Torrent Pharmaceuticals Ltd
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Transcript of Torrent Pharmaceuticals Ltd
Torrent Pharmaceuticals Ltd
Investor Presentation
FY 2011
This information may contain certain forward-looking statements/ details in
the current scenario, which is extremely dynamic and increasingly fraught
with risks and uncertainties. Actual results, performances, achievements or
sequence of events may be materially different from the views expressed
herein. Investors/shareholders/public are hence cautioned not to place
undue reliance on these statements/ details, and are advised to conduct
their own investigation and analysis of the information contained or referred
to in this section before taking any action with regard to their own specific
objectives. Further, the discussion following herein reflects the perceptions
on major issues as on date and the opinions expressed here are subject to
change without notice. The Company undertakes no obligation to publicly
update or revise any of the opinions or forward-looking statements
expressed in this section, consequent to new information, future events or
otherwise.
Caveat
1. Performance Highlights
2. Financials
3. Business Segments
– India
– International
4. Facilities – Expansion Plan
Contents
Q110-11 Highlights
• Revenues at Rs. 5,391 Mn vs. Rs 4,774 Mn
• Revenue growth of 13% on the back of sustained growth from major markets.
• International sales boosted by noticeable performance in Brazil and US operations.
• PBT at Rs. 977 Mn vs. Rs 842 Mn
• Lower margins in Indian formulations business due to investments in new
therapeutic areas and expansion of Field Force
• Improved International margins on the back of higher volumes from US and
Brazilian operations partially offset by adverse currency movements
Financials
Rs. MnSales Progression
ParticularsQ1
10 - 11Q1
09 - 1009 - 10 08 - 09
India 2,235 1,975 7,254 6,240
Gwth % 13% 16%
International 2,565 2,180 9,157 7,970
Gwth % 18% 15%
Latin America 885 658 3,006 2,566
Germany (Heumann) 692 677 2,547 2,573
USA 270 187 909 278
Europe (excl Heumann) 312 282 1,163 1,011
Rest of World 246 244 1,141 885
Russia & CIS 160 132 391 658
Contract Manufacturing 422 495 1,849 1,601
Gwth % -15% 16%
Total Sales 5,245 4,659 18,323 15,865
Gwth % 13% 15%
P&L Rs. Mn
• 09-10 includes one time out-licensing income of Rs 15.6 crs in Q2 09–10
ParticularsQ1
10 - 11Q1
09 - 1009 - 10 08 - 09
Revenues 5,410 4,811 19,160 16,307 Cogs 1,915 1,653 6,770 6,147
% Revenues 35% 34% 35% 38%SG&A Spend 2,036 1,801 6,979 6,451
% Revenues 38% 37% 36% 40%R&D Spend 315 372 1,202 1,119
% Revenues 6% 8% 6% 7%EBITDA 1,143 985 4,209 2,590
% Revenues 22% 21% 23% 16%PBT 977 842 3,472 1,921
% Revenues 18% 18% 18% 12%Tax 235 691 1,160 78
% PBT 24% 82% 33% 4%PAT 742 152 2,312 1,843
% Revenues 14% 3% 12% 11%PAT (Adj for MAT) 742 680 2,840 1,651
% Revenues 14% 14% 15% 10%
Balance SheetBalance Sheet Rs. Mn
Particulars 31.Mar.10 % 30.Jun.10 % ∆SOURCE OF FUNDS: Shareholders' Funds 8,310 59% 9,088 57% 778 Loan Funds 5,224 37% 6,399 40% 1,175 NET DEFERRED TAX LIABILITY 499 4% 513 3% 14
TOTAL 14,033 100% 16,000 100% 1,967
APPLICATION OF FUNDS: Net Fixed Assets 6,510 46% 6,903 43% 393 Long Term Investments 190 1% 190 1% - WORKING CAPITAL:
Inventories 3,236 23% 3,757 23% 520 Sundry Debtors 2,982 21% 3,438 21% 456 Other Current Assets 368 3% 458 3% 90 Loans & Advances 1,138 8% 1,184 7% 46 Less: Current Liab. & Prov. 5,496 39% 6,614 41% 1,119
NET CURRENT ASSETS 2,228 16% 2,222 14% (6)
Cash, Bank & Current Investments 5,105 36% 6,685 42% 1,580
TOTAL 14,033 100% 16,000 100% 1,967
Business Segments
India
Highlights & Growth Drivers Rs. Mn
India
• Highlights
• Consistent sales growth 09-10 Q1 15%; Q2 15%; Q3 15%; Q4 20%; 10-11 Q1 13%
• Volume growth 19%, New Introductions 2%, Price de-growth 3%.
• Torrent growing at 18% vs. Covered Market growth of 23%
• Lower margins on account of Therapeutic and Field force expansion
• Growth drivers
• Consolidate entry into newer geographies and therapeutic areas
• Brand building thru increased Specialty Coverage & Creeping expansion in Customer
Base
• New Product Introductions including filling of Portfolio Gaps
• Entry into new therapeutic area Respiratory
IndiaQ1
10 - 11Q1
09 - 1009 - 10 08 - 09
Revenues 2235 1975 7254 6240% Growth 13% 16% 7%
Business Segments
International Operations
International Operations – Expanding ShareFY 10 - Turnover
I nternationalQ1
10 - 11Q1
09 - 1009 - 10 08 - 09
Revenues 2,710 2,297 9839 8413% Growth 18% 17%
International Revenues Rs. Mn
Growing share of International – up from 26% to 50%
Rs. MnHighlights & Growth DriversBrazil
• Highlights• Reai Volume growth 21%, New Introductions 2%, Price de-growth 1%.
