Vimta Labs Limited has informed the Exchange about Investor Presentation
Vimta Labs Limited Registered Office 142, IDA Phase II, Cherlapally Hyderabad-500 051 ,Telangana, India T: +91 4027264141 F : +91 40 2726 3657
Vimla
Driven by Quality. Inspired by Science.
‘ILL SE 016 2023-24 Date: 03.05.2023
Listing Centre B S E Limited PJ Towers, Dalal Street Mumbai: 400001 Scrip Code No.524394
Asst Vice President National Stock Exchange of India Limited “Exchange Plaza”, Bandra Kurla Complex, Bandra (E Mumbai 400051 Trading Symbol: VIMTALABS
Dear Sirs,
Reg:
Investor Presentation -Q4 results — FY 2022 23
to provisions of Regulation 30 of the SEBI
Pursuant (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the “Listing Regulations”) we are enclosing herewith the Investor Presentation.
Further, pursuant to Regulation 46 of the Listing Regulations, the aforesaid information will be available on the website of the Company i.e., httvs://vimta.com]investor-yresentationl
This is for your information and necessary records.
Yours faithfully,
for VIMTA LABS LIMITED
Sujani Vasireddi Company Secretary
End: as above.
Life Sciences Campus, #5, MN Science & Technology Park, Genome Valley, Shamirpet, Hyderabad -500 101, Telangana, India T: +91 40 6740 4040 E: mdoffice@vimta.com URL : www.vimta.com CIN L24110TG1990PLC011977
Vimta Labs Limited Investor Presentation Q4FY23 & FY23
1
Disclaimer
The Presentation is to provide the general background information about the Company’s activities as at the date of the Presentation. The information contained herein is for general information purposes only and based on estimates and should not be considered as a recommendation that any investor should subscribe / purchase the company shares. The Company makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information contained herein.
This presentation may include certain “forward looking statements”. These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties which could cause actual outcomes and results to differ materially from these statements. Important factors that could cause actual results to differ materially from our expectations include, amongst others, general economic and business conditions in India and abroad, ability to successfully implement our strategy, our growth & expansion plans and technological changes, changes in the value of the Rupee and other currencies, changes in the Indian and international interest rates, change in laws and regulations that apply to the Indian and global industries that we serve, increasing competition, changes in political conditions in India or any other country and changes in the foreign exchange control regulations in India. Neither the company, nor its Directors and any of the affiliates or employees have any obligation to update or otherwise revise any forward-looking statements. The readers may use their own judgment and are advised to make their own calculations before deciding on any matter based on the information given herein.
No part of this presentation may be reproduced, quoted or circulated without prior written approval from Vimta Labs Ltd.
2
Contents
Q4 and FY23 Earnings
Company Overview
Industry Landscape
Our Competitive Advantage
Way Forward
1
2
3
4
5
3
Q4 and FY23 Earnings
▪ Q4 & FY23 Earnings Highlights ▪ Operational Highlights ▪ Financial Performance: Q4FY23 and FY23 ▪ Key Metrics ▪ Profit & Loss Statement ▪ Balance Sheet
01
4
Q4 & FY23 Highlights
Q4FY23 Earnings Highlights
➢ Total Income for Q4FY23 grew by 10.7% YoY to Rs. 825 Mn ➢ EBITDA for Q4FY23 is Rs. 242 Mn; EBITDA margins at 29.5% ➢ Q4FY23 PAT is at Rs. 127 Mn up 7.2% YoY ➢ Basic EPS grew by 6.9% to Rs. 5.7 in Q4FY23 against Rs. 5.4 in Q4FY22
FY23 Earnings Highlights
➢ Total Income for FY23 grew by 15.0% YoY to Rs. 3,216 Mn ➢ EBITDA for FY23 is Rs. 949 Mn; EBITDA margins at 29.8% ➢ FY23 PAT at Rs. 482 Mn up 16.6% YoY ➢ Basic EPS grew by 16.4% to Rs. 21.8 in FY23 against Rs. 18.7 in FY22 ➢ Cash and Cash equivalents at Rs. 398 Mn as of 31st March 2023 ➢ Cash flow From Operations at Rs 879 Mn for FY23 ended 31st March 2023 ➢ FY23 Capex at Rs 498 Mn; Free cash flow for the period was Rs 381 Mn ➢ Receivable stood stable around 90 days as of 31st March 2023 ➢ Debt to Equity ratio 0.05x
5
FY23 Operational Highlights
Operational Updates
Q4FY23
➢ During the year, the company continued strong growth momentum in food, pharma, and electronics testing/research
services with other segments remaining stable.
