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
National Stock Exchange of India Limited, Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Bandra Kurla Complex, Bandra (E), Mumbai-400 051
15 February 2023
Corporate Relationship Department, BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai-400 001
Dear Sir/Ma’am,
Scrip Code: BSE - 530549/Stock Symbol: NSE – SHILPAMED
Sub: Investor Presentation of the Company for the Quarter ended 31st December 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 Quarter ended 31 December 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)
Q3 & 9M 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 Q3 FY’23 performance, Mr. Vishnukant Bhutada, Managing Director Shilpa Medicare Limited said
“We have had a steady quarter with a flat top line compared to the previous quarter. However, we have been able to improve our profitability profile based on our focussed efforts on cost containment measures.
On the API front, whilst our oncology business has been stable, we have witnessed a strong sequential growth in the non- oncology business cementing our portfolio diversification strategy. We have also made significant inroads into CDMO segment where we have 17 projects including repeat orders for our existing projects.
In peptides, we have shifted gears in our development journey wherein we have completed lab validation of our first product Liraglutide and have initiated plant validation of our other product Octreotide Acetate. Additionally, during the quarter we have commissioned a new intermediate block for high value products furthering our efforts on the intermediates business.
For our formulation business, I am happy to inform that Shilpa has been the first company in the world to develop & launch Capecitabine Dispersible tablet in the Indian market. This product has been a unique development that helps better patient compliance and has potential to be launched in various other parts of the World.
In another exciting development, we have been able to secure a partner for our first biological product Adalimumbab in select ROW markets.
With all these developments, I believe we are poised to provide the right impetus to our business to fire on several engines in the coming financial year. ”
Financial Performance
7
Statement of Profit and Loss-SML Standalone
8
Particulars
Q3 FY23
Q2 FY23
% change Q3 FY22 % change 9M FY23 9M FY22 % change
(INR in Cr.)
Revenues Gross Margin Gross Margin % Employee Cost Other Expenses EBITDA EBITDA % Finance Cost Depreciation PBT (Continued Operation) Exceptional Items-(Income)/Exp Tax PAT (A- Continued Operation) PBT (Discontinued Business)* Tax (Discontinued Business) PAT- (B-Discontinued Business ) PAT (A+B)*
*Includes effect of gain on slump sale
69.2 54.7 79% 26.6 20.7 7.4 11% 6.6 12.3 (11.5) - (6.8) (4.7) - - - (4.7)
86.8 54 62% 29.6 30.8 (6.4) - 4.9 11.9 (23.2) 0.6 (4.16) (19.6) (10.5) 12.9 2.4 (17.2)
(20.3) 1 - (10.1) (32.8) (215.6) - 34.7 3.4 - - - - - - - -
99.6 86.3 87% 29.1 37.6 19.6 20% 1.6 9 8.8 - 2.1 6.7 39.5 9.5 30 36.7
(30.5) (36.6) - (8.6) - (62.2) - 312.5 36.7 - - - - - - - -
229.5 172.7 75% 84.2 70.4 18.1 8% 14.2 34.6 (30.7) 0.6 (10.7) (20.6) 70.9 35.7 106.7 86.1
314.6 246.4 78% 80.5 112.1 53.8 17% 7.3 24.5 22 (9.0) 7.8 23.1 110.0 (27.5) 82.4 105.5
(27.1) (29.9) - 4.6 (37.2) (66.4) - 94.5 41.2 - - - - (35.5) - 29.5 (18.4)
Balance Sheet-SML Standalone
Particulars
31-Dec-22
Standalone
30-Sep-22
31-Dec-21
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
Total Assets ( Net)
Equity
Liabilities
Borrowings (Current & Non current)
Total Liabilities
602.2
505.1
97.1
246.9
49.1
197.8
1,004.3
602.7
658.8
5.5
61.5
2,456.2
2,143.7
38.0
274.5
2,456.2
603.0
509.0
94.0
251.5
54.1
197.4
960.7
686.4
750.8
26.6
91.1
2,501.7
2,148.4
41.2
312.1
2,501.7
882.1
834.8
47.3
351.2
116.3
234.9
773.5
666.4
781.8
99.5
214.9
2,673.3
2,033.2
94.0
546.1
2,673.3
Profit and loss account - Consolidated
10
Particulars
Q3 FY23
Q2 FY23 % change Q3 FY22 % change 9M FY23 9M FY22
% change
(INR in Cr.)
