macro international ltd Management discussions

The Management Discussion and Analysis Report have been prepared in compliance with the requirements of Listing Agreements and contain expectations and projections about the strategy for growth. Certain statements in the Management Discussion and Analysis Report are forward looking statements which involve a number of risks and uncertainties that could differ from actual results performance or achievements which such forward looking statements on the basis of any subsequent developments, information or events for which the Company do not bear any responsibility.

INDIAN PHARMACEUTICAL INDUSTRY

The Indian pharma industry has been rightfully recognised as ‘the pharmacy of the world, as it consistently supplied medicines to over 200 nations worldwide during the pandemic. However, the overall growth of the industry was restricted as other chronic diseases got side-lined due to the pandemic. While the Indian pharma industry leads in volume globally, it is still on the margins in creating value through innovative technologies such as new molecular or biological entities, cell and gene therapy, and precision medicines. The industry has shown unwavering commitment to support the countrys healthcare needs, while focusing on opportunities to enhance its footprint across the world.

The Indian pharmaceutical industry is estimated to reach $65 Bn by 2024 and touch $130 Bn in value by the end of 2030 growing at around 11-12% till 2030.

OPPORTUNITIES AND CHALLENGES

Opportunities

1. The Central Government has been extending legislative support as well as rolling out several initiatives, in the form of the Production Linked Incentive (PLI) scheme and bulk drugs park scheme, to reduce the domestic pharma sectors reliance on China and encourage local production. With the successful implementation of these schemes, it is likely that the Indian pharma industry will capitalise on the enhanced Government impetus going forward. These schemes are projected to boost the API industrys growth and lower the domestic pharma industrys reliance on China by 25-30% over the next 4 5 years.

2. The Indian pharma industry is already an established player in the manufacturing of generic drugs.

However, in recent years, the industrys focus on the research-based formulations is anticipated to drive growth and generate new revenue streams.

Challenges

1. With evolving automation technologies, it is likely that the conventional, stringent chain of processes will be disrupted, and the operations are going to become even more streamlined. However, the lack of private investment in the Indian pharma industry has led to the slow adoption of advanced technologies in this sector.

2. Cyberthreats and data security are areas of concern for the Indian pharma industry. The potential risks of data breaches may make the industry vulnerable to external threats OUTLOOK

The outlook of the Company remains positive. Macro International Limited is cautiously optimistic about its prospects in the coming years. The Company aims at providing quality products to the customers and to provide them with greater satisfaction. For last couple of years, the company has taken a number of initiatives to re- structure and re- engineer the operation to enable the company to compete better in this profound competitive regime.

HUMAN RESOURCE STRATEGY

Strategic human resource (HR) management is the foundation of a strong business. At Macro International Limited, a young dynamic team of promising and talented employees, work relentlessly to pursue MILs business plans. With high focus on the values of Innovation, Initiative, Passion and

Humility, the HR of the Company is aligned towards hiring, developing and retaining highly proficient talent and works to provide an inclusive environment that is welcoming to all diversities. The HR department continuously benchmarks best practices across the industry -in the areas of Talent Management, Learning & Development, Performance Management System and Employee Care.

RISKS AND CONCERNS

MILs R&D activities/initiatives offer both new possibilities as well as challenges but the core focus is to adhere to risk tolerance thresholds. The Company may be affected by risks and uncertainties related to product development, regulatory approval, patent and proprietary rights scope, market competition, and technological advancements. As a result, MIL works hard to identify important risks and adopt mitigation strategies to lessen the impact on its operations.

KEY RATIOS

S. No. Particulars	In terms of	Numerator	Denominator	2022-23	2021-22	Variance (%)
(i) Current Ratio	No. of Times	Current Assets	Current Liabilities	1.29	1.41	-8%
(ii) Debt-Equity Ratio	%	Long Term Borrowings, Short term Borrowings	Shareholders Funds	0.00%	0.00%	0%
(iii) Debt Service Coverage Ratio	No. of Times	Earnings available for debt service	Debt Service	0.00%	0.00%	0%
(iv) Return on Equity (ROE)	%	Net Profit After Tax	Average Shareholders Funds	0.318%	-0.327%	197%
(v) Inventory turnover ratio	No. of Times	Revenue from Operations	Average Inventory	-	-	0%
(vi) Trade Receivable turnover ratio	No. of Times	Revenue from Operations	Average Trade Receivables	2.17	-	0%
(vii) Trade payables turnover ratio	No. of Times	Net Credit Purchases	Average Trade Payables	1.77	-	0%
(viii) Net capital turnover ratio	No. of Times	Revenue from Operations	Working Capital	2.48	-	0%
(ix) Net profit ratio	%	Net Profit After Tax	Revenue from Operations	0.48%	0.00%	0.00%
(x) Return on capital employed (ROCE)	%	Earning before interest and taxes	Capital Employed	0.62%	-0.33%	287%
(xi) Return on Investment (ROI)	%	Income generated from investments	Time weighted average investments	NA	NA	0%