Sunil Healthcare Ltd.

Transcription

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2 Sunil Healthcare Ltd. Investor Presentation February 2018

3 Safe Harbor This presentation and the accompanying slides (the Presentation ), which have been prepared by Sunil Healthcare Limited (the Co pa y ), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Co pa y s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the o pa y s ability to successfully implement its strategy, the Co pa y s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Co pa y s market preferences and its exposure to market risks, as well as other risks. The Co pa y s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections. 2

4 9MFY18 Performance Highlights Rs. Mn. Net Revenue* EBITDA Profit Before Tax MFY17 9MFY18 9MFY17 9MFY18 9MFY17 9MFY18 Profit After Tax Cash PAT Cash PAT Margin % MFY17 9MFY18 9MFY17 9MFY18 9MFY17 9MFY18 3 * Net Revenue = Gross Revenue Excise Duty Financials are as per IndAS

5 Q3/9MFY18 Income Statement as per IndAS Rs. Million Q3FY18 Q3FY17 YoY % 9MFY18 9MFY17 YoY % Net Revenue* % % Capsule Marketing of Food Product Raw Material Employee Cost Other Expenses Other Income EBITDA % % EBITDA Margin 16.3% 15.8% 16.9% 17.7% Interest Depreciation PBT % % Tax PAT % % PAT Margin 2.6% 5.5% 4.0% 6.2% Cash PAT % % Cash PAT Margin 7.6% 9.4% 9.1% 10.6% 4 * Net Revenue = Gross Revenue Excise Duty

6 Balance Sheet as per IndAS Rs. Million Sept Assets Non current Assets Fixed Assets Property Plant & Equipment Capital WIP 34.8 Other Intangible Assets 3.1 Financial Assets Investments 0.5 Loans 6.7 Other Non current Assets 16.4 Current Assets Inventories Financial Assets Investments 0.1 Trade Receivables Cash & cash equivalents 17.1 Other Bank Balances 42.3 Other Financial Assets 2.8 Current Tax Assets 0.9 Other Current Assets 39.9 Total Assets 1,299.2 Rs. Million Sept Equity & Liabilities Equity Share Capital Other Equity Non Current Liabilities Financial Liabilities Borrowings Provisions 17.9 Deferred Tax Liabilities (Net) 59.7 Current Liabilities Financial Liabilities Borrowings Trade Payables Other Financial Labilities 51.6 Other Current Liabilities 46.2 Provisions 4.8 Current Tax Liabilities (Net) 1.3 Total Equity & Liabilities 1,

7 Balance Sheet as per I-GAAP Rs. Million Mar Sept-2016 Mar-2016 Shareholders Fund Share Capital Reserves & Surplus Total Non Current Liabilities Long Term Borrowings Deferred tax liabilities (net) Long term Provisions Total Current Liabilities Short Term Borrowings Trade Payables Short Term Provisions Other Current Liabilities TOTAL EQUITY & LIABILITIES 1, Total Non Current Assets Fixed Assets Long Term loans & Advances Total Current Assets Inventories Trade Receivables Cash & Cash Equivalents Short Term loans & Advances Other Current Assets TOTAL ASSETS 1,

8 7 Our Story

9 Company Snapshot 2 nd Largest producer of Empty Hard Gelatin Capsules (EHGC) in India Download Pioneer this awesome of Double diagram. Lock and Triple Lock Capsules in India 02 Global Presence with ~40% Exports Revenue e og ized as a TA EXPO T HOU E y GoI Preferred Vendor for Large Pharmaceutical Companies Forayed into the Food Business and markets its produ ts u der the ra d Sunloc Foods 8

10 s 1990 s Our Journey 2013 Entered Foods Business with Sunloc foods. State of the Art HVAC System Fo usi g o Quality Assurance and Auto atio Renewed interest in the business with an aim to become top 3 manufactures of capsules in India Focus on increasing export revenues Slow Steady business in the EHGC division Entered into API manufacturing with production of Methyldopa Exited API business by late 80 s Established Commercial Operations under Sunil Synchem Limited 9

