Zota Health Care LImited has informed the Exchange about Investor Presentation
i-zoto'
healthcare ltd.
June 29,2021
To, The Manager Listing Department, The National Stock Exchange of lndia 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 Obligations and Disclosure Requirements) Regulations, 2015
With reference to the captioned subject we, Zota Health Care Limited are submitting herewith enclosed the lnvestor Presentatlon in respect of Audited Financial Results for the quarter and year ended March 37, 202!.
This is for your information and record.
Thanking you,
Yours falthfully,
Health Care [imited
Ashvin Variya (Company Secretary & Compliance
Place: Surat
Encl: a/a
,f{
,
,.i..1
,-l
S'--r}
Registered office : Zoto House 2/896. Hiro Modi Street. Sogrompurq. Surot - 195 OO2 Ph: +91 261 2331601 Emqil: nfo@zotoheolthcqrecom Web : \& /r'wzotoheolthcore.com
Plont : Plot no. 169, Surot Speclol Economlc Zone, Nr Sqchln Roilwqy Stotion Sochin, Surot - 394 23O (Guj.) Indiq Ph:'+91 261 2397122
C N : 12423']GJ2OOOPLCO38352
Q4&FY21
P E R F O R M A N C E H I G H L I G H T S
J U N E 2 0 2 1
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.
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
02
z o t a h e a l t h c a r e . c o m
Table Of Contents
z o t a h e a l t h c a r e . c o m
01
02
RESULT HIGHLIGHTS
OPERATIONAL METRICS
03
DAVAINDIA
04
05
BUSINESS OUTLOOK & STRATEGY
FINANCIAL SUMMARY
Q4FY21- Result Highlights
z o t a h e a l t h c a r e . c o m
Consol Quarterly Financial Highlights
Q-o-Q
Revenues (₹ Lakhs)
Gross Profit (%)
Operating Profit (₹ Lakhs)
PAT (₹ Lakhs)
3064.26
Q4-FY21
29.57%
Q4-FY21
-14.24
Q4-FY21
-68.06
3,048.27
Q3-FY21
29.78%
Q3-FY21
-118.70
Q3-FY21
-100.79
Q4-FY21
Q3-FY21
Y-o-Y
Revenues (₹ Lakhs)
Gross Profit (%)
Operating Profit (₹ Lakhs)
PAT (₹ Lakhs)
Q4-FY21
Q4-FY20
05
3,064.26
Q4-FY21
29.57%
Q4-FY21
-14.24
Q4-FY21
-68.06
2,307.96
Q4-FY20
32.87%
Q4-FY20
152.74
Q4-FY20
72.70
z o t a h e a l t h c a r e . c o m
Revenue Break up – Quarterly
Domestic Sales
Dava India Sales
Export Sales (SEZ)
7 6 8 . 7
6 9 3 . 5
1 , 0 2 0 . 3
1 , 0 1 3 . 4
3 2 5 . 0
Q 4 - F Y 2 0
Q 3 - F Y 2 1
Q 4 - F Y 2 1
5 3 6 . 4
Q 4 - F Y 2 0
Q 3 - F Y 2 1
Q 4 - F Y 2 1
1 , 4 4 6 . 5
Q 4 - F Y 2 0
06
1 , 3 3 4 . 5
Q 3 - F Y 2 1
1 , 2 8 2 . 2
Q 4 - F Y 2 1
z o t a h e a l t h c a r e . c o m
FY- Result Highlights
z o t a h e a l t h c a r e . c o m
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
08
Q4FY21
Q4FY20
1,013.4 768.7 1,282.2 3,064.26 2,158.19 906.07 29.57% 920.31 255.08 665.23 -14.24 -0.46% 24.62 10.38 0.34% 86.05 -75.67 -2.47% 5.33 -81.00 -2.64% -12.94 -68.06 -2.22%
536.4 325.0 1,446.5 2,307.96 1,549.33 758.6 32.87% 605.89 268.55 337.34 152.74 6.62% 53.26 206 8.93% 99.59 106.41 4.61% 2.29 104.12 4.51% 31.46 72.7 3.15%
YoY %
89% 137% -11% 33% 39% 19% (330 bps) 52% -5% 97% -109% (708 bps) -54% -95% (859 bps) -14% -171% (708 bps) 133% -178% (715 bps) -141% -194% (537 bps)
QoQ %
-1% 11% -4% 1% 1% 0% (22 bps) -10% 10% -16% -88% 343 bps -57% -117% 236 bps 7% -47% 218 bps 56% -179% 212 bps -57% -32% 102 bps
Q3FY21
1020.25 693.5 1,334.52 3,048.27 2,140.35 907.92 29.78% 1026.62 231.66 794.96 -118.70 -3.89% 57.15 -61.55 -2.02% 80.08 -141.63 -4.65% 3.42 102.36 -4.76% -29.87 -100.79 -3.25%
z o t a h e a l t h c a r e . c o m
Management Commentary
01
04
09
The new-age businesses of the Company i.e. Dava India and Exports have recorded their best ever quarterly performance in terms of Revenue from Operations in Q4FY21.
