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InvestorPresentation Q4-FY21
InvestorPresentation Q4-FY21
Corporate Office
2"d Floor, Serene Chambers, Road No. 7
Banjara Hills, Hyderabad - 50003~. Telangana, India
T +91 ~ 0 66 59 ~333, 3980 ~333, 23~2 0500 I 501
LAURUS Labs
F +91 ~0 66 59 ~320 I 3980 ~320 Knowledge . Innovation . Excellence
April29, 2021
To To
Dear Sirs,
Please find enclosed the presentation to the Investors/Analysts on the Standalone and
Consolidated Financial Results of the Company for the Quarter and year ended March 31,
2021, for the Investors/Analysts call scheduled on April 30, 2021, which was already
intimated on April 26, 2021.
The presentation is also being uploaded on the website of the Company www.lauruslabs.com.
Thanking you,
Yours sincerely,
For Laurus Labs Limited
· ~~
G. Venkateswar'Redd~____,
Company Secretary
Encl: As above
Registered Office : Plot No:21 , Jawaharlal Nehru Ph arm a City, Parawada, Visakhapatnam - 53102 1, Andhra Pradesh, India. CI N : L2~239AP2005PLCO~ 7518
T +91 891 660 1222, 306 1222, F +91 891 660 1270, 306 1270, E info@lauruslabs.com W lauruslabs.com
BSE: 540222
NSE : LAURUSLABS
Disclaimer
This presentation contains statements that constitute “forward looking statements” including and without
limitation, statements relating to the implementation of strategic initiatives, and other statements relating to
our future business developments and economic performance. While these forward looking statements
represent our judgment and future expectations concerning the development of our business, such statements
reflect various assumptions concerning future developments and a number of risks, uncertainties and other
important factors that could cause actual developments and results to differ materially from our expectations.
These factors include, but are not limited to, general market, macro-economic, governmental and regulatory
trends, movements in currency exchange and interest rates, competitive pressures, technological
developments, changes in the financial conditions of third parties dealing with us, regulatory and legislative
developments which could adversely affect our business and financial performance.
Laurus Labs undertakes no obligation to publicly revise any forward looking statements to reflect future events
or circumstances.
No part of this presentation may be reproduced, quoted or circulated without prior written approval from
Laurus Labs Limited.
2
₹ Cr
Consistent Quarterly Performance
Revenue (YoY Gr 70 %) EBITDA (YoY Gr 176%) MARGIN %
33% 34% 34%
1,412 29%
1,289
1,139
23%
20% 21%
974
839 16%
712 730 477
433
551 379
284
193
140 150
87
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21 FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21
PAT (YoY Gr 286%) 21% EPS ₹ (face value ₹ 2/- per share)
300 Margin % 18%
(YoY Gr 281%)*
297 5.5
250
150
8% 172 3.2
2.1
100
110 6%
50
3% 73 1.1 1.4
57
0 15 1%
0.2
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21 FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21
* The equity shares of the Company of ₹ 10/- each sub-divided into 5 equity shares of ₹ 2/- each w.e.f. September 30, 2020, accordingly EPS has been restated. 3
YOY Gr : FY 21 full year vs FY 20 full year
Business Snapshot
Division Generic API • Generic FDF • Synthesis (CDMO) • Bio
Overview • Development, manufacture and sale of • Developing and manufacturing oral solid • Contract development and manufacturing • Bio - Manufacturing
APIs and Advanced Intermediates formulations for LMIC, North America & EU services for global pharmaceutical Company
• Leadership in various High Value and Markets. companies and several late stage projects • Recombinant products -
High Volume APIs with sizeable Global • Backed by in house API strengths executed animal origin free
Market share. • Steroids and Hormone manufacturing products for safer, viral
• High potent manufacturing units. capability free bio manufacturing
• Precision Fermentation
capabilities - scale up
expertise and large scale
manufacturing
capabilities
Products and • Anti – Viral • Anti – Viral • Commercial scale contract manufacturing • Access to Bio based
Service Offerings technical expertise (used
• Anti-diabetic • Anti-diabetic • Clinical phase supplies
in Vaccine, insulin,
• CVS • CVS • Analytical and research services biologic, manufacturing
• PPIs • PPIs • Nutraceuticals, dietary supplements and • Enzymes bio-catalysis
cosmeceutical products (Green API process)
• Oncology • CNS
• Large Fermentation
capability
Filings • Commercialized 60+ products • Filed 27 ANDAs with USFDA and 9 Final • API validation planned in Unit 05
approvals and 8 tentative approvals In • Custom development of ophthalmic portfolio
• 61 DMFs filed
addition completed 2 products validation initiated
• Field 12 dossiers in Canada, 9 in Europe, 8
• LSPL – API validations planned
with WHO, 2 in South Africa, 2 in India & 14
products filed in various ROW markets.
