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FERMENTA BIOTECH LIMITED Earnings Release 2024

Feb 20, 2024

60716_rns_2024-02-20_621d9b06-e5f6-491d-ad98-24a22373829f.pdf

Earnings Release

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Ref: F.No.:908

February 20, 2024

Corporate Relations BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai – 400 001

Dear Sir,

Sub.: Intimation of Earnings Presentation for Quarter 3 – Financial Year 2023-2024

[Q3-FY23/FY24]

Ref: Scrip Code: 506414

Further to our intimation dated February 12, 2024 regarding approval of Unaudited Financial Results (Standalone and Consolidated) by the Board of Directors for the quarter and nine months ended December 31, 2023, we hereby enclose a copy of Earnings Presentation for Quarter 3 – Financial Year 2023-2024.

The said Earnings Presentation will thereafter be uploaded on Company’s website at www.fermentabiotech.com

Kindly take the same on record.

Thanking you,

Yours faithfully,

for Fermenta Biotech Limited

SRIKANT Digitally signed by SRIKANT NATH NATH SHARMA Date: 2024.02.20 SHARMA 16:33:39 +05'30'

Srikant N Sharma Company Secretary CS Membership No: F3617

A-1501, Thane One, DIL Complex, Ghodbunder Road, Majiwade, Thane (W) 400610

Encl: As above

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Earnings Presentation | Q3/9M-FY24

Snapshot

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Only manufacturer of Vitamin D3 in India

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Proprietary technology to manufacture Vitamin D3

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DSIR approved R&D facility

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350+ clients across the globe

Top 3 Amongst top 3 manufacturers of Vitamin D3 globally

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55 Years of Vitamin D3 manufacturing experience

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10 patents granted in 2022

Backward integrated

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Global Presence in 60+ countries

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Both manufacturing facilities certified by global regulatory bodies

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Big 4 statutory auditor

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Forward Integrating and diversifying to offer more nutraceutical products

Fermenta Biotech Limited

2

Company Overview

  • Fermenta Biotech Limited (FBL) (Erstwhile DIL Ltd.) incorporated in 1951 by Dr. DVK Raju, is engaged in development and manufacturing of pharmaceuticals, biotechnology and environmental solutions used across various industries.

  • With a rich history of seven decades FBL has evolved as a key global player in manufacturing of Vitamin D3 in all its formats and has a non-China dependent supply chain.

  • FBL manufactures a range of Vitamin D3 variants having an optimal mix between human and animal feed products which have applications across multiple sectors like:

  • Pharmaceuticals 4. Animal feed

  • Dietary and nutritional supplements 5. Veterinary

  • Food and beverage fortification

  • Rodenticides

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Consolidated Revenue (INR Mn) & EBITDA Margins (%)

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21.65%
3,985
3,773
3,499
2,383
15.41% 9.32%
5.12%
FY21 FY22 FY23 9M-FY24
Operational Revenue EBITDA Margins (%)
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Revenue Mix % (FY23)

  • The company is also involved in manufacturing of APIs for muscle relaxant and anti-flatulent applications.

  • FBL delivers innovative enzymes used in manufacturing of active pharmaceutical ingredients and is involved in environmental solutions used for waste water treatment and management.

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Real Estate
Sale
14%
Rental Income
4%
Vitamin D3
Other APIs and
59%
Intermediary
14%
Fish Oil
Cholesterol
9%
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Fermenta Biotech Limited

3

Q3/9M-FY24

Q3/9M-FY24 Financial Highlights

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Q3-FY24 Standalone Performance

9M-FY24 Standalone Performance

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INR 2,174 Mn INR 280 Mn 12.88 %
Operational Income Operational EBITDA Operational EBITDA Margin
INR (115) Mn (5.29)% INR (3.98)/share
Net Profit/(Loss) PAT Margin Diluted EPS
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INR 894 Mn INR 265 Mn 29.64%
Operational Income Operational EBITDA Operational EBITDA Margin
INR 117 Mn 13.09 % INR 4.05 /share
Net Profit/(Loss) PAT Margin Diluted EPS
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Q3-FY24 Consolidated Performance

9M-FY24 Consolidated Performance

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INR 2,383 Mn INR 222 Mn 9.32 %
Operational Income Operational EBITDA Operational EBITDA Margin
INR (169) Mn (7.09)% INR (5.59)/share
Net Profit/(Loss) PAT Margin Diluted EPS
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INR 990 Mn INR 252 Mn 25.45%
Operational Income Operational EBITDA Operational EBITDA Margin
INR 100 Mn 10.10% INR 3.41/share
Net Profit/(Loss) PAT Margin Diluted EPS
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Fermenta Biotech Limited

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Q3/9M-FY24 Operational Highlights

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  • Volumes of Vitamin D3 for Human Nutrition in Q3-FY24 was higher by 26% compared to Q2-FY24 and 38% lower in 9M-FY24 as compared to 9M-FY23, while the average prices of Vitamin D3 for Human Nutrition were lower by 2% in Q3-FY24 as compared to Q2-FY24 and higher by 12% in 9M-FY24 as compared to 9M-FY23.