The Company has registered highest-ever quarterly Standalone Revenue of ₹3,064.26 Lakhs and gross margins of 29.57% in Q4FY21.
02
05
This is in line with the Company’s strategy of increasing overall Revenue contribution from new-age businesses, and reducing dependence on Domestic marketing.
03
The sales contribution from new-age business stands at 58.14% in Q4FY21 as compared to 37.32% in Q4FY20 and 56.22% in Q3FY21.
EBITDA stood at Rs 10.38 Lakhs, with margins at 0.34% due to higher operational expenses driven by the aggressive expansion of Davaindia operations.
06
FY21 Consolidated Revenue stood at ₹10,678.92 Lakhs as compared to ₹9,511.3 Lakhs in FY20.
z o t a h e a l t h c a r e . c o m
Management Commentary
DOMESTIC OPERATIONS
Domestic Revenues registered a growth of 15.77% at ₹ 2050.9 Lakhs YoY, due to higher revenue from Davainda operations.
EBITDA at ₹ (170.87) Lakhs for Q4FY21 due to higher operational expenses of Davaindia.
PAT stood at at ₹ (198.09) lakhs for Q4FY21.
*Here, Domestic Operations includes the operations of Davaindia.
EXPORTS
Exports revenues grew 89% on YoY at ₹ 1,013.39 Lakhs in Q4FY21 with better utilisations and export to newer countries
EBITDA stood at ₹ 181.25 Lakhs with margins of 17.88% margins for Q4FY21.
PAT stood at ₹ 130.03 lakhs for Q4FY21.
010
z o t a h e a l t h c a r e . c o m
Davaindia Generic Pharmacy
z o t a h e a l t h c a r e . c o m
Davaindia Key Figures
SKU’s
Stores rolled-out
1 , 3 1 0
1 , 3 3 3
1 , 3 3 8
1 , 3 5 3
1 , 3 6 8
1 , 3 7 1
1 , 4 3 1
1 , 2 5 0
1 , 1 5 0
1 0 9 1 0 0
9 9
4 5
3 9
3 3
2 9
3 2
3 1
Q 4 - F Y 1 9
Q 1 - F Y 2 0
Q 2 - F Y 2 0
Q 3 - F Y 2 0
Q 4 - F Y 2 0
Q 1 - F Y 2 1
Q 2 - F Y 2 1
Q 3 - F Y 2 1
Q 4 - F Y 2 1
Q 4 - F Y 1 9
Q 1 - F Y 2 0
Q 2 - F Y 2 0
Q 3 - F Y 2 0
Q 4 - F Y 2 0
Q 1 - F Y 2 1
Q 2 - F Y 2 1
Q 3 - F Y 2 1
Q 4 - F Y 2 1
012
z o t a h e a l t h c a r e . c o m
Davaindia Key Figures
Average Wallet Spend
No. of Customers Served
2 0 9
2 0 4
1 8 1
1 5 9
1 6 4
1 5 2
1 3 2
1 2 6
1 3 6
2 , 5 9 , 0 2 2
2 , 6 7 , 0 3 0
2 , 7 5 , 5 2 0
2 , 3 1 , 1 0 0
2 , 2 1 , 9 7 5
4 , 4 0 , 4 5 8
3 , 5 2 , 6 2 3
3 , 3 8 , 4 1 5
3 , 2 3 , 3 9 5
Q 4 - F Y 1 9
Q 1 - F Y 2 0
Q 2 - F Y 2 0
Q 3 - F Y 2 0
Q 4 - F Y 2 0
Q 1 - F Y 2 1
Q 2 - F Y 2 1
Q 3 - F Y 2 1
Q 4 - F Y 2 1
Q 4 - F Y 1 9
Q 1 - F Y 2 0
Q 2 - F Y 2 0
Q 3 - F Y 2 0
Q 4 - F Y 2 0
Q 1 - F Y 2 1
Q 2 - F Y 2 1
Q 3 - F Y 2 1
Q 4 - F Y 2 1
013
z o t a h e a l t h c a r e . c o m
Davaindia- Generic Pharmacy
During the quarter Davaindia has catered to 4.40 lakhs customers against 2.75 lakhs in Q4FY20, coupled with, increasing Average Wallet Spends which has led to Revenue growth of 137% from Davaindia on Y-o- Y basis.
