Laurus Labs Ltd Management Discussions

Economic overview

Global

In 2023, the global economy has displayed immense resilience, achieving a stable growth rate of 3.2%. Despite facing challenges such as geopolitical tensions, supply chain disruptions, and an energy crisis, the economy has maintained its strength and stability. This steady performance is projected to continue through 2024 and 2025.

Inflation pressures, which peaked earlier in the year, were effectively managed through synchronised monetary policy tightening across the globe. This approach helped avert a potential recession. Global inflation is forecast to decline steadily, from 6.8% in 2023 to 5.9% in 2024. The United States, in particular, surged past its pre-pandemic economic output, strengthened by employment growth and consumer spending. This economic vigour was supported by government spending and a surprisingly positive labour market response, including an increase in labour force participation due to heightened immigration.

At the same time, Europes economic landscape in 2023 tells a different story, marked by more modest growth. The region faces challenges from past high energy costs and the ongoing impacts of tight monetary policies which have stifled economic dynamism. However, consumer and government spending are expected to boost critical sectors slowly but steadily.

While some emerging markets have outperformed expectations following robust domestic demand and improved trade dynamics, many developing economies continue to grapple with the dual pressures of high inflation and increased external debt. This financial strain limits their ability to invest in essential sectors like healthcare and infrastructure, critical for sustainable growth.

Particulars	Estimates	Projections
	2023	2024	2025
World Output	3.2	3.2	3.2
Advanced Economies	1.6	1.7	1.8
United States	2.5	2.7	1.9
Euro Area	0.4	0.8	1.5
Japan	1.9	0.9	1.0
United Kingdom	0.1	0.5	1.5
Canada	1.1	1.2	2.3
Other Advanced Economies	1.8	2.0	2.4
Emerging Market and	4.3	4.2	4.2
Developing Economies
China	5.2	4.6	4.1
India	7.8	6.8	6.5

Outlook

As the world steps into 2024, global economic growth is expected to hold at an even keel, consistently at about 3.2%. Technology and innovation are expected to play a pivotal role, particularly as businesses and governments leverage digital transformations to enhance efficiency and accessibility. This shift is likely to stimulate economic activities in sectors that capitalise on technological advancements, such as automation and artificial intelligence, potentially reshaping labour markets and productivity patterns globally. Furthermore, demographic changes will increasingly influence economic outcomes. Aging populations in advanced economies and youthful demographics in developing regions will require different policy focuses—from pension reforms and healthcare enhancements in the former to education and job creation in the latter. These demographic shifts will also affect consumer patterns, housing markets, and social services, presenting both challenges and growth opportunities.

Geopolitically, the global economic landscape may see increased fragmentation as nations pursue more localised economic policies and reduce dependency on global supply chains. This reorientation towards regional trading partnerships and localised manufacturing could reshape trade dynamics and influence where and how companies invest and operate. (Source: IMF)

India

India has continued on a path of sustained growth through FY24, with a GDP growth rate of 8.2%. This is driven by robust domestic consumption and manufacturing growth. The nations economic vigour is further supported by government-led initiatives such as the Ayushman Bharat Yojana, the governments thrust on infrastructure and the overall positive market sentiment. The latest Purchasing Managers Index (PMI) has surged to 62.2, the strongest in 14 years. Although retail inflation came down to 4.85% by the end of FY24 and remained within the RBIs tolerance band of +/-2 percentage points, it remained above the long-term target of 4%. Even as specific commodity prices surged, sectors linked closely to consumer goods, which share a symbiotic relationship with pharmaceutical production and distribution networks, adapted efficiently to these inflationary pressures. This has fostered an environment conducive to long-term investment and spending.

8.2%

Indias GDP growth rate through FY24

Outlook

With expectations of a stable GDP growth rate in the coming years, India is poised for robust growth. With inflation projected to stabilise and align with targets by 2025, the economy stands to benefit from more relaxed monetary policies, which will likely enhance investment capacities across various industries. The governments continued emphasis on infrastructure development is anticipated to stimulate gross fixed capital formation, providing a catalyst for broader economic activities that underpin the pharmaceutical sector as well. Moreover, enhanced rural demand, spurred by initiatives like the PM Garib Kalyan Anna Yojana, is expected to boost overall consumption, including healthcare services and products.

