Shilpa Medicare Limited has informed the Exchange about Investor Presentation
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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
Date: 13th November, 2022
Corporate Relationship Department BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai – 400001
National Stock Exchange of India Limited Exchange Plaza, 05th Floor, Plot No: C/1, G Block, Bandra Kurla Complex, Bandra (E) Mumbai – 400051
Scrip Code: NSE: SHILPAMED/BSE‐530549
Dear Sir / Madam,
Sub: Investor Presentation of the Company for the Quarter & half year ended 30 September 2022 Ref.: Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
With reference to the captioned subject, the Investor Presentation of the Company for the Second Quarter & half year ended 30 September 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
RITU TIWARYDigitally signed by RITU TIWARY Date: 2022.11.13 13:08:07 +05'30' Innovating for affordable healthcare
• • • • • • • • • • • • • • • • • • • • • • • • •
Shilpa Medicare Limited (SML)
Q2 & H1 FY23 Results Presentation
• • • • • • • • • • • •
1
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.
2
API Units, Raichur
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Table of content
3
1
Company Overview
2
Financial Performance
3
Business Highlights
4
Annexures
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• • • • • • • • • • • • • • • • • • • •
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
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Managing Director’s Message
6
Commenting on Q2 FY’23 performance, Mr. Vishnukant Bhutada, Managing Director Shilpa Medicare Limited said
“Q2 FY23 marked stable performance in our API segment, where we are witnessing continued interest from clients and new enquiries being generated. Our efforts to contain costs and further enhance process efficiencies are ongoing and I expect these to contribute in remediating the adverse situation created by higher cost of inputs and competitive pressure on the selling prices.
In peptides we are developing the initial batches and plant validation of our first product has been completed. The idea is to have launches in the coming 2 years for these complex molecules that we have developed in house.
In our formulation segment, the process of site transfer for select products to alternate manufacturing location is ongoing and we are hopeful that it will witness the requisite traction in the coming quarters with commercialization of certain products in the new fiscal year. Thereafter we expect a healthy contribution from this segment on the basis of our approved product portfolio.
SML has continuously worked towards developing a research backed portfolio and in multiple segments we are in the process of introducing new and innovative products into the market, where we could enjoy competitive advantage. The short-term challenges in terms of pricing pressure in key products and cost inflation are being managed and in the coming quarters we expect better results on the back of new product introductions in various ROW & European markets.
In the Biologics segment, our plans for introducing our high concentration Adalimumab are on track for launch in Q4 of the current fiscal. Going forward the strategy will be to introduce this product to various global markets as appropriate. In the interim we have been pursuing meaningful CDMO/CMO opportunities on our world-standard set up.”
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• • • • • • • • • • • • • • • • • • • •
Financial Performance
7
Statement of Profit and Loss-SML Standalone
8
(INR in Cr.)
Particulars
Revenues Gross Margin Gross Margin % Employee Cost Other Expenses EBITDA EBITDA % Finance Cost Depreciation PBT
PBT - discontinued Business PAT - continued Business PAT - discontinued Business Reported PAT
Q2 FY23
Q1 FY23 % change Q2 FY22 % change H1 FY23
H1 FY22
% change
86.8 54.1 62% 29.6 30.8 (6.3) -7% 4.9 11.9 (23.1) **(10.5) (19.6) 2.5 (17.2)
73.5 63.9 87% 27.9 18.9 17.1 23% 2.7 10.4 4.0 *81.5 3.9 104.2 108.1
18.1% -15.4% - 6.1% 63.0% - - 81.5% 14.4% - - - - -
100.1 77.5 77% 27.1 38.4 12 12% 3.1 8.4 0.5 51.6 10.1 33.6 43.6
-13.3% -30.2% - 9.2% -19.8% - - 51.8% 41.7% - - - - -
160.3 118.0 74% 57.5 49.7 10.8 7% 7.6 22.3 (19.1) #71.0 (15.7) 106.7 90.9
215.0 160.1 74% 51.3 74.5 34.3 16% 5.6 15.5 13.2 70.4 16.4 52.3 68.7
-25.5% -26.3% - 12.1% -33.3% -68.5% - 35.2% 44.0% - 0.8% - 104.0% 32.3%
*Includes profit from slump sale of INR 62.9cr. ** Reversal of profit form slump sale # Includes profit from slump sale of Rs. INR 52.4 cr.
Innovating for affordable healthcare
Balance Sheet-SML Standalone
Particulars
30-Sep-22
Standalone
30-Sep-21
31-Mar-22
9
(INR in Cr.)