Davaindia has led the revolution of patients opting for generic medicines against branded counterparts. Till Q4FY21 Davaindia has catered to more than 3.07 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 100 new stores in Q4FY21 taking the total store count to 591 as of March 31, 2021. New store additions in Q4FY21 have been focused on Uttar Pradesh, Delhi, Haryana, Maharashtra, and the addition of newer states such as Tamil Nadu 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. 1,431 has enabled Davaindia to better serve customers across all segments. Thus increasing its customer spends across varied price points, the Average Wallet Spend was ₹204 in Q4FY21.
14
z o t a h e a l t h c a r e . c o m
Davaindia- Generic Pharmacy
15
z o t a h e a l t h c a r e . c o m
Davaindia- COCO Stores
16
z o t a h e a l t h c a r e . c o m
Davaindia Footprints
591
TOTAL NUMBER OF STORES
Legend
Davaindia Stores
States
Assam Bihar Chattisgarh Goa Gujarat Haryana Himachal Pradesh Jharkhand Karnataka Kashmir Kerala Madhya Pradesh Maharashtra Meghalaya New Delhi Odisha Punjab Rajasthan Tamil Nadu Telengana Tripura Uttarakhand Uttar Pradesh West Bengal
No. of Stores
04 03 05 01 138 25 03 06 05 02 11 84 109 01 43 24 09 20 01 03 04 04 75 11
17
z o t a h e a l t h c a r e . c o m
Management Commentary
Commenting on Q4 and FY21 financial performance and operational highlights, Management Team of Zota Health Care said,
“We are happy to report a great set of developments in a rather challenging year, as you all must be aware, FY21 has been a difficult year for consumer companies across the board as COVID-19 led disruptions and lockdowns dampened consumer sentiments across the year. Unfortunately, all hopes for recovery were crushed after a ferocious spread of the 2nd wave; however, timely vaccination efforts provide some hope that COVID-19 can soon be controlled. In a year like FY21, we are happy to report that we opened 339 Davaindia stores and served more than 14.5 lakh customers with quality generic medicines and products. In addition, to higher store roll-out in the H2 of FY21, we also witnessed a steady upward trend in our Average Wallet Spend, which increased from ₹159 in Q4FY20 to ₹204 in Q4FY21. The company has also been receiving encouraging response to its COCO format stores, and there are definitive plans to add more COCO stores in the coming quarters.
Going forward, we are expecting to be better on all three fronts i.e. Store Roll-out, Average Wallet Spend, and Numbers of Customers Serves; these factors coupled with sales contribution from newly opened stores will give us good headroom to grow in FY22. Our second new-age business i.e. Exports, is also performing well on all fronts, recent product registrations will help us grow this business further. Our continuous focus on new-age businesses will transform Zota Health Care into a newer, better version of itself.”
018
z o t a h e a l t h c a r e . c o m
Industry Snapshot & Business Strategy
z o t a h e a l t h c a r e . c o m
Retail Generic Medicine Landscape in India
To achieve the objective of making available quality generic medicines at affordable prices to all, ‘Jan Aushadhi Scheme’ was launched by the Department of Pharmaceuticals, Ministry of Chemicals & Fertilizers, Government of India across the county. The scheme was later renamed to Pradhan Mantri Bhartiya Janaushadhi Pariyojna (PMBJP)
Objectives of PMBJP
Savings to the common man
Strong Implementation
• To make available quality medicines consumables and surgical items at affordable prices for all and thereby reduce out of pocket expenditure of consumers/patients.