Manufacturing enterprises are set to play a pivotal role in creating functional ecosystems that generate jobs, boost income levels, and expand opportunities for further consumption and investment in critical infrastructure. These developments are essential for supporting supply chain and distribution networks. Policy reforms aimed at streamlining operations and enhancing vertical markets will aid Indias integration into global value chains, providing a competitive edge in international markets.

With ongoing reforms targeting vital areas such as workforce skilling, healthcare, energy security, MSMEs, and gender balance, India is advancing towards becoming a $7 trillion economy by 2030.

Industry overview

Global pharmaceutical

The global pharmaceutical industry has witnessed rapid growth, driven by increasing demand for healthcare services, technological advancements, and a significant increase in chronic diseases. As of 2023, the global pharmaceutical market is valued at approximately $1.6 trillion, demonstrating robust growth from a decade ago when the market was valued at around $950 billion in 2013. This growth is largely driven by an aging global population, rising healthcare expenditures, and a strong pipeline of pharmaceutical innovations.

~$1.6 trn

Global pharmaceutical market value in FY23

Regional markets

North America continues to dominate the pharmaceutical sector, accounting for around 48.9% of the global market. The United States alone holds a significant share, driven by major investments in drug development and a favourable regulatory environment. Europe follows, with a market share of 22.5%, strengthened by its strong pharma infrastructure and extensive research and development activities. The Asia-Pacific region is emerging as a key player, with China and India leading due to their large populations and increasing access to healthcare. In 2023, the Asia-Pacific market is projected to grow at an annual rate of 8.5%, the highest among all regions. (Source: National Library of Medicine)

48.9%

North Americas share in global market

Patent cliff and generics

The patent cliff has been a major industry event, with patents on drugs worth approximately $251 billion in sales set to expire between 2021 and 2025. This situation presents an opportunity for generic drug manufacturers, which are expected to see increased market share. The generics market is currently growing at a 6.3% CAGR and is expected to continue expanding as patents expire and healthcare systems emphasise cost-efficiency. (Source: Financial Express)

Regulatory trends and impact

Regulatory bodies play a crucial role in shaping the pharmaceutical landscape. In recent years, there has been a push towards accelerated drug approvals, particularly in the U.S., where the FDA has implemented fast-track and breakthrough therapy designations. However, the regulatory environment is also becoming more stringent in areas such as drug pricing and market access, particularly in Europe and the U.S., influencing industry strategies and operations.

Outlook

The global pharmaceutical industry is poised for transformation in the coming years, projected to reach approximately $1.7 trillion by 2025 with a CAGR of 4-5%. R&D will remain a cornerstone of the industry, with global spending expected to rise to over $230 billion by 2026. Innovation will focus heavily on biotechnology, especially personalised medicine and biologics, which are anticipated to constitute more than 30% of the market by 2028. Artificial Intelligence in drug discovery is set to revolutionise the R&D process, potentially reducing costs and accelerating development timelines. (Source: Hindu business line) The generics and biosimilars sectors are set to expand as patents on high-revenue drugs expire. The biosimilars market is projected to grow at a CAGR of 24% from 2022 to 2027, driven by economic pressures and favourable legislation (Biosimilars Council, 2023). Emerging global health dynamics, including pandemic preparedness and antimicrobial resistance, will influence industry priorities, potentially increasing public-private partnerships focused on vaccine development and essential medications stockpiling. (World Health Organisation, 2023) Digital therapeutics and connected devices are expected to become integral to patient care, enhancing treatment personalisation and adherence (Digital Medicine Society, 2023). Moreover, sustainability and ethical manufacturing will gain prominence within the industry. Initiatives in green chemistry and reducing the environmental footprint of manufacturing processes will likely become standard practices due to regulatory demands and consumer expectations. (Green Chemistry Initiative, 2023)

Indian pharmaceutical

The Indian pharmaceutical industry stands as a vital component of the global healthcare sector, characterised by its extensive production capacity and pervasive distribution network. As one of the worlds largest providers of generic drugs, India plays a crucial role in global pharmaceuticals, both in terms of volume and value.

