Zota Health Care LImited has informed the Exchange about Investor Presentation
November 11, 2023
To, The Manager Listing Department, The National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai – 400051
Dear Sir/Madam,
Trading Symbol: ZOTA
Sub: Investor Presentation
Ref: Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
With reference to the captioned subject we, Zota Health Care Limited are submitting herewith enclosed the Investor Presentation in respect of Unaudited Financial Results for the quarter ended September 30, 2023.
This is for your information and record.
Thanking you,
Yours faithfully,
For Zota Health Care Limited
Ashvin Variya (Company Secretary & Compliance Officer) Place: Surat
Encl: a/a
Registered Office: Zota House, 2/896, Hira Modi Street, Sagrampura, Surat-395002 Ph: +91 261 2331601 Email: info@zotahealthcare.com Web: www.zotahealthcare.com
CIN: L24231GJ2000PLC038352
INDIA’S LARGEST PRIVATE GENERIC PHARMACY RETAIL CHAIN
N O V E M B E R 2 0 2 3
Zota Health Care Limited Q2FY24 P e r f o r m a n c e H i g h l i g h t
Safe Harbour
This presentation has been prepared by the Zota Health Care Limited (the “Company”) only for information purpose to the stakeholders and does not contain any offer or invitation to subscribe the securities of the Company . No offering of securities shall be made except by means of offer documents .
This presentation has been prepared on the basis of information and data available with the Company consider reliable. This presentation may not contain all the information that you may consider material. Any liability in respect of the content of or any omission from this presentation is expressly excluded.
Stakeholders are advice to compare the data provided in the presentation with the full financial results available on the website of the Company as well as on website of NSE.
including This presentation contains “forward looking statement”, information” and “financial outlook”. This “future oriented financial forward looking statement is based on management’s current expectations and belief, and subject to uncertainty. Actual result may be vary from the material facts contained in this presentation due to regulations, economics reforms, changes in government policies, natural calamities, competition, technology, etc. Company is not under obligation to inform any update or alter in forward looking statement, whether as a result of any new information or future events.
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Davaindia is REVOLUTIONISING THE INDIAN HEALTHCARE SCENARIO
5967 Lakhs
58%
Gross Merchandise Value in H1FY24
Gross Margin in COCO format
702
30-90%
Fast growing FOFO & COCO store network
Savings to consumers on Generic medicines
10.7 Mn+
Happy Consumers
25-30%
Mature COCO Stores EBITDA
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We are eliminating the traditional pharma supply chain and passing benefits to the Consumers
Sourcing directly from manufacturers and selling directly to consumers…
Doctors
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Traditional Pharma
Manufacturer
Pharma Marketing Company
Distributors
Retailers
Consumers
davaindia Model
Manufacturer
Consumers
On an average ~75% savings on medicines as compared to branded counter par ts
MRP ₹100
₹ 20 - Retailer
₹ 10 - Distributor
₹ 30 - Marketing
₹ 30 – Marketing Company
MRP ₹ 25
75% Saving
₹ 15 – Marketing Company
Consumer Price ₹ 100 of Traditional Pharma
Save ~75%
Consumer Price ₹ 25 of Davaindia
₹10 – Manufacturing Cost
₹10 – Manufacturing Cost
Traditional Pharma
davaindia
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Zota Health Care Business Ver ticals
1
DAVAINDIA
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DOMESTIC MARKETING BUSINESS
3
EXPORTS
• A Retail generic pharmacy chain which provides quality generic
medicines.
