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Caplin Point Laboratories Limited 111 EARNINGS PRESENTATION Q1 FY27 Rated # 1 in India for " Most Consistent Profitable Growth across the last 10 years " Second Largest wealth creator for the decade ending 2020 * Aug 2026 www.caplinpoint.net #Value Research magazine - Wealth Insight June 2022 issue * The Economic Times B ANNEXURE - 3
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Evolution Over the Decades 2 Contract manufacturer Diversified Product PortfolioBecoming a responsible pharma company Market-led Company Plain vanilla generic products Introducing products that plugged marketplace gaps Negative-working capital business 2 main geographies 10 countries (Latin America & Francophone Africa) Technology and research-led marketing Company Mix of generics, branded generics and speciality molecules and Injectables Launch speciality niche products that Create new markets in varied therapy segments Selective use of Credit strategy to increase market share and remain cash surplus Extended to Regulated markets like USA with recent entry into Canada, Australia, Mexico and Brazil shortly 5,000+ Products registered and 650+ Pharmaceutical formulations 36 Therapeutic Segments Latest focus towards complex spaces Accounts for larger shelf share across pharmacies on account of a widening product basket Product mix covers over 65% of WHO essential drug list 1990 Incorporation Entered Angola with unique Stock & Sale model Started outsourcing from China Entered the Caribbean and Latin America Work on Regulated Markets Injectable unit starts Liquid injectable facility gets EU & USFDA Approval Started first commercial shipments to US Fidelity investment into Caplin Steriles Acquires API plant in Vizag, as part of backward integration move. Amaris Clinical gets ISP Chile approval Rs. 600 Cr. Expansion, CRO wing Amaris Clinical gets USFDA approval Incorporates Caplin Steriles USA Inc for launching own label in US Listed on Stock Exchange 1994 2001 2005 2006 2014 2017 2018 2019 2021 2022 2023 2024 Oncology facility started production at SIDCO Kakkalur, Chennai CSU commencement of operations 2025 2026 Acquires 10 ANDAs; receives multiple USFDA approvals. Chile subsidiary starts commercial operation
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Q1 FY27 Income Statement 33 Revenue from Operations 510 600 610 Q1 FY26 Q4 FY26 Q1 FY27 Gross Profit EBITDA 19.6% YoY EBIT PAT (All figures in Rs. Crores except EPS in Rs.) Earnings Per Share 315 355 365 Q1 FY26 Q4 FY26 Q1 FY27 15.9% YoY 201 233 247 Q1 FY26 Q4 FY26 Q1 FY27 23.0% YoY 185 214 225 Q1 FY26 Q4 FY26 Q1 FY27 22.1% YoY 151 173 179 Q1 FY26 Q4 FY26 Q1 FY27 18.8% YoY 20.10 22.38 23.27 Q1 FY26 Q4 FY26 Q1 FY27
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Q1 FY27 Profit Margins 44 Gross Profit Margins (%) EBITDA Margins (%) EBIT Margins (%) PAT Margins (%) 28.3% 27.5% 27.8% Q1 FY26 Q4 FY26 Q1 FY27 37.7% 37.0% 38.4% Q1 FY26 Q4 FY26 Q1 FY27 61.7% 59.2% 59.8% Q1 FY26 Q4 FY26 Q1 FY27 34.6% 34.0% 35.0% Q1 FY26 Q4 FY26 Q1 FY27
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1,167 1,322 FY25 FY26 1,937 2,187 FY25 FY26 FY26 Income Statement 55 Revenue from Operations Gross Profit EBITDA 12.9% YoY EBIT PAT (All figures in Rs. Crores) Profit Margins YoY YoY YoY YoY 60.2% 60.4% 36.5% 38.1% 33.3% 34.9% 26.6% 28.2% FY25 FY26 Gross Profit EBITDA EBIT PAT 13.3% 17.9% 18.6% 20.1% 743 876 FY25 FY26 677 804 FY25 FY26 541 650 FY25 FY26
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Leadership Team Commenting on the recent performance, Mr. C.C. Paarthipan, Chairman of Caplin Point Laboratories said: “ We are pleased to begin FY27 on a strong and encouraging note, with the Company delivering healthy growth across both our Emerging Markets and the US, while continuing to strengthen the foundations for sustainable long- term growth. Our Q1 performance reflects the consistency of our strategy, the resilience of our business model and the disciplined execution across our expanding portfolio and geographies. The continued momentum in Latin America, the accelerating contribution from the US, and the progress across our manufacturing, R&D and backward-integration initiatives reinforce our confidence in the opportunities ahead. At the same time, our strong balance sheet and substantial liquidity provide us with the flexibility to continue investing in capacity, capabilities and new markets. As we move forward, our focus remains firmly on building a more integrated, diversified and future- ready pharmaceutical platform, while creating enduring value for all our stakeholders.” Dr. Sridhar Ganesan Mr. D Muralidharan • Managing Director • Chief Financial Officer Management TeamChairman Perspectives 6