Revenues
Gross Margin
Gross Margin %
Employee Cost
Other Expenses
EBITDA
EBITDA %
Finance Cost
Depreciation
PBT
PAT
265.2
267.3
(0.8)
277.8
(4.5)
801.8
813.7
186.4
(14.3)
475.3
159.7
150.3
60%
68.5
57.2
34
13%
17.9
24.1
(7.9)
(6.6)
56%
73.6
60.2
16.6
6%
13.5
23.3
(20.1)
(18.7)
6.3
-
(6.9)
(5.0)
104.8
-
32.6
3.4
-
-
67%
67.6
68.2
50.6
18%
9.9
20.6
20
9.6
544
67%
59%
215
191.1
-
1.3
(16.1)
181.1
214.1
(32.8)
79.2
138.8
-
80.8
17.0
-
-
10%
40.9
69.8
(31.5)
(24.4)
17%
31.8
57.4
49.6
31.1
(1.5)
(12.6)
-
12.5
(15.4)
(42.9)
-
28.6
21.6
-
-
Balance Sheet Consolidated
Balance Sheet - Consolidated
Consolidated
11
(INR in Cr.)
Particulars
31-Dec-22
30-Sep-22
31-Dec-21
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
1,365.6
1,161.8
203.8
625.4
319.6
305.8
127.5
523.6
795.8
23.1
(295.3)
2,642.1
1,777.6
798
66.5
2,642.1
1,353.7
1,154.4
199.3
603.0
302.4
300.6
117.4
587.5
861.5
47.3
(321.3)
2,661.6
1,787.9
800.9
72.8
2,661.6
1,345.6
1,184.9
160.8
471.6
166.9
304.7
158.6
667.6
811.3
105.6
(249.2)
2,643.5
1,786.0
767.2
90.2
2,643.3
Business Highlights
12
Q3 & 9M FY’23 Consolidated Performance
13
(INR in Cr.)
Revenue
EBIDTA
-5%
-1%
-1%
277.8
813.7
267.3
265.2
801.8
-33%
105%
50.6
34.0
16.6
-57%
138.9
79.3
% to Sales
6%
13%
18%
10%
17%
Q2 FY'23 Q3 FY'23 Q3 FY'22
9M FY'23
9M FY'22
Q2 FY'23 Q3 FY'23 Q3 FY'22
9M FY'23
9M FY'22
PBT
20.0
47.0
PAT
9.6
32.7
-7.9
-22.4 Q2 FY'23 Q3 FY'23 Q3 FY'22
-34.0 9M FY'23
-6.6
-22.9
-18.7
9M FY'22
Q2 FY'23
Q3 FY'23
Q3 FY'22
9M FY'23
9M FY'22
Consolidated Revenue Break-up – Q3 FY’23
14
(INR in Cr.)
Q2 FY’23 INR 267.3cr.
Q3 FY’23 INR 265.2cr.
Q3 FY’22 INR 277.8cr.
Degrowth of 5% vs Q3 FY’22
4.9, 2%
70.1 , 26%
11.7, 4%
59.5 , 23%
7.9, 3%
87.3 , 31%
192.3 , 72%
194.0 , 73%
182.6 , 66%
Degrowth of 1% vs Q2 FY’23
API
Formulation
Others
Consolidated Revenue Break-up – 9M FY’23
15
(INR in Cr.)
9M FY’23 INR 801.8cr.
9M FY’22 INR 813.6cr.
Degrowth of 1% vs 9M FY’22
29.5, 4%
12.9, 1%
201.8 , 25%
570.5 , 71%
282.0 , 35%
518.7 , 64%
API
Formulation
Others
16
API Business
API Business-Highlights Q3 FY’23
Oncology
CDMO/Service
CRAMS
17
(INR in Cr.)
-7%
-11%
100.9
96.8
90.2
% contribution of API Sales
50%
47%
55%
-59%
5.4
214%
-16%
-65%
% contribution of API Sales
3%
2.2
1%
0.7
0.3%
9.9
5%
8.3
4%
% contribution of API Sales
24
12%
Q2 FY'23 Q3 FY'23 Q3 FY'22
Q2 FY'23 Q3 FY'23 Q3 FY'22
Q2 FY'23 Q3 FY'23 Q3 FY'22
Non Oncology
20%
75%
89.2
74.2
51.1
Growth 6%
Others
-32%
-31%
Q2 FY’23 192.3
Q3 FY’23 194.0
Q3 FY’22 182.6
6.0
4.1
5.9
% contribution of API Sales 38%
46%
28%
Growth 1%
Q2 FY'23 Q3 FY'23 Q3 FY'22
% contribution of API Sales
3%
2%
3%
Q2 FY'23 Q3 FY'23 Q3 FY'22
API Business-Highlights 9M FY’23
Oncology
License Fees/PDC
CRAMS
18
(INR in Cr.) (INR in Cr.)