➢ Inaugurated Electronics and Electrical (E&E) and the entire scope of E&E services were accredited by NABL and certified by
TEC (Telecommunication Engineering Centre).
➢ Rolled out Green Audits services for various industries.
➢ Continued digital enablement of lab and administrative processes for increasing their ease and efficiency.
➢ Expanded vivarium capacities for large species.
➢ Successful maiden year of operations of National Food Lab, which is setup and operated in PPP mode with FSSAI.
➢ Satisfactory performance in audits by USFDA, Ukraine regulatory authority, NABL, NGCMA, AAALAC, TEC, BIS, and several
other audits of external agencies and customers.
➢ Embarked on doubling capacities in the Genome Valley, Hyderabad campus and gearing up for our growth for next 5 years.
Laid the foundation and started construction of Life Sciences expansion project which will add ~225,000 sf. ft. of additional space for labs and support functions.
➢ Contributed towards harmonizing regulations/procedures of Bangladesh Food Safety Authority with CODEX__a unique
cross border public private participation.
6
Financial Performance: Q4FY23 and FY23
Q4FY23 SNAPSHOT
Revenue from operations1 (In ₹ Mn)
EBIDTA & EBIDTA Margin1 (In ₹ Mn, %)
PAT & PAT Margin1 (In ₹ Mn, %)
Basic EPS (In ₹)
741
774
818
10.4% YoY
31%
30%
28%
230
215
242
150
125
100
75
50
25
-
4.9% YoY
16%
15%
13%
118
102
127
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
7.2% YoY
5
0
5.4
4.6
5.7
Q4FY22 Q3FY23 Q4FY23
Q4FY22 Q3FY23 Q4FY23
Q4FY22 Q3FY23 Q4FY23
Q4FY22
Q3FY23
Q4FY23
EBIDTA
EBIDTA Margin
PAT
PAT Margin
FY23 SNAPSHOT
Revenue from operations1 (In ₹ Mn)
EBIDTA & EBIDTA Margin1 (In ₹ Mn, %)
PAT & PAT Margin1 (In ₹ Mn, %)
Basic EPS (In ₹)
2,783
FY22
3,182
FY23
14.3% YoY
975
950
925
900
875
850
825
800
775
750
725
29%
803
FY22
31%
30%
29%
28%
27%
26%
25%
30%
949
FY23
18.2% YoY
500
480
460
440
420
400
380
360
15%
15%
413
482
FY22
FY23
16%
15%
15%
14%
14%
13%
16.6% YoY
25
20
15
EBIDTA
EBIDTA Margin
PAT
PAT Margin
18.7
FY22
21.8
FY23
7
Profit & Loss Statement
Particulars (₹ Mn)
Revenue from Operations
Other Income
Total Income
Material and Testing Costs
Cost of lab setup
Changes in inventories of work-in-progress
Employee benefits expense
Other expenses
Total Expenses
EBIDTA
EBIDTA (%)
Finance costs
Depreciation expense
Exceptional Items
Profit before tax
PBT (%)
Tax
Profit for the year
PAT (%)
Basic EPS (INR)
Diluted EPS (INR)
Q4 FY23
Q4 FY22
YoY (%)
Q3 FY23
818
7
825
188
1
1
220
167
576
242
741
4
745
153
20
0
211
127
510
230
29.5%
31.1%
2
80
0
166
20.1%
39
127
6
67
0
162
21.8%
44
118
15.4%
15.9%
5.7
5.6
5.4
5.3
10.4%
10.7%
12.9%
4.9%
2.0%
7.2%
6.9%
6.9%
774
11
785
173
15
0
231
141
559
215
27.7%
7
78
0
141
17.9%
38
102
13.0%
4.6
4.5
QoQ(%)
5.7%
5.1%
3.1%
12.7%
17.6%
23.8%
