Torrent Pharmaceuticals Ltd
Investor Presentation
Q2 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
Q2 FY12 Highlights
• Revenues at Rs. 6,833 Mn vs. Rs 5,815 Mn
• Revenue growth of 19% on the back of robust growth from International
operations.
• International sales boosted by noticeable performance in US, Brazil and
Heumann (Germany) operations.
• PAT grows by 31% to Rs. 1,000 Mn vs. Rs 762 Mn
• Improvement in international margins and lower taxes contributing to PAT
growth
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
Q2
Q2
H1
H1
11 - 12 10 - 11 11 - 12 10 - 11
2371
6%
3,655
33%
1210
38
931
499
429
387
161
545
-2%
6
6,578
19%
2227
2,752
903
13
724
313
316
369
114
558
-17
5,519
4831
8%
6,717
26%
2265
65
1756
921
762
679
269
1155
17%
9
12,711
18%
4461
5,317
1770
31
1416
583
629
615
274
984
10
10,773
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
Rs. Mn
Q2
11 - 12
6,833
2,221
33%
1,728
25%
1,161
17%
317
5%
1,407
21%
1,219
18%
212
17%
1,000
15%
Q2
10 - 11
5,815
1,832
32%
1,488
26%
991
17%
329
6%
1,175
21%
1,012
17%
250
25%
762
13%
H1
11 - 12
13,308
4,180
31%
3,268
25%
2,276
17%
647
5%
2,938
23%
2,533
19%
499
20%
2,025
15%
H1
10 - 11
11,225
3,473
31%
2,899
26%
1,913
17%
644
6%
2,297
21%
1,989
18%
485
24%
1,504
13%
Balance Sheet
Particulars
SOURCE OF FUNDS:
Shareholders' Funds
Loan Funds
Minority Interest
NET DEFERRED TAX LIABILITY
TOTAL
APPLICATION OF FUNDS:
Net Fixed Assets
Long Term Investments
WORKING CAPITAL:
Inventories
Sundry Debtors
Other Current Assets
Loans & Advances
Less: Current Liab. & Prov.
NET CURRENT ASSETS
Cash, Bank & Current Investments
TOTAL
Rs. Mn
31.Mar.11
%
30.Sep.11
%
∆
10,224
5,721
16
480
62%
35%
0%
3%
11,979
5,812
24
526
65%
32%
0%
3%
1,755
92
8
46
16,440
100%
18,341
100%
1,901
8,541
200
52%
1%
8,935
200
49%
1%
393
-
5,048
3,404
678
1,428
8,907
31%
21%
4%
9%
54%
5,234
4,818
760
1,579
9,935
29%
26%
4%
9%
54%
185
1,414
82
151
1,028
1,651
10%
2,455
13%
804
6,048
16,440
37%
100%
6,752
18,341
37%
100%
704
1,901
Business Segments
India
India
Highlights & Growth Drivers
India
Revenues
% Growth
Q2
11 - 12
2362
7%
Q2
10 - 11
2199
Rs. Mn
H1
11 - 12
4811
9%
H1
10 - 11
4433
• Q2 FY 12 Highlights
• Lower revenue growth on account of relatively low performance in acute therapies
• Lower margins on account of higher manufacturing overheads and higher marketing
spend
• 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
Q2
11 - 12
3777
32%
Q2
10 - 11
2863
H1
11 - 12
6933
25%
Rs. Mn
H1
10 - 11
5555
Brazil
Highlights & Growth Drivers
Brazil
Revenues
% Growth
Q2
11 - 12
Q2
10 - 11
1242
34%
924
Rs. Mn
H1
11 - 12
2316
28%
H1
10 - 11
1811
• Q2 FY 12 Highlights
• Reai growth of ~ 27% with volumes growing 28%, New Introductions 5%, Price degrowth 6%.
• QTR (Jun - Aug 2011) ~ Torrent growing at 15% vs. Covered Market growth of 25%
• Improved margins on account of higher sales
• Growth Drivers
• Existing Products & Introduction of new products (30-35 new launches by 2014-15)
Mexico
Highlights & Growth Drivers
Mexico
Revenues
% Growth
Q2
11 - 12
Q2
10 - 11
38
186%
Rs. Mn
H1
11 - 12
13
66
109%
• Q2 FY 12 Highlights
• Actively marketing 5 molecules in CNS
• 1 product lined up for launch in CNS for the year
• Field force of 30 people covering 70% of Mexican market.
• Growth Drivers
• Planning to enter into CV segment from next year
• Portfolio to grow to 30 products in 4 years with field force of 200 people
H1
10 - 11
32
USA
Highlights & Growth Drivers
USA
Revenues
% Growth
Q2
Q2
11 - 12
10 - 11
515
328
57%
Rs. Mn
H1
H1
11 - 12
10 - 11
957
609
57%
• Q2 FY 12 Highlights
• Launched 2 new molecules in Q2 taking total number of molecules to 17
actively marketed
• Improved margins on account of higher revenues and lower R&D spend
• 30 ANDA's approved till date (17 actively marketed, 7 under patent)
• Growth Drivers
• 32 ANDA's pending for approval & 8 ANDA's under development
• Break-even likely by 2012-13
Germany - Heumann
Highlights & Growth Drivers
Germany
(Heumann)
Q2
11 - 12
Revenues
938
% Growth
28%
Q2
10 - 11
735
Rs. Mn
H1
11 - 12
1772
H1
10 - 11
1432
24%
• Q2 FY 12 Highlights
• Euro sales growth of 18%, with continuous improvement in market share over last 4
quarters
• Improves gross margins on account of new product introduction.
• 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
Q2
(exc Heumann) 11 - 12
Revenues
507
% Growth
31%
Q2
10 - 11
388
Europe (excl Heumann)
Rs. Mn
H1
11 - 12
890
H1
10 - 11
753
18%
• Q2 FY 12 Highlights
- Euro sales growth of 20%
- Investment spend in UK and Romania affecting margins
• 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
Revenues
% Growth
Q2
11 - 12
408
7%
Q2
10 - 11
383
Rs. Mn
H1
11 - 12
718
10%
H1
10 - 11
653
• Q2 FY12 Highlights
• Lower growth on account of supply issues expected to be resolved in coming quarters
• Adjusted for currency movements top line grew by 5%
• 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 in 2-3
years.
Thank You