The industry is projected to reach $57 billion by 2025, up from $49.78 billion in 2023, demonstrating a CAGR of approximately 6%. This growth is primarily driven by rising healthcare access and affordability, government initiatives, and a strong focus on exports. India holds a unique position in the global market, accounting for about 20% of global exports in terms of volume, making it the largest provider of generic medicines globally. (Source: Mint)

Domestic and export markets

The domestic market is strengthened by public health programmes and the increasing incidence of chronic diseases. Meanwhile, the export sector remains robust, with the United States being the largest market for Indian pharmaceutical exports, followed by the United Kingdom, South Africa, Russia, and Nigeria. In the FY24, pharmaceutical exports from India totalled $27.9 billion, representing a growth rate of 9.67% over the previous year. (Source: Business Standard)

Regulatory environment

The regulatory landscape in India has been evolving to support the industrys growth while ensuring safety and efficacy. The Central Drugs Standard Control Organisation (CDSCO), under the Ministry of Health and Welfare, is the principal regulatory authority. Recent reforms include streamlined approval processes for new drugs and a boost in funding for regulatory infrastructure to align with global standards.

Investment in R&D and innovation

In 2023, R&D spending by Indian pharma companies rose by 7-9%, reflecting an increasing trend towards innovation-driven growth. Companies are progressively focusing on complex generics, biosimilars, and novel drug delivery systems as part of their strategic shift from basic generic manufacturing to more value-driven operations (Source: Business Today)

Biotechnology and startups

The biotechnology sector in India is expanding rapidly, with over 6,000 startups, including numerous startups focusing on biopharmaceuticals, bioinformatics, and a range of sophisticated biotechnologies. Government initiatives such as the Biotechnology Industry Research Assistance Council (BIRAC) have been pivotal in providing funding and support for biotech research and startups in the country. Source: (India Brand Equity Foundation)

20 %

Export share of India in the global market

6,000+

Biotech startups in India

Outlook

As the worlds largest supplier of generic drugs and a significant player in global pharmaceutical exports, the Indian pharmaceutical industrys future is driven by both domestic demands and international market dynamics. With a projected market size to expand to $130 billion by 2030, the industry is influenced by increasing healthcare access, enhanced medical infrastructure, and extensive R&D activities (Source: The Hindu) Indias domestic pharmaceutical market, fuelled by rising healthcare spending and an emerging middle class, is expected to grow. The penetration of health insurance and government initiatives like Ayushman Bharat (national health protection scheme) are pivotal, providing a broadened customer base for pharmaceutical products. Moreover, chronic diseases prevalence such as diabetes and heart diseases are surging, further boosting demand for pharmaceuticals.

On the international front, Indian pharmaceutical exports are expected to continue their upward trend. The United States, along with emerging markets in Africa and Southeast Asia, remains a significant export destination due to the high demand for affordable generic medicines. Indian companies are expanding their global footprint by acquiring overseas companies and establishing production units abroad to navigate regulatory landscapes more efficiently and mitigate risks associated with supply chain disruptions (Source: Pharmaceuticals Export Promotion Council of India, 2023).

Investment in R&D is forecasted to increase, with Indian pharma companies expected to allocate around 9-10% of their revenues towards R&D by 2025. This investment is crucial as the industry shifts focus from generic drugs to more complex generics, biosimilars, and novel biologics. The development of these high-margin products is seen as essential for sustaining long-term growth and offsetting the pressures of intense competition in the generics market (Source: Business Today).

However, challenges such as regulatory compliance, intellectual property rights issues, and pricing pressures persist. To address these, the industry is advocating for more balanced policies that protect innovation while ensuring medications remain affordable. Additionally, sustainability and ethical manufacturing practices are becoming increasingly important, with companies investing in green technologies and cleaner production processes to meet both regulatory requirements and corporate responsibility goals.

Key growth drivers

The pharmaceutical industry stands at the cusp of transformative growth driven by a range of technological, regulatory, and demographic factors. These offer opportunities for industry players to expand their capabilities and market presence.

Innovation and advanced therapies

There is tremendous potential for innovation within the pharmaceutical sector, particularly in advanced therapies such as cell and gene therapy. Investment in these cutting-edge treatments is increasing, with the global cell and gene therapy market projected to reach $23.3 billion by the end of 2028, growing at a CAGR of 26.4% from 2023 to 2028 (Source: BCC Research) . This surge is driven by the rising prevalence of chronic diseases and significant advancements in biotechnology.