• Focuses only on private-label products in:
• Medicinal • OTC • Ayurvedic • Cosmetic and Nutraceutical
• Key emphasis is on chronic therapies and ailments
• One-of-its-kind concept started with 3 pilot stores in 2017
• FOFO Stores are operated on an asset-light franchisee model
02 Store variants Company Owned Company Operated (COCO) and Franchisee Owned Franchisee Operated (FOFO)
30% – 90% Savings on medicines as compared to branded counterparts
• Procures finished dosage forms from domestic formulations manufactures and market them under their portfolio of brands
• Markets the products across the country to the distributors, which, in turn, caters to retail pharmacies in their respective districts
• Commenced operations in 2010 in manufacturing unit in Sachin,
SEZ
• Manufactures about 250 formulations in the unit
• To focus on more and more products registrations in all these
countries & company itself holding all the MAs / Registration of all other countries
1,050+ Distributors currently present across India
4,000+ Products covering major therapeutic segments
284 Product approvals out of 586 dossiers applications
30+ Countries’ approval mainly in the semi regulated and regulated markets
Larger Store Network 125 COCO stores 577 FOFO stores
100% private labelled products
WHO Partners with WHO recognized manufacturers
Growth led by exclusive foreign distribution network and exclusive MA holding
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Davaindia Competitive Edge
The USP of the brand ranges from quality to affordability to variety to efficiency in operations . . .
BENEFITS TO THE CUSTOMERS
BENEFITS TO THE FRANCHISEES
Medicines priced at low MRP thereby ensuring affordability by the masses
Store operations and the supply chain efficiently managed by cloud based software & AI
Private labels offered, helps in building customer trust by ensuring consistency
Widespread marketing activities helping in promoting the brand and improving sales
Continuously adding to its product range thereby offering variety
Elimination of distributors will ensure timely supply of stock
Products procured from WHO & GMP approved plants and quality attested at NABL approved labs
Franchise will get 1 km radius ensuring exclusivity
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KPI’s - Davaindia
No. of Stores
604
562
594
493
537
470
702
577
648
534
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Quarterly Footfall (Lakhs)
9.4
8.6
10.2
6.4
6.4
6.5
7.6
6.1
3.7
3.0
12.2
7.5
4.7
42
67
101
114
125
2.2
1.5
Q2-FY23
Q3-FY23
Q4-FY23
Q1-FY24
Q2-FY24
Q2-FY23
Q3-FY23
Q4-FY23
Q1-FY24
Q2-FY24
FOFO
COCO
Total
FOFO
COCO
Total
Note – The Company did a one-time closure of under-performing FOFO stores in Q3FY23, leading to a decrease in total store count.
KPI’s - Davaindia
Quarterly GMV (₹ Lakhs)
Avg. Wallet Spend (₹)
3159
2808
2525
2324
1595
1615
1840
1846
1905
2005
1154
903
689
484
311
254
209
269
268
275
260
216
223
245
247
Q2-FY23
Q3-FY23
Q4-FY23
Q1-FY24
Q2-FY24
Q2-FY23
Q3-FY23
Q4-FY23
Q1-FY24
Q2-FY24
FOFO
COCO
Total
FOFO
COCO
Total
265
287
289
293
269
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Davaindia - COCO Stores
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COCO Monthly Performance Updates
Store Count & GMV of COCO Stores
391
402
361
287
266
304
311
101
102
105
114
116
119
125
206
218
183
142
159
55
58
67
72
77
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Mar-23
Apr-23
May-23
Jun-23
Jul-23
Aug-23
Sep-23
Store Count (#)
GMV of COCO Stores (₹ Lakhs)
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COCO Monthly Performance Updates
2.74 2.73
2.58
2.86 2.83
2.82 2.90
2.73
2.63
3.29 3.30
3.11
Footfall at COCO Stores (Thousands)
97
93
83
74
67
164
160
144
123
124
123
118
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Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23
Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23
States
Uttar Pradesh Gujarat Haryana Karnataka Madhya Pradesh Delhi Rajasthan Maharashtra Odisha Total
No. of Stores 28 22 8 1 3 29 7 26 1 125
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COCO Stores
125
Operational COCO stores as on 30.09.2023
Operated by wholly-owned subsidiary Davaindia Health Mart Limited
8
29
7
28
22
3
1
26
3
1
davaindia- FOFO Stores
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Store Opening Plan FOFO
6
8
2
38
31
5
23
115
46
1
58
2
46
18
49
5
71
1
4
1
13
14
577
Operational FOFO stores as on 30.09.2023
Franchise Owned Franchise Operated (FOFO) Stores
4
9
7
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States
Uttar Pradesh West Bengal Bihar Odisha Telangana Gujarat Haryana Karnataka Madhya Pradesh Kerala Delhi Rajasthan Tamil Nadu Punjab Assam Jharkhand Maharashtra Tripura Goa Himachal Pradesh Chattisgarh Uttarakhand Arunachal Pradesh Jammu & Kashmir Andhra Pradesh Total
No. of Stores 115 49 18 71 2 46 38 4 58 14 31 23 13 8 9 5 46 7 1 2 1 5 4 6 1 577
Domestic Operations
Expor t Operations
Domestic marketing has been the oldest business vertical for the Company and has remained its mainstay in the past. Until 2017, this vertical contributed most of the Company’s revenues. This business vertical directly distributes generic drugs, OTC products, and other pharmaceutical products through the Company’s distribution network spread across India.
