Lyka Labs Ltd Management Discussions

ECONOMIC OVERVIEW AND OUTLOOK

Indias economy grew at a robust pace of 6.6 % in financial year 2024 25, driven by strong domestic consumption, private investments, and government-led infrastructure development. Stable oil prices and steady service exports helped contain the current account deficit. The supported by controlled inflation and ongoing policy reforms. India continues to be one of the fastest-growing major economies, with a positive outlook for financial year 2025 26.

PHARMACEUTICAL SECTOR OVERVIEW

India retained its position as a global pharmaceutical leader, supplying 60 precent of global vaccines, 40 percent of US generic demand, and 25% of UK medicine needs. The domestic market reached an estimated USD 70 billion, with exports crossing USD 27 billion. Government initiatives promoting generic drugs, R&D, and PLI schemes continued to support sector growth. Contributing around 1.75 percent to GDP, the industry remains on track to achieve its USD 130 billion target by 2030, backed by steady demand and innovation.

COMPANY OVERVIEW

Lyka Labs Limited is a pharmaceutical company engaged in the development, manufacture and marketing of quality finished dosages. The Company has a well-diversified business model in terms of markets, and products. The Company believes in Innovation. It provides state-of-the-art prepositions to advance the companys relevance and foster a spirit of experimentation. The pharmaceutical products of the Company are consistent in terms of quality and reliability.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE

The Company is engaged in only one segment viz. pharmaceuticals. The Company has a presence in Domestic as well as international markets. The Company has a commercial presence in various countries either on its own or through its subsidiary company.

OUTLOOK

The Company is focused towards expanding its geographical reach in Human & Veterinary Healthcare Business Segments. The Company re-entered into the business of animal healthcare in 2023 by acquiring the animal healthcare business of Agilis Healthcare Private Limited and financial year 2024 was the 1st full year of operations.

During the financial year under report:

1. The Company has invested in building brands and distribution networks in Human and Veterinary Healthcare segments, both in the domestic as well as international markets.

2. The Company has continued to invest in Research & Development (R&D) for New Products and Novel Drug Delivery Systems. The R&D Department is focused on developing of New Formulations and has successfully developed several products in the following categories: a. Injectables: Lyophilised Injection, Liquid Injections & Dry Powder Injections b. Topical Preparation: Ointment, Creams and Lotions.

3. The Company successfully launched Tofacitinib ointment in India after completing clinical trials and getting CDSCO approval in November 2023.

RISKS AND CONCERNS

Your Company does not perceive any risks or concerns other than those that are common to the industry such as regulatory risks, exchange risk, cyber risks and other commercial and business related risks.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2025.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the year under review, the total consolidated revenue earned by the Company was Rs. 14,072.71 Lakhs as against total revenue of Rs.11,264.93 Lakhs in the previous financial year. The Company has reported consolidated net Profit of Rs.811.40 Lakhs as against net loss of Rs.251.51 Lakhs of the previous financial year ended on 31st March 2024.

HUMAN RESOURCE

There has been no material development on human resources and industrial relations front. The relationship with employees and workers continued to be cordial at all levels. As on 31st March 2025, permanent employees inclusive of workers strength was 499.

KEY FINANCIAL RATIOS

The key financial ratio for the financial year 2024-25 and changes therein as compared to the immediately preceding financial year along with detailed explanation in cases where the change is 25% or more are as under: a. Return on Equity Ratio: Net Profit after taxes/Avg. Shareholders Equity. The ratio for the year was 0.70 (times) as against (0.03) (times) in the previous financial year. Company has made net Profit for the year compare to loss in previous year, hence ratio has improved. b. Interest Coverage ratio: EBIT / Interest Expense. The ratio for the year was 5,52 (times) as against 0.80

(times) in the previous year.. The Company has made net profit coverage ratio has improved. c. Net Capital Turnover Ratio: Net Sales/ Average Working Capital. This ratio for the current financial was 5.12 (times) as compared to 7.21 (times) in the previous year. The ratio is higher as compared due to Higher Inventory & receivable. d. Debt-Equity ratio: Total Debt/ Shareholders Equity. This ratio for the year was 0.30 (times) as against

0.60 (times) in the previous year. This ratio has decreased due to repayment of loans during the financial year and the issue of equity shares e. Net Profit Ratio: Net Profit/Net Sales for the year was 6.35 % as against (2.24)% in the previous year. Company has made net Profit for the year compare to loss in pervious year, hence ratio has improved. f. Return on Capital employed: EBIT/Capital Employed for the current financial year was 7.86 % as against 2.39% in the previous financial year. Profit worth.

CHANGE IN RETURN ON NET WORTH by dividing net income by shareholders equity.ReturnonNet Worth: Thisfinancial

Return on net worth or return on equity during the year was 7.02 % as compared to (2.58)% in the previous year.

Profit for the year is Higer than previous year.

	For and on behalf of the Board of Director
	Neeraj Golas
	Chairman
	DIN: 06566069
Mumbai; 26th May 2025