Digital transformation

The industry is also poised to benefit from the optimal utilisation of digital technologies. Digital health initiatives are becoming essential tools for improving efficiencies in drug development, patient monitoring, and treatment personalisation. According to a report by McKinsey, digital transformation could unlock approximately $100 billion in value annually across the US healthcare system by optimising innovation, improving the efficiency of research and clinical trials, and building new tools for physicians, consumers, insurers, and regulators. (Source: McKinsey)

Expanding global reach

Opportunities for geographic expansion are particularly significant. Companies are increasingly looking towards international territories, extending their footprints in underpenetrated markets. The Asia-Pacific region, for example, is expected to experience the fastest growth in the pharmaceutical sector, largely due to expanding healthcare infrastructure and favourable demographic trends.

Strategic global collaborations

The industry is seeing more large global pharma players entering joint ventures with local companies, especially in emerging markets. These partnerships help to combine local market knowledge with global expertise, enhancing market access and distribution networks.

Cost-effective manufacturing and skilled labour

India, known for its robust and cost-effective manufacturing setup, continues to be a global hub for pharmaceutical production. The country benefits from a pool of skilled yet cost-efficient labour, making it an attractive destination for both greenfield and brownfield investments by global private equity firms and large pharmaceutical companies. Foreign Direct Investment (FDI) policies have also been favourable, with the Indian government allowing up to 100% FDI under the automatic route for greenfield pharma (Source: Department of Industrial Policy and Promotion, Government of India).

China+1 strategy

Amidst geopolitical tensions and supply chain diversification, the China+1 strategy has gained traction. Companies are looking to mitigate risks by diversifying their manufacturing and sourcing operations beyond China, and India has emerged as a sought-after alternative due to its strong pharmaceutical manufacturing capabilities and improved regulatory environment.

Transition to product patent regime

The gradual migration to a product patent-based regime in developing nations is expected to further protect innovations and extend market exclusivity for new drugs. This transition supports the development of novel pharmaceuticals and encourages more substantial investment in R&D.

Company overview

Laurus Labs Limited, a leading integrated pharmaceutical manufacturing company based in India, aims to drive sustainable growth in the industry. The Company adheres to the mission of providing consistent quality medicines globally and continually invests in future opportunities. With a strong research and development focus, Laurus Labs has successfully diversified and transformed, tapping into new growth avenues.

Initially established as a company specialising in ARV API, Laurus Labs has expanded from APIs into Formulations, and further broadened its expertise into Contract Development and Manufacturing of Human Health, Animal Health, Speciality and Crop Science Ingredients. The Company is also investing in Precision fermentation and establishing a centre of excellence for the manufacturing of Cell and Gene Therapy products. This expansion underlines the shift towards becoming a fully Integrated Pharmaceutical Company, a vision realised through consistent perseverance and agility.

Opportunities

• Significant scope for innovations and strategic investments in advanced cell and gene therapies

• Expertise in chemistry and process engineering enhancing product development and manufacturing efficiencies in various segments

• Robust pipeline progress and commercial execution in both CDMO and CMO projects, enabling rapid scale-up

• Effective management of resources (manpower, materials, reactors) to optimise production costs and increase margins

• Implementation of Continuous Process Improvement Programmes to ensure operational excellence

• Shift towards making processes greener, cleaner, and safer using Continuous Flow Chemistry and the use of Bio catalysis

• In-house manufacturing of key intermediates to secure supply chain and reduce costs

• Investments into diversified project portfolio with improved margins

• Efforts to stabilise ARV sales and meet the increasing global demand for Drug Substance (DS) and Drug Product (DP) projects

Threats

• Moderation in growth in key export markets such as the USA, attributed to price erosion and increased regulatory scrutiny

• Delays in regulatory approval impacting the timing of new product launches

• Excess channel inventory for Antiretroviral (ARV) drugs, leading to adverse pricing impacts

• Delays in the clinical programmes of our partners

Segment-wise performance

Formulation (FDF)

The Formulation segment witnessed a robust growth of 24%, driven by the stabilisation of the ARV business and a continued volume-led expansion in the developed market portfolio. The market outlook remains stable, strengthened by multiple product launches in the US and increased contract manufacturing activities which support asset utilisation. The joint venture with KRKA further enhances our generic portfolio and market presence.

Read more on page 22

API

The API segment saw a slight decline of 2%. The ARV API remained steady with a 1% increase and oncology demand surge helped revenues grow by 27%. Weak pricing resulted in a 22% decrease in the revenues from other APIs. We continue to leverage our large-scale capacity to capitalise on the dual sourcing trend, with a strong focus on long-term growth.