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Q1 FY27 Highlights (Emerging Markets) 7 03 Emerging Markets Business Highlights 01 Caplin continues steady and consistent growth in Latin America across all geographies and segments 02 Caplin has won emergency tenders across Central America to the tune of $7 million, to be supplied over the next few Quarters 04 Mexico Update– Company has received 4 additional product approvals in Mexico and plans are underway to launch these products in the coming months. The company is working on a pipeline of 120+ products to be filed in the next 18 months 06 07 Caplin’s Oncology API unit in Thervoy, TN, will be completed by Q3/Q4-FY27, with first DMFs filed from this plant in the following year 09 The OSD and Dermatology divisions in Pondy facility is aimed at meeting growing capacity demand in existing markets and also entry into Regulated markets for these dosages Caplin’s API unit in Vizag for General Category products completed scale up for 6 APIs, all to be used for backward integration for its US and LatAm formulations. Company aims to file the first few DMFs from this site in 2026/27 03 Chile Update– Company shows consistent growth in Private and Tender market sales in Chile. Company has won tenders to the tune of $12 million to be supplied over the next 18 months 08 Construction ongoing at full swing for Company’s new project involving OSD and Dermatology divisions in Pondy. The facility is aimed at expansion of capacities by over 2X of the existing capacities 10 Amaris Clinicals update – To cater to growing demands for internal pipeline products BE and Clinical studies, Company takes up expansion activities at Amaris Clinicals to increase capacity up to 120 Beds. Project is expected to be completed by end of FY27 05 Oncology Unit update – Caplin One Labs oncology facility in Kakalur, which has successfully undergone its first Regulatory inspection, completes submission batches for 6 products. Additionally, 18 products submission batches are planned in the next 12 months
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Q1 FY27 Highlights (US and Regulated markets) 8 03 US and Regulated Markets Business Highlights 01 Caplin Steriles Limited (CSL) continues to show robust growth across all parameters. Split between B2B and B2C revenues currently at 70/30 02 Company has 60 ANDAs approved and 5 under review, of which 50 were internally developed and 15 acquired from outside. Company has a pipeline of another 40+ products under filing or advanced stage of development 04 Company has launched 38 products in the US till date, with plans to launch 12 more products in FY27 06 07 To cater to the growing capacity needs at CSL, company’s COL-II facility construction will be completed by Mar ’27 to house 5 Injectable, Ophthalmic and BFS lines. Provision to add 3 more lines also included in the construction 09 CSU has added multiple direct sales contracts with large and small IDNs, in addition to the major Wholesalers in the US Company’s move towards being completely digitalized gains momentum with automation of all physical logbooks, followed by overall batch manufacturing records to be in electronic format. Has already achieved total automation in Quality Control and Microbiology areas at the site 03 CSL has filed 110+ products (of which 65 are approved) in multiple Non-US markets. Plans in place to file 60+ products in these regions in the next 18 months. Meaningful revenue is expected out of these markets in FY27 / FY28 08 CSU continues excellent momentum under its own label in the US, with 33 product launches till date. Company plans to launch another 10 products in the US in FY27 10 Company sees steady and consistent market share growth across 90% for all launched products in the US. CSU aims to meaningfully grow market share without erosion of bottom line 05 CSL plans to file its first Pre-Filled Syringe (PFS) product from the site within FY27, with a larger pipeline of 14+ PFS products to be filed in FY28
