indoco remedies ltd Management discussions

Dear Stakeholders,

We are happy to inform you that all the businesses of our Company have performed well despite various challenges in the global business environment. This robust and sustainable performance during the last two years speaks volumes about smart and intelligent teamwork and above all, effective leadership at every level. However, globally rising inflation, severe disruption in global supply chains, tremendous rise in oil prices, and last but not the least, the Russia-Ukraine war are events playing havoc with the macro-economic business environment. Just when we believed the COVID-19 related economic impact would ease, these current disruptions have once again posed several challenges to business.

In spite of all the above challenges, the Company grew by 23.4 % with revenues at Rs. 1503 crores, as against Rs. 1217 crores in the previous year. The Domestic Formulation Business grew by 29.7 % with revenues at Rs. 803 crores, as against Rs. 619 crores of previous year. The International Formulation Business grew by 26 % with revenues at Rs. 620 crores, as against Rs. 492 crores of previous year.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBIDTA) to net sales is 21.8% at Rs. 327 crores, compared to 18.4 % at Rs. 223 crores, last year. Profit After Tax (PAT) is 10.3% at Rs. 154 crores, as against 7.6 % at Rs. 92 crores, last year.

In the Domestic market, we launched six new products (SKUs), two in the acute segment, Naricover and Dropizin Syrup, one in the chronic segment, Methycal 60 K and three in the sub-chronic segment, Rexidin SRS, Noxa and Subitral.

Indoco was successful in launching ten products in the USA and two in Canada through its partners and has received approval of five ANDAs in FY 21-22. The Company was amongst the first few generic companies to launch two products on the day of patent expiry. It is a matter of great pride that Indoco is the only company to launch the generic version of Lacosamide Injection in the US market.

Indoco is committed to building a healthier world by providing quality medicines made available at an affordable price. In these challenging times, we have enhanced our supply chain capabilities and are expanding our manufacturing facilities to meet the ever increasing demand and ensure continuous supply of medicines to needy patients.

Indoco keeps alive its CSR mission by reaching out to the needy with a focus on the welfare of women, the aged and children. We are striving hard to make a positive impact on society and thereby create better lives for a brighter future.

What makes us proud is the relentless hard work and collaborative efforts of Indocoites, along with the support of our stakeholders, including shareholders, customers, bankers, and the medical fraternity globally, who have helped us build a great organization. To all of them we are ever so grateful.

Thanking you all,

Suresh G Kare Aditi Panandikar Sundeep V Bambolkar
Chairman Managing Director Jt. Managing Director