23.9%
25.0%
FY22
2,783
14
YoY (%)
14.3%
2,797
15.0%
FY23
3,182
34
3,216
718
20
1
911
584
2,233
949
29.8%
26
307
0
650
651
138
3
760
428
1,980
803
28.9%
15
233
12
557
20.2%
19.9%
168
482
15.0%
21.8
21.3
144
413
14.8%
18.7
18.3
12.8%
18.2%
16.7%
16.6%
16.4%
16.5%
8
Balance Sheet
Particulars (₹ Mn) Assets Fixed Assets Capital work-in-progress Goodwill Intangible assets Other non-current assets Total non current assets Trade Receivable Inventories Cash and cash equivalents including Bank Balance Other current asset Total current assets Total Assets Equity Total Equity Liabilities Non-current liabilities (i)Long-term Borrowings (ii) Other non current liabilities Total non current liabilities Current liabilities (i)Short-term Borrowings including current maturities (ii) Trade Payables (iii) Other current liabilities Total current liabilities Total Equity and Liabilities
31 March 2023 (Audited)
31 March 2022 (Audited)
1,570 123 56 122 116 1,987 800 226 398 213 1,637 3,623
2,818
99 134 233
51 144 377 573 3,623
1,498 3 56 134 138 1,828 769 174 114 186 1,244 3,072
2,340
127 128 255
67 123 287 477 3,072
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Key Metrics
REVENUE FROM OPERATIONS (₹ Mn)
PROFITABILITY (₹ Mn)
EBITDA & EBITDA Margin
31%
30%
PAT & PAT Margin
29%
30%
10%
15%
15%
1,807
2,107
2,783
3,182
15% CAGR
300
530
803
949
33.4% CAGR
4%
68
214
413
482
62.9% CAGR
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
Total Revenue
EBIDTA
EBIDTA Margin
PAT
PAT Margin
BALANCE SHEET RATIOS
RoE (%)
RoCE (%)
Debt to Equity
Total Capex
4%
11%
18%
17%
15%
18%
25%
22%
0.16
0.16
0.08
0.05
166
357
450
492
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
10
Shareholding Pattern
Vimta Labs Shareholding as on 31st March 2023
Share Information (as on 31st March 2023)
NSE Ticker
BSE Ticker
Market Cap (INR Cr)
% free-float
Others 58.4%
Promoters 37.2%
Free-float market cap (INR Cr)
Total Debt (INR Mn)
Cash & Cash Equivalents (INR Mn)#
VIMTALABS
524394
695
62.8%
436
150
398
DII 2.1%
FII 2.3%
Shares Outstanding
2,21,28,989
3M ADTV (Shares)*
3M ADTV (INR Cr)*
Industry
*Source: NSE & BSE #Cash and Cash equivalents includes other bank balances
37,234
1.27
TIC
11
Company Overview
▪ Vimta Labs at a Glance ▪ Our Journey ▪ Services ▪ Geographical Presence ▪ Management ▪ Accreditation
02
12
Vimta Labs at a Glance
Established in 1984, VIMTA is one of India’s most renowned companies for contract research and testing, recognized for its high quality, cutting edge technology enabled wide spectrum, reliable services and vast experience. The company’s broad capabilities span across biologics, small molecules, agro-chemicals, food & beverages, electronics, clinical diagnostics, medical devices, home and personal care products, and environment testing.