  • Animal Feed volumes and prices continue to be subdued.

  • In Q3-FY24 the company has sold major part of its Investment Property being freehold land located at Village Takawe. The income on sale of such property was INR 388 Mn, which has been recognised as income under the head revenue from operation pertaining to property segment.

  • In Q3-FY24 the company has received intimation/ assessment order for financial years 2018-2019 and 20192020 basis which an additional provision of tax is required on account of certain disallowances. Basis the order received, the Company has further re-assessed the tax liability for subsequent years and accordingly a total MAT credit recognised of INR 60.8 Mn has been written off during the quarter relating to earlier years.

Fermenta Biotech Limited

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Vitamin D3 500 Animal Feed Price Trend

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85
80
75
60
33
32
30
25
22
20 20
16
13
12
10
9
8 8
7
6 6 6
7
7
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Calendar Year
Source: feedinfo.com
Min of Low Max of High
Price (Euro/kg)
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Fermenta Biotech Limited

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Quarterly Standalone Financial Performance

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PARTICULARS (INR Mn) Q3-FY24 Q3-FY23 Y-o-Y Q2-FY24 Q-o-Q
Operational Revenue 894 538 66.2% 513 74.3%
Total Expenses 629 599 5.0% 629 0.0%
Operational EBITDA 265 (61) NA (116) NA
Operational EBITDA Margins (%) 29.64% NA NA NA NA
Other Income 26 9 NA 20 30.0%
Depreciation 61 62 (1.6)% 57 7.0%
Finance Cost 52 51 2.0% 37 40.5%
Profit/ (Loss) Before Tax and Exceptional Items 178 (165) NA (190) NA
Exceptional Items - (446) NA (90) NA
Tax 61 (30) NA - NA
Profit/(Loss) after Tax 117 (581) NA (280) NA
PAT Margins (%) 13.09% NA NA NA NA
Other Comprehensive Income (0) 1 NA (0) NA
Total Comprehensive Income 117 (580) NA (280) NA
Diluted EPS (INR) 4.05 (20.13) NA (9.69) NA

Fermenta Biotech Limited

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YTD Standalone Financial Performance

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PARTICULARS (INR Mn) 9M-FY24 9M-FY23 Y-o-Y
Operational Revenue 2,174 2,283 (4.8)%
Total Expenses 1,894 2,152 (12.0)%
Operational EBITDA 280 131 NA
Operational EBITDA Margins (%) 12.88% 5.74% 714 Bps
Other Income 67 74 (9.5)%
Depreciation 175 186 (5.9)%
Finance Cost 136 145 (6.2)%
Profit/ (Loss) Before Tax and Exceptional Items 36 (126) NA
Exceptional Items (90) (446) 79.8%
Tax 61 (23) NA
Profit/(Loss) after Tax (115) (549) 79.1%
PAT Margins (%) NA NA NA
Other Comprehensive Income 0 1 NA
Total Comprehensive Income (115) (548) 79.0%
Diluted EPS (INR) (3.98) (19.04) 79.1%

Fermenta Biotech Limited

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Quarterly Consolidated Financial Performance

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PARTICULARS (INR Mn) Q3-FY24 Q3-FY23 Y-o-Y Q2-FY24 Q-o-Q
Operational Revenue 990 549 80.3% 569 74.0%
Total Expenses 738 648 13.9% 708 4.2%
Operational EBITDA 252 (99) NA (139) NA
Operational EBITDA Margins (%) 25.45% NA NA NA NA
Other Income 25 9 NA 19 31.6%
Depreciation 64 63 1.6% 59 8.5%
Finance Cost 52 51 2.0% 37 40.5%
Profit/ (Loss) Before Tax and Exceptional Items 161 (204) NA (216) NA
Exceptional Items - (194) NA (75) NA
Tax 61 (30) NA - NA
Profit/(Loss) after Tax 100 (368) NA (291) NA
PAT Margins (%) 10.10% NA NA NA NA
Other Comprehensive Income (18) (25) 28.0% 8 NA
Total Comprehensive Income* 82 (393) NA (283) NA
Diluted EPS (INR) 3.41 (12.66) NA (9.90) NA

