Albert David Ltd Management Discussions

ECONOMY & INDUSTRIES OVERVIEW Global Economy

The global economy appeared to have stabilized, with steady yet underwhelming growth rates:

Forecasts for global growth have been revised markedly down compared with the January 2025 World Economic Outlook (WEO) Update, reflecting effective tariff rates at levels not seen in a century and a highly unpredictable environment. Intensifying downside risks dominate the outlook, amid escalating trade tensions and financial market adjustments. Divergent and swiftly changing policy positions or deteriorating sentiment could lead to even tighter global financial conditions. Ratcheting up a trade war and heightened trade policy uncertainty may further hinder both short-term and long-term growth prospects. Scaling back international cooperation could jeopardize progress toward a more resilient global economy. At this critical juncture, countries should work constructively to promote a stable and predictable trade environment and to facilitate international cooperation, while addressing policy gaps and structural imbalances at home. This will help secure both internal and external economic stability.

Indian Economy

Real GDP or GDP at Constant Prices is estimated to attain a level of 187.97 lakh crore in FY 2024-25, against the First Revised Estimates (FRE) of GDP for the FY 2023-24 of 176.51 lakh crore, registering a growth rate of 6.5%. Nominal GDP or GDP at Current Prices is estimated to attain a level of 330.68 lakh crore in the FY 2024-25, against 301.23 lakh crore in FY 2023-24, showing a growth rate of 9.8%. Real GVA is estimated at 171.87 lakh crore in the FY 2024-25, against the FRE for the FY 2023-24 of 161.51 lakh crore, registering a growth rate of 6.4%. Nominal GVA is estimated to attain a level of 300.22 lakh crore during FY 2024-25, against 274.13 lakh crore in FY 2023-24, showing a growth rate of 9.5%.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The details of the financial performance of the company are appearing in the Balance Sheet and the Statement of Profit & Loss along with notes to financial statements forming part of this Annual Report. Salient features of financial performance during the Financial Year 2024-2025 vis-a-vis Financial Year 2023-2024 are as under : -

( In Lakhs)

Financial parameters	2024-25	2023-24
Revenue from Operations	34,576.79	36,246.17
Other Income	2,958.08	5,755.21
Earnings before interest, tax, depreciation & amortization	3260.70	10,443.17
Gross Profit (EBDTA)	3219.66	10,411.03
Profit before exceptional item & tax	2522.77	9,728.53
Exceptional Item	-	-
Profit after tax	1720.08	7,542.01

The company always keeps track of the latest development in the field of technology and remains in continuous touch with foreign manufacturers/machine suppliers for latest development in the pharmaceutical industry. Efforts are being made to adopt latest technology to upgrade its units for effective cost control to meet market demand. We at Albert David Limited are focusing on continuous improvement be it in quality, machinery or drug delivery system. In view of that the company is upgrading its facility as per Revised Schedule-M. Our R & D team is working on new molecules to strengthen new product pipeline & drug delivery system in this highly challenging Pharmaceutical market.

In this current year 24-25, Albert David have launched 7 new products in Gynecology therapy - Alamin woman, Nectagen, Alstat TA, Spasna M, Evacure Total, Proguard & Vaginova, Further, we also successfully launched 4 new products in Orthopedic segment—C3H OA Tabs, DhupCal Tabs, Sionueron NT Tabs & Alamin TKR sachets . Building on this momentum, the company is currently in the process of focusing on building these brands by creating strong prescriber base and developing KOLs, further strengthening the portfolio and market presence.

INDUSTRY STRUCTURE & DEVELOPMENTS

The global pharmaceutical industry is projected to continue its growth trajectory with several key trends and challenges:

1) Market Growth: The global pharmaceutical market size was estimated at USD 1,645.75 billion in 2024 and is expected to grow at a CAGR of 6.12% from 2025 to 2030. The market is driven by rising chronic disease prevalence, aging populations, and increased healthcare spending.

2) Technological Advancements: Advancements in biologics, personalized medicine, and RNAi-based therapeutics are enhancing treatment outcomes. Technological innovations in drug delivery systems and expanding access to healthcare in emerging economies also contribute to market expansion.