11 Management Team Mr. Anil Khaitan - Promoter and Chairman cum Managing Director Mr. Anil Khaitan is an MBA from IMD, Geneva, 1981 Over 37 years of wide experience in Industries ranging from Steel, Copper, Paper, Jute, Wires, Foods, Pharmaceutical and Retail Chairman - CSR PANEL CII DELHI and President at PHD Chamber of Commerce Member of World President Organisation (WPO) Delhi Chapter and AIMA Board member of Indian Council of Competitiveness Mr. Ishan Khaitan - President (Ops. & Marketing) Bachelor of Science (Industrial Engineering) from University of Illinois at Urbana Champaign Me er of the Alpha Pi Mu a d Phi Kappa Phi professional fraternities Served on the board of Institute for Industrial Engineers. Mr. D Gnanasekaran - Chief Executive Officer Graduate in Production Engineering, Post Graduate in Engineering Design & MBA in Marketing 34 years of experience in varied Industries. Member of Institute Engineers India and a Chartered Engineer Mr. Kahaan Khaitan - Sr. VP (Procurement) Graduated fro Ba so i Busi ess Ad i istratio Actively involved in the Business since June 2013 and is responsible for helping the Company in deriving efficiencies in their Operations Mr. Pawan Rathi Chief Financial Officer Member of The Institute of Chartered Accountants of India with 19 years of experience in varied financial space Responsible for the Banking & Financing Activities 10

12 Core Competencies to lead GROWTH Huge Industry Potential Wide Product Range Unique Product Offering 04 State of Art Quality Focus Manufacturing Facility Regulatory Certifications Global Presence Marque Clientele Brownfield Expansion Economies of Scale 11

13 01 Huge Industry Potential Pharma exports were pegged at US$ 15 bn with a CAGR of 15% over the last 5 years Indian Pharma market is expected to grow at a CAGR of 13.6% - US$ 50 bn in 2020 In India, manufacturing cost is competitive as compared to the Western countries. Cost of innovation is 5th or 7th of Europe / U.S India is the largest exporter of Pharma formulations in the world by volume of 14% market share and 12th in terms of export value Capsule Industry globally is expected to grow at a CAGR of 7% from 2014 to 2019, Asia Pacific to grow at a CAGR of 12-13%. Installed capacity of EHG Capsules in India is ~100 bn p.a. 70% of the healthcare infrastructure is confined to the top 20 cities of India 12 our e : urvey y Markets a d Market, U A

14 02 Wide Product Range TSE Free Preservative Free Stick Free We offer all range of capsules and have abilities to customise products SLS Free Liquid Filled Pearl Finished Capsules can be transparent, coloured (same or different), partially opaque or completely opaque Flavoured EHG Capsule HPMC Capsule Sizes Available - 00,OSEL, OEL,0,1,2,3,4,5 HPMC Capsules Started inhouse manufacturing since Q2 FY18 Natural Colour Non-AZO Capsule 13

15 03 Unique Product Offering Product Product Range caters to Pharma & Food Supplement Industry Customize Strengths and Appearance can be modified as per client requirement Suitability Suitable for filling on high speed machines with capacities upto 3,00,000 caps/hr Triple Lock Capsule Innovation Pioneers in Double Lock, Triple Lock Capsules and Multi Groove Capsules Printing Linear, Circular & 360 degree. Two colour printing offered in single/ double colour with orientation 14

16 04 State of Art Manufacturing Facility WHO-GMP certified facility Zero Dis harge with fully auto ated ETP Latest Generation PLC controlled highspeed automatic machines State of Art HVAC system from Kruger, Trane, Carrier, Zeco Experienced Six Sigma Qualified team 22 automatic production lines Capacity expansion expected to be completed by Q4FY18 taking total available Capacity to 13 billion capsules p.a. 15

17 05 Quality Focus Internationally Accepted Measures TPAM, 5S, Jishu Hozen across production lines Six Sigma, for process control and product control Stringent in-process quality checks Statistical sampling and testing Hourly checks Stringent Quality Compliance Measures Adopted for zero defe t apsules Process R&D: Industry Leader for efficient utilization of primary raw material Automatic Inspection Machines for Automated Visual Inspection 16

18 06 Regulatory Certifications WHO-GMP ISO-14001:2004 ISO-22000:2005 /9001:2008 NSF US FDA-DMF TYPE-IV TGA AUSTRALIA Health Canada GDP GLP Halal-JAKIM Malaysia OHSAS 18001:

