Zota Health Care LImited has informed the Exchange regarding Investor Presentation
A zoto'
healthcare Itd.
November 23,2019
To, The Manager Listing Department, The National Stock Exchange of lndia Limited Exchange Plaza,
Bandra Kurla CompJex, Bandra (E), Mumbai - 400051
Dear Sir/Madam,
Trading Symbol: ZOTA
Sub: Investor Presentation
Ref: Regulation 30(6) of SEB| (Listing Obligations and Disclosure Requirements) Regulations, 2015
With reference to the captioned subject we, Zota Health Care Limited (the "Company") are submitting herewith enclosed the lnvestor Presentation, November, 2019.
Kindly take the same on your record.
Thanking you,
Yours faithfully,
Encl: a/a
(
L
t
Registered Qffiee: Zoto House, 2/896,Hiro Modi Street Sogrompuro, Surot - 395 OO2 | Ph: +91 261 23316,C.1 Emcil: info@zotoheolthcqre.com Web : wrrvw.zotohec lthccre.com
Plsnt: Plot no. 169 Surot Specicl Economic Zone!, Nr. Sochin Roilwoy Stotioq, Sochin, Surqt - 394 23O (Guj.) Indio Ph: +9.1 261 2397122 ..'
i'
j
\-
CIN : L2423.]GJ2OOOPLCO3B352
v \,/
\
""'-"--'/'
/
\\
ta
,-1--
-.-
H1FY20 P E R F O R M A N C E H I G H L I G H T S
N O V E M B E R 2 0 1 9
S A F E H A R B O R
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.
This presentation contains “forward looking statement”, including “future oriented financial information” and “financial outlook”. This 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 changes in government policies, regulations, economics reforms, 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
2
T A B L E O F C O N T E N T S
Result Highlights
Operational Metrics
Davaindia
Business Outlook & Strategy
Financial Summary
4
9
12
21
23
3
Result Highlights
Q u a r t e r l y F I N A N C I A L H I G H L I G H T S
Revenues (INR Lakhs)
Gross Profit (INR Lakhs)
Gross Profit (%)
PAT (INR Lakhs)
4.4%
-10.4%
-480 bps
-55.4%
2528.7
2422.3
819.5
33.8
733.9
245.9
29.0
109.6
Q2FY19
Q2FY20
Q2FY19
Q2FY20
Q2FY19
Q2FY20
Q2FY19
Q2FY20
5
H A L F Y E A R L Y F I N A N C I A L H I G H L I G H T S
Revenues (INR Lakhs)
Gross Profit (INR Lakhs)
8.6%
-6.3%
Gross Profit (%)
-473 bps
PAT (INR Lakhs)
-59.9%
4,696. 9
4,326. 6
1,497.0 2
1,402.6 1
34.60
412.4
29.86
165.3
H1FY19
H1FY20
H1FY19
H1FY20
H1FY19
H1FY20
H1FY19
H1FY20
6
P R O F I T & L O S S S T A T E M E N T - Q u a r t e r l y
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
Q2FY20 342.0
307.0
1,879.7
2,528.7 1,794.8 733.9 29.0 591.9 259.0 332.9 142.0 5.6 37.5 179.5 7.1 32.0 147.4
5.8
1.0 146.4 5.8 36.8 109.6 4.3
Q2FY19 532.1
143.0
1,747.2
2,422.3 1,602.8 819.5 33.8 483.8 226.7 257.1 335.7 13.9 62.2 397.9 16.4 35.2 362.7
15.0
0.2 362.4 15.0 116.6 245.9 10.2
YoY % -35.7
114.7
7.6
4.4 12.0 -10.4
22.3
QoQ % -25.9
33.2
27.4
16.6 19.7 9.8
1.5
-57.7
66.4
-54.9
-8.9 -59.4
328.4 -59.6
-68.4 -55.4
55.9
6.7 73.3
-21.4 74.7
33.3 95.1
Q1FY20 461.8
230.4
1,475.9
2,168.2 1,499.5 668.7 30.8 583.4 243.5 339.9 85.3 3.9 29.8 115.1 5.3 30.0 85.1
3.9
1.3 83.8 3.9 27.6 56.2 2.6
7
M A N A G E M E N T C O M M E N T A R Y
•
Revenues for the Q2FY20 increased by 4.4% YoY & 16.6%QoQ backed by sales growth in the domestic operations 7.6%/27.36 YoY/QoQ and DavaIndia sales growth of 114.7%/33.2% YoY/QoQ
• Gross Profit margins for the quarter declined 481 bps YoY on account of higher material cost and lower export sales.
