Marksans Pharma Ltd Management Discussions

Economic Overview

Global Economy¹

The global economy navigated major turbulences demonstrating steady growth at 3.3%. Overall growth stabilised as the underwhelming performance of Europe was offset by the robust growth of the US economy.

Global investor sentiment was impacted by uncertainty arising from geopolitical upheavals in Europe and the Middle-East, a slowdown in China and policy-related disruptions in the US, as demonstrated by the continued rise in bond yields in most rich countries. This uncertainty is also reflected in the recent voting patterns in many countries, demonstrating a desire to change the status quo.

Global inflation continued to ease down from 6.6% in CY2023 and an estimated 5.7% in CY2024. The overall disinflation was driven by advanced economies returning to their inflation targets. The US Federal Reserve slashed interest rates by another 25 basis points, marking a total reduction of one percentage point from last year, to 4.25-4.50%.

Outlook

IMF projects global GDP growth to remain modest at 2.8% growth in CY2025 and 3% in CY2026. Due to prevailing economic uncertainties, world trade volume estimates have been slightly revised downwards for both the calendar years. Disinflationary trends are expected to persist driven by a broader labour market cooldown, and declining oil prices resulting from production expansion and a slump in Chinese demand. This environment could lead to policy divergence between the central banks of Europe and the US. As European economies stagnate, central banks are expected to announce rate cuts to boost liquidity and stimulate economic activity. Meanwhile, the Federal Reserve is likely to adopt a cautious monetary policy stance amidst expectations of inflation driven by tariffs. The reinforcement of protectionist policies could negatively impact global trade and investor sentiment, thereby leading to greater divergence in economic growth across countries.

Healthy aging, technological progress and rising labour force contribution, especially of older workers and women, can ease fiscal pressures and drive growth in emerging economies. Structural changes combined with increased international cooperation will guide the global economy through uncertainty. With China seeking to revive its domestic demand through stimulus measures and the US preparing to increase its crude oil production and cut corporate tax rates, the outlook for the global economy appears cautiously optimistic.

US economy³

The US economy demonstrated strong growth last year, driven by a robust labour market, strong underlying demand and accelerating investments, which drove growth to 2.8% in CY2024.⁴ Household spending, adjusted for inflation, grew 3.2% in 2024, slightly outpacing the growth rate of 2023. The unemployment rate corrected to 4.1% and has remained steady since June 2024, following the historical lows of post-pandemic recovery. Investor sentiment also remained bullish, as reflected by the buoyant equity market valuations.

Inflation remained low indicating a return to normalcy after pandemic-related supply disruptions over the past few years. Core Personal Consumption Expenditure (PCE) inflation stood at 2.8% in December 2024, which was still slightly above the Federal Reserves 2% target. This prompted the Fed to refrain from further policy adjustments, given a solid labour market, positive economic performance and the potential for near-term inflation driven by tariff-related factors.

Outlook

Moving forward, the economy is expected to moderate, with growth projections of 1.8% for CY2025.⁵ The Federal Reserves monetary policies are expected to control inflationary pressures from the recently introduced reciprocal tariffs. However, the combined impact of fiscal tightening and rising tariffs, the latter of which usually translate into higher prices of domestic as well as imported goods, is likely to reduce consumer spending in the near term.

The primary objective of the tariffs is to protect domestic industries and to localise manufacturing, the benefits of which are expected to materialise in the long term. In the near term, consumers will have to bear the brunt of rising inflation as producers pass on the cost of the tariffs to the consumers. In the medium to long term, the restrictive monetary policies are expected to ease to a more neutral stance if the economy recovers from its current trajectory.

UK Economy⁶

The UK economy experienced a growth of 1.1% in CY2024.⁷ Despite the lacklustre growth, the rebound in economic activity observed in December 2024 bears encouraging signs. The unemployment rate was estimated at 4.3% for August to October 2024, up from that of last year and last quarter.

The value of goods exported remained stable while imports fell by 2.6% in December 2024, leading to a widening trade deficit. To inject liquidity and stimulate the stagnant economy, the Bank of England cut interest rates from 4.75% to 4.5%.⁸

The UK has been experiencing a decade-long productivity crisis caused by policy inconsistency and declining public and private investments. Labour force participation has been declining, further exacerbating economic strain. The UKs debt-to-GDP ratio has breached 100%, the highest among G7 countries.

The government incurred significant borrowing to finance the ?280 billion expenditure during the pandemic, adding to its debt and increasing public spending pressures. Under this environment, the government had adopted austerity measures, which, over the years, have weakened several public institutions and discouraged private investments. The National Health Service (NHS) remains severely understaffed with long wait times for care. The combined factors of an aging population and high pension obligations, have placed considerable financial strain on the government.

Additionally, the energy crisis triggered by geopolitical conflicts, has exacerbated the issue by increasing interest on national borrowing and prompting rampant inflation. Tax revenue is at a 70-year high, putting strain on public finances and complicating new spending plans.

Outlook

The outlook for the UK Economy remains challenging as the governments tax changes and fears of a global trade war are hindering business and dampening consumer confidence. The UKs post-pandemic underