Zota Health Care LImited has informed the Exchange about Investor Presentation
A zoto'
healthcare ltd.
February 13,2021.
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
Sub: lnvestor Presentation
Ref: Regulation 30 of SEBI (Listing obtigations and Disclosure Requirements) Regutations, 2015 With reference to the captioned subject we, Zota Health Care Limited are submitting herewith enclosed the lnvestor Presentation in respect of Financial Results for the quarter and nine months ended December 3L,2020,
This is for your information and record.
Thanking you, '
Yours faithfully,
For Zota Health Care Limited
(Company Secretary & Compliance Officer) Place: Surat
Encl: a/a
I
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Registered office: Zoto House, 2/896, Hira Modi Street, Sogrompuro, Surot.- 395 OO2 I Ph: +91 261 23316c-1 Emoil: i nfo@zotoheo lthcore.com Web : wwwzotoheclthcqre.com
CIN : L24231GJ2OOOPLCO3B352
Plont: Plot no..l69 Surot Speciol Economic Zone, Nr Sochin Roilwcy Stotion Sochin, Surot - 394 23O (Guj.) Indio Ph: +91 261 2397122 .,' ,.
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Q4&FY20 Q3FY21 P E R F O R M A N C E H I G H L I G H T S Performance Highlights February 2021 J U N E 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
1 2 3 4 5
Result Highlights
Operational Metrics
Davaindia
Business Outlook & Strategy
Financial Summary
3
Qtr- Result Highlights
Q-o-Q
3048.27
2816.64
Consol Quarterly Financial Highlights
29.78%
33.56%
85.24
101.71
Q3-FY21
Q2-FY21
Q3-FY21
Q2-FY21
Q3-FY21
Q2-FY21
Q3-FY21
Q2-FY21
-118.70
-100.79
Revenues (Rs Lakhs)
Gross Profit (%)
Operating Profit (Rs Lakhs)
PAT (Rs Lakhs)
Y-o-Y
3048.27
2506.38
29.78%
28.73%
73.32
38.01
Q3-FY21
Q3-FY20
Q3-FY21
Q3-FY20
Q3-FY21
Q3-FY20
Q3-FY21
Q3-FY20
-118.7
-100.79
5
Revenue Break up – Quarterly
Domestic Sales
1556.58
1516.60
693.50
Davaindia Sales
574.97
1334.52
351.00
Q3-FY21
Q2-FY21
Q3-FY20
Q3-FY21
Q2-FY21
Q3-FY20
Export Sales (SEZ)
1020.25
685.09
638.80
Q3-FY21
Q2-FY21
Q3-FY20
6
FY- Result Highlights
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
Exceptional items
EBITDA
% Margin
Depreciation
EBIT
% Margin
Interest Cost
EBT
% Margin
Taxes
Profit After Taxes
% Margin
Q3FY21 1,020.25
693.5
1,334.52
3,048.27
2,140.35
907.92
29.78%
1026.62
231.66
794.96
-118.7
-3.89%
57.15
0
-61.55
-2.02%
80.08
-141.63
-4.65%
3.42
-145.05
-4.76%
-44.26
-100.79
-3.30%
Q3FY20 638.8
351
1,516.60
2,506.38
1,786.35
720
28.73%
646.71
263
383.71
73.32
2.93%
30.74
0
104.06
4.15%
48.08
55.98
2.23%
2.31
53.67
2.14%
15.66
38.01
1.51%
YoY % 60%
98%
-12%
22%
20%
26%
QoQ % 49%
21%
-14%
8%
14%
-4%
105 bps
-377 bps
59%
-12%
107%
-262%
-682 bps
86%
0%
-159%
-617 bps
67%
-353%
-688 bps
48%
-370%
-690 bps
-382.63%
-365%
-481 bps
19%
-2%
28%
-239%
-692 bps
171%
100%
-129%
-945 bps
5%
-207%
-936 bps
131%
-211%
-941 bps
-250.60%
-199%
-688 bps
Q2FY21 685.09
574.97
1,556.58
2,816.64
1,871.49
945.15
33.56%
859.91
236.81
623.1
85.24
3.03%
21.1
102.88
209.22
7.43%
76.63
132.59
4.71%
1.48
131.11
4.65%
29.39
101.71
3.61%
8
Management Commentary
•
•
•
•
•
The new-age businesses of the Company i.e. Davaindia and Exports have recorded their best ever quarterly performance in terms of Revenue from Operations in Q3FY21.
This is in line with the Company’s strategy of increasing overall Revenue contribution from new-age businesses and reducing dependence on Domestic marketing.
The sales contribution from new-age business stands at 56% in Q3FY21 as compared to 39% in Q3FY20 and 45% in Q2FY21.