3) Regulatory Landscape: The pharmaceutical manufacturing market is highly competitive and fragmented, with the presence of several global and international players. The pharma contract manufacturing companies are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, mergers and acquisitions.

4) COVID-19 Impact: The pandemic has accelerated digital transformation, telemedicine adoption and vaccine development, influencing long-term industry strategies.

5) Mergers and Acquisitions: Consolidation within the industry continues as companies seek to enhance their pipelines, capabilities and market presence.

6) Focus on Rare Diseases and Specialty Medicines: There is a growing emphasis on developing treatments for rare diseases and specialized therapies, driven by regulatory incentives and high unmet medical needs. The Company is manufacturing SSG injections, a medicine for Kala Azar. It is also developing a more advanced molecule Miltefosine for Kala Azar.

7) Supply Chain Challenges: The industry faces ongoing supply chain disruptions and the need for resilience in manufacturing and distribution networks. The Company is streamlining Supply Chain for smooth functioning.

8) Environmental and Sustainability Initiatives: Pharmaceutical companies are increasingly focusing on sustainability, reducing carbon footprints and adopting environmentally friendly practices in manufacturing. The Company is replacing conventional lights by LED lights, using Solar Power, reusing water for conservation of water and maintaining greenery in its manufacturing units.

9) Digital Health: Integration of digital technologies such as AI, blockchain and IoT is transforming healthcare delivery, patient monitoring and adherence to treatment protocols.

10) Global Health Equity: Efforts are being made to address global health disparities through initiatives such as affordable access programs, partnerships and technology transfer agreements.

The pharmaceutical industry in 2025 is expected to be characterized by significant advancements in AI-driven drug discovery, personalized medicine and the rise of biologics and biosimilars. Furthermore, the industry will grapple with challenges related to drug development costs, supply chain management and regulatory compliance.

OUTLOOK

India being the largest provider of generic medicines globally, occupying a 20% share in global supply by volume, supplying 62% of Global Vaccine demand is a prominent and rapidly growing presence in the global pharmaceuticals industry. India ranks 3rd worldwide for production by volume and 14th by value. India is home to more than 3,000 pharma companies with a strong network of over 10,500 manufacturing facilities offering over 60,000 generic brands across 60 therapeutic categories. India has the highest number of US-FDA compliant Pharma plants outside of USA and its API industry is third largest in the world, with 57% of APIs on the WHO.

Various factors that will contribute to the pharma market growth in India are Government initiatives such as Pradhan Mantri Bhartiya Jan Aushadhi Pariyojana and Ayushman Bharat Yojana under National Health Protection Scheme (NHPS). One of the most notable measures taken so far was the introduction of the PLI Scheme. By incentivizing domestic production, the scheme aims to make India a global hub for pharmaceutical manufacturing, ensure drug security, create employment opportunities and boost overall economic growth in the pharmaceutical sector.

Till now, a few pharmaceutical companies are being supported under the scheme. The scheme for Strengthening the Pharmaceuticals Industry (SPI), which focuses specifically on MSMEs and pharma clusters in the country, with the aim of providing the necessary support needed for them to boost their productivity, capacity and quality, is expected to give further fillip to the industry.

The governments role in the pharmaceutical industry is shaped by a balance between promoting innovation, ensuring drug safety and efficacy, protecting public health and addressing affordability and access issues. This relationship continues to evolve as new healthcare challenges emerge and societal expectations change. With the supportive governmental machinery and increasing demand for quality healthcare, we are sure that Indian pharma industry has a great future ahead.

OPPORTUNITIES AND THREATS

India is the largest provider of generic drugs globally and is known for its affordable vaccines and generic medications. The Indian Pharmaceutical industry is currently ranked third in pharmaceutical production by volume.