•
EBITDA margins at 7.1% YoY to Rs 147.4 lakhs a dip due to higher operational expenses and accordingly PAT dipped and stood at Rs. 109.6 Lakhs
8
Operational Metrics
O P E R A T I O N A L M E T R I C S - D O M E S T I C
Revenues (INR Lakhs)
9.0%
3,624.9
3,950.6
EBITDA (INR Lakhs)
-67.4%
PAT (INR Lakhs)
-67.8%
564.9
311.3
184.4
100.2
H1FY19
H1FY20
H1FY19
H1FY20
H1FY19
H1FY20
Note: Revenues includes other income
10
O P E R A T I O N A L M E T R I C S - E X P O R T S
Revenues (INR Lakhs)
1.5%
EBITDA (INR Lakhs)
-7.9%
119.7
PAT (INR Lakhs)
-35.8%
801.9
813.6
110.2
101.3
65.0
H1FY19
H1FY20
H1FY19
H1FY20
H1FY19
H1FY20
Note: Revenues includes other income
11
•
•
•
•
•
The retail pharmacy stores continues its stellar performance in terms of its expansion and total customers serviced, as awareness towards generic drugs usage keeping gaining traction
Being asset light in nature the store continues to remain focused on chronic ailments – Cardiac, Diabetic, Thyroid and Neuropsychiatric ailments as repeat business from customer guides for store revenue visibility
DavaIndia store expansion have doubled at 202 stores as on date with higher number of stock keeping units per store
Higher number of SKU’s stood at 1,340 resulting in servicing more number of customers at the store point. As on date, DavaIndia reached a remarkable feat of catering to 1.2mn customers in a short span of time, reflecting fruition of the management vision and efforts
DavaIndia is India’s only retail generic pharmacy in which 95% products are private label products (i.e. DavaIndia’s own brand).It has 76 store openings signed up thus underlying its expansion strategy
13
14
P R E - O P E N I N G S T O R E A C T I V I T I E S F O R D A V A I N D I A
PAMPHLET DISTRIBUTION
BULK SMS TO RESIDENTS IN AND AROUND THE VICINITY
SOCIAL MEDIA INITIATIVES
15
C O S T I N C U R R E D F O R D A V A I N D I A S T O R E O P E N I N G
Initial cost (₹) - 3,60,000-4,00,000
Operating Cost (₹) - 40,000 p.m.
Cardiac
Diabetic
Thyroid ailments
RENT
PHARMACIST MANPOWER
₹15,000 – ₹20,000
₹15,000
OTHER MISCELLANEOUS EXPENSES
₹5,000
Dermo
INVENTORIES - MEDICINES
₹1,50,000-2,00,000
Initial Cost Includes Inventories
16
O P E R A T I N G M O D E L O F D A V A I N D I A
Promotions & Brand building by ZHCL
Hoardings, Newspaper Advertisements & much more
95% Private Label Brands
Key brands – DavaIndia, Nutravedic, etc.
Cloud based software, mobile app, AI base-tools
Real-time data recording & supply management
Product portfolio of 1,340+ SKU’s
Focused on Cardiac , Diabetic, Thyroid ailments
202+ Stores
Retail Generic Pharmacy Chain
100% Franchise Models
Asset-light model, stores owned & operated by franchise
Exclusive sale of DavaIndia products
70% Medicine / 30% OTC products
17
D A V A I N D I A S T O R E S R O L L O U T
Store roll-out
28
29
29
39
33
27
15
2
144
Average Wallet Spend
202
Stores Opened
12 lakh
Customers Served
H2FY18
Q1FY19
Q2FY19
Q3FY19
Q4FY19
Q1FY20
Q2FY20
1st Oct - 15th Nov, 2019
4,250 lakh
Saved by our customers
18
D A V A I N D I A F O O T P R I N T S
HARYANA (4)
RAJASTHAN (3) Jaipur, Jodhpur, Sikat
GUJARAT (96)