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Research & Development Capabilities 387 Strength of R&D Team Caplin ranks amongst the top companies in India, for R&D spend as a percentage of Revenue on average in the past 5 years.* Caplin has 5 dedicated R&D setups (3 – DSIR approved). Continuous capex investment of over Rs. 870 Cr over last 5 years towards enhanced manufacturing and R&D capabilities, from internal accruals. Total R&D Spends (Capex + Opex) is 15.5% of FY26 PAT. 1 2 4 Completed R&D for 90+ APIs to be used for backward integration in US and Emerging markets. First DMF filing targeted by end of FY2027.5 3 71 85 63 60 66 77 89 101 10.9% 9.9% 6.0% 4.7% 4.5% 4.5% 4.6% 4.6% FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 R&D Expense (Rs. Crore) R&D Expense as a % of Operating Revenue 65 60 55+ Filed* Approved* Pipeline for 3-4 years *Source – CNBC-TV18, Dec 31st 2020 75% 25% 95% 5% FY 2012 FY 2026 Research and Development along with conscious conversion of certain fast-selling generics into Branded Generics for better profitability Generics Branded Generics *Including Partners and Bought Out 9
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Revenue Break up and Manufacturing Strategy 10 6% 18% 76% FY26 Operating Revenue Africa US LATAM 75% 25% Revenue by Business Segment (Emerging Markets) Generic Branded Generic 45% 35% 20% Revenue by Channel (Emerging Markets) Wholesale Retail Institutional 60% 40% Manufacturing & Outsourcing Inhouse Production Outsourced Production 76% 24% Exports India China Caplin covers a wide spectrum of pharmaceutical formulations and therapeutic segments across 23 countries with total revenue of Rs. 2,303 Cr in FY26 Caplin’s smart strategy of balanced manufacturing and outsourcing makes it possible to be a lean organisation as well as de -risk against cost escalations, currency fluctuations and other headwinds
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Generics and Branded Generics Product Mix 11 Non-Steroidal Antiinflammatory Drugs-NSAIDS Antihelminthics/ Dewormer Analgesic Antibiotic and Antifungal Antihypertensive drug Electrolytes
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Caplin Point Structure 12 Caplin Steriles Ltd (India) Caplin Steriles USA Inc (US) Distribution: • Front-end trading arm for the sale of products in the USA Caplin Point Laboratories Ltd (BSE: 524742| NSE: CAPLIPOINT) Manufacturing Units: • CP I: Puducherry • CP X: Vishakhapatnam Research & Development: • CP III: Amaris Clinical CRO, Chengalpattu • CP VI: API’s, Intermediates and Key Starting Materials for regulated and semi – regulated markets, Hyderabad • CP VII: TICEL Bio-Park Bioequivalent dosage forms, Taramani, Chennai • CP VIII: Formulation R&D, Perungudi, Chennai • Caplin Point Far East Ltd • Caplin Steriles Limited (CSL) • Caplin One Labs Limited (COL) • Argus Salud Pharma LLP • Caplin Point (S) Pte Ltd Subsidiaries of CPL • Nuevos Eticos Neo Ethicals S.A. Guatemala • Neo Ethicals S.A. Nicaragua • Drogueria Saimed de Honduras S.A • Caplin Point El Salvador, S.A. DE C.V. • Neoethicals CIA. LTDA Ecuador • Caplin Point Laboratories Colombia SAS • Neo Ethicals Chile SpA. • Triwin Pharma S.A DE C.V Mexico Subsidiaries Caplin Point Far East Ltd Manufacturing Unit: • SIDCO, Kakkalur (Near Chennai) Caplin One Labs Ltd (COL) • Sunsole Solar Private Ltd (Associate of CSL) Manufacturing Units: • CP IV: Gummidipoondi Research & Development: • Perungudi, Chennai • Gummidipoondi
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Manufacturing and R&D Platform 13 Location of Plants and Facilities 1. SIDCO, Kakkalur, Near Chennai 2. Gummidipoondi, Chennai (CP4) 3. Thervoy SIPCOT, Chennai 4. Corporate Office, Chennai 5. Suthukeny, Puducherry (CP1) 6. APIIC, Visakhapatnam Corporate Office and other R&D units: Chennai CP VII Chennai CP III Chengalpattu CP VI Hyderabad CP I Puducherry CP IV Gummidipoondi Note. CP III, CP VI and CP VII are for Research and Development Tamil Nadu, India 5 1 2 34 6 Andhra Pradesh, India
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Strategic Investments 14 Caplin Point has allocated an enhanced Capex budget of approximately ₹1000 + Crores for the investment projects, with around 50% nearing completion and the balance to be incurred over the next 2-3 years. The intended Capex aims to augment existing production capacities, widen the product range, and achieve backward integration for a majority of the products. The Capex will be financed solely through internal accruals, and the Company will remain net cash positive throughout the process Project Summary Facility Location Product Target Market Status Timeline Caplin Plant I CP1, Suthukeny, Puducherry Lyophilized Injectables and Dual Chamber Syringes Existing Markets Completed Completed API Facility upgradation Visakhapatnam, Andhra Pradesh General API Existing and Regulated Markets Completed Completed Oncology Facility SIDCO, Kakkalur (Near Chennai) OSD & Injectable phase Existing and Regulated Markets Completed Completed Oncology API Facility Thervoy SIPCOT, Chennai Oncology API Existing and Regulated Markets Civil activity completed Q4 FY27 OSD Facility Puducherry Oral Solid Dosages New Market such as Mexico, Brazil, US and EU Civil activity ongoing at full swing Q1 FY28 COL Injectable Facility Gummidipoondi, Chennai Injectables and Ophthalmic Regulated Markets Civil & Structural activity ongoing at full swing Q1 FY28