39 Years
Of experience in CRTO industry
400,000+
Sq.ft. of Ultra modern lab space
3,216
Total Revenue (In ₹ Mn)
Our Belief & Commitment
1,400+
75+
Dedicated Multi Disciplinary Team
Successful Regulatory Audits
949
EBIDTA (In ₹ Mn)
29.8%
EBIDTA MARGIN
20
Regional & Satellite labs across India
#1
In India: ➢ Pharma Analytical & Preclinical
Services
➢ Food Testing Services
482
PAT (In ₹ Mn)
15.0%
PAT MARGIN
15% YoY
18.2% YoY
16.6% YoY
13
Our Journey
Infrastructure
People
Investment
Capabilities
Revenues
`
`
2023
400,000+ ft2
1400+
492 M
2015
400,000+ ft2
1000+
580 M
2006
200,000+ ft2
600+
992 M
1992
50,000+ ft2
150+
85 M
Pharma & Biopharma: Discovery & development services; Food; Environment; Clinical Diagnostics; Electronics
Analytical – Pharma, Biopharma & Food; Clinical Research; Preclinical; Clinical Diagnostics; Environment
Clinical Research; Environment; Analytical – Food & Pharma
Environment; Analytical – Food & Pharma; Toxicology; Material testing; Clinical Research
3,216 M
1,073 M
542 M
16 M
1984
500 ft2
6
200,000
Minerals & ores; Metals; Rice bran oil testing
156,000
• •
Investment & Revenues in INR Investments depicted may have spread across more than the denoted year
14
Our Offerings (1/3)
Drug discovery and development support to Lifesciences Industry
Offerings
Industry
Accreditations & Regulatory Approvals
Food & Agriculture Services
Electronics & Electricals Testing
Clinical Diagnostics
Environment Testing & Consultancy
Pharma Analytical
Clinical Research
Preclinical Support
Pharmaceuticals
Pharmaceuticals
DCGI, USFDA, WHO, NPRA, UK MHRA and other European countries
Services
➢ Leader in India for a wide range of
➢ One of India’s most reputed and
analytical services for the pharmaceutical, biopharmaceutical and animal health industries.
➢ E&L studies ➢ Stability testing ➢ Method development ➢ Validations ➢ Genotoxic impurities ➢ Elemental analysis ➢ In vitro studies
➢ Physical
characterization ➢ Dissolution testing ➢ Microbiology ➢ Immunogenicity ➢ Characterization ➢ Bioassays
reliable CROs
➢ Experience of over 2,000 clinical
studies
➢ Impressive track record of
successful global regulatory audits from national and international regulatory authorities.
Pharmaceuticals, Biotech, Medical device, Agrochemicals
Good Laboratory Practices (GLP) - certified by NGCMA, and AAALAC accredited
➢ General and Genetic toxicology ➢ Safety pharmacology ➢ Development and Reproductive
Toxicology (DART) studies
➢ Immunotoxicology ➢ Comprehensive pharmacological and
drug metabolism and pharmacokinetic studies
➢ Wide gamut of Toxicology services also support agrochemical and medical device industries
15
Our Offerings (2/3)
Drug discovery and development support to Lifesciences Industry
Offerings
No. of Laboratories
Accreditations & Regulatory Approvals
Services
Food & Agriculture Services
Electronics & Electricals Testing
Clinical Diagnostics
Environment Testing & Consultancy
Food Testing
8
Electronics & Electricals Testing
1
FSSAI, NABL, BIS, APEDA, EIC, Spices Board
ISO 17025 accredited by NABL and approved by TEC
➢ VIMTA is a ‘National Referral Lab’ and a preferred
➢ Newly launched EMI / EMC services cater to IT,
laboratory partner for many MNCs, and also relied on by Government institutes for projects of national importance
automotive, aviation & defence, medical devices, telecom, home appliance / consumer electronics and allied industries
➢ Routine as well as specialized testing services for food and agriculture products to assist with R&D, regulatory compliance, trade and internal quality requirements
➢ Support new product development, and offer
multifarious analytical services for: ➢ The feed that sustains animal life ➢ Crops yielded by various soils ➢ All varieties of food and food products for consumption/export ➢ Milk, water and beverages ➢ Nutraceuticals
➢ Services provided are EMI / EMC TESTING, Radiated, Conducted, Environmental testing, Mechanical & electrical safety testing, Performance testing, Product certification