Surat, Navsari, Kheda, Vadodara, Rajkot, Ahmedabad, Gandhinagar, Mehsana, Sabarkantha, Banaskantha, Vapi, Bharuch, Bilimora, Godhra, Valsad, Himmatnagar Kutch
MAHARASHTRA (45)
Nagpur, Pune, Chikhli, Mumbai, Latur, Nasik, Aurangabad, Solapur, Amravati
NEW DELHI (1)
UTTARAKHAND (2)
Dehradun
UTTAR PRADESH (9) Firozabad, Ghaziabad, Lucknow, Varanasi, Jhansi, Amhora
% Davaindia across states
2 1 1 1 1
4
MADHYA PRADESH (40) Indore, Jabalpur, Bhopal, Sagar, Guna, Dhar, Gwalior, Khandwa, Mandsaur, Itarsi, Rewa Harda
20
48
Gujarat
Maharashtra
Madhya Pradesh
Uttar Pradesh
Haryana
Rajasthan
Kerala
Uttrakhand
New Delhi
19
KERALA (2)
22
Sales trend of matured stores
12+ Months
3.52 lakhs
9 – 11 Months
1.90 lakhs
7 – 9 Months
1.60 lakhs
Top 10 stores
11th to 20th store
21st to 30th store
Average month sales of the stores
Average age of stores
The company also has vision to expand its chain to 3000 stores by the end of FY2022E
20
Business Outlook & Strategy
B U S I N E S S P E R F O R M A N C E O U T L O O K
• Domestic business will grow at constant rate of 12%-15% in FY20E, which will be a similar growth rate as previous
year
•
Export revenues being a higher margin business are expected to grow at a faster rate of 30%-40% in FY20E, as your company has expanded its global footprints in new geographies
• After successfully launching Dava India we have begun to execute the store expansion plans on a PAN India basis.
22
Financial Summary
P R O F I T & L O S S S T A T E M E N T - A N N U A L L Y
Particulars (INR Lakhs)
FY14
FY15
FY16
FY17
FY18
FY19
H1FY18
H1FY19
H1FY20
Income from Operations
5,011.2
5,646.3
6,473.3
7,158.0
7,785.2
8,562.9
3,913.7
4,326.6
4,696.9
10.2
1.4
7.7
5.6
151.9
154.5
60.5
100.3
67.3
Other Income
Total Income
Operating Expenses
4,362.0
4,796.5
5,516.8
6,153.8
6,695.0
5,021.4
5,647.8
6,481.0
7,163.6
7,937.0
8,717.4
7,788.4
3,974.1
4,426.8
3,311.8
3,742.2
EBITDA
Margin %
Depreciation
EBIT
Margin %
Financial Charges
PBT
Margin %
Tax
PAT
Margin %
EPS
659.4
13.2
120.7
538.7
10.7
71.4
467.3
9.3
156.0
311.3
6.2
2.6
851.3
15.1
150.6
700.7
12.4
66.5
634.2
11.2
207.6
426.7
7.6
3.0
964.2
14.9
123.5
840.8
13.0
68.3
772.4
11.9
261.5
510.9
7.9
3.6
1,009.8
1,242.0
14.1
105.4
904.4
12.6
68.2
836.2
11.7
282.1
554.1
7.7
3.9
16.0
93.7
1,148.3
14.8
12.1
1,136.2
14.6
407.4
726.8
9.3
4.2
929.0
10.8
139.4
789.6
9.2
3.7
785.9
9.2
230.7
555.2
6.5
3.2
662.4
684.6
16.7
46.3
15.5
75.9
616.1
608.6
15.5
9.2
606.9
15.3
204.6
402.4
10.1
2.3
13.7
0.7
607.9
13.7
195.5
412.4
9.3
2.4
4,764.2
4,469.6
294.6
6.2
62.1
232.5
4.9
2.3
230.2
4.8
64.9
165.3
3.5
0.7
24
B A L A N C E S H E E T & K E Y R A T I O S
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
FY14
1,196.9
384.2
521.3
1,381.7
3,484.1
926.3
2,557.8
3,484.1
FY14
17.4
19.7
0.3
7.5
91.2
77.8
109.0
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
5,138.5
87.1
1,981.6
8,961.5
2,724.1
6,237.4
8,961.5
H1FY20
2,456.0
4,318.1
94.5
2,368.5
9,237.1
2,670.2
6,566.9
9,237.1
FY19
H1FY20
8.1
8.1
0.0
214.5
138.6
94.2
103.5
2.5
2.4
0.0
101.1
110.8
103.4
100.4
25
C O N T A C T I N F O R M A T I O N
Thank You
Mr. Himanshu Zota / Mr. Ashvin Variya
"ZOTA HOUSE", 2/896, Hira Modi Street, Sagrampura, Surat-395 002(Gujarat)
cszota@zotahealthcare.com
cszota@zotahealthcare.com
www.zotahealthcare.com