1,050+
Distributors spread across India
4,000+
Products in the portfolio
Our Exports business vertical, which started in 2010, serves clients in over 30 countries, mainly in the CIS, Latin America, Africa, and Asia. At its plant in Sachin, SEZ, the Company manufactures generic formulations for the dossiers it has registered in foreign markets. At present, the Company has registered over 284 dossiers, while another 302 dossiers have been filed and are awaiting approval from the relevant regulatory agencies.
250+
Products manufactured
284
Dossiers registered
302
Dossiers pending approval
MARKETING VALUE CHAIN
COUNTRIES EXPORTED TO –
FDF Manufacturers WHO-GMP certified manufacturing partners
Branding Quality check, packaging and branding under the umbrella of Zota brands
Distribution Direct distribution to 1,050+ distributors spread across the country
Retail Pharmacies Ethical marketing, sales distribution and promotional activities undertaken by distributors
1. Benin 2. Bolivia 3. Cambodia 4. Cameroon 5. Costa Rica 6. Ethiopia 7. Georgia
8. Ivory coast 9. Kenya 10. Mali 11. Myanmar 12. Nepal 13. Nigeria 14. South Africa
15. Sri Lanka 16. Swaziland 17. Tanzania 18. Turkmenistan 19. Uganda 20. Ukraine 21. Uzbekistan
22. Vietnam 23. Zambia 24. Kyrgyzstan 25. Libya 26. Yemen
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Supply Chain Management
• The Company has outsourced supply chain management to a third-party warehousing & logistics partner.
• A state-of-art central
warehousing & processing center has been built in Surat, in Phase 1.
• Eventually the Company will replicate such infrastructure across different zones in the country.
Click the link below for more details
Click here
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Q 4 F Y 2 3
Results Highlights
Stand Quarterly Financial Highlights
Q-o-Q
Y-o-Y
Revenues (₹ Lakhs)
Gross Profit (%)
Revenues (₹ Lakhs)
Gross Profit (%)
3 , 5 2 5 . 0 7
4 , 1 1 5 . 0 1
3 8 . 0 1 %
3 2 . 6 3 %
3 , 8 5 7 . 2 6
4 , 1 1 5 . 0 1
3 7 . 1 2 %
3 8 . 0 1 %
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Q1-FY24
Q2-FY24
Q1-FY24
Q2-FY24
Q2-FY23
Q2-FY24
Q2-FY23
Q2-FY24
Operating Profit (₹ Lakhs)
PAT (₹ Lakhs)
Operating Profit (₹ Lakhs)
PAT (₹ Lakhs)
3 0 9 . 8 4
6 1 . 5 3
2 1 . 2 2
1 7 8 . 7 6
5 2 2 . 6 2
4 2 2 . 4 0
1 7 8 . 7 6
3 0 9 . 8 3
Q1-FY24
Q2-FY24
Q1-FY24
Q2-FY24
Q2-FY23
Q2-FY24
Q2-FY23
Q2-FY24
Revenue Break up- Quar terly
Q2-FY24
4,115
Q1-FY24
3,526
Q2-FY23
3,857
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Domestic Sales
Dava India Sales
Export Sales (SEZ)
Stand Profit & Loss Statement- Quar terly
Particulars (Rs Lakhs)
Export Sales (SEZ)
Dava India Sales
Domestic Sales
Revenues from Operations