Fixed Assets
Tangible Assets Intangible Assets
Capital WIP
Tangible Assets Intangible Assets
Other Non-current Assets Net Working Capital Current Assets Cash and cash equivalents Current Liabilities
Asset Classified as held for sale Total Assets ( Net) Equity Liabilities Borrowings (Current & Non current) Liabilities directly associated with assets classified as held for sale
Total Liabilities
603.0 509.0 94.0 251.5 54.1 197.4 960.7 688.6 741.0 36.4 (90.9) - 2,501.8 2,148.5 41.2 312.1 -
2,501.8
704.3 661.6 42.7 480.4 270.0 210.4 723.6 549.5 784.2 16.1 (250.8) - 2,457.8 1,708.4 89.8 659.6 -
2,457.8
565.8 527.4 38.4 293.1 52.6 240.5 833.0 221.8 294.0 15.8 (88.0) 894.5 2,808.2 2,065.6 90.0 194.0 458.6
2,808.2
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Profit and loss account - Consolidated
10
(INR in Cr.)
Particulars
Q2 FY23
Q1 FY23 % change Q2 FY22 % change H1 FY23
H1 FY22
%change
Revenues
Gross Margin
Gross Margin %
Employee Cost
Other Expenses
EBITDA
EBITDA %
Finance Cost
Depreciation
PBT
PAT
267.3
150.9
56%
73.6
60.7
16.6
6%
13.5
23.3
269.3
165.4
61%
72.9
63.8
28.7
11%
9.6
22.4
(20.2)
(3.3)
(18.6)
2.3
-0.7%
-8.8%
296.6
194.3
1.0%
-4.9%
-42.2%
40.6%
4.0%
66%
65.6
74.3
54.4
18%
11.6
19.2
23.6
19.9
-10%
-22%
12%
-18%
-69%
16%
21%
536.5
316.1
59%
146.4
124.5
45.2
8%
23.1
45.7
(23.6)
(16.2)
535.9
357.7
67%
123.4
145.9
88.4
16%
21.8
36.8
29.8
21.5
0.1%
-12%
19%
-15%
-49%
6%
24%
.----
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Balance Sheet Consolidated
Balance Sheet - Consolidated
11
(INR in Cr.)
Particulars
30-Sep-22
Consolidated 30-Sep-21
31-Mar-22
Fixed Assets
Tangible Assets Intangible Assets
Capital WIP
Tangible Assets Intangible Assets
Other Non-current Assets Net Working Capital Current Assets Cash and cash equivalents Current Liabilities
Total Assets ( Net) Equity Borrowings (Current & Non current) Other Non Current Liabilities Total Liabilities
1,353.7 1,154.4 199.3 603.0 302.3 300.6 117.3 591.6 864.5 47.3 (320.3) 2,665.6 1,787.9 802.2 75.5 2,665.6
1,172.9 1,016.8 156.1 573.8 285.5 288.3 99.2 565.6 830.6 21.7 (286.7) 2,411.6 1,487.0 835.4 89.2 2,411.6
1,341.8 1,182.4 159.4 506.1 190.0 316.1 140.3 603.9 853.0 34.1 (283.2) 2,592.1 1,811.1 681.8 99.2 2,592.1
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• • • • • • • • • • • • • • • • • • • •
Business Highlights
12
Business overview
~ ) ----------------------------------------------------------------------------------------! '"-'"l ____ ________ ::::::::::::::::::::::::::::::::::::::::::::::::::::: _______________________ : -------------------------
API:
r-----
I I I I I I I
ONCO
13
------------------
Improving efficiency of operations by increasing batch size of key molecules
~::::::::::::::::::::::::::::::::::::::::::::::::::::: _____________________________________ ------------------------------------------------------------------
NON- ONCO - Progress made on development of NON-ONCO portfolio
Citicolin, Phenylephrine, UDCA commercialized
PEPTIDE
I I
Plant validation completed for the first Peptide product
!::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ____________________________________ -------------------------
--------
- ____ ::
I I I I I
POLYMERS
Working on 5 projects
CDMO
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3 New projects awarded during the quarter i '
[ ____ ---- ---- ------- ---- ------ - ---- ---------- - ------
-----------------------------
---------------------------------------------------------------------------·
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Business overview
14
---------------------------------------------------------------------------------------, I FORMULATION:
L---------------------------------------------------------------------------------------- I
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Launches in Europe- Pemetrexed RTU injection, Prucalopride oral
Relaunch of ODF products in Indian market
CDSCO approval for Tranexamic Acid topical hemostatic spray
Received tentative approval for Tenofovir Alafenamide tablets as “ First to File” submission on NCE-1 date
Completed phase-II trials of dermatology product
Jadcherla facility inspection conducted by Canadian & Australian authorities
Analytical Services Division at Nacharam, Hyderabad received EIR for USFDA
.-----------------------------------------------------------------------------------------,
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BIOLOGICS:
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L---------------------------------------------------------------------------------------- I .-------------------------------------------------------------------------------------------------------------------------------------------------------------. Completed phase-III Human Clinical studies for high concentration Adalimumab ~------------------------------------------------------------------------------------------------------------------------------------------------------------~
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Innovating for affordable healthcare
Q2 FY’23 Consolidated Performance
15
(INR in Cr.)
