Shilpa Medicare Limited has informed the Exchange about Investor Presentation
Shilpa Medicare Limited Corporate & Admin Office: “Shilpa House”, # 12-6-214/A-1, Hyderabad Road, Raichur – 584 135, Karnataka, India Tel: +91-8532-238704, Fax: +91-8532-238876 Email: info@vbshilpa.com, Web: www.vbshilpa.com CIN: L85110KA1987PLC008739
12 August 2022
National Stock Exchange of India Limited, Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Bandra Kurla Complex, Bandra (E), Mumbai-400 051
Corporate Relationship Department, BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai-400 001
Dear Sir/Ma’am,
Sub: Investor Presentation of the Company for the Quarter ended 30 June 2022
Ref.: Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015
Scrip Code: BSE - 530549/Stock Symbol: NSE – SHILPAMED
With reference to the captioned subject, the Investor Presentation of the Company for the Quarter ended 30 June 2022 with regard to Business highlights, financial performance and other updates is attached herewith for your consideration.
We request you to take the same on record and disseminate it to stakeholders of the Company.
Thanking you.
Yours faithfully, For Shilpa Medicare Limited
Ritu Tiwary Company Secretary & Compliance Officer
Shilpa Medicare Limited (SML)
Q1 FY23 Results Presentation
1
2
API Units, Raichur
Disclaimer
Certain statements in this document may be forward-looking statements. Such forward looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Shilpa Medicare Limited (SML) will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.
Table of content
3
1
Company overview
2
Financial performance
3
Business highlights
4
Annexures
Company Overview
4
Company Overview
5
Established presence in Active Pharmaceutical Ingredients (APIs) and Formulations for domestic & international markets
Pursuing niche growth businesses like Biologics, Transdermal & Oral Dissolving Films Formulations
Affordable & Effective Pharmaceutical Solutions
Robust research orientation resulting in innovative products
Very strong R&D background including development, pathway engineering and characterization of biologics
Best in class manufacturing and supply of high-quality affordable drugs
Managing Director’s Message
6
Commenting on Q1 FY’23 performance, Mr. Vishnukant Bhutada, Managing Director Shilpa Medicare Limited said
“Q1 FY’23 has been a challenging quarter for the company where we saw a down trend in both API and Formulation. The prevailing inflationary trends in the overall macro environment have seen increase in cost and pricing pressure in API and Formulation businesses have had impact on our margin profile. In our endeavor to improve our margin profile, we have already started working on identifying areas in our manufacturing process where efficiencies can be driven and building a strong product portfolio.
We have laid down a clear growth path for the company and as the first step on 30th June 2022, we completed the slump sale of our API business to bring in additional focus to drive growth. We will continue our primary focus to enhance our geographical footprint, introduction of new products and delivering superior value proposition to clients.
In this tough quarter for business, we had some success on regulatory side where we saw some approvals coming in from US FDA, UK MHRA and Russia GMP across businesses which will help us to create a base to build our future growth.
Investments in Biologics was made to tap a very attractive segment in the market, with limited competition and good potential to grow including manufacturing of vaccines. Whilst our initiative for manufacture of COVID-19 vaccines for our partners hit certain hurdles, we have progressed 3 of our own products to various clinical phase stages.
We had a tough quarter but as mentioned above we have identified the pain points and the growth drivers and we have already started working on it which should help us to deliver better in the coming quarters.”
Financial Performance
7
Reported Standalone Statement of Profit and Loss
8
(INR in Cr.)
Particulars
Q1 FY23
Q4 FY22
% change
Q1 FY21
% change
Revenues Gross Margin Gross Margin % Employee Cost Other Expenses EBITDA EBITDA % Finance Cost Depreciation PBT PAT PBT - discontinued Business PAT - discontinued Business PAT
*Includes profit on slump sale of INR 62.9cr.
