
US / EU, API capacity
Baddi plant is expected to
in 2-3 years
constraint is anticipated 23 years
achieve 100% capacity
utilization in 2-3 years
With growing volumes in
–
Greater control over API
Costs
Dahej SEZ
•
Nature: Formulation & API Capacity Enhancement
•
Project Cost: Rs. 771 crores
•
Planned capacities:50 TPA plus 9200 million tablets / capsules p.a.
•
Timelines for completion: 2013-14
•
Justification:
– With growing volumes in US / EU, API + Formulation capacity constraint is anticipated 2-3 years
Thank You