19 Certifications Raw Material (Gelatin) HALAL KOSHER Gluten Free EDQM Aflatoxin Veterinary BSE/TSE FREE 18

20 07 Global Presence Presence in Over 30 Countries across the Globe Recognized Star Export House 19

21 08 Marquee Clientele 20

22 09 Brownfield Capacity Expansion Completed Bn Capsules Capacity Expansion expected to be completed by Q4FY18 taking the total available capacity to 13bn capsules p.a. The incremental capacity shall be commissioned in Q4FY18 Mar-15 Sep-15 Sep-16 Dec-17 Mar-18 Capacity Expansion to drive increased revenue streams with margin expansion as economies of scale play out 21

23 10 Economies of Scale 11 billion p.a Capsules Capacity at a Single Location at Alwar, Rajasthan Human Resource Shared Commercial & Technical Resources Procurement & Dispatch Better Negotiating Power with the Key Suppliers & Vendors Competitive Position Manufacturing Efficiencies helps achieve competitive strength Infrastructure Common Infrastructure and Utilities Control Better Control and Smooth Running of the Plant Operating Leverage Fixed Cost Remains same ; Operating Leverage plays out SAP Implemented Organization 22

24 Sunloc Foods - (A division of Sunil Healthcare) Division started in 2013 Engaged in marketing of Nuts, mainly Cashews Building Capabilities in Supply Chain 18% Revenue Contribution in FY17 Awarded Top Most Exporter under Cashew nut & allied products from The Cashew Export Promotion Council of India 23

25 Building Strength Brownfield Expansion Completed Driving growth with profitability HPMC product Launched Supplied and Delivered to new overseas geographies Credit Rating Moves Up Credit Rating moved a notch up, reaffirming our growing stability Healthcare Leadership Award Wo The Best Use of ix Sigma In Healthcare Award at the Healthcare Leadership Awards, hosted by ABP Ne s highlighting our competitive strengths and commitment 24

26 Business Excellence Awards Healthcare Leadership Award Six Sigma Wo The Best Use of Six Sigma In Healthcare Award at the Healthcare Leadership Awards, hosted by ABP News No e er 5 Business Excellence Award 2015 Received the prestigious Business Excellence Award 2015 for Excellence in Manufacturing, Research & Distribution for Empty Hard Gelatine Capsules at I dia Pharma Expo, O to er 5 25

27 Business Momentum In Rs. 1,036 Mn *Total Income - FY Mn EBITDA FY17 61 Mn PAT - FY % *Total Income 5 Years CAGR 21.6% EBITDA 5 Years CAGR 44.5% PAT 5 Years CAGR 26 *Total Income = Net Revenue + Other Income Excise Duty Financials are as per I-GAAP

28 Annual Income Statement as per I-GAAP Rs. Million FY17 FY16 FY15 FY14 FY13 Total Income* 1, Raw Material Employee Cost Other Expenses EBITDA EBITDA Margin 17.1% 18.9% 17.0% 18.8% 17.2% Interest Depreciation Exceptional Item PBT Tax PAT PAT Margin 5.6% 6.4% 5.5% 5.3% 3.1% 27 *Total Income = Net Revenue + Other Income

29 Balance Sheet as per I-GAAP Rs. Million FY17 FY16 FY15 FY14 FY13 Shareholders Fund Share Capital Reserves & Surplus Total Non Current Liabilities Long Term Borrowings Other Long Term Liabilities Total Current Liabilities Short Term Borrowings Trade Payables Other Current Liabilities TOTAL EQUITY & LIABILITIES 1, Total Non Current Assets Fixed Assets Long Term loans & Advances Total Current Assets Inventories Trade Receivables Cash & Cash Equivalents Short Term loans & Advances Other Current Assets TOTAL ASSETS 1,

30 For further information, please contact: Company : Investor Relations Advisors : Sunil Healthcare Ltd. CIN - L24302DL1973PLC Mr. Pawan Rathi, Chief Financial Officer cfo@sunilhealthcare.com www. sunilhealthcare.com Strategic Growth Advisors Pvt. Ltd. CIN - U74140MH2010PTC Mr. Shogun Jain / Mr. Pratik R. Shah shogun.jain@sgapl.net / pratik.shah@sgapl.net /