Revenue
-10%
-1%
1%
296.6
536.5
EBIDTA
-69%
-42%
54.4
-49%
84.4
269.3
267.3
28.7
45.2
535.9
% to Sales
11%
16.6
6%
18%
8%
16%
Q1 FY'23 Q2 FY'23 Q2 FY'22
H1 FY'23
H1 FY'22
Q1 FY'23 Q2 FY'23 Q2 FY'22
H1 FY'23
H1 FY'22
PBT
23.6
29.8
-
-3.3
-20.2
Q1 FY'23 Q2 FY'23 Q2 FY'22
-23.6 H1 FY'23
H1 FY'22
PAT
19.9
2.3
-
-18.6 Q1 FY'23 Q2 FY'23 Q2 FY'22
21.5
11111 •
-16.2
H1 FY'23
H1 FY'22
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Consolidated Revenue Break-up – Q2 FY’23
16
(INR in Cr.)
Q1 FY’23 INR 269.3cr.
Q2 FY’23 INR 267.3cr.
Q2 FY’22 INR 296.6cr.
Degrowth of 10% vs Q2 FY’22
16, 6%
68.8 , 26%
4.9, 2%
70.1 , 26%
1.9, 1%
100.2 , 34%
API Formulation Others
■
■
■
184.5 , 68%
192.3 , 72%
194.5 , 65%
Degrowth of 1% vs Q1 FY’23
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Consolidated Revenue Break-up – H1 FY’23
17
(INR in Cr.)
H1 FY’23 INR 536.5cr.
H1 FY’22 INR 535.9cr.
Growth of 1% vs Q2 FY’22
22.7, 4%
16.9, 3%
API Formulation Others
117.7 , 22%
396.1 , 74%
325.6 , 61%
193.4 , 36%
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API Business
18
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API Business-Highlights Q2 FY’23
Oncology
CDMO/Service
CRAMS
19
(INR in Cr.)
0%
-13%
113.5
8%
5.0
5.4
% contribution of API Sales
98.7
98.5
54%
51%
58%
% contribution of API Sales
3%
3%
86%
-67%
5.3
3%
9.9
5%
% contribution of API Sales
29.7
15%
Q1 FY'23 Q2 FY'23 Q2 FY'22
Q1 FY'23 Q2 FY'23 Q2 FY'22
------------------------------------'
Q1 FY'23 Q2 FY'23 Q2 FY'22
Degrowth 1%
Others
-74%
33%
Non Oncology
42%
67%
78.7
55.8
47.3
% contribution of API Sales 30%
41%
24%
Q1 FY'23 Q2 FY'23 Q2 FY'22
*Numbers are excluding captive consumptions
., .... --... , ,, .. ... , I Q1 FY’23 I I I 184.5 I \ \ \ I .... _ ..... ' , , ...
\ \ \ I I I I
Growth 4%
Q2 FY’23 192.3
, .... ---.. , ... , .. ," Q2 FY’22 194.5 ,..., ___ ,
\ \ l I I , I ,,"
.. ....
I I I I \ \
19.7
% contribution of API Sales
11%
5.2
3%
3.9
2%
Q1 FY'23 Q2 FY'23 Q2 FY'22
-----------------------------------~-
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API Business-Highlights H1 FY’23
20
(INR in Cr.) (INR in Cr.)
Oncology
7%
221.4
% contribution of API Sales
I
206.5
56%
63%
I I
~--------~~~~~~~~~------------------:
- - - - - - - -
I
FY'22 H1
----------J
FY'23 H1
Non Oncology
. - - - - - - - - - I I I I I I I I I I I
60%
134.8
% contribution of API Sales
34%
84.0
26%
FY'23 H1
FY'22 H1
*Numbers are excluding captive consumptions
Growth 22%
... -- ...... , .. ' ,, , ' ,, ' FY’22 H1 \ I I I I , I 325.7 / I ' ' .. \ , ,, ', ... ___ .,,.,
FY’23 H1 396.1
CRAMS
% contribution of API Sales
Others
% contribution of API Sales
I I
-49%
29.7
15.2
4%
9%
FY'23 H1
FY'22 H1
354%
24.7
6%
5.5
2%
1., ____ _ I 1 1
FY'23 H1
- - - - - - - - - - - -
- - - - - - - -
FY'22 H1 ----
- - - - - - •
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DMF Filing update
21
New product introduction and increase in geographical coverage replicated with 219 number of DMF filings done with major regulatory authorities
45
47
31
20
19
16
12
9
11
7
US FDA
EU/ EMEA GCC / ROW
MFDS
TPD-Canada
TGA
CHINA
PMD
RUSSIA
MEDSAFE
As on 30th September 2022
2
WHO-
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Formulation Business
22
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Formulation Business-Highlights Q2 FY’23 .---------------------- • I
Europe
License Fees
.--1 ROW
-10%
-46%
-71%
-12%
23
(INR in Cr.)