Indian pharmaceutical industry enjoys significant strengths such as cost advantage and a large skilled workforce, it also faces challenges such as quality concerns and dependency on imported raw materials. Moreover, intense global competition from other low-cost manufacturing countries and multinational pharmaceutical giants. The industry is subject to stringent regulatory oversight both domestically (by the CDSCO - Central Drugs Standard Control Organization) and internationally (by regulatory bodies in target markets like the FDA in the USA, EMA in Europe, etc.). Changes in regulations can impact manufacturing processes, approval timelines and market access. Despite these risks, the Indian pharmaceutical industry also offers substantial opportunities due to its skilled workforce, cost advantages in production, strong research and development capabilities and a growing domestic market. The Company is already working to meet Revised Schedule-M and complying WHO-Geneva requirement.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has implemented an Internal control framework to ensure all assets are safeguarded and protected against loss from unauthorized use or disposition and transactions are authorized, recorded and reported correctly. The framework includes internal controls over financial reporting, which ensures the integrity of financial statements of the Company and eliminates the possibility of fraud. The Companys internal control system and procedure is commensurate with its size and nature of the business. These control mechanisms ensure optimum use and protection of the resources and compliance with the policies, procedures and statues. Reputed firms of Chartered Accountants carry out audits throughout the year and Internal Audit Reports and action taken reports are periodically reviewed by the Audit Committee of the Board of Directors. During FY24-25, the Audit Committee was satisfied with the adequacy of the Internal Control systems and procedures of the Company.

HUMAN RESOURCES DEVELOPMENT AND INDUSTRIAL RELATIONS

At ‘Albert David, "Adds life to life" is a simple yet profound theme that defines our efforts and reflects our mindset, aspiration and vision. The Company believes that Effective HRD practices contribute to employee satisfaction, retention and productivity, ultimately helping organizations achieve their goals and maintain a competitive edge in the marketplace. The Company is committed to maintaining cordial industrial relations with unionized factory staff, field forces, as well as non-unionized employees, in the best interest of the company. Best efforts are made to ensure the highest standard of performances from the employees through adoption of best practices. In view of this, the company adopted complete digitalization of HR activities through HRMS and capturing real time data. This is a big leap forward for the company. The total employee strength of the Company as on 31st March, 2025 stood at 1800 (approx).

SEGMENT-WISE PERFORMANCE

The Company operates in a single segment and hence cannot be segregated in terms of business verticals or geographical presence, in terms of Note No. 3 & 64 to the financial statements.

During the year under review, your Company achieved Net Sales and Gross Profit of 345.76 Cr. & 32.20 Cr. against 362.46 Cr. & 104.11 Cr., respectively, during the previous year.

KEY FINANCIAL RATIOS ARE AS UNDER:

Particulars	2024-25	2023-24	Change (%)
Debt-Equity Ratio (in times) (Note 1)	0.03	0.01	366.97%
Current Ratio (in times)	3.40	3.75	-9.43%
Interest Coverage Ratio (in times) (Note 2)	17.16	78.04	-78.01%
Inventory Turnover Ratio (in times) (Note 3)	12.22	17.62	-30.62%
Debtors Turnover Ratio (in times)	12.11	12.08	0.24%
Operating Profit Margin (%)	-3.61%	4.95%	-8.56%
Net Profit Margin (%)	5.01%	20.93%	-15.92%
Return on Net Worth (%)	6.27%	25.13%	-18.86%

Reason for Variance (if variance is more than 25%)

Note No. 1 :- Increase due to increase in Borrowings without increase in other equity due to decrease in profit after tax. Note No. 2 :- Decrease due to decrease in earnings (PAT).

Note No. 3 :- Due to increase in inventory at the year end due to decrease in sales.

CAUTIONARY STATEMENT

The Management Discussion and Analysis Report may contain certain statements that might be considered forward looking. These statements are subject to certain risks and uncertainties. Actual results may differ materially from those expressed in the statement with crystallization of unforeseen predicaments in the sphere of Government policies, local, political and economic developments, risks inherent to the Company and other factors.

For and on behalf of the Board of Directors

A.K. Kothari

Executive Chairman

(DIN: 00051900)

 

Dated : 13th May, 2025

Place: Kolkata