Zota Health Care LImited has informed the Exchange regarding Investor Presentation in respect of Financial Results for the quarter and nine months ended December 31, 2019
A zoto'
healthcare ltd.
February t8,2020
To, The Manager Listing Department, The National Stock Exchange of tndia Limited Exchange Plaza,
Bandra Kurla Complex, Bandra (E), Mumbai - 400051
Dear Sir/Madam,
Trading Symbol: ZOTA
5ub: lnvestor Presentation
Ref: Regulation 30(6) of SEBI (Listing ohligations and Disctosure Requirements) Regutations, 2015
With reference to the captioned subject we, Zota Health Care Limited (the "Company',) are submitting herewith enclosed the lnvestor Presentation in respect of Financial Results for the quarter and nine months ended December 37,20L9.
Kindly take the same on your record.
Thanking you,
Yours faithfully,
For Zota Health Care Limited
Company Secretary & Compliance Place: Surat
Encl: a/a
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Registered office: Zoto House, 2/A96, Hira Modi Street, Sogrompuro, Surot - 395 OO2 I Ph: +91 261 23316,C-1 Email: info@zotoheolthcore.com Web : www.zotoheolthcare.com CIN : L2423lGJ2OOOPLCO3B352
Fisnt : Plot no. 169, Surot Special Economic Zone, Nr Scchin Roilwoy Stotion, Scchin, Surct - 394 23O (Guj) lndlo Ph. +91 261 2397122
Q3FY20 P E R F O R M A N C E H I G H L I G H T S F E B R U A R Y 2 0 2 0
Safe Harbor
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 Emerge.
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
Table Of Contents
Result Highlights
Operational Metrics
Davaindia
1 2 3 4 5
Business Outlook & Strategy
Financial Summary
3
Result Highlights
Consol Quarterly Financial Highlights
Revenues (INR Lakhs)
Gross Profit (INR Lakhs)
Gross Profit (%)
PAT (INR Lakhs)
15.2%
11.9%
-83bps
38.6%
2506.4
2,176. 5
720.0
29.6
38.0
643.4
28.7
27.4
Q3FY19
Q3FY20
Q3FY19
Q3FY20
Q3FY19
Q3FY20
Q3FY19
Q3FY20
5
9M – Financial Highlights
Gross Profit (INR Lakhs)
-0.8%
Gross Profit (%)
-344 bps
PAT (INR Lakhs)
-53.8%
Revenues (INR Lakhs)
10.8%
7,203. 3
6,503. 0
2,140.4
2,122.6
32.9
29.5
439.9
203.2
9MFY19
9MFY20
9MFY19
9MFY20
9MFY19
9MFY20
9MFY19
9MFY20
6
Consol Profit & Loss Statement - Quarterly
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
Q3FY20
Q3FY19
638.8 351.0 1,516.6 2,506.4 1,786.4 720.0 28.7 646.7 263.0 383.7 73.3 2.9 30.7 104.1 4.2 48.1 56.0
2.2
2.3 53.7 2.1 15.7 38.0 1.5
500.4 173.0 1,503.1 2,176.5 1,533.1 643.4 29.6 617.1 228.4 388.7 26.3 1.2 17.4 43.7 2.0 37.1 6.6
0.3
1.5 5.1 0.2 -22.3 27.4 1.3
YoY % 27.7 102.9 0.9 15.2 16.5 11.9
QoQ % 86.8 14.3 -19.3 -0.9 -0.5 -1.9
4.8
9.3
178.7
-48.4
138.2
29.5 754.7
59.3 952.4
-170.2 38.6
-42.0
50.0 -62.0
126.0 -63.3
-57.5 -65.3
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
7
Profit & Loss Statement – Half Yearly & 9M
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
9MFY20 1,452.50 888.4 4,862.4
7,203.3 5,080.7 2,122.6 29.5 1,822.0 765.5 1,056.5 300.6 4.2 98.0 398.7 5.5 110.2 288.5
4.0 4.6 283.8 3.9 80.6 203.2 2.8
9MFY19 1,302.40 408 4,792.6
6,503.0 4,362.6 2,140.4 32.9 1,529.8 631.1 898.7 610.6 9.4 117.6 728.3 11.2 113.1 615.2
9.5 2.2 613.0 9.4 173.2 439.9 6.8
YoY % 11.5 117.7 1.5 10.8 16.5 -0.8
19.1
-50.8
-45.3
-2.6 -53.1
112.9 -53.7
-53.5 -53.8
H1FY20 803.9 537.4 3,355.6 4,696.9 3,294.3 1,402.6 29.9 1,175.3 502.5 672.8 227.3 4.8 67.3 294.6 6.3 62.1 232.5
5.0
2.3 230.2 4.9 64.9 165.3 3.5
H1FY19 801.9 230.6 3,294.1 4,326.6 2,829.5 1,497.0 34.6 912.7 402.8 510.0 584.3 13.5 100.3 684.6 15.8 75.9 608.6