• To popularize generic medicines
among the masses and dispel the prevalent notion that low priced generic medicines are of inferior quality or are less effective.
• Generate employment by
engaging individual entrepreneurs in the opening of PMBJP Kendras.
• A medicine under PMBJP is priced on the principle of a maximum of 50% of the average price of the top three branded medicines. Therefore, the price of Jan Aushadhi Medicines is cheaper at least by 50% and in some cases, by 80% to 90% of the market price of branded medicines.
• The Product Basket of the scheme
now covers more than 1,449 medicines and 204 surgical & consumables.
• Presence in all major therapeutic categories such as Anti-infective, Anti-allergic, Anti-diabetics, Cardiovascular, Anti-cancers, Gastro- intestinal medicines, etc.
• As on 24/06/2021, 7,855 PMBJP
Kendras are functional in the country. Pradhan Mantri Bhartiya Janaushadhi Pariyojana has marked its presence in almost every district of India by covering 732 districts out of 734.
20
z o t a h e a l t h c a r e . c o m
Impact of PMBJP
In the financial year (2019-20), PMBJP has achieved sales of ₹258 crores (at MRP), up to 30-11-2019. This has led to savings of approximately ₹1,800 crores of the common citizens of the country.
Growth in number of stores
Growth in turnover
Product basket
Price of Janaushadhi medicines to branded medicines
(Number of stores as on 31st March of the year)
(Sales value in crore)
(No of Medicines)
5 , 9 2 8
5 , 1 4 0
3 , 3 2 2
1 4 1
3 1 5
3 0 3
9 0 0
3 7 1
7 0 0
6 0 0
4 8 8
2 0 1 6 - 1 7
2 0 1 7 - 1 8
2 0 1 8 - 1 9
2 0 1 9 - 2 0
2 9 5
5 0 %
C h e a p e
r
b y
1 4 1
8 0 - 9 0 %
C h e a p e
r
b y
7 0 - 8 0 %
C h e a p e
r
b y
9 4
6 0 - 7 0 %
C h e a p e
r
b y
8 0
2 0 1 3 - 1 4
9 9
2 0 1 4 - 1 5
2 6 9
2 0 1 5 - 1 6
1 , 0 8 0
2 0 1 6 - 1 7
7
2 0 1 4 - 1 5
1 2
2 0 1 5 - 1 6
3 3
2 0 1 6 - 1 7
2 0 1 7 - 1 8
2 0 1 8 - 1 9
2 0 1 9 - 2 0
2 0 1 7 - 1 8
2 0 1 8 - 1 9
2 0 1 9 - 2 0
Note : 2019-20 – till 31/12/2019
Note : 2019-20 – till 31/12/2019
Note : 2019-20 – till 31/12/2019
21
z o t a h e a l t h c a r e . c o m
Underpenetrated Generic Medicine Market
4 pillars to drive healthcare
4 As of healthcare
Branded and generic mix of Indian pharma market (%)
Overall India
Urban India
Rural India
8
6
15
1
Accessibility
2
Affordability
3
Awarness
4
Aliments
• Setting up of new
• Higher per capita
• Rising literacy
• Growing incidence
92
94
85
hospitals
income
• Higher number of
• Rising insurance
doctors
penetration
• Government
initiatives
• Cost advantage of
India
of non- communicable diseases
• Growing
urbanization
Generic GX
Branded GX
Source : CLSA
Source : IQVIA, CLSA
22
z o t a h e a l t h c a r e . c o m
Financial Summary
z o t a h e a l t h c a r e . c o m
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
24
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
10678.92
125.97
10804.89
10616.46
188.43
1.76
316.87
-128.44
-1.2
10.98
-139.42
-1.3
15.65
-20.89
-0.2
-0.09
z o t a h e a l t h c a r e . c o m
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
FY20
4.0
4.0
0.0
56.6
97.2
111.8
82.5
FY21
2,456.0
4,173.6
95.1
1,822.7
8,547.5
2,427.0
6,120.5
8,547.5
FY21
-1.9
-0.3
0.0
-11.7
96.3
98.3
77.7
25
z o t a h e a l t h c a r e . c o m
Thank You
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