73.5 63.9 87% 27.9 18.9 17.1 23% 2.7 10.4 4.1 3.8 81.5* 104.2* 109.5*
83.2 72.6 87% 30.1 33.8 8.8 11% 1.7 10.3 (3.2) (2.9) 55.4 38.4 32.6
(11.7) (12.0) 1.0 (7.0) (44.2) 94.9 (8.1) 53.5 1.3 (225.3) (227.5) 47.0 171.4 235.7
114.9 82.6 72% 24.3 36.1 22.2 19% 2.5 7.1 12.6 6.2 18.8 18.8 26.7
(36.1) (22.6) 21.1 15.0 (47.7) (22.9) 20.5 6.8 46.6 (67.9) (39.6) 332.7 453.5 309.8
Reported Consolidated Profit and loss account
9
(INR in Cr.)
Particulars
Revenues Gross Margin Gross Margin % Employee Cost Other Expenses EBITDA EBITDA % Finance Cost Depreciation PBT PAT
Q1 FY23
Q4 FY22
% change
Q1 FY21
% change
269.3 165.3 61% 72.9 63.8 28.7 11% 9.6 22.4 (4.1) 2.3
346.1 232.5 67% 73.4 79.9 79.2 23% 9.3 22.3 46.5 26.7
(22.2) (28.9)
(0.8) (20.2) (63.8) (53.5) 2.6 0.3 (108.7) (91.4)
239.3 163.4 68% 57.9 71.7 33.9 0.1 10.3 17.6 5.2 3.1
12.5 1.2 (10.1) 25.9 (11.0) (15.4) (24.8) (7.1) 27.1 (178.7) (26.7)
Business Highlights
10
Business overview
11
Regulatory Achievements:
US FDA Initiation of US Audit for Analytical Service Division in Unit VII
based in Nacharam Hyderabad
Concluded Remote Record Review by US FDA of Unit III Advanced Analytical Characterisation Laboratory situated at Dabaspet Bengaluru
Completed full scientific review of DMF for Tranexamic acid and
found it to be adequate
Slump sale transaction was completed on 30th June 2022
and all
identified assets and liabilities are now in the
books of Shilpa Pharma Lifescience Limited.
UK MHRA Approval manufacturing Transdermal systems at Dabaspet Bengaluru
received and
for testing
newly
commissioned
of Oro-dispersible
facility films
for and
Russian GMP Approval received for Unit II situated in Raichur Karnataka
Q1 FY’23 Consolidated Performance
12
(INR in Cr.)
Revenue
12%
-22%
346.1
269.3 239.3
Q4 FY'22 Q1 FY'23 Q1 FY'22
PBT
46.5
5.2
-4.1
Q4 FY'22 Q1 FY'23 Q1 FY'22
EBIDTA
-15%
-64%
79.2
28.7
33.9
% to Sales
20%
11%
14%
Q4 FY'22 Q1 FY'23 Q1 FY'22
PAT
-27%
-91%
26.7
2.3
3.1
Q4 FY'22 Q3 FY'23 Q1 FY'22
Consolidated Revenue Break-up – Q1 FY’23
13
(INR in Cr.)
Q4 FY’22 INR 346.1cr.
Q1 FY’23 INR 269.3cr.
Q1 FY’22 INR 239.3cr.
Growth of 13% vs Q1 FY’22
29.3, 9%
87.2 , 25%
229.6 , 66%
16, 6%
68.8 , 26%
184.5 , 68%
8.7, 4%
API Formulation Others
95.3 , 40%
135.4 , 56%
Degrowth of 22% vs Q4 FY’22
14
API Business
API Business-Highlights Q1 FY’23
Oncology
-26%
6%
134.2
98.7
93.0
% contribution of API Sales
58%
54%
69%
FY'22 Q4
FY'23 Q1
FY'22 Q1
Non Oncology
-11%
51%
62.7
55.8
37.0
% contribution of API Sales
27%
30%
27%
FY'22 Q4 FY'23 Q1 FY'22 Q1
*Numbers are excluding captive consumptions
15
(INR in Cr.) (INR in Cr.)
CRAMS
-77%
23.1
% contribution of API Sales
10%
5.3
3%
No Income
FY'22 Q4 FY'23 Q1 FY'22 Q1
Growth 36%
FY’22 Q4 229.6
FY’23 Q1 184.5
FY’22 Q1 135.4
Others
Degrowth 20%
158%
358%
24.7
% contribution of API Sales
9.6
4%
5.4
4%
13%
FY'22 Q4 FY'23 Q1 FY'22 Q1
DMF Filing update
16
New product introduction and increase in geographical coverage replicated with 212 number of DMF filings done with major regulatory authorities
45
45
31
20
18
16
12
9
7
7
2
US FDA
EU/ EMEA GCC / ROW
MFDS
TPD-Canada
TGA
CHINA
PMD
RUSSIA
MEDSAFE
WHO
As on 30th June 2022
17
Formulation Business
Formulation Business-Highlights Q1 FY’23
18
(INR in Cr.)