-8%
313.6
168%
12.6
% contribution of API Sales
287.9
51%
61%
% contribution of API Sales
2%
4.7
1%
% contribution of API Sales
23.5
4%
-56%
53.8
10%
FY'23 9M
FY'22 9M
FY'23 9M
FY'22 9M
FY'23 9M
FY'22 9M
Non Oncology
60%
216.6
135.3
% contribution of API Sales
38%
26%
FY'23 9M
FY'22 9M
Growth 10%
FY’23 9M 570.5
FY’22 9M 518.7
Others
% contribution of API Sales
164%
29.9
5%
11.3
2%
FY'23 9M
FY'22 9M
DMF Filing update
19
New product introduction and increase in geographical coverage replicated with 224 number of DMF filings done with major regulatory authorities
45
49
33
20
19
17
12
9
11
7
2
US FDA
EU/ EMEA GCC / ROW
MFDS
TPD-Canada
TGA
CHINA
PMD
RUSSIA
MEDSAFE
WHO
As on 31 Dec 2022
20
Formulation Business
21
(INR in Cr.)
Formulation Business-Highlights Q3 FY’23
Europe
27%
-40%
License Fees/PDC
23%
153%
ROW
-21%
120%
55.8
26.5
33.6
38%
56%
64%
Q2 FY'23 Q3 FY'23 Q3 FY'22
-87%
-85%
% contribution of For. Sales
US
14.7
12.0
17%
25%
5.8
7%
% contribution of For. Sales
1.4
1.1
% contribution of For. Sales
2%
2%
0.5
1%
Q2 FY'23 Q3 FY'23 Q3 FY'22
Q2 FY'23 Q3 FY'23 Q3 FY'22
Degrowth 32%
Domestic
48%
139%
25.7
22.4
FY’23 Q2 70.1
FY’23 Q3 59.5
FY’22 Q3 87.3
% contribution of For. Sales
38%
3.4
7%
26%
Q2 FY'23 Q3 FY'23 Q3 FY'22
Degrowth 15%
4.5
6%
% contribution of For. Sales
6.7
2.8
11%
3%
Q2 FY'23 Q3 FY'23 Q3 FY'22
Formulation Business-Highlights 9M FY’23
Europe
License Fees/PDC
ROW
22
(INR in Cr.)
-35%
137.1
88.7
% contribution of For. Sales
44%
49%
% contribution of For. Sales
108%
-35%
59.8
30%
28.8
10%
2.6
1%
% contribution of For. Sales
4.0
1%
FY'23 9M
FY'22 9M
FY'23 9M
FY'22 9M
FY'23 9M
FY'22 9M
US
-60%
Degowth 39%
Domestic
95.8
34%
% contribution of For. Sales
38.0
19%
FY'23 9M
FY'22 9M
FY’23 9M 201.8
FY’22 9M 282.0
-22%
16.3
12.7
% contribution of For. Sales
6%
6%
FY'23 9M
FY'22 9M
Regulatory Filings
Robust regulatory filings to strength the base for growth in the formulation segment
23
Approved
Pending
26
13
13
US ANDA (SML)
As on 31 Dec 2022
28
6
22
18
5
13
US ANDA (Customer)
EU Filings
3
2
1 US NDA (SML)
376
223
153
ROW
Annexures
24
Manufacturing Excellence
Dharwad
Jadcherla Unit
25
• 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
26
Shilpa Medicare Limited works with Shilpa Foundation to carry out various CSR activities below are few of the many activities carried out in Q3 FY’23
Conducted Health camp for TB patients and donated the nutrition powder to needy TB patients for in Raichur District TB cell office
Regularly donating tables, desks, almirahs, chairs and mic set for prayer to schools.
1. Donated the fund for Gym room renovation for police officials purpose 2. Regularly funding to Green Raichur organisation for plantation and maintenance purpose.
About Shilpa Medicare Ltd.
27
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
28
Thank You