Transcript Slide 1
Torrent Pharmaceuticals Ltd Investor Presentation Q3 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 Q3 10-11 Highlights • Revenues at Rs. 5,775 Mn vs. Rs 4,800 Mn • Revenue growth of 20% on the back of robust growth from India, US and contract manufacturing operations. • International sales boosted by noticeable performance in US, Europe and Heumann (Germany) operations. • PBT at Rs. 972 Mn vs. Rs 966 Mn • Lower margins in Indian formulations business due to investments in new therapeutic areas and Field Force expansion • Adjusting for investments in new markets, international margins improved partially offset by 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 % Other Total Sales Gwth % Q3 10 - 11 2,116 16% 2,834 19% 930 758 367 337 297 144 584 40% 14 5,548 20% Rs. Mn Q3 09 - 10 1,820 2,386 813 661 269 274 266 103 417 19 4,642 YTD Dec YTD Dec 10 - 11 09 - 10 6,549 17% 8,548 19% 2,803 2,198 990 1,142 969 446 1,564 12% 192 16,853 17% 09 - 10 5,599 7,254 7,164 9,163 2,289 1,995 689 958 864 368 1,392 3,012 2,547 909 1,163 1,141 391 1,849 188 14,344 18,266 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 Rs. Mn Q3 10 - 11 5,775 1,771 31% 1,528 26% 979 17% 348 6% 1,150 21% 972 17% 203 21% 769 13% Q3 YTD Dec YTD Dec 09 - 10 10 - 11 09 - 10 4,801 17,000 14,407 1,416 5,244 4,285 29% 31% 30% 1,245 4,426 3,699 26% 26% 26% 766 2,893 2,273 16% 17% 16% 280 992 912 6% 6% 6% 1,094 3,447 3,239 24% 21% 23% 966 2,961 2,811 20% 17% 20% 136 688 1,091 14% 23% 39% 830 2,273 1,721 17% 13% 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% Balance Sheet Particulars SOURCE OF FUNDS: Shareholders' Funds Loan Funds NET DEFERRED TAX LIABILITY Rs. Mn 31.Mar.10 % 31.Dec.10 % ∆ 8,310 5,224 499 59% 37% 4% 10,618 5,879 452 63% 35% 3% 14,033 100% 16,949 100% 2,916 6,510 190 46% 1% 7,951 200 47% 1% 1,441 10 3,236 2,982 368 1,138 5,496 23% 21% 3% 8% 39% 4,630 3,696 546 1,491 7,532 27% 22% 3% 9% 44% 1,393 714 178 353 2,036 NET CURRENT ASSETS 2,228 16% 2,830 17% 602 Cash, Bank & Current Investments 5,105 36% 5,968 35% 863 14,033 100% 16,949 100% 2,916 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 2,308 655 (47) Business Segments India India Highlights & Growth Drivers India Revenues % Growth Q3 10 - 11 2116 16% Q3 YTD Dec YTD Dec 09 - 10 10 - 11 09 - 10 1820 6549 5599 17% Rs. Mn 09 - 10 7254 16% • Q3 FY Highlights • Consistent sales gwth 09-10 Q3 15%; Q4 20%; 10-11; Q1 13%; Q2 22%; Q3 16% • MAT Nov 2010 gwth of 16%, vol gwth 17%, New Introductions 1%, Price de-gwth 2%. • Lower margins on account of planned Therapeutic and Field force expansions • Launched new division to improve focus on diabetic segment • 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 area Respiratory 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 Q3 10 - 11 2,950 18% Q3 09 - 10 2,505 YTD Dec 10 - 11 8,505 19% YTD Dec 09 - 10 7,161 Rs. Mn 09 - 10 9839 17% 08 - 09 8413 Brazil Highlights & Growth Drivers Brazil Revenues % Growth Q3 10 - 11 950 14% Q3 09 - 10 830 YTD Dec 10 - 11 2,760 21% Rs. Mn YTD Dec 09 - 10 2,286 09 - 10 3078 18% • Q2 FY 11 Highlights • Reai Volume growth 13%, New Introductions 2%, Price de-growth 1%. • Torrent growing at 11% vs. Covered Market growth of 10% • Lower gross margins partially set off by lower R&D spend for the quarter • Growth Drivers • Existing Products & Introduction of new products (35-40 new launches by 2014-15) • 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 Highlights & Growth Drivers USA Revenues % Growth Q3 Q3 10 - 11 09 - 10 381 278 37% YTD Dec YTD Dec 10 - 11 09 - 10 990 689 44% • Q3 FY 11 Highlights • Improving market share in all commercialized molecules • Citalopram ~ 28% (28%), Zolpidem ~ 22% (22%) • Higher sales leading to operating profits before R&D • 25 ANDA's approved till date (11 actively marketed, 10 under patent) • Growth Drivers • 28 ANDA's pending for approval & 40 ANDA's under development • Break-even likely by 2011-12 USA Rs. Mn 09 - 10 943 226% Germany - Heumann Highlights & Growth Drivers Germany (Heumann) Q3 10 - 11 Q3 09 - 10 Revenues 766 659 % Growth 16% Rs. Mn YTD Dec YTD Dec 10 - 11 09 - 10 2,198 09 - 10 1,995 10% 2639 -1% • Q3 FY 11 Highlights • Euro sales growth of 33%, Approx 70% of the covered market under tenders • Trend expected to continue with more insurance companies in the process of announcing tenders • Adjusted for currency margins improve on the back of lower marketing and R&D 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 Q3 (exc Heumann) 10 - 11 Revenues 389 % Growth 12% Q3 09 - 10 348 Europe (excl Heumann) Rs. Mn YTD Dec YTD Dec 09 - 10 10 - 11 09 - 10 1,142 19% 958 1400 12% • Q3 FY 11 Highlights - Euro sales growth of 25% - Lower gross margins due to adverse product mix partially offset by lower R&D and marketing spend • Growth Drivers - New Product Pipeline – 50 products till 2014-15 - Increasing geographical through direct field force presence in Romania and UK in the immediate term. ROW Highlights & Growth Drivers ROW Revenues % Growth Q3 10 - 11 Q3 09 - 10 316 12% 281 Rs. Mn YTD Dec 10 - 11 969 12% YTD Dec 09 - 10 09 - 10 864 1204 30% • Q3 FY11 Highlights • Top line growth of 12% adjusted for currency movements top line grew by 15% • Stable 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 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. • Minimize development costs by leveraging on R&D costs incurred for developed markets Facilities – Expansion Plan Facilities – Expansion Plan Sikkim Dahej SEZ • Nature: New Formulation Facility • Nature: Formulation & API Capacity Enhancement • Project Cost: Rs. 135 crores • Project Cost: Rs. 800 crores • Planned capacities: 3900 million tablets p.a. • Planned capacities: 50 TPA plus 11,000 million tablets / capsules p.a. • Timelines for completion: 2010 – 2011 • Timelines for completion: • Phase I: 2014-15 • Phase II: 2015-16 • Justification: – With growing volumes in US / EU, API + Formulation capacity constraint is anticipated 2-3 years • Justification: – IT and Excise exemption for 10 years – With growing domestic market, Baddi plant is expected to achieve 100% capacity utilization in 2-3 years Thank You