14.1
0.7 607.9 14.1 195.5 412.4 9.5
YoY% 1.5 133.0 8.9 8.6 16.4 -6.3
28.8
-61.1
-57.0
-18.2 -61.8
221.7 -62.1
-66.8 -59.9
8
Strategic Business Model
DOMESTIC
Ethical Marketing
Franchise Marketing
Marketing Representatives
Distributor
Generic Marketing
Astgen/Astcon
EXPORT
Manufacturing
Export in foreign countries
RETAIL CHAIN
DAVAINDIA
DAVAINDIA FRANCHISEES
9
Management Commentary
•
Revenues for the Q3FY20 registered a double digit growth of 15.2% YoY at Rs 2,506.4 Lakhs, led by growth from domestic (davaindia) and exports market
• Gross Profit grew 11.9% with marginal dip of 84 bps YoY as material cost increased by 16.5%
•
EBITDA margins at 4.2% with 138% YoY growth at Rs 104.1 lakhs due to favorable mix of export revenues
10
Global Presence
India Kenya Nigeria Libya Ethiopia Tanzania
Mali Uganda Sri Lanka Myanmar Vietnam Cambodia
Nepal Yemen South Africa Benin Ukraine Uzbekistan
Turkmenistan
Costa Rica Georgia Bolivia Swaziland Cameroon
11
Operational Metrics
Domestic Operational Metrics – Quarterly
*Revenues (INR Lakhs)
1,898.3
1,675.4
Q3FY19
Q3FY20
Q3FY19
-41.5
Domestic Operational Metrics – 9M
Revenues (INR Lakhs)
EBITDA (INR Lakhs)
5,848.9
541.4
EBITDA (INR Lakhs)
PAT (INR Lakhs)
Q3FY19
Q3FY20
3.7
Q3FY20
-30.5
-71.1
PAT (INR Lakhs)
280.8
5,318.3
188.1
70.6
9MFY19
9MFY20
9MFY19
9MFY20
9MFY19
9MFY20
*Revenues include Davaindia sales figures
13
Export Operational Metrics - Quarterly
Revenues (INR Lakhs)
EBITDA (INR Lakhs)
PAT (INR Lakhs)
638.8
100.4
58.3
500.4
67.5
37.4
Q3FY19
Q3FY20
Q3FY19
Q3FY20
Q3FY19
Q3FY20
Export Operational Metrics – 9M
Revenues (INR Lakhs)
1,452.5
EBITDA (INR Lakhs)
210.6
159.4
PAT (INR Lakhs)
132.7
1,302.4
187.3
9MFY19
9MFY20
9MFY19
9MFY20
9MFY19
9MFY20
14
Half Yearly Operational Metrics - Domestic
*Revenues (INR Lakhs)
9.0%
3,624.9
3,950.6
EBITDA (INR Lakhs)
-67.4%
564.9
PAT (INR Lakhs)
-67.8%
Note: Revenues includes other income
H1FY19
H1FY20
H1FY19
H1FY20
H1FY19
H1FY20
Operational Metrics - Exports
184.4
141.76
311.3
Revenues (INR Lakhs)
1.5%
801.9
813.6
EBITDA (INR Lakhs)
-7.9%
PAT (INR Lakhs)
-12.9%
119.7
110.2
Note: Revenues includes other income
101.3
88.2
*Revenues include Davaindia sales figures
H1FY19
H1FY20
H1FY19
H1FY20
H1FY19
H1FY20
15
Management Commentary
Domestic Operations
• Domestic Revenues witnessed a growth of 13.3% during the quarter at Rs 1,898.3 Lakhs, led by volume growth
among key segments.
•
EBITDA margins came in at 0.2% due to higher increased cost associated with Davaindia promotional expenses
• Domestic business PAT slipped posting a loss of Rs 71 lakhs vs Rs 31 lakhs in Q3FY19
Exports
•
•
•
Exports revenues continued its strong run of growth with Rs 638.8 Lakhs growing 27.7% YoY
EBITDA grew by a robust 48.6% at Rs 100.4 lakhs with 15.7% margins
PAT at Rs 37.4lakhs which was lower as compared to Q3FY19
16
Gradually Building A Partnership
THE PERFECT PARTNERSHIP
“
Signing of the Legendary cricketer: The Haryana Hurricane Mr. Kapil Dev is regarded as one of India's finest and greatest all rounder's of the game of cricket. It gives us immense pleasure to have him associated as Our Brand Ambassador of Zota Health care Ltd.
His Simplicity, Spartan life style and down to earth qualities resonate truly well with Zota brand. We expect a positive impact with an increased recognition and brand value for our company. We warmly welcome the great legend in the Zota Family as he takes his stance in the first innings.