The Company has registered highest-ever Consolidated Revenue of Rs. 3,048.27 Lakhs and gross margins of 29.78% in Q3FY21.
EBITDA stood at Rs -61.55 Lakhs 159% lower YoY, with margins at -2.02% due to higher operational expenses driven by the aggressive expansion of Davaindia operations. However, with increasing the numbers of Davaindia’s stores rollout and sales realization of the same; the Company will manage to tapper the expenses and revenues and by which the EBITDA margins will improve.
•
PAT declined 365% YoY at -100.79 Lakhs in Q3FY21.
9
Management Commentary
Domestic Operations
•
Revenue from Domestic operations has been surged by 8.59% Y-o-Y basis, on account of higher revenue of Davaindia. The company has registered the domestic revenues of 2028.02 Lakhs in Q3FY21.
• With increasing revenue of Davaindia; the management is well poised of making a strong recovery in Domestic
Operations.
•
•
In Q3FY21 – EBITDA stood at Rs -166.89 Lakhs with margins at -8.23% on back of higher operational, sales & advertisement expenses.
PAT stood at Rs -157.96 lakhs in Q3FY21.
* Here the Domestic Operations includes the operations of Davaindia.
Exports
Export business is firing on all cylinders after a strong recover in Q2FY21, the company has witnessed the highest ever quarterly sales in Exports of 1,020.25 Lakhs in Q3FY21.
Export Revenues are up by 60% Y-o-Y and 49% Q-o-Q at Rs. 1,020.25 Lakhs in Q3FY21.
In Q3FY21, EBITDA at Rs 105.34 lakhs with margins of 10.32%.
PAT stood at Rs 57.17 lakhs for Q3FY21.
•
•
•
•
10
Davaindia Key Figures
SKU’s
1333
1338
1353
1368
1371
1100
1150
1310
1250
Q3-FY19 Q4-FY19 Q1-FY20 Q2-FY20 Q3-FY20 Q4-FY20 Q1-FY21 Q2-FY21 Q3-FY21
Stores rolled-out
109
99
29
29
39
33
32
31
45
Q3-FY19 Q4-FY19 Q1-FY20 Q2-FY20 Q3-FY20 Q4-FY20 Q1-FY21 Q2-FY21 Q3-FY21
12
Davaindia Key Figures
Average Wallet Spend
152
159
164
209
181
132
126
136
116
No. of Customers Served
338415 352623
355731
259022
267030
275520
231100 221975
83925
Q3-FY19
Q4-FY19
Q1-FY20
Q2-FY20
Q3-FY20
Q4-FY20
Q1-FY21
Q2-FY21
Q3-FY21
Q3-FY19 Q4-FY19 Q1-FY20 Q2-FY20 Q3-FY20 Q4-FY20 Q1-FY21 Q2-FY21 Q3-FY21
13
•
•
•
During the quarter Davaindia has catered to 3.56 lakhs customers, increasing Average Wallet Spends has led to Revenue growth of 21% from Davaindia on Q-o-Q basis. The same is up 98% on Y-o-Y basis, driven by increasing customers served and Average Wallet Spends.
Davaindia has led the revolution of patients opting for generic medicines against branded counterparts. Till Q3FY21 Davaindia has catered to more than 2.63 million happy customers.
Davaindia retail pharmacy stores’ focus continues to be chronic ailments – Cardiac, Diabetic, Thyroid, among others – as repeat orders from existing and new customers remains higher, thus aiding overall company growth of Davaindia's business model.
• Management's focus on Davaindia expansions has been as envisaged. Davaindia has added 109 new stores in Q3FY21 taking the total store count to 491 as of December 31, 2020. New store additions in Q3FY21 have been focused on Uttar Pradesh, Delhi, Haryana, Maharashtra, and the addition of newer states such as Goa, Bihar, Telangana among others.
•
•
The company has adopted various advertisements, marketing, and promotional channels like Print, TV, Digital, and Outdoor mediums to increases top-of-the mind brand recall in the minds of its customers. This exercise that begun to gain traction and has led to footfall & wallet share increase among its users.
A higher number of SKU’s i.e. 1,371 has enabled Davaindia to better serve customers across all segments. Thus increasing its customer spends across varied price points, the Average Wallet Spend was Rs 209 in Q3FY21.