➢ The non EMI / EMC services are rendered through our wholly owned subsidiary, Emtac Laboratories Pvt. Ltd
16
Our Offerings (3/3)
Drug discovery and development support to Lifesciences Industry
Food & Agriculture Services
Electronics & Electricals Testing
Clinical Diagnostics
Environment Testing & Consultancy
Offerings
Clinical Diagnostics
Environment Testing & Consultancy
No. of Laboratories
2 (regional reference laboratories); 7 (branch laboratories)
NA
Accreditations & Regulatory Approvals
Services
ISO 15189 by NABL, CAP
MoEF, ISO 17025 by NABL, QCI/NABET, OSHAS 45000
➢ Strong brand equity and a pan India presence offering
➢ Environment Impact Assessments and Environment
both routine and specialized diagnostic services
➢ The hallmarks of our clinical diagnostics services are stringent quality systems, latest technologies and committed customer care ➢ Clinical diagnostics range:
➢ Biochemistry ➢ Haematology ➢ Molecular biology ➢ Microbiology ➢ Histopathology / Cytopathology ➢ Serology ➢ Cytogenetics
Testing since inception. Provide our services to various industries such as power, infrastructure, steel, cement, oil & gas, mining, pharmaceutical, food, chemical etc.
➢ Our Services:
➢ Testing of water, waste water,
air, soil, noise
➢ Post-project monitoring,
environment compliance studies ➢ EIA & social impact assessments ➢ Deep-ocean studies, marine
ecological studies
➢ Forestry and ecological studies ➢ Rejuvenation & clean-up
consultancy
➢ Ground water studies & contamination studies
➢ Site due diligence, remediation
strategies
➢ Social sustainability, climate change and environmental education projects ➢ Mining plan preparation ➢ EHS audits ➢ Work space monitoring etc. ➢ Green Audit
17
Geographical Presence
Headquartered in Hyderabad, VIMTA has 20 laboratories across India, with a total laboratory space of over 400,000 sq. ft.
Hyderabad (Headquarters)
Food
Clinical Diagnostics
Pharma
Electronics & Electrical
Environment
Food
Ahmedabad
Noida
Mumbai (NFL)
Pune
Bengaluru
Visakhapatnam
Nellore
Environment
Clinical Diagnostics
Coimbatore
Noida
Kolkata
Chennai
Delhi
Noida
Varanasi
Kolkata
Bhubaneswar
Visakhapatnam
Vijayawada
Tirupati
18
Key Management Team
Harita Vasireddi Managing Director
Sreenivas Neerukonda Executive Director
Harita has close to 25 years of experience in the TIC/CRO industry with track record of growth and profitability.
Her Core competencies include management & driving organizational adaptabilty and development, quality management systems, and risk management.
She holds an MBA in Operations Management from Boston College, USA; and is a B.Pharm graduate from Mysore university, India
Sreenivas’s core competencies include strategic planning and execution, new service opportunities development, communication and relationship building, competitive intelligence, and fostering strong team relations to deliver goal oriented performance.
He holds an MBA in Management Information Systems, University of Oklahoma, USA; B.Pharm, Nagpur University, India.
Harriman Vungal Executive Director - Operations
Harriman was inducted to the Board as one of the Promoter Directors in 1990 and was appointed as Technical Director of the Company in 1992. He has extensive lab operations management experience and is a go to senior resource on GXPs.
He has led the Company’s effort in building state of the art IT infrastructure, systems and their compliance to applicable regulations.
He holds D. Tech in Electronics from Toronto, Canada.
Suresh Kumar President
Narahari Naidu D.R. Chief Financial Officer
Suresh have more than two decades of experience in Testing, Inspection, Certification and Contract Research Organization with diversified products and industries.
He was with TUV SUD South Asia as Chief Operating Officer and Member of Board of Management before Joining VIMTA
He holds B.Sc (Tech) from ICT Mumbai and B.Sc (Polymer Chemistry) from Kerala university .
Narahari has close to 15 years of experience in diversified industries.