“
18
•
•
•
Davaindia retail pharmacy stores is focused chronic ailments – Cardiac, Diabetic, Thyroid etc as repeat orders from existing and new customers remains higher, thus aiding overall company growth and rendering the business model as a cash cow
The managements focus on Davaindia expansions has been inline and is underscored with addition of new store in the state of Gujarat, Maharashtra, Madhya Pradesh and Uttar Pradesh taking the total store count to 220
A higher number of ~ 1,333 SKU’s has enabled Davaindia to better serve customers across all ailment segments. Thus increasing its customer spends across varied price points, the average wallet spends was Rs 152
19
20
Pre-Opening Store Activities For Davaindia
PAMPHLET DISTRIBUTION
BULK SMS TO RESIDENTS IN AND AROUND THE VICINITY
SOCIAL MEDIA INITIATIVES
21
Cost Incurred For Davaindia Store Opening
Initial cost (₹) - 3,60,000-4,00,000
Operating Cost (₹) - 40,000 p.m.
INVENTORIES - MEDICINES
₹1,50,000-2,00,000
Initial Cost Includes Inventories
Major Therapeutic Category
Cardiac
Thyroid ailments
Diabetic
Dermo
RENT
PHARMACIST MANPOWER
₹15,000 – ₹20,000
₹15,000
OTHER MISCELLANEOUS EXPENSES
₹5,000
22
Operational Metrics Of Davaindia
Promotions & Brand building by ZHCL
Hoardings, bus-stands & much more
Product portfolio of 1,333+ SKU’s
Focused on Cardiac , Diabetic, Thyroid ailments
95% Private Label Brands
Key brands – DavaIndia, Nutravedic, etc.
Cloud based software, mobile app, AI base-tools
Real-time data recording & supply management
220 Stores Retail Generic Pharmacy Chain 82 agreements signed -Execution of the same is under process for store opening
100% Franchise Models
Asset-light model, stores owned & operated by franchise
Exclusive sale of DavaIndia products
70% Medicine / 30% OTC products
23
Davaindia Key Figures
Store roll-out
Sales %
45
39
33
28
29
29
17
Analgesic/Anti-…
Antacid
Neuro Pysco
Dermo
Patent-Branded
Vitamins
OTC/Cosmetics
Cardiac & Diabetic
3.4%
3.8%
4.3%
7.4%
7.6%
8.0%
17.7%
32.3%
Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20
0.0%
10.0%
20.0%
30.0%
40.0%
700
600
500
400
300
200
100
0
36%
18%
18%
18%
223
32
75
122
Avg Wallet Spends (Rs)
Bill (%)
627
10%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Average spend by 54% of the patrons is about ₹140
24
Davaindia Footprints
HARYANA (4)
Yamunanagar, Kurukshetra, Bhiwani, Hisar
RAJASTHAN (5)
Jaipur, Jodhpur, Sikar, Shri Ganganagar
GUJARAT (99)
Nadiad, Ahmedabad, Badoli, Gandhinagar, Himatnagar, Idar, Mehsana, Patan, Vijaypur, Rajkot, Bilimora, Chikhli, Navsari, Surat, Bharuch, Vadodra, Bardoli, Vapi, Kheda, Banaskantha, Gokul Nagar, Godhra, Gandevi, Valsad, Anand, Gondal, Bhuj, Bhachau, Porbander, Keshod, Vyara, Kutch, Ankleshwar, Modasa, Bhuj, Sidhhpur, Junagadh, Dhari, Bhilad
MAHARASHTRA (50)
Nagpur, Pune, Nagpur, Mumbai, Latur, Nasik, Aurangabad, Amravati, Solapur, Mansar, Gondia, Nanded, Chandrapur
KERALA (2)
Malappuram
NEW DELHI (2)
UTTARAKHAND (2)
Dehradun
UTTAR PRADESH (11)
Firozabad, Ghaziabad, Lucknow, Varanasi, Jhansi, Amhora
CHATTISGARH (1)
Durg
MADHYA PRADESH (44) Jabalpur, Sagar, Indore, Bhopal, Guna, Dhar, Harda, Gwalior, Khandwa, Mandsaur, Rewa, Old Itarsi, Ratlam, Damoh
Davaindia presence (%)
1.8
5.0
20.0
Gujarat
Maharashtra
Madhya Pradesh
Uttar Pradesh
Haryana
Rajasthan
Kerala
Uttrakhand
New Delhi
Chattisgarh
2.3
0.9 0.9
0.9
0.5
45.0
25
22.7
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
26
Business Outlook & Strategy
Business Performance Outlook
• 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 Davaindia we have begun to execute the store expansion plans on a PAN India basis
28
Financial Summary
Profit & Loss Statement - Annually
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
FY14
5,011.2
10.2
5,021.4
4,362.0
659.4
13.2
120.7
538.7
10.7
71.4
467.3
9.3
156.0
311.3
6.2
2.6
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
7,788.4
929.0
10.8
139.4
789.6
9.2
3.7
785.9
9.2
230.7
555.2
6.5
3.2
30
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
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
31
Contact Information
Mr. Himanshu Zota / Mr. Ashvin Variya
"ZOTA HOUSE", 2/896, Hira Modi Street, Sagrampura, Surat-395 002(Gujarat)
cszota@zotahealthcare.com
www.zotahealthcare.com
Thank You