Dear Shareholders, Employees & Other Stake Holders,
It gives me immense happiness to share our progress in our Annual
Report for the financial year 2021-22. Your company is growing with commitment and has had
an incredible growth with a lot of promise.
The economic resurgence in India, will depend on numerous factors,
including policy reforms, major investment drives,fiscal support and continuing the rapid
vaccination program.Indian pharmaceutical industry is known for its generic medicines and
low-cost vaccines globally. Transformed over the years as a vibrant sector, presently
Indian Pharma ranks third in pharmaceutical production by volume. In the last nine years,
Indian Pharma sector has grown steadily by CAGR of 9.43%. Pharma sector has been
consistently earning trade surplus. Major segments of Indian Pharmaceutical Industry
include generic drugs, OTC medicines, bulk drugs, vaccines, contract research &
manufacturing, biosimilars and biologics.
Indian pharmaceutical industry also plays significant role globally.
India has the highest number of United States Food and Drug Administration (USFDA)
compliant Pharma plants outside of USA. There are 500 API manufacturers contributing about
8% in the global API Industry. India is the largest supplier of generic medicines with 20%
share in the global supply by manufacturing 60000 different generic brands across 60
therapeutic categories. India is one of the biggest suppliers of low cost vaccines in the
world. Because of the low price and high quality, Indian medicines are preferred
worldwide, thereby rightly making the country the "pharmacy of the world".
The Indian pharma industry has also played an important role in meeting
the challenges for mitigation of the infection in COVID pandemic. The industry worked in
close collaboration with the government and academic institutes etc., to quickly develop
and refine manufacturing processes which helped to ensure a consistent supply of medicines
needed for the management of COVID-19
The Indian economy is recovering well, thanks to the robust policies
and strategies drafted by the Central Government. To further bolster the future of the
Indian pharmaceutical industry, the Central Government is introducing numerous measures
and policies for this sector. With India being one of the fastest growing economies, the
IMF has forecasting India's GDP growth rate at 7.4% for FY2022-23, it will further boost
the domestic and international trade across sectors.
Post Covid-19 and with a favorable environment for the Pharmaceutical
industry, we have been able to encash this opportunity by launching new products in the
domestic & international markets. There have been innovations which have helped us
grow in expanding our product portfolio, gaining more patents and increasing focus on
research and development.
Your company has reported its best results in a financial year with
Highest Revenue, EBITDA and Net Profit. Standalone revenue for FY22 increased 11.63% to
Rs. 472.07 crore. Exports for the same period were Rs.266.18 crore. Your company reported
healthy ROCE at 21.93%, RONW at 16.02%with Net Profit margin of 11.41%. Our Book Value is
Rs. 216.12 per share as on March 2022. Cash & Cash equivalents at Rs. 6.93 crore as on
31 March, 22
Your company has recommended 15% dividend-Rs.1.50 per share for
FY21-22.Company has achieved strong liquidity position supported by healthy cash accruals
and become Net Debt free.
We received an approval from Australia's medicines and medical devices
regulator - Therapeutic Goods Administration (TGA). TGA and EUGMP approvals will help
strengthen your company's presence in 90plus countries.
During FY22, your Company has launched 14 products in the domestic
market and filled 110dossiers in the export market. In FY23, your company will look to
building a strong product portfolio in the lifestyle and chronic segment especially
women's healthcare, dermatology, gastro and pain management to complement it's strong
presence in acute segment.
For FY 22-23 company is looking at maintaining a healthy growth in
Sales, EBITDA and Net profit margins. It has additionally built our confidence with CRISIL
upgrading its ratings and ICRA reaffirming your company's long-term and short-term bank's
facilities.
As part of the product expansion strategy, your company has acquired a
plant in Mehsana, Gujarat with entire funding from internal accruals, for the launch of
Cephalosporin product for production & further expansion.
Your company is growing from strength to strength, delivering robust
operational and financial performance, maintaining a healthy growth in revenue, margins
and profitability. Expansion plans for Cephalosporin products and foray in EU and
Australian markets are progressing well and looking forward to expand its presence in
Africa, South East Asian countries also. We are confident to improve our growth numbers in
FY23.Your Company will continue to grow with maintaining its net debt status in the future
also.
I also take this opportunity to express my gratitude to all my
employees, customers, business partners and shareholders. The confidence and trust you
have placed in us has motivated us to reach new heights. Your company will continue to set
new standards of growth and excellence in the pharmaceutical segment and also achieve the
collective vision.