Cost of Goods Sold
Gross Profit
% Margin
Operational Exp
Employee cost
Other expenses
Operating Profit
% Margin
Other Income
EBITDA
% Margin
Depreciation
EBIT
% Margin
Interest Cost
EBT
% Margin
Taxes
Profit After Taxes
% Margin
Q2FY24
709.3 1915.1 1490.6 4,115.01 2,550.91
1564.10 38.01% 1254.26 478.27 775.99
309.84 7.53% 62.51
372.35 9.05% 76.68
295.67 7.19% 24.96
270.71 6.58% 59.04
178.76 4.34%
Q1FY24
369.5 1805.1 1350.5 3,525.07 2,375.00
1150.07 32.63% 1088.54 377.55 710.99
61.53 1.75% 35.55
97.08 2.75% 55.08
42.00 1.19% 4.67
37.33 1.06% 69.79
21.22 0.60%
YoY %
-22% 57% -14%
7% 5% 9%
89 BPS 38% 92% 18% -41%
-602 BPS -36% -40%
-705 BPS 34% -48%
-743 BPS 864% -52%
-797 BPS -57% -58%
-661 BPS
QoQ %
92% 6% 10%
17% 7% 36%
538 BPS 15% 27% 9% 404%
578 BPS 76% 284%
629 BPS 39% 604%
599 BPS 434% 625%
552 BPS -15% 742%
374 BPS
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Q2FY23
903.91 1217.00 1736.35 3,857.26 2,425.27
1431.99 37.12% 909.37 249.40 659.97
522.62 13.55% 98.43
621.05 16.10% 57.36
563.69 14.61% 2.59
561.10 14.55% 138.72
422.40 10.95%
Management Commentar y
1
DOMESTIC OPERATIONS
Domestic Revenues increased by 7.93% QoQ and a growth of 15.32% YoY at ₹ 3405.73 Lakhs in Q2FY24 supported by healthy performance on both fronts.
2
EXPORTS
Exports revenues increased by 91.97% on QoQ basis and decreased 21.53% YoY at ₹ 709.27 Lakhs in Q2FY24.
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EBITDA at ₹ 179.78 Lakhs for Q2FY24, increased by 84.97% QoQ on account of higher revenue from Davaindia.
EBITDA at ₹ 192.57 Lakhs for Q2FY24, increased by 1891.06% on QoQ basis due to high export sales realization.
*Here, Domestic Operations includes the operations of Davaindia.
Management Commentar y
"The Company has reported a healthy performance in Q2FY24. Despite challenges on the export front, the Company managed to report a 16% YoY topline growth. Davaindia's business vertical demonstrated robust topline growth of 57% YoY, driven by the expansion of store count, increased average wallet spends, and, consequently, GMV. The domestic business has shown recovery QoQ with a 10% growth; however, it is still 14% lower YoY given the current domestic pharmaceutical industry scenario.
The Company has been aggressively investing in store roll-out, adding over 100 stores in the last two quarters. As of September, the Company has more than 700 operational stores. Subsequently, quarterly footfalls and average wallet spending have also been on a rising trend.
At COCO stores front, the Company is looking for aggressively expansion; as at the date of this presentation 150+ COCO stores are under pipeline and the same are expected to be open shortly.