Read more on page 20

CDMO-Synthesis

Despite the absence of large PO business this financial year (FY24: nil vs. FY23: H1,424 crores), our core CDMO-Synthesis business achieved a 24% growth. This was fuelled by a strong flow of Request for Proposals (RFPs) from major pharmaceutical and biotech companies, an increased commercial pipeline, and preparations for future business growth. We also signed a multi-year Master Service Agreement (MSA) with a leading crop protection company. Additionally, a new dedicated animal health DS facility was brought online, and further expansion has been planned to meet additional opportunities. A new R&D unit will be commissioned during Q2 FY25 to augment our R&D capacities significantly.

Read more on page 18

Bio

The Bio segment demonstrated a 28% growth, driven by contract manufacturing projects and our expertise in bio-catalysis for select small molecule projects. The R-2 downstream unit was brought online, and this will help in servicing more projects. We also initiated construction of fermentation capacities at Vizag for the production of GMP pharmaceutical intermediates, and augment capacities for Bio units at Bengaluru.

Read more on page 24

A. FY24 consolidated financials

	FY242	FY231	y-o-y
Revenue	5,041	6,041	(17%)
Gross margin	51.7%	54.1%	(240 bps)
EBITDA	798	1,594	(50%)
% to revenue	15.8%	26.4%	(1,060 bps)
PBT	236	1,109	(79%)
Net Profit	161	790	(80%)
% to revenue	3.2%	13.1%	(1,630 bps)
EPS	2.9	14.6	(80%)

1 FY23 financials information is based on material Purchase Order (PO) supplies to big pharma client, that was completed in December 2022

2 FY24 results includes i) Cell and Gene related spends of Rs.15 crores under R&D expenses; ii) ImmunoACT share of loss Rs.5 crores; iii) LSPL Unit 2 expenses of Rs.24 crores; and iv) Gross obligation expenses Rs.6 crores

Revenue from operations (net)

Revenue from operations decreased by 17% to Rs.5,041 crores in FY24. Core business revenue growth was 9% excluding large PO driven by strong FDF, CDMO and BIO with softer performance in API.

Material costs

Raw materials consumed remained at 51.7 % in FY24, against 54.1% in FY23. Cost of materials were increased by 240 basis points due to product mix.

Employee expenses

People-related expenses increased to Rs.640 crores in FY24 from

Rs.581 crores in FY23. This increase was due to a 400+ increase in employee strength compared to FY23.

Other expenses

Other expenses including other operating expenses, marketing, R&D and administrative expenses stood at Rs.1,191 crores in FY24 against Rs.1,093 crores in FY23. As a percentage of revenue, other expenses stand at 24%, as compared to 18% in the previous year. During the year, the Company spent on new initiatives like CGT, Animal Health, etc.

B. FY24 balance sheet

	FY24	FY23	y-o-y
Net fixed assets (including CWIP)	4,048	3,700	+348
Goodwill and intangibles	265	259	+6
Net working capital (A+B-C)	2,457	2,554	-97
A. Inventories	1,845	1,685
B. Receivables	1,663	1,580
C. Payables	1,051	711
Other assets and liabilities (current and non-current)	-291	-549	+258
Cash and cash equivalents	139	46	+93
Equity	4,111	4,038	+73
Debt (current and non-current)	2,507	1,972	+535
Total net assets	6,618	6,010	+ 608

In FY24, Laurus Labs demonstrated a robust financial position, marked by significant growth and strategic investments. The total net assets increased by Rs.608 crores, reaching Rs.6,618 crores, up from Rs.6,010 crores in FY23.

Net fixed assets

Net fixed assets, including capital work-in-progress (CWIP), rose by Rs.348 crores to Rs.4,048 crores. This increase was primarily driven by investments in property, plant, and equipment towards the CDMO business, including the new R&D centre in Hyderabad and the Intermediate/API manufacturing blocks (LSPL Unit 2 and Unit 4) in Vizag.

Goodwill and intangibles

Goodwill and intangibles saw a marginal increase of Rs.6 crores, bringing the total to Rs.265 crores.

Net working capital

Net working capital decreased by Rs.97 crores to Rs.2,457 crores. This decline was a result of higher payables, which partially offset increases in inventories and accounts receivables. Inventories grew by Rs.160 crores to Rs.1,845 crores, and receivables increased by

Rs.83 crores to Rs.1,663 crores. However, payables rose significantly by Rs.340 crores to Rs.1,051 crores.

