Sequent Scientific Limited has informed the Exchange regarding a revised press release dated February 03, 2021, titled "Revised Press Release and Investor Presentation for the quarter and nine months ...
Proven Ability In Life Sciences
February 3, 2021
BSE Limited Corporate Relationship Department Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai – 400 001.
Scrip code: 512529
Dear Sir/ Madam,
National Stock Exchange of India Limited Listing Department Exchange Plaza, Bandra-Kurla Complex, Bandra (East), Mumbai – 400 051.
Symbol: SEQUENT
Sub: Revised Press Release and Investor Presentation for the quarter and nine months ended
December 31, 2020
We are submitting a revised copy of Press Release and Investors Presentation on the Unaudited Standalone and Consolidated Financial Results for the quarter and nine months ended December 31, 2020. We have corrected few typo errors in the Press Release and Investor Presentation as explained below:
Page No. 1 of the Press Release Heading: -Percentage (%) increase in Revenues inadvertently mentioned as 31.2% instead of 13.2%.
Page No. 10 of the Investor Presentation: - API YoY which was written as Q2FY20 is corrected as Q3FY20.
We regret for the inconvenience caused and request you to take the revised Press Release and Investor Presentation on record.
Thanking you,
Yours faithfully, For Sequent Scientific Limited
Krunal Shah Company Secretary & Compliance Officer
Encl.: A/a
SeQuent Scientific Limited
Registered Office: 301/A, 'Dosti Pinnacle', Plot No.E7, Road No. 22, Wagle Industrial Area, Thane(W}, Mumbai - 400604, India Tel: +9122 4111777 I CIN: L99999MH1985PLC036685 http://www.sequent.in
SeQuent Announces Q3 and 9M FY21 results: Execution focus ensures Revenue and Margin momentum Q3 FY21 - Revenues at Rs. 3,582 Million up by 13.2%, EBITDA at Rs. 651 Million up 34.5%
SeQuent Scientific Limited (SeQuent), which has businesses across Animal Health (Alivira) & Analytical Services today announced its financial results for the period ended December 31, 2020.
Consolidated Financial Highlights
Mumbai, February 3, 2021
Revenues
EBITDA
EBITDA Margin %
PAT
PAT margin %
Q3 FY21
Q3 FY20
Growth (%)
9M FY21
9M FY20
Growth (%)
3,582
651
18.2%
372
10.4%
3,164
484
15.3%
203
7.6%
13.2%
34.5%
290bps
83.3%
280bps
10,148
1,770
17.4%
878*
8.7%
8,787
1,247
14.2%
531
6.0%
15.5%
41.9%
325bps
65.6%
265bps
Rs. in millions
*PAT accounting for one-off cost in Q2 FY21
Detailed presentation on the performance forms part of this press release.
Commenting on the Company’s performance, Manish Gupta, Managing Director stated “We are pleased to report another strong quarter of performance across all key parameters; while revenues have grown 15.5%, the EBITDA has grown by 42% with a 325 bps margin improvement in the first nine months. With a growth of 66% in net profits, the business generated ₹ 1.6 bn in cash from operations enabling us to pare down debt significantly. ROCE of the business now exceeds 21% reflecting our capital efficiency.
For the second successive year, IHS Markit Animal Health chose Alivira as the best company in animal health from India, Middle East and Africa region.
We stay confident of sustaining this momentum for the foreseeable future as we expand our horizons and leverage the expertise and reach of our global Board.”
Earnings Call with Investors
The Company will conduct an Earnings call at 8:45 AM IST on February 4, 2021 where the Management will discuss the Company’s performance and answer questions from participants. To participate in this conference call, please dial the numbers provided below ten minutes ahead of the scheduled start time. The dial-in numbers for this call are +91 22 6280 1263 or +91 22 7115 8213.
About SeQuent Scientific Limited
SeQuent Scientific Limited (BSE-512529, NSE-SEQUENT) is India’s largest and amongst the ‘Top 20’ global animal health companies with annual revenues of ~$ 200Mn. With 8 manufacturing facilities across Europe, Turkey, Brazil & India; over 2/3rd revenues of the company come from regulated markets. Backed by global investment firm ‘The Carlyle Group’ as promoter, it’s plant at Vizag is the only USFDA approved veterinary APIs facility in India.
For details, feel free to contact:
Tushar Mistry
Chief Financial Officer Tel: +91 22 4111 4717 tushar.m@sequent.in
Diwakar Pingle
Christensen Investor Relations Tel : +91 22 4215 0210 dpingle@christensenir.com
Abhishek Singhal
Investor Relations Consultants abhishek.s@sequent.in
Registered Office
301/A, ‘Dosti Pinnacle', Plot No. E7, Road No. 22, Wagle Industrial Area, Thane (W), Maharashtra, India CIN:
L99999MH1985PLC036685
BSE Code:512529 I NSE: SEQUENT
ISIN: INE807F01027 I REUTERS: EQU.BO
Websites: www.sequent.in
Certain statements in this document that are not historical facts are forward looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local, political or economic developments, technological risks, and many other factors that could cause actual results to differ materially from those contemplated by the relevant forward- looking statements. SeQuent Scientific Ltd. will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.