Infrastructure • 4 Manufacturing facilities, (4,186 KL) (1) • 5 bn Units / year capacity • Dedicated manufacturing (Unit – 5) Capacity • 2 manufacturing
(2) • Capacity enhancement under progress (137 KL) for steroidal and hormonal facilities. The first one
• ~1,000 KL under expansion intermediates has fermentation
• Set up a dedicated block in Unit 4 for high capacity of 10,750 Lts
potent phytochemicals APIs while the second facility
• Incorporated Laurus Synthesis Capacity (149 has 180,000 Lts
KL)
(1) Includes ingredients products excluding Unit 2 API & Kilo lab (2) APIs , Ingredients and Synthesis (other than Aspen supplies) are 4
capacity manufactured at Unit 1,3 ,4 & 6
Segmental Revenue Breakup ₹ Cr
Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4
FY20 FY21 FY21 FY21 FY21 FY20 FY21 FY21 FY21 FY21 FY20 FY21 FY21 FY21 FY21
• Generic FDF Revenue Showcased a healthy growth of 102% YoY 30% Generics API
• The growth was led by higher LMIC Market volumes and increased
volumes from North America and EU Synthesis
57%
• Commenced marketing of in-licensed products in the USA to Generics FDF
12%
leverage front-end capabilities
Bio
• Custom Synthesis division recorded a strong growth of 35% YoY
5
Generic API Division ₹ Cr
568 569
166
86
135
379 64 62
336 59 106
99
51 92
273
Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21
6
Generic FDF Division ₹ Cr
452
430 430
352
267
FDF Business delivered robust growth for the quarter. This is driven by continued strong demand
in ARV segment of LMIC region and portfolio expansion in developed markets
Overall FDF revenue for FY 21 grew by 102% YoY
Strong order book in all geographies
2 Additional products validated as part of our CDMO expansion in EU
FDF capacity debottlenecking completed
New manufacturing block will be commercialized by Sep 2021
7
Synthesis (CDMO) Division ₹ Cr
176
148
127
116
100
8
15 years journey so far
As on As on As on
Capabilities * Mar-11 Mar-16 Mar-21 Financials (₹ Cr) *
(for each period of 5 Yrs) FY 06-FY 11 FY 11-FY 16 FY 16-FY 21
Sources
Reactor Volume (KL) 220 1,870 4,638 Net Debt 230 773 390
US FDA approved
1 2 5 Total - Application 365 1,765 2,991
manufacturing sites
* Consolidated numbers
9
5 year Division wise Revenue Contribution
2%
7% 9% 10%
3% 13%
8% 8% 8% 29%
35%
6% 9%
8%
10%
14%
11%
11%
11%
82% 7%
5%
77% 74%
66%
39% 38%
FY 16 FY 17 FY 18 FY 19 FY 20 FY 21
Anti Viral API Onco API Other API Custom Synthesis Generic FDF
10
Financial Track Record – Trend from FY17 to FY21 ₹ Cr
4,814 23%
21% 20%
16%
1,573
2,832 984
2,292
1,905 2,056 4.2 4.8
3.2
570 1.8
440 442 371
190 255
168
94
FY 17 FY 18 FY 19 FY 20 FY 21 FY 17 FY 18 FY 19 FY 20 FY 21 FY 17 FY 18 FY 19 FY 20 FY 21
391
277 254 222
27
16 16 16
FY 17 FY 18 FY 19 FY 20 FY 21 FY 17 FY 18 FY 19 FY 20 FY 21
FY 17 FY 18 FY 19 FY 20 FY 21
5 years Return Ratios
Pre Tax Return on Capital Return on Equity(2) (%) Net Debt/EBIDTA (3) (x)
Employed(1) (%)
45.1%
40.1%
2.8x
2.2x
1.9x 1.9x
16.5% 17.4%
13.7% 14.1% 15.3%
11.9%
8.2% 0.9x
6.2%
12
Manufacturing Facilities at Parawada, Vizag
13
Manufacturing Facilities at Atchutapuram, Vizag
• Located at APIIC, Atchutapuram, Visakhapatnam, India. (SEZ)
Unit-II • FDF and API manufacturing facility
• Commenced operations in 2017.
• FDF - capacity of 5 bn tablets/capsules per year. Capacity expansion initiated and will be
operational by Q1 FY22
• API block with 12 reactors with 83 Kilo Liters capacity.
