Capitaline

Analyst Meet / AGM 03-Jun-20

Conference Call

Advanced Enzyme Technologies

Maintaining guidance of doubling its revenues in 3-5 years

Advanced Enzyme Technologies held conference call on 2^nd June 2, 2020 to discuss the performance for the quarter ended Mar20. Mr. Mukund Kabra - Whole-time Director and Mr. Beni Prasad Rauka - Chief Financial Officer of the company addressed the concall.
Highlights of the Concall

Revenue remained flat in Q4Y20 to Rs 110.3 crore compared to Q4FY19 while Ebitda fell 2% to Rs 48.7 crore and Pat decreased 3% to Rs 32.7 crore.

Animal Nutrition segment revenue rose 4% to Rs 12.6 crore in Q4FY20 contributing 12% to total revenue (Rs 12.1 crore in Q4FY19-11% of total revenue) while Human Nutrition segment revenue fell 6% to Rs 77.9 crore contributing 71% of total revenue (Rs 83.2 crore in Q4FY19- 75% of total revenue) and Industrial Bio-processing revenue was Rs 19 crore contributing 17% to total revenues (Rs 15.1 crore in Q4FY19-14% of total revenues)

For FY20 revenue grew 6% to Rs 444 crore compared to FY19 while Ebitda grew 11% to Rs 202.3 crore and Pat rose 15% to Rs 133 crore.

Animal Nutrition segment revenue rose 9% to Rs 53.6 crore in FY20 contributing 12% to total revenue (Rs 49.3 crore in FY19-12% of total revenue) while Human Nutrition segment revenue was up 2% to Rs 321.1 crore contributing 75% of total revenue (Rs 313.3 crore in FY19- 76% of total revenue) and Industrial Bio-processing revenue increased 8% to Rs 55.5 crore contributing 13% to total revenues (Rs 51.2 crore in FY19 contributing 12% of total revenues)

The company faced difficulties- certain logistical issues and certain disturbances in April20. As a result it was not able to operate its R&D units. However it has normalized in May20

Revenue from top most customer is only 38.5 crore in FY20 as compared to 71.9 crore in FY19. As a result US business saw de-growth of 10%. If top most customer revenue is removed US business saw a growth of 10%.

Top 10 customers contribute about 35% of its total revenue in FY20 compared to 44% in FY19.

The company has seen a good growth of 17% in India business mainly driven by nutrition and Pharma business. Exports from India have gone up by about 45%.

The company is getting a very positive response in the US market for enzymes related to preventive health care. However in Indian market, the company is still not exactly into the nutritional areas because it is getting categorized under the pharma

The company has deferred its capex of Rs 100 crore to build a modern R&D centre in Nasik by 6-8 months

The company has Rs 200 crore as cash and cash equivalents at the end of FY20. The company is actively searching for growth opportunities.

Capacity utilization for FY20 was in the range of 45-50%

The company is committed to growth without sacrificing its margins and continues to create the stakeholders value.
The company is unable to give guidance for FY21 as the company is seeing disruption in supply chain due to covid-19 pandemic. Its R&D units are not functional from abroad and the employees are still working from home

The company is maintaining its guidance of doubling its revenues in 3-5 years.

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