Gland Pharma Q4 FY21 Earnings Call Highlights

FY21 Performance:

• Revenue from operations stood at Rs 34,629 million ,32% year-on-year growth in revenue for FY’21
• Year-on-year growth in PAT is 29% for the year
• Emerging business accounts for 16% of FY’21 revenue
• Ability to turnaround orders in short period of time and offer broad portfolio of products helped to achieve this phenomenal growth in FY’21
• Key markets namely US, Canada, Europe and Australia accounted for 68% of revenue during FY’21
• Domestic market accounts for 16% of FY’21 revenue
• Gross contribution margin is 57% for the year
• EBITDA is Rs 14,370 million, with a growth of 31% over the previous year
• PAT is Rs 9,970 million, an increase of 29% as compared to last year.
• Effective tax rate is 25% for FY’21
• Cash flow from operations is Rs 6,049 million for the year
• Cash conversion cycle stood at 229 days for FY’21 as compared to 200 days as of last financial year end
• Total capex during the year is Rs 2,288 million
• ROCE on ex-cash basis stood at 33% as on March 31, 2021, an improvement of 130 basis points over the previous financial year
• Rs 30,058 million of cash as on March 2021.
• Ms. Naina Lal Kidwai, an MBA from Harvard Business School and Dr Allen Zhang, a scientist has joined the Board

Q4FY21 Performance:

• Revenue from operations stood at Rs 8,877, 40% year-on-year growth in revenue for the quarter
• Year-on-year growth in PAT is 34% for the quarter
• Gross contribution margin for Q4 is 56%
• EBITDA is Rs 3,749 million, with an increase of 31% compared to same period last financial year.
• Net profits is Rs 2,604 million, a growth of 34% compared to Q4 FY’20
• Effective tax rate is 25% for the quarter

Research & Development and Products:

• R&D expenditure for the year is Rs 1,220 million, an increase of 32% over the last year, the R&D expenditure for the quarter is Rs 304 million
• At the year end, there is 284 ANDA filings in the US and 1,501 products registrations globally
• 10 products SKUs launched in the domestic market during FY’21
• Successful completion of purchase of R&D and manufacturing facility of Vitane Biologics.
• Agreement with RDIF to supply Sputnik V Covid-19 vaccine.

FY22 Outlook:

• Learning’s and infrastructure support from vaccine business will accelerate long term strategy of entering into biosimilar space
• Exploring other M&A opportunities that will build capabilities to strengthen product and technology infrastructure
• Started investing in new biologics facility to make it ready for vaccine and future biosimilar plants.
• 62 SKUs planning to be launched in FY’22
• May continue to maintain the EBITDA margin