*Total OCI is calculated Excluding Non-controlling Interest

Fermenta Biotech Limited

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YTD Consolidated Financial Performance

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PARTICULARS (INR Mn) 9M-FY24 9M-FY23 Y-O-Y
Operational Revenue 2,383 2,448 (2.7)%
Total Expenses 2,161 2,464 (12.3)%
Operational EBITDA 222 (16) NA
Operational EBITDA Margins (%) 9.32% NA NA
Other Income 64 74 (13.5)%
Depreciation 183 221 (17.2)%
Finance Cost 137 145 (5.5)%
Profit/ (Loss) Before Tax and Exceptional Items (34) (308) 89.0%
Exceptional Items (74) (194) 61.9%
Tax 61 (24) NA
PAT (169) (478) 64.6%
PAT Margins (%) NA NA NA
Other Comprehensive Income (11) (13) 15.4%
Total Comprehensive Income* (180) (491) 63.3%
Diluted EPS (INR) (5.59) (16.27) 65.6%

*Total OCI is calculated Excluding Non-controlling Interest

Fermenta Biotech Limited

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Historical Standalone Income Statement

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PARTICULARS (INR Mn) 9M-FY24 FY23 FY22 FY21
Operational Revenue 2,174 3,289 3,880 3,728
Total Expenses 1,894 2,902 3,120 2,791
Operational EBITDA 280 387 760 937
Operational EBITDA Margins (%) 12.88% 11.77% 19.59% 25.13%
Other Income 67 76 75 66
Depreciation 175 245 237 190
Finance Cost 136 209 172 181
Profit/ (Loss) Before Tax and Exceptional Items 36 9 426 632
Exceptional Items (90) (596) - -
Tax 61 (12) 124 112
Profit/(Loss) after Tax (115) (575) 302 520
PAT Margins (%) NA NA 7.78% 13.95%
Other Comprehensive Income 0 1 (2) (1)
Total Comprehensive Income (115) (574) 300 519
Diluted EPS (INR) (3.98) (19.94) 10.43 17.92

Fermenta Biotech Limited

12

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Historical Standalone Balance Sheet

PARTICULARS(INR Mn) H1-FY24 FY23 FY22
Equity 3,095 3,360 3,959
a) Equity share capital 144 144 144
b) Other equity 2,951 3,216 3,815
Liabilities
Non-current liabilities 873 1,152 1,300
a) Financial liabilities
i) Borrowings 535 835 1,147
ii) Lease liabilities 17 20 37
iii) Other financial liabilities 13 11 7
b) Provisions 47 46 57
d) Other non-current liabilities 261 240 52
Current Liabilities 2,116 2,126 1,867
a) Financial liabilities
i) Borrowings 1,163 1,333 1,214
ii) Lease liabilities 2 7 11
ii) Trade payables 608 519 456
iii) Other financial liabilities 118 91 128
b) Provisions 6 6 8
c) Other current liabilities 216 166 47
d) Current tax liabilities (Net) 3 3 3
e) Contract Liability - 1 -
TOTAL EQUITY AND LIABILITIES 6,084 6,638 7,126
PARTICULARS(INR Mn) H1-FY24 FY23 FY22
Assets
Non-current Assets 3,802 4,105 3,974
a)Property, plant and equipment 1,977 2,048 1,935
b) Capital work-in-progress 488 419 299
c)Right ofuse assets 111 117 157
d)Investment property 139 287 668
e) Goodwill 41 41 41
f) Other intangible assets 58 74 66
g )Intangible assets underdevelopment 31 31 47
h)Investments
i)Investments in subsidiaries 32 122 127
i)Financialassets
i)Investments 4 4 3
ii)Loans 74 72 64
iii) Othersfinancialassets 216 210 67
iv)TradeReceivables 161 180 -
j)Deferred taxassets (Net) 333 333 333
k) Non-current tax assets (Net) 119 103 132
l) Other non-current assets 18 64 35
Current Assets 2,282 2,533 3,152
a) Inventories 924 1,097 1,296
b) Financial assets
i) Trade receivables 589 674 1,178
ii) Cash and cash equivalents 48 321 102
iii)Bank balances other than (iii) above 456 230 206
iv) Investments - 28 -
v)Loans 47 10 -
vi) Other financial assets 15 9 50
c) Other current assets 188 132 320
d) Contract assets 15 32 -
TOTAL ASSETS 6,084 6,638 7,126