• Torrent growing at 13% vs. Covered Market growth of 13%
• Improved margins on the back of higher sales resulting into improved marketing
spend productivity.
• Largest Indian player in the Brazilian pharmaceutical market
• Growth Drivers
• Existing Products & Introduction of new products (35-40 new launches by 2014-15)• Increase in field force to support portfolio expansion• Entry into Mexico
Piggy-back on Brazil portfolio Launch of Branded Generic (BG) model in CNS with 6 products and field force of
35 people Entry into CV segment in 2011-12 Portfolio to grow to 30 products in 4 years with field force of 200 people
BrazilQ1
10 - 11Q1
09 - 1009 - 10 08 - 09
Revenues 887 669 3078 2605% Growth 33% 18%
• Highlights
• Improving market share in all commercialized molecules
• Citalopram ~ 26% (26%), Zolpidem ~ 22% (20%) as per WKH retail
• Higher sales leading to operating profits before R&D
• 20 ANDA's approved till date (10 actively marketed)
• Growth Drivers
• 5 New Introduction in FY 11 including 4 day 1 launches
• 28 ANDA's pending for approval & 37 ANDA's under development
• Break-even likely by 2011-12
Highlights & Growth Drivers Rs. Mn
USA
USAQ1
10 - 11Q1
09 - 1009 - 10 08 - 09
Revenues 281 194 943 289% Growth 44% 226%
Rs. MnHighlights & Growth Drivers
• Highlights
• Approx 70% of the covered market under tenders• Trend expected to continue with more insurance companies in the process of
announcing tenders• Euro sales growth of 17%, volume growth of 66%, price de-growth of 71% and New
product 22%
• Stable margins on the back of lower marketing spend offset by reduced prices on sales through tenders
• Growth Drivers
• Heumann successful in winning tenders
• New Products going off patent and Therapy coverage expansion
• Shift of manufacturing base to India to boost competitiveness in bidding
Germany - Heumann
Germany (Heumann)
Q1 10 - 11
Q1 09 - 10
09 - 10 08 - 09
Revenues 697 707 2639 2659
% Growth -2% -1%
Rs. MnHighlights & Growth DriversEurope (excl Heumann)
• Highlights
- Indapamide, Lamotrigine and Lecarnidipine contributes nearly 70% of total sales.
- Lower margins due to unfavorable product mix and adverse forex movements
• Growth Drivers
- New Product Pipeline – 50 products till 2014-15
- Increasing geographical through direct field force presence in UK in the immediate term.
Europe (exc Heumann)
Q1 10 - 11
Q1 09 - 10
09 - 10 08 - 09
Revenues 365 332 1400 1245
% Growth 10% 12%
Rs. MnHighlights & Growth DriversROW
• Highlights
• Top line growth of 12% (19% currency adjusted) after one off adjustments
• Lower margins due to unfavorable product mix and increased spend for new
geographies
• Growth Drivers
• Entry into semi-regulated markets like Thailand (Market Size of over USD 2 bio) –
Revenues expected to flow from FY12.
• Increased focus on existing territories with direct field force presence viz Philippines, Sri
Lanka, Vietnam & Myanmar
• Scale up of operations in regulated markets like Australia & semi-regulated markets like
South Africa.
• Minimize development costs by leveraging on R&D costs incurred for developed markets
ROWQ1
10 - 11Q1
09 - 1009 - 10 08 - 09
Revenues 261 256 1204 928% Growth 2% 30%
Facilities – Expansion Plan
Sikkim
• Nature: New Formulation
Facility
• Project Cost: Rs. 135 crores
• Planned capacities: 3900
million tablets p.a.
• Timelines for completion:
2010 - 2011
• Justification:
• IT and Excise exemption for 10
years
• With growing domestic market,
Baddi plant is expected to
achieve 100% capacity
utilization in 2-3 years
Chatral
• Nature: Formulation Capacity
Enhancement
• Project Cost: Rs. 56 crores
• Planned capacities: 1800 million
tablets / capsules p.a.
• Timelines for completion: 2010-
11
• Justification:
– With growing international
sales capacity constraint in
existing facility is anticipated
in 2-3 years
Chatral
• Nature: API Capacity
Enhancement
• Project Cost: Rs. 113 crores
• Planned capacities: 60 TPA
plus separate facility for exhibit
batch manufacturing
• Timelines for completion:
2010-11
• Justification:
– With growing volumes in
US / EU, API capacity
constraint is anticipated 2-
3 years
– Greater control over API
CostsDahej SEZ• Nature: Formulation & API Capacity Enhancement• Project Cost: Rs. 771 crores• Planned capacities:50 TPA plus 9200 million tablets / capsules p.a.• Timelines for completion: 2013-14• Justification:
– With growing volumes in US / EU, API + Formulation capacity constraint is anticipated 2-3 years
Facilities – Expansion Plan
Thank You