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Caplin Point’s Investment Case 15 Core Business to show consistent growth US Business to Boost the Growth Backed by Enhanced Value Chain Strong Balance Sheet Expansion into Other Geographies and Widening of the Portfolio Caplin’s core business which is focused on Latin America and Francophone Africa is expected to grow at a steady pace with industry-average margins and benchmark cashflows Aspiration is to have exceptional compliance record and focus on niche products which continues to be in shortage in US market. Caplin believes US business to be one of its primary engines that will drive growth Backward and forward integration to help save cost, capture more market and control supply chain which is expected to boost earnings Caplin’s DNA of remaining debt-free and self-sustenance is highlighted by increasing cash surplus over the years. Strong Balance sheet of Caplin acts as an anchor for our long-term vision Caplin plans to enter more regulated markets such as Canada, Australia, MENA as well as enter the bigger LATAM markets of Mexico and Brazil in the near to medium term horizon Strong operational performance driven by key pillars of Caplin’s Engines
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Experienced and Visionary Board of Directors (1/2) Dr. Sridhar Ganesan Managing Director 35+ Years experience in Pharmaceutical Industry Previously, held leadership positions in several international assignments The Government of India’s Pharmaceutical Export Promotion Council of India has designated him as an “Honorary Expert” Has been a Faculty in BITS Mr. C.C. Paarthipan Chairman 30+ Years of experience in the pharmaceutical industry Spearheading the group in its multi- pronged growth approach First Gen Entrepreneur with a focus towards bottom of the pyramid 16 Mr. Vivek Partheeban Vice Chairman 20+ years of experience in the pharmaceutical industry Was COO at Caplin Point Laboratories Ltd, Oversees the entire U.S/regulated market. operations Educated at Harvard Business School and Monash University Honorary Consul for the Republic of Guatemala in Chennai since 2018 Mr. Ashok Partheeban Vice Chairman 23+ Years experience in Pharmaceutical Industry Oversees the entire LATAM operations since 2002 as well as other emerging markets Spearheaded market expansion and growth initiatives in the LATAM region Holds an Associate’s Degree in OPM from Harvard Business School and a Bachelor’s in Marketing from Middlesex University Dr. KC John Independent Director 35+ years of experience in sustainable development Held leadership roles in start-ups, tech ventures, and acquisitions Expert for Tamil Nadu Industrial Development Corporation Doctorate in Management from Indian Institute of Management, Ahmedabad
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Experienced and Visionary Board of Directors (2/2) Dr. R Nagendran Independent Director Ph.D in Ecology and Ethology and M.SC in Zoology Former Expert Member of the National Green Tribunal and former Head of Department of Environmental Science in St. Joseph’s College, Bangalore. Mr S Deenadayalan Independent Director Post Graduate degree in Social Work from Madras School of Social Work and Under Graduate degree in Sociology from Annamalai University Has extensively worked and mentors individuals enabling them to become successful professionals and more than 30,000 municipal school students have been benefitted by his idealistic model. 17 35+ years of experience as a taxation expert with consulting and litigation practice across India Advises major corporate groups in South India on Direct Taxes, Tax Planning, Tax Litigations Specializes in advising on taxation of non- residents, joint ventures & collaborations, double taxation avoidance agreements & transfer pricing issues. Mr. R. Vijayaraghavan Independent Director Mrs. Susan Mathew Independent Director Post Graduate degree from Union Christian College and Graduate of Women’s Christian College, Chennai Served 36 years in senior IAS positions, including as Principal Secretary to the Governor She contributed to key policies like private power projects and the Comprehensive Transport Policy in Tamil Nadu