Europe
-25%
-15%
License Fees
-19%
ROW
-91%
593%
-65%
49.9
43.8
37.4
% contribution of For. Sales
57%
54%
46%
21.2
17.1
% contribution of For. Sales
24%
25%
2.5 3%
2.1
% contribution of For. Sales
2%
0.2
0%
0.5
1%
FY'22 Q4
FY'23 Q1
FY'22 Q1
FY'22 Q4 FY'23 Q1 FY'22 Q1
FY'22 Q4 FY'23 Q1 FY'22 Q1
US
6%
-72%
Degrowth 28%
Domestic
-25%
-55%
44.5
FY’22 Q4 87.2
FY’23 Q1 68.8
FY’22 Q1 95.3
% contribution of For. Sales
11.6
13%
12.3 18%
47%
FY'22 Q4 FY'23 Q1 FY'22 Q1
Degrowth 21%
2.3
3%
1.8
3%
% contribution of For. Sales
3.9
4%
FY'22 Q4 FY'23 Q1 FY'22 Q1
Regulatory Filings
Robust regulatory filings to strength the base for growth in the formulation segment
Approved
Pending
19
26
13
13
US ANDA (SML)
As on 30th June 2022
26
6
20
18
5
13
US ANDA (Customer)
EU Filings
3
2
1 US NDA (SML)
334
211
123
ROW
Annexures
20
Manufacturing Excellence
Dharwad
Jadcherla Unit
21
• Biologicals Manufacturing plant & R&D
Facility
• Formulations (Onco & Adjuvant Therapy • of Onco – Injectable & Oral)
Bengaluru Unit
Hyderabad
• TDS & ODF Manufacturing Facility &
Formulation R&D
• Formulations (Oral Dissolving Films) • Bio Analytical Lab, Pharmacovigilance Lab &
Quality control lab
Raichur Unit I & II
Ahmedabad
• API (Oncology – Non-Oncology) • API (Oncology – Non-Oncology) and R&D
API • CRAMS • Peptide • Polymer
• CRO & CDMO • R&D Formulation
Giving back to society
22
Shilpa Medicare Limited works with Shilpa Foundation to carry out various CSR activities below are few of the many activities carried out in Q1 FY’23
Donated Tractor and 5,000 Liters water tank to green Raichur organization for watering the plants
1. Conducted Health camp for TB patients and donated the
nutrition powder to 100 needy TB patients
2. Donated
Ambulance
Education Empowerment Research Organization for providing services for patients
Chandra
health,
to
1. Donated 75 desks to Govt. Degree College which helps 500
students out of which 236 boys and 264 girls
2. Donated 92 desks to 4 government schools which helps 1008
students out of which 506 boys and 502 girls
About Shilpa Medicare Ltd.
23
Shilpa Medicare Limited (SML) started its operations as API manufacturer way back in 1989 at Raichur, Karnataka- India. Today Shilpa Medicare Limited is a global brand in manufacturing and supplying of affordable API and Formulation globally in different regulated markets.
Shilpa Medicare has been on path of expansion ever since its inception. With a regulatory recognized manufacturing set up and excellent scientific expert team in place, Shilpa Medicare has since been on a steady growth path. Currently they are one of the leaders in the Oncology market and offer a complete range of products in this segment spanning to consolidate in field of across APIs, Oncology, API and formulations, they are striving to put in efforts in field of novel drug delivery systems and biotech products along with widening their focus to other therapy areas. Where Shilpa Medicare Ltd is today is the result of their constant endeavors for more than three decades.
formulations both in terms of R&D and manufacturing capabilities. Further
Siddharth Rangnekar Mit Shah
CDR India
+91 22 6645 1209 / 1217
siddharth@cdr-india.com mit@cdr-india.com
24
Thank You