Earnings Presentation
Q3 & 9MFY21
February 3, 2021
Disclaimer
Except for the historical information contained herein, statements in this presentation and the subsequent
discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may",
"expect", "will continue", "anticipate", "estimate", "intend", "plan", "contemplate", seek to", "future",
"objective", "goal", "likely", "project", "should", "potential", "will pursue", and similar expressions of such
expressions may constitute "forward-looking statements“. These forward looking statements involve a
number of risks, uncertainties and other factors that could cause actual results to differ materially from those
suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to
our ability to successfully implement our strategy, our growth and expansion plans, obtain regulatory
approvals, our provisioning policies, technological changes,
investment and business income, cash flow
projections, our exposure to market risks as well as other risks. The Company does not undertake any
obligation to update forward-looking statements to reflect events or circumstances after the date thereof.
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Management Commentary
“We are pleased to report another strong quarter of performance across all key parameters; while revenues have grown 15.5%, the EBITDA has grown by 42% with a 325 bps margin improvement in the first nine months. With a growth of 66% in net profits, the business generated ₹ 1.6 bn in cash from operations enabling us to pare down debt significantly. ROCE of the business now exceeds 21% reflecting our capital efficiency.
For the second successive year, IHS Markit Animal Health chose Alivira as the best company in animal health from India, Middle East and Africa region.
We stay confident of sustaining this momentum for the foreseeable future as we expand our horizons and leverage the expertise and reach of our global Board. ”
Managing Director, Manish Gupta
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Q3 and 9M FY21 Performance Review
Steady Performance
Revenues
EBITDA
PAT
Cash from Operations
Q3 FY21
Q3 FY20
Q3 FY21
Q3 FY20
Q3 FY21
Q3 FY20
Q3 FY21
Q3 FY20
Q3 FY21
YoY
9M FY21
3,582
9M FY21
10,148
3,164
9M FY20
8,787
13.2%
YoY
15.5%
651
372
667
484
203
537
34.5%
83.3%
24.2%
5
9M FY21
9M FY20
9M FY21*
9M FY20
9M FY21
9M FY20
1,770
41.9%
1,247
878
65.6%
1,684
2.0x
531
843
*PAT accounting for one-off cost in Q2 FY21
Execution focus ensures momentum
All values in ₹ Mn
Revenue Distribution
Q3 FY21
Q3 FY20
YoY%
YoY% (Constant Currency)
9M FY21
9M FY20
YoY%
YoY% (Constant Currency)
Formulations
Europe
LATAM
Turkey
Emerging Markets
India
APIs
Global Sales
2,285
1,025
424
343
257
236
1,297
3,582
2,113
974
287
379
367
107
1,052
3,164
8.2%
5.3%
47.9%
(9.5%)
(30.0%)
121.6%
23.3%
13.2%
12.7%
(5.6%)
87.0%
18.4%
(34.8%)
121.6%
20.0%
15.1%
6,549
3,050
1,111
1,098
693
597
3,598
10,148
5,855
2,700
799
1,047
998
312
2,931
8,787
11.9%
13.0%
39.1%
4.9%
15.0%
2.7%
76.4%
24.8%
(30.7%)
(35.3%)
91.3%
22.7%
15.5%
91.3%
17.2%
15.7%
Overall Business Grew 15.1% CC during the quarter; strong growth across both APIs and Formulations Demonstrable strength in business model with consistency of growth across quarters, YTD growth at 15.7% in challenging environment API Business grew 17.2%
Formulations Business grew 15.0%
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Alivira wins again at the IHS Animal Pharm 2020 Awards
Alivira is awarded the best Company in Animal health from India/Middle East/Africa Region
This is the second year in succession when IHS Markit Animal Health has chosen Alivira for this honour and takes into account our continuing strong out-performance in the industry across the globe
Within the sixth year of our business, not only are we largest from India, but now amongst the ‘Top 20’ players across the globe
Animal Pharm's annual industry awards honour achievements within the animal health sector over the calendar year. A panel of judges comprised of industry experts evaluate the nominations and select the winners
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Q3 & 9M FY21 Business Review
Formulations building on the globally diversified presence…
Highlights
FDFs
1000+
Europe subdued due to the operational challenges of the second wave of Covid Spain & Germany impacted while Benelux & Sweden reported strong growth European growth to accelerate as we gain traction in our recent launches of Citramox LA & Halofusol. Tulathromycin launch to reflect from the current quarter
• •