Other assets and liabilities

Other assets and liabilities, both current and non-current, decreased by Rs.258 crores to Rs.291 crores. This reduction was mainly due to decreases in customer advances and capital creditors.

Cash and cash equivalents

Cash and cash equivalents saw a substantial increase of

Rs. 93 crores, totalling Rs.139 crores by the end of FY24.

Equity

Equity increased by Rs.73 crores, reaching Rs.4,111 crores, reflecting the companys strong financial health and retained earnings.

Debt

Debt, both current and non-current, rose by Rs.535 crores to

Rs. 2,507 crores. This increase was mainly due to long-term debt taken to fund key growth projects in the CDMO divisions and infrastructure-related investments. Despite this rise, working capital loans remained largely stable.

C. Ratios

( Rs. in crores)

Key ratios*	As on	As on
	March 31, 2024	March 31, 2023
Debtors turnover	3.0	3.8
Inventory turnover	2.7	3.6
Interest coverage ratio	4.6	10.9
Current ratio	1.23	1.42
Debt equity ratio	0.61	0.49
Operating profit margin (EBIDTA) %	15.8%	26.4%
Net profit margin %	3.2%	13.1%
Return on net worth %	3.9%	19.6%

*All numbers are based on consolidated financials

Outlook

Laurus Labs anticipates robust growth in FY25, driven by leveraging our established capabilities to secure medium to long-term contracts and commercial opportunities in late-phase NCE projects. This positive outlook is further supported by the industrys favourable environment. We expect a ramp-up of growth projects and the commissioning of new assets, which will contribute significantly to our revenue streams.

Despite the headwinds in certain segments of the API portfolio, we are confident in our ability to offset pricing challenges through strategic initiatives. These include improving EBITDA margins via better asset utilisation and productivity gains, while continuing to implement new initiatives that drive efficiency and value creation. Our capital expenditure strategy remains focused on prioritising investments in high-value and growing market segments. This approach ensures that we are well positioned to capitalise on emerging opportunities and sustain long-term growth.

People

Laurus Group employs 6,700+ people directly and another around 6,000+ people indirectly in our business activities. We believe that the quality of our employees is the key to our success. We are committed to providing necessary training and development opportunities to equip employees with requisite skill sets, such as on the job and professional training programmes to enable them to adapt to technological advancement. We undertake various activities for the welfare and work-life balance of employees such as annual family day celebrations, kids development programmes and provision of safety training programmes. We also engage our workforce continuously through platforms such as town hall meetings, surveys, face to face interactions, and the like. We have been consistently recognised as a Great Place to Work by GPW Institute for the last four years and has received various safety awards from governmental and non-governmental institutes. Furthermore, industrial relations during the year have been cordial like previous years and it goes without saying that Laurus Group is committed to take care of all Laureates.

Internal control

Laurus Labs has established a robust internal control framework designed to ensure the integrity of financial reporting, safeguard assets, and enhance operational efficiency. This framework includes a comprehensive set of policies and procedures that guide all aspects of the Companys operations.

The internal control system at Laurus Labs is aligned with globally recognised standards and practices, ensuring compliance with regulatory requirements and internal policies. It includes rigorous processes for financial reporting, risk management, and compliance monitoring. Regular internal audits are conducted to assess the effectiveness of controls and identify areas for improvement. These audits are complemented by third-party reviews to ensure objectivity and enhance the credibility of the findings.

A key component of the internal control framework is the segregation of duties, which minimises the risk of errors and fraud. Additionally, automated systems and controls are implemented to streamline operations and reduce manual intervention, thereby increasing accuracy and efficiency. The framework also emphasises continuous training and awareness programmes for employees to ensure that they are well-versed in compliance and control practices.

Laurus Labs internal control framework is overseen by the Audit Committee, which reviews and monitors the effectiveness of the controls on a regular basis. The committee ensures that any identified issues are promptly addressed and that corrective actions are implemented.

Cautionary statement

This Report contains forward-looking statements, which may be identified by their use of words like ‘plans, ‘expects, ‘will, ‘intends, ‘projects, ‘estimates or other words of similar meaning. All statements that address expectations, assumptions, or projections about the future, including statements about Laurus Labs Limiteds strategy for growth, market position, expenditures and financial results are also forward-looking statements. Laurus Labs Limited cannot guarantee that these assumptions and expectations are accurate or will be realised.