• Received approvals from BVG Hamburg Germany, USFDA, WHO – Geneva, JAZMP –
Slovenia, ANVISA and various African Countries
14
Quality Focus & Regulatory Audits
No of USFDA
Facility Key Agencies Recent Inspection Year audit ( since
inception
Kilo Lab –
USFDA 2016 – EIR received 3
R&D
CNS 1 1 1
Invest in portfolio based on complexity and scale
Others 4 1 4 Creating separate R&D center for Synthesis
Division
Total 27 9 14
Filing pace to increase in FY 22 across markets
16
Covid-19 Response
Combatting without Compromising on strategic priorities
Focused execution on managing manufacturing, supply chain to ensue adequate stock of materials,
Business timely supplies and future capacity enhancements (How)
Continuity
Set up a dedicated team to ensure real-time assessment of liquidity position & eliminate inefficiencies
Stepped up Executive council to ensure safety of employees and their family by taking precautionary
Employee measures; social distancing, sanitization drive across plants and offices
Safety Additional Buses provided to maintain physical distance
Creation of company-wide Covid-19 online resource center
Donated to support patients, healthcare ecosystem and Communities including PM care Fund or CM
Community Relief Fund
Reach
Serving food, sanitization support to the needy and poor families
17
Outlook for FY22 & Beyond
Healthy Revenue visibility on the Changing business mix to drive Capacity augmentation to result
back of robust Order Book growth in better return ratios
• Partnership with Global Fund offers higher • Generic FDF segment contributed ~35%
• Among top 5 in India in terms of
volume contracts with reasonable in FY 21 to total revenue as against just
Reactor capacities
predictability in FDF Tender business. 2% in FY19
• Non ARV API business to contribute • All the green field expansion have
• Have a healthy order book for FY 22 & turned Cash positive in FY20 with near
significantly showcasing the speed of
beyond in FDF CMO business with a maximum utilization
diversification of revenues.
strategic partner in EU
• The change in revenue & product mix • Continue to undertake Brown Field
• Robust growth in Other API segment to to generate better profitability & Capex programs for Capacity addition in
continue on the back of higher order book margins line with strong order book visibility
visibility from key therapeutic segments and business outlook
• Synthesis business to show gains in line
like CVS, Anti Diabetic and PPIs
with new customer additions in CDMO
• Brown Field capex in existing sites to
• Several new customers added with • Acquired Aspen’s South African have shorter payback period and ROCE
programs in various clinical phases Subsidiary, in order to get a foothold in accretive
worlds' largest Generic Accessible ARV
• Incorporated a Wholly Owned subsidiary to market • Doubling our FDF capacity by FY22
give increased focus and eventually
dedicated R&D and Manufacturing for • The Richcore (renamed as Laurus Bio) • Acquired assets of an API Unit in Vizag
Synthesis Business acquisition will help us enter into high to be used for backward integration and
growth segments of AOF products, pre-clinical chemistry
• Other therapeutic areas and Oncology to Enzymes and Biologics • Initiating green field expansion for all
offer consistent opportunities to broaden the divisions (API, FDF and Synthesis)
scope, with ongoing new product
introduction
18
Key Milestones
• Investment of INR 60 Cr by
FIL Capital Management and • Commenced commercial operations at Unit 3.
Promoters
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Board of Directors & Leadership Team
Executive Directors
Name Background
Dr Satyanarayana Chava Whole-time Director, Founder and Chief Executive Officer
Ravi Kumar V V Whole-time Director and CFO
Dr Lakshmana Rao C V Whole-time Director and Head, Quality
Non-Executive Directors
Name Background
Dr. M. Venu Gopala Rao Non Executive Chairman and Independent Director
Chandrakanth Chereddi Non-Executive Director, Former Head of Generic FDF and Strategy at Laurus Labs Limited
Aruna Rajendra Bhinge Independent Director; Former Head of Food Security Agenda, APAC at Syngenta India Limited
Dr. Rajesh Koshy Chandy Independent Director; Professor of Marketing at the London Business School
Independent Director and Founder-Member and Treasurer of ELSA of Asia in Singapore and Chairman of
Dr. Ravindranath Kancherla
Global Hospitals
Dr. Satyanarayana Chava Mr V.V Ravi Kumar Dr. Lakshmana Rao C V Dr. V Uma Maheswer Rao Mr. S. Srinivasa Rao
Founder & CEO ED & CFO ED & Head, Quality Exec. VP & Head, API & R&D Exec. VP – Operations
Laurus Laurus
Laurus
Generics Inc. Generics GmbH.
Ingredients Pvt. Ltd.
USA Germany
Shareholding pattern *
Promoter Non-
Foreign QIBs Institutions
and Mutual
Portfolio (Individuals +
Promoter Funds
Investors Others)
Group
India Local access Number +91 22 7115 8049 Available all over India
https://services.choruscall.in/DiamondPassRegistration/register?confirmationNumber=7598724&linkSecurityString=1972ca58c0
22
Contact us
About Laurus Labs Ltd.
Laurus Labs is a leading research driven Pharmaceutical manufacturing Company in India. We have
grown to become one of the leading manufacturers of API for Anti-Retroviral (ARV), Oncology,
Cardiovascular, Anti-Diabetics, Anti-Asthma and Gastroenterology .We are thriving on growth
opportunities in formulation manufacturing to service all leading markets of North America,
Europe and Low Middle Income Countries (LMIC). We are driving growth opportunities in Contract
Development and Manufacturing through our Synthesis business. Most of our manufacturing
facilities are approved by major regulatory authorities USFDA, WHO-Geneva, UK-MHRA etc. Our
approach remains to identify and invest ahead of time with strategic investments in State-of-the-
Art R&D and Manufacturing Infrastructure enabling us to become a quality supplier of high
volume products. Corporate Identification No: L24239AP2005PLC047518.
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Thank You