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Profit & Loss Statement
Particulars (INR Lakhs)
Income from Operations
Other Income
Total Income
Operating Expenses
EBITDA
Margin %
Depreciation
EBIT
Margin %
Financial Charges
PBT
Margin %
Tax
PAT
Margin %
EPS
FY15
5,646.3
1.4
5,647.8
4,796.5
851.3
15.1
150.6
700.7
12.4
66.5
634.2
11.2
207.6
426.7
7.6
3.0
FY16
6,473.3
7.7
6,481.0
5,516.8
964.2
14.9
123.5
840.8
13.0
68.3
772.4
11.9
261.5
510.9
7.9
3.6
FY17
7,158.0
5.6
7,163.6
6,153.8
1,009.8
14.1
105.4
904.4
12.6
68.2
836.2
11.7
282.1
554.1
7.7
3.9
FY18
7,785.2
151.9
7,937.0
6,695.0
1,242.0
16.0
93.7
1,148.3
14.8
12.1
1,136.2
14.6
407.4
726.8
9.3
4.2
FY19
8,562.9
154.5
8,717.4
7,788.7
928.7
10.8
139.4
789.3
9.2
3.7
785.6
9.2
230.7
554.8
6.5
2.3
FY20
9,511.3
151.3
9,662.6
9,059.7
602.9
6.3
209.8
393.1
4.1
6.9
386.2
4.1
112.0
274.1
2.9
1.1
FY21
FY22
FY23
10,684.12
125.66
10,809.78
10,490.90
193.22
1.8
316.68
-123.46
-1.2
10.97
-134.43
-1.3
-15.3
-16.24
-0.2
-0.07
13,153.33
13,836.60
164.56
255.87
13,317.89
14,092.47
11,618.38
13,035.65
1,699.51
1,056.82
12.9
273.05
1,426.46
10.8
7.32
1,419.14
10.8
376.56
1,058.01
8.0
4.25
7.6
241.99
814.83
5.9
6.33
808.50
5.8
206.43
659.35
4.8
2.62
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Balance Sheet & Key Ratios
Particulars (INR Lakhs)
Share capital
Reserves and Surplus
Non-current liabilities
Current liabilities
Total Equity and Liabilities
Non-current assets
Current assets
Total Assets
Key Ratios
RoCE (%)
RoE (%)
Net debt to equity (x)
Interest coverage (x)
Inventory days
Receivables days
Payable days
FY15
1,436.3
395.7
548.7
1,657.6
4,038.4
842.4
3,196.0
4,038.4
FY15
20.0
23.3
0.3
10.5
113.9
75.6
116.2
FY16
1,436.3
707.8
272.7
1,988.3
4,405.2
855.6
3,549.5
4,405.2
FY16
23.5
23.8
0.1
12.3
92.1
89.0
126.5
FY17
1,436.3
1,262.0
466.8
2,215.4
5,380.5
932.5
4,447.9
5,380.5
FY17
19.3
20.5
0.1
13.3
121.9
87.1
148.4
FY18
1,754.3
5,223.4
64.7
2,137.0
9,179.4
3,605.4
5,574.1
9,179.4
FY18
10.5
10.4
0.0
94.8
113.8
107.5
117.8
FY19
1,754.3
5,138.2
87.1
1,981.0
8,960.7
2,723.3
6,237.4
8,960.7
FY20
2,456.0
4,426.9
105.3
1,859.6
8,847.9
2,961.4
5,886.4
8,847.8
FY19
FY20
8.0
8.0
0.0
214.5
138.6
94.2
103.5
4.0
4.0
0.0
56.6
97.2
111.8
82.5
FY21
2456.03
4,181.2
94.5
1,820.0
8,551.6
2438.13
6,113.5
8,551.6
FY21
-1.8
-0.2
0.0
-11.3
96.1
98.5
77.6
FY22
2,516.0
6,621.4
102.9
3,287.63
9,137.45
5,007.36
7,520.57
FY23
2,516.0
6,930.3
93.8
2,923.57
9,446.31
3,683.91
8,779.80
12,527.93
12,463.71
FY22
FY23
15.4
11.6
0.0
194.9
77.6
106.3
76.4
8.5
7.0
0.0
128.7
94.5
*114.9
102.7
*Receivable days increased due to outstanding of M/s Davaindia Health Mart Lts, Wholly Owned Subsidiary of the Company
Thank You
C o n t a c t I n f o r m a t i o n
M r . H i m a n s h u Z o t a / M r . A s h v i n V a r i y a
" Z O T A H O U S E " , 2 / 8 9 6 , H i r a M o d i S t r e e t , S a g r a m p u r a , S u r a t - 3 9 5 0 0 2 ( G u j a r a t )
c s z o t a @ z o t a h e a l t h c a r e . c o m w w w . z o t a h e a l t h c a r e . c o m