3900%
281%
49.0
17.1
29.4
26.5
% contribution of For. Sales
48%
38%
53%
Q1 FY'23 Q2 FY'23 Q2 FY'22
~-----------------------------------J ------------------------------------.
I I
US
- -~ •
108%
- -~ •
-21%
32.5
25.7
37%
36%
% contribution of For. Sales
12.3
20%
~-----------------------------
Q1 FY'23 Q2 FY'23 Q2 FY'22
% contribution of For. Sales
28%
5.0 7%
5.7
6%
Q1 FY'23 Q2 FY'23 Q2 FY'22
Degrowth 25%
FY’23 Q2 68.7
FY’22 Q2 91.2
I I I I
I I I I I I I I I I I I I I I
~
---- ... ,
.. ; ' , \ I \ I FY’23 Q1 I I I I I I 60.8 I \ .. I \ ' , , ....... _ ......
Growth 13%
8.0
12%
2.1
2%
% contribution of For. Sales
0.2
1%
Q1 FY'23 Q2 FY'23 Q2 FY'22 ~----------------------------------- ------------------------------------ Domestic
95%
84%
3.5
% contribution of For. Sales
1.8
1.9
~ 2%
5%
3% .... Q1 FY'23 Q2 FY'23 Q2 FY'22
~----------------------------------- L
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I I I I I I I I I I I I I I I I I I I I I I I I I I I I I
1 I I I I I I
I I I I I I I
I I I I I I I I I I I I I I I I I I I I I I I I I I I I
I I
I I I :
I I
24
(INR in Cr.)
- - - - - - - - - - - - - - - - - - -
- - -~
22%
.____
8.2
6.7
6%
3%
:
I
I I
I I I I I I
I I I I I I I I I I I I I I I I I I
I I I
I I I I
I I I I I I I I I I I I I
I I I I I I I I I I I I I
Formulation Business-Highlights H1 FY’23 --------------------------
:
I
1-
Europe
License Fees
.---------------
ROW
- - -~
-45%
~ - - - -
102.6
I I I I
% contribution of For. Sales
56.0 I □ I 43% · : I L ___________________________________ ~ ------------------------------------:
-
FY'23 H1
FY'22 H1
52%
I I I I
I I I I
I I I
I I
I
US
214%
I I
I I I I I I
I I I I I I I I I I
22.3
17%
% contribution of For. Sales
I I I I I I I I I I I I I I I I I I I I
7.1
u •
4%
I I I
I I
% contribution of For. Sales
L ______________________________________ ~ · - - - - - FY'23 H1
FY'22 H1
I I I
-48%
73.3
38.0
Degowth 34%
I I I I
FY’23 H1 129.5
,
----.. .... ... ; ' , \ I \ I FY’22 H1 I I : I 196.5 I I , I \ \ , ' ', ...... _ .. -"'
I I I
I I I I
I I I I I I I I I I I I I
I I I I I I
I I I I I I
% contribution of For. Sales
29%
37%
I
: : L ___________________________________ •
~ FY'23 H1
FY'22 H1
I I
I I
I L ___________________________________ • ,---- - - --- - - -- --- -- --- -- - - --- -- -- - ---:
FY'23 H1
FY'22 H1
Domestic
I I I I
I I I I I I I I I
-26%
6.8
5.0
% contribution of For. Sales
4%
4%
I I I I I I I I I I I I I I I I
L ___________________________________ • L
FY'22 H1
FY'23 H1
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Regulatory Filings
Robust regulatory filings to strength the base for growth in the formulation segment
25
Approved
■
Pending
■
26
13
13
US ANDA (SML)
As on 30th September 2022
3
2
1 US NDA (SML)
28
6
22
18
5
13
US ANDA (Customer)
EU Filings
355
216
139
ROW
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• • • • • • • • • • • • • • • • • • • •
Annexures
26
Manufacturing Excellence
Dharwad
Jadcherla Unit
27
• 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
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Giving back to society
28
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
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About Shilpa Medicare Ltd.
29
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
,£,,_ I Innovating for C4' affordable healthcare
Thank You
30
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