His core competencies include Financial Planning, Corporate Strategy, Fund raising, Banking & Treasury, Taxation, Investor Relations, Enterprise Risk Management, Compliance & Governance, Financial Reporting & Audit, Procurement Strategies.
He is a Chartered Accountant (CA) and a Company Secretary (CS).
19
Industry Landscape
▪ Market Opportunity ▪ Factors Driving Industry Growth
03
20
Markets Opportunity
14.6
) n b D S U (
7.6
10
5.4
20
12.3
0.33
0.6
0.27
0.39
0.05
0.1
2022 | 2030
2022 | 2030
2022 | 2030
2022 | 2026
2022 | 2026
2021 | 2028
Pharmaceutical & Biopharmaceutical CAGR of 8.4%
Preclinical CAGR:~8%
Food Testing CAGR: 7-8%
Clinical Testing CAGR:6.2%
Environment Testing CAGR:~10%
Electronics Testing CAGR:8.6%
21
Factors Driving Industry Growth
Drug Discovery & Development
Increasing demand for new drug innovations, growth in biologics and vaccine products development, and increasing regulations in pharma and biotech industry
Specialized knowledge, skills and testing tools that CROs can provide
Food Testing
Growing international food regulations, evolving Indian food safety regulations, growing world population, and increasing demand for independent third- party inspection & testing
Electrical & Electronics Testing
Surge in demand for certification services of electrical & electronic products, growing defence budgets and make in India initiatives
Green push by Government for electrical vehicles
Environment Testing
Diagnostics
Increase in regulations to address the growing concerns of air, water and soil contamination
Health risks from communicable diseases, life style diseases, growing population and urbanization is driving the demand for precise diagnostic testing
Growing demand in wellness segment
22
Our Competitive Advantage
▪ Our Position in the CRTO Landscape ▪ Our Strength
04
23
Our Position in the CRTO Landscape
1
2
Pharma Analytical & Preclinical
5
Food Testing
#1 in India
#1 in India
Customers – 90% of India top 20
Customers – 70% of India top 10
30% revenues from overseas
Clinical Research
6
Environment
Among the most reputed CROs in India
Among top 5 in India
80% of revenues from overseas
Customers – PSUs, large corporations across industries
3
Clinical Diagnostics
7
Electronics & Electricals
Among leading labs in TS, AP, UP states
Start-up
24
Our Strengths
QUALITY Long & successful regulatory track record – cGMP, GLP, GCP
CUSTOMER CENTRICITY Long term partnerships with customers
INFRASTRUCTURE Unparalleled lab infrastructure in the country. Gold LEED certified Vivarium
KNOWLEDGE
Multi-disciplinary, knowledgeable, skilled and trained manpower
TECHNOLOGY Wide range of current technologies with expandable capacities
25
Way Forward
▪ Our Key Growth Drivers & Strategies
05
26
Our Key Growth Drivers & Strategies
Favourable markets
Core business strategies
Core operational strategies
Best practices
✓ Growth momentum
✓ Capacity expansions
✓ Operational excellence
in markets
✓ Growing demand for safe & quality - drugs, food, diagnostics, electronics & clean environment
✓ Service innovations
✓ Hiring right talent
✓ Penetration into new
✓ Quality & compliance
markets
✓ Customer partnerships
culture
✓ Cutting edge technologies
✓ Good corporate governance
✓ Risk management
✓ Listening to customers’
needs
✓ Continuous learning
We aspire to reach revenues of >Rs.500 cr by 2025/2026
27
Thank You
May 2023
VIMTA LABS LIMITED
INVESTOR RELATIONS AT
Registered Office Plot Number 142, IDA Phase 2 Cherlapally, Hyderabad Telangana, India. 500051
NSE: VIMTALABS, BSE: 524394 ISIN: INE579C01029 Website: www.Vimta.com
Vimta Labs Ltd. Narahai Naidu Dodda, CFO Narahai.Dodda@vimta.com
Rahul Thakur rahul.thakur@in.ey.com
Advait Bhadekar Advait.Bhadekar@in.ey.com
Copyright ©2023 Vimta Labs Limited
28