Transcript Slide 1
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 Q110-11 Highlights • Revenues at Rs. 5,391 Mn vs. Rs 4,774 Mn • Revenue growth of 13% on the back of sustained growth from major markets. • International sales boosted by noticeable performance in Brazil and US operations. • PBT at Rs. 977 Mn vs. Rs 842 Mn • Lower margins in Indian formulations business due to investments in new therapeutic areas and expansion of Field Force • Improved International margins on the back of higher volumes from US and Brazilian operations 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 % Total Sales Gwth % Rs. Mn Q1 Q1 10 - 11 09 - 10 2,235 1,975 13% 2,565 2,180 18% 885 658 692 677 270 187 312 282 246 244 160 132 422 495 -15% 5,245 4,659 13% 09 - 10 7,254 16% 9,157 15% 3,006 2,547 909 1,163 1,141 391 1,849 16% 18,323 15% 08 - 09 6,240 7,970 2,566 2,573 278 1,011 885 658 1,601 15,865 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 Q1 10 - 11 5,410 1,915 35% 2,036 38% 315 6% 1,143 22% 977 18% 235 24% 742 14% 742 14% Q1 09 - 10 4,811 1,653 34% 1,801 37% 372 8% 985 21% 842 18% 691 82% 152 3% 680 14% • 09-10 includes one time out-licensing income of Rs 15.6 crs in Q2 09–10 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% 08 - 09 16,307 6,147 38% 6,451 40% 1,119 7% 2,590 16% 1,921 12% 78 4% 1,843 11% 1,651 10% Balance Sheet Particulars SOURCE OF FUNDS: Shareholders' Funds Loan Funds NET DEFERRED TAX LIABILITY Rs. Mn 31.Mar.10 % 30.Jun.10 % ∆ 8,310 5,224 499 59% 37% 4% 9,088 6,399 513 57% 40% 3% 778 1,175 14 14,033 100% 16,000 100% 1,967 6,510 190 46% 1% 6,903 190 43% 1% 393 - 3,236 2,982 368 1,138 5,496 23% 21% 3% 8% 39% 3,757 3,438 458 1,184 6,614 23% 21% 3% 7% 41% 520 456 90 46 1,119 NET CURRENT ASSETS 2,228 16% 2,222 14% Cash, Bank & Current Investments 5,105 36% 6,685 42% 1,580 14,033 100% 16,000 100% 1,967 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 (6) Business Segments India India Highlights & Growth Drivers India Revenues % Growth Q1 10 - 11 2235 13% Q1 09 - 10 1975 Rs. Mn 09 - 10 7254 16% 08 - 09 6240 7% • Highlights • Consistent sales growth 09-10 Q1 15%; Q2 15%; Q3 15%; Q4 20%; 10-11 Q1 13% • Volume growth 19%, New Introductions 2%, Price de-growth 3%. • Torrent growing at 18% vs. Covered Market growth of 23% • Lower margins on account of Therapeutic and Field force expansion • 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 Q1 10 - 11 2,710 18% Q1 09 - 10 2,297 Rs. Mn 09 - 10 9839 17% 08 - 09 8413 Brazil Highlights & Growth Drivers Brazil Revenues % Growth Q1 10 - 11 887 33% Q1 09 - 10 Rs. Mn 09 - 10 669 3078 18% 08 - 09 2605 • Highlights • Reai Volume growth 21%, New Introductions 2%, Price de-growth 1%. • Torrent growing at 13% vs. Covered Market growth of 13% • Improved margins on the back of higher sales resulting into improved marketing spend productivity. • Largest Indian player in the Brazilian pharmaceutical market • 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 Q1 Q1 10 - 11 09 - 10 281 194 44% Rs. Mn 09 - 10 943 226% • Highlights • Improving market share in all commercialized molecules • Citalopram ~ 26% (26%), Zolpidem ~ 22% (20%) as per WKH retail • Higher sales leading to operating profits before R&D • 20 ANDA's approved till date (10 actively marketed) • Growth Drivers • 5 New Introduction in FY 11 including 4 day 1 launches • 28 ANDA's pending for approval & 37 ANDA's under development • Break-even likely by 2011-12 08 - 09 289 Germany - Heumann Highlights & Growth Drivers Germany (Heumann) Q1 10 - 11 Q1 09 - 10 Revenues 697 707 % Growth -2% Rs. Mn 09 - 10 08 - 09 2639 2659 -1% • 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 17%, volume growth of 66%, price de-growth of 71% and New product 22% • Stable margins on the back of lower marketing spend offset by reduced prices on sales through tenders • 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) Q1 10 - 11 Q1 09 - 10 Revenues 365 332 % Growth 10% Europe (excl Heumann) Rs. Mn 09 - 10 08 - 09 1400 1245 12% • Highlights - Indapamide, Lamotrigine and Lecarnidipine contributes nearly 70% of total sales. - Lower margins due to unfavorable product mix and adverse forex movements • Growth Drivers - New Product Pipeline – 50 products till 2014-15 - Increasing geographical through direct field force presence in UK in the immediate term. ROW Highlights & Growth Drivers ROW Revenues % Growth Q1 10 - 11 261 2% Q1 09 - 10 256 Rs. Mn 09 - 10 08 - 09 1204 30% 928 • Highlights • Top line growth of 12% (19% currency adjusted) after one off adjustments • Lower margins due to unfavorable product mix and increased spend for new geographies • 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 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