Fermenta Biotech Limited

13

Historical Consolidated Income Statement

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PARTICULARS (INR Mn) 9M-FY24 FY23 FY22 FY21
Operational Revenue 2,383 3,499 3,985 3,773
Total Expenses 2,161 3,320 3,371 2,956
Operational EBITDA 222 179 614 817
Operational EBITDA Margins (%) 9.32% 5.12% 15.41% 21.65%
Other Income 64 77 81 82
Depreciation 183 282 255 203
Finance Cost 137 208 171 180
Profit/(Loss) before Exceptional Items and Tax (34) (234) 269 516
Exceptional Items (74) (285) - -
Tax 61 17 118 91
Non-controlling interests - 21 3 30
Profit/(Loss) after Tax (169) (515) 154 455
PAT Margins (%) NA NA 3.86% 12.06%
Other Comprehensive Income (11) (15) 7 (2)
Total Comprehensive Income (180) (530) 161 423
Diluted EPS (INR) (5.59) (17.85) 5.33 15.69

*Total OCI is calculated Excluding Non-controlling Interest

Fermenta Biotech Limited

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Historical Consolidated Balance Sheet

PARTICULARS(INR Mn) H1-FY24 FY23 FY22
Equity 2,830 3,126 3,714
a) Equity share capital 144 144 144
b) Other equity 2,722 3,009 3,577
c) Non-controlling interests (36) (27) (7)
Liabilities
Non-current liabilities 872 1,152 1,283
a) Financial liabilities
i) Borrowings 534 836 1,147
ii) Lease liabilities 17 20 20
iii) Other financial liabilities 13 11 7
b) Provisions 47 46 56
c) Other non-current liabilities 261 239 52
Current Liabilities 2,244 2,087 2,071
a) Financial liabilities
i) Borrowings 1,163 1,333 1,214
ii) Lease liabilities 2 7 11
ii) Trade payables 732 458 646
iii) Other financial liabilities 118 91 128
b) Provisions 9 26 10
c) Other current liabilities 217 168 59
d) Current tax liabilities (Net) 3 3 3
e) Contract Liability 0 1 -
TOTAL EQUITY AND LIABILITIES 5,946 6,365 7,068
PARTICULARS(INR Mn) H1-FY24 FY23 FY22
Assets
Non-current Assets 3,561 3,835 3,928
a)Property, plant and equipment 1,977 2,048 1,935
b)Capital work-in-progress 488 419 299
c)Right of use assets 111 117 139
d)Investmentproperty 139 287 673
e)Goodwill 41 115 109
f)Other intangible assets 81 102 129
g )Intangible assets under development 31 31 47
h)Financial assets
i)Investments 4 4 3
ii)Loans 3 2 -
iii)Others financial assets 215 210 67
i)Deferred tax assets(Net) 333 333 360
j)Non-current tax assets(Net) 120 103 132
k)Other non-current assets 18 64 35
Current Assets 2,385 2,530 3,140
a)Inventories 1,083 1,301 1,595
b)Financial assets
i)Trade receivables 484 416 871
ii)Cash and cash equivalents 94 353 130
iii)Bank balances other than(iii)above 456 230 206
iv)Investments - 28 -
v)Loans 47 10 -
vi)Other financial assets 12 4 3
c)Other current assets 194 156 335
d)Contract Assets 15 32 -
TOTAL ASSETS 5,946 6,365 7,068

Fermenta Biotech Limited

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Historical Consolidated Financial Performance

Operational Revenue (INR Mn) Operational EBITDA (INR Mn) & Margins (%)

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3,985
3,773
3,499
2,383
FY21 FY22 FY23 9M-FY24
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21.65%
817
15.41%
614
9.32%
222
5.12%
179
FY21 FY22 FY23 9M-FY24
EBITDA (INR Mn) EBITDA Margins (%)
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Working Capital Days

RoCE & RoE (%)

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97 98
19% 46
12%
4% -2%
12% 13%
7%
FY20 FY21 FY22 FY23
-17%
FY21 FY22 FY23
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PAT (INR Mn) & Margins (%)

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455
12.06%
154
3.86%
FY21 FY22 FY23 9M-FY24
-7.09%
-169
-14.72%
-515
PAT (INR Mn) PAT Margins (%)
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Net Debt to Equity (x)

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0.55
0.51
0.45
0.41
FY21 FY22 FY23 H1-FY24
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RoCE (%) RoE (%)

Fermenta Biotech Limited

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Disclaimer

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No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management Fermenta Biotech Limited (“Company” or “FBL”), which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment.

Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments.

This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration there from.

This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner.

Valorem Advisors Disclaimer:

Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and 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. Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review.

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For further information please contact our Investor Relations Representatives: Mr. Anuj Sonpal Valorem Advisors Tel: +91-22-4903-9500 Email: [email protected]

Fermenta Biotech Limited

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Thank You