Brazil & Turkey continue to grow strongly driven by market share gain in existing portfolio and new launches India has now emerged as an important market with business more than doubled in last nine months. Integration of Zoetis portfolio in our product offering completed Cautious approach in the Emerging markets with focus only on the secured payment business
Q3FY21
Q3FY20
YoY% (cc)
9M FY21
9M FY20
All values in ₹ Mn YoY% (cc)
2,285
2,113
12.7%
6,549
5,855
15.0%
Manufacturing facilities
5
Sales to regulated markets
65%+
Countries with marketing presence
80+
9
9
... APIs deepening relationship with global AH players…
Highlights Highlights
Highest quarterly sales of ₹1,297Mn with growth of 20.0%
1/3rd sales from global Top-10 AH players in 9M
11 CEP & 21 US filings/approvals in total (1 CEP approval and 1 USVMF filing in Q3)
Enhanced capacities at Mahad (completed in Q3) and Vizag (to be completed in Q4) to drive growth in FY22
Q3FY21
Q3FY20
YoY% (cc)
9M FY21
9M FY20
All values in ₹ Mn YoY% (cc)
1,297
1,052
20.0%
3,598
2,931
17.2%
Commercial APIs
27
Manufacturing facilities
3
Sales to regulated markets
75%+
Asset turnover ratio
2.5x
10
10
… Focused R&D Initiatives to drive future growth
Formulations
Highlights Highlights
Products Under Development
35+
R&D Centres
4
Injectables
38%
Filings in US in next 3 years
10
API
Molecules in pipeline
14+
R&D Centre
1
US Filings
21
CEP Approvals
11
11
11
Financials
Consolidated Financials: Q3 and 9M FY21
PARTICULARS
Q3 FY21 Unaudited
Q2 FY21 Unaudited
Q3 FY20 Unaudited
9M FY21 Unaudited
9M FY20 Unaudited
FY20 Audited
All values in ₹Mn
Revenue from Operations Material Consumption Gross Margin % Operating Expenses EBITDA % Exchange Gain / (Loss) Other Income Finance Cost Depreciation Exceptional Items Earnings Before Tax Taxes Earnings After Tax Minority Interest Earnings after Minority Interest Earnings per share ₹
13
3,582 (1,784) 1,798 50.2% (1,147) 651 18.2% 12 28 (62) (116) - 513 (116) 397 25 372 1.52
3,463 (1,807) 1,656 47.8% (1,058) 598 17.3% (34) 26 (74) (133) (90) 293 (80) 214 1 213 0.86
3,164 (1,618) 1,546 48.9% (1,063) 484 15.3% 16 10 (96) (131) - 283 (42) 241 38 203 0.83
13
10,148 (5,186) 4,962 48.9% (3,191) 1,770 17.4% (33) 70 (212) (379) (90) 1,125 (270) 855 61 794 3.22
8,787 (4,556) 4,230 48.1% (2,983) 1,247 14.2% 9 83 (264) (375) - 699 (61) 638 108 531 2.17
11,792 (6,051) 5,742 48.7% (3,984) 1,758 14.9% (55) 101 (357) (506) - 941 (120) 820 121 699 2.85
Key Balance Sheet Items
Particulars
Dec-20
Sep-20
Mar-20
Balance Sheet Highlights
All values in ₹Mn
Shareholders Funds
Minority Interest
Net Debt
Investments
Tangible Assets
Intangible Assets
Working Capital
7,953
511
1,307
658*
3,561
2,699
3,048
7,483
478
1,496
594*
3,448
2,737
3,042
7,428
447
2,282
1,313
3,560
2,897
3,127
Cash flow generation of ₹1.5Bn+ from operations drives net debt reduction of ₹975Mn in 9M
Prepayment of all INR denominated term loans of ₹1,250Mn will lead to substantial interest savings going forward
Consolidation of minority interest in Turkey and Netherlands completed
Driving growth in consonance with continued focus on Working capital
*Represents market value of Solara shares
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Strengthening financial performance over the years
EBITDA Margin
Net debt to EBITDA
ROCE*
17.4%
2.81
1.90
14.9%
12.8%
10.3%
21.4%
14.7%
11.7%
1.30
7.8%
0.55
FY18
FY19
FY20
9MFY21*
FY18
FY19
FY20
9MFY21*
FY18
FY19
FY20
9MFY21*
Judicious capital utilization and operating leverage leads to 2.5x growth in ROCE
15
15
Delivering on guidance
FY21
New members in Board and Advisory
New Promoter
Consolidation of Subsidiaries
FY21 Outlook
9MFY21 status
▪ High-teen
revenue growth
Strong Financials
▪ 200+ bps margin
expansion
▪ 15.5% revenue
growth
Consolidation of Analytical lab
▪ 325 bps margin
expansion
Partnering industry leading consultants like Stonehaven to develop strategy
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Thank You
1 7
For details, feel free to contact:
Tushar Mistry
Chief Financial Officer
+91 22 4111 4717
tushar.m@sequent.in
Abhishek Singhal
Diwakar Pingle
Investor Relations Consultant
Christensen Investor Relations
abhishek.s@sequent.in
+91 22 4215 0210
dpingle@christensenir.com
Registered Office: 301/A, ‘Dosti Pinnacle', Plot No. E7, Road No. 22, Wagle Industrial Area, Thane (W), Maharashtra, India
Websites: www.sequent.in, www.alivira.co | CIN: L99999MH1985PLC036685 | BSE Code:512529 | NSE: SEQUENT | ISIN: INE807F01027
Certain statements in this document that are not historical facts are forward looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local, political or economic developments, technological risks, and many other factors that could cause actual results to differmaterially from those contemplated by the relevant forward-looking statements. SeQuent Scientific Ltd. will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.