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Q1 FY27 Consolidated Income Statement 18 Particulars Q1 FY27 Q1 FY26 YoY (%) Q4 FY26 QoQ (%) FY26 FY25 YoY (%) Revenue from Operations 610.36 510.22 19.6% 600.16 1.7% 2,187.19 1,937.47 12.9% Other Income 33.55 23.14 45.0% 28.36 18.3% 115.54 96.43 Total Revenue 643.91 533.36 20.7% 628.52 2.4% 2,302.73 2,033.90 13.2% Cost of Goods sold 245.20 195.24 25.6% 245.00 0.1% 865.68 770.84 12.3% Gross Profit (Excluding Other Income) 365.16 314.98 15.9% 355.16 2.8% 1,321.51 1,166.63 13.3% Gross Profit Margin (on Rev from Operations) 59.8% 61.7% 59.2% 60.4% 60.2% Employee Benefit Expenses 54.13 43.16 25.4% 52.62 2.9% 199.15 184.63 7.9% Research and Development expenses 21.30 17.96 18.5% 19.94 6.8% 79.89 76.68 4.2% Other operating expenses 76.25 76.10 0.2% 78.36 (2.7%) 281.62 258.39 9.0% Total expenditure 151.68 137.22 10.5% 150.92 0.5% 560.66 519.70 7.9% EBITDA 247.03 200.90 23.0% 232.60 6.2% 876.39 743.36 17.9% EBITDA Margin 38.4% 37.7% 37.0% 38.1% 36.5% Depreciation and Amortisation 21.62 16.29 32.8% 18.80 15.0% 72.77 65.96 10.3% EBIT 225.41 184.61 22.1% 213.80 5.4% 803.62 677.40 18.6% EBIT Margin 35.0% 34.6% 34.0% 34.9% 33.3% Finance Cost 0.18 0.18 0.36 0.87 0.61 Share of Profit/(Loss) in associates (0.01) 0.03 (0.00) 0.04 (0.01) Profit Before Tax 225.22 184.46 22.1% 213.44 5.5% 802.79 676.78 18.6% PBT Margin 35.0% 34.6% 34.0% 34.9% 33.3% Tax 46.13 33.70 36.9% 40.56 13.7% 153.06 135.69 12.8% Profit after Tax 179.09 150.76 18.8% 172.88 3.6% 649.73 541.09 20.1% PAT Margin 27.8% 28.3% 27.5% 28.2% 26.6% In Rs. Crores
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ESG and CSR Community Development ✓ Caplin Group’s state-of-the-art hospital and diagnostic centre at Gummidipoondi, Chennai Recycled Waste ✓ 60.2 MT waste recycled in 2025 Environmental &Social ✓ Low carbon footprint ✓ Women empowerment ✓ Investments in rural healthcare ESG Commitments INR 4.16 Crores Amount spent on CSR in FY26 INR 0.68 Crores Amount spent on CSR in Q1FY27 CSR 19
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Disclaimer The Presentation is to provide the general background information about the Company’s activities as at the date of the Presentation. The information contained herein is for general information purposes only and based on estimates and should not be considered as a recommendation that any investor should subscribe / purchase the company shares. The Company makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information contained herein. This presentation may include certain “forward looking statements”. These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties which could cause actual outcomes and results to differ materially from these statements. Important factors that could cause actual results to differ materially from our expectations include, amongst others, general economic and business conditions in India and abroad, ability to successfully implement our strategy, our research & development efforts, our growth & expansion plans and technological changes, changes in the value of the Rupee and other currencies, changes in the Indian and international interest rates, change in laws and regulations that apply to the Indian and global pharmaceuticals industries, increasing competition, changes in political conditions in India or any other country and changes in the foreign exchange control regulations in India. Neither the company, nor its Directors and any of the affiliates or employee have any obligation to update or otherwise revise any forward-looking statements. The readers may use their own judgment and are advised to make their own calculations before deciding on any matter based on the information given herein. No part of this presentation may be reproduced, quoted or circulated without prior written approval from Caplin Point Laboratories Ltd.
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Mr G Venkatram investors@caplinpoint.net Simran Malhotra / Soham Arora +91 99454 72589 caplinpoint@churchgatepartners.com 524742 CAPLIPOINT CIN: L24231TN1990PLC019053 ISIN: INE475E01026 |DUNS:86-148-4556 | WWW.CAPLINPOINT.NET ©2018, Caplin Point Laboratories Limited – All Rights Reserved. “Caplin Point” and The Caplin Point Logo are trademarks of Caplin Point Laboratories Limited. In addition to Company data, data from market research agencies, Stock Exchanges and industry publications has been used for this presentation. This material was used during an oral presentation; it is not a complete record of the discussion. This work may not be used, sold, transferred, adapted, abridged, copied or reproduced in whole on or in part in any manner or form or in any media without the prior written consent. All product names and company names and logos mentioned herein are the trademarks or registered trademarks of their respective owners. 21