14
15
Davaindia Footprints
KASHMIR (2)
PUNJAB (8)
HARYANA (22)
Yamunanagar, Kurukshetra, Bhiwani, Hisar,Faridabad, Yamunanagar, Panipat
RAJASTHAN (18) )
Jaipur, Jodhpur, Sikar, Shri Ganganagar, Nagpur, Bharatpur, Jhunjhunu
GUJARAT (130)
Nadiad, Aadipur.Ahmedabad, Badoli, Banaskantha,Gandhinagar, Himatnagar, Idar,Mehsana, Patan, Vijaypur,Rajkot, Bilimora, Chikhli, Navsari,Surat,Bharuch, Vadodra, Mundra, Bardoli, Vapi, Kheda, Banaskantha, Gokul Nagar, Godhra, Gandevi, Valsad, Anand, Gondal, Bhuj, Bhachau, Porbander, Keshod, Vyara, Kutch, Kheda,Ankleshwar, Modasa, Sidhhpur,Junagadh, Dhari, Bhilad, Patan, Mundra, Umargam,
MAHARASHTRA (96)
Nagpur, Akola,Juner, Mansar, Miraj, Pune,Nagpur, Mumbai, Latur, Nasik, Aurangabad, Amravati, Solapur, Mansar, Gondia, Nanded, Chandrapur, Varud, Nasik, Akola, Jalna, Nanded, Palghar,
GOA (1)
KERALA (9)
Malappuram, Majeri, Palakkad
HIMACHAL PRADESH (3)
NEW DELHI (34)
UTTARAKHAND (4)
Dehradun, Araghar
BIHAR (1)
AASAM (4)
UTTAR PRADESH (60)
Jhansi,Varanasi,,Amroha,Lucknow,Ghaziabad , Lalitpur. Prayagraj, Mau, Firozabad, Prayagraj, Jaunpur, Hamirpur,
MEGHALAYA (1)
TRIPURA (3)
WEST BENGAL (5)
Davaindia Presence (%)
PUNJAB 2%
CHATTISGARH (4)
Durg, Basana
ODISHA 2%
TELENGANA 0%
MEGHALAYA JHARKHAND 0% 1%
KASHMIR AASAM 0% 1%
BIHAR 0%
HARYANA 4%
JHARKHAND (3)
MADHYA PRADESH (68)
Jabalpur, Sagar, Indore, Bhopal, Guna, Dhar, Harda, Gwalior, Khandwa, Mandsaur, Rewa, Old Itarsi, Ratlam, Damoh,Rewa,Sagar,Shahdol, Shivni, Chhatarpur, Ujjain, Damoh
TELENGANA (1)
ODISHA (11)
KARNATAKA (3)
Behrampura, Cuttack
MADHYA PRADESH 14%
CHATTISGHAR 1%
TRIPURA 1%
UTTAR PRADESH 12%
UTTARAKHAND 1%
NEW DELHI 7%
HIMACHAL PRADESH 1%
WEST BENGAL 1%
MAHARASHTRA 20%
RAJASTHAN 4%
GUJARAT 26%
KARNATAKA 1%
GOA 0%
KERALA 2%
16
Industry Snapshot & Business Strategy
India‘s Retail Generic Medicine Landscape
Jan Aushadhi Stores -A key initiative against t he high priced selling medicines in the market
Jan Aushadhi Stores rolled-out
5140
5928
3322
80 FY14
99 FY15
269 FY16
1080 FY17
FY18
FY19
FY20
1
2
3
Our Honourable Prime Minister launched ‘Jan Aushadhi Kendras’ under the ‘Pradhan Mantri Bhartiya Janaushahi Pariyojana’ (PMBJP) scheme.
The concept revolves around a direct market interventio n scheme to make quality generic medicines available a t affordable prices to all citizens through a specially dedi cated outlet known as Jan Aushadhi Store (JAS).
A medicine under PMBJP is priced at a maximum of 50% of the average price of its top three branded equivalent s
PMBJK targets to cover all districts of India with at least o ne JAS in each district, and a total 10,000 JAS by FY2024.
4 It also plans to broaden the product portfolio to 2000 me 5
dicines and 300 surgical products from the current 800 a nd ~150, respectively.
18
Underpenetrated Generic Medicine Market
4 pillars to drive healthcare
Branded and generic mix of Indian pharma market
19
Financial Summary
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
Q3FY21
3048.27
57.15
3105.42
3166.97
-61.55
-2.02%
80.08
-141.63
-4.65%
3.42
-145.05
-4.76%
-44.26
-100.79
-3.30%
-0.41
21
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
5,138.2
87.1
1,981.0
8,960.7
2,723.3
6,237.4
8,960.7
FY19
8.0
8.0
0.0
214.5
138.6
94.2
103.5
FY20
2,456.0
4,426.9
105.3
1,859.6
8,847.9
2,961.4
5,886.4
8,847.8
H1FY21
2,456.0
4,590.0
102.2
2,676.1
9,824.3
2,643.8
7,180.5
9,824.3
FY20
H1FY21
4.0
4.0
0.0
56.6
97.2
111.8
82.5
8.6
2
0.0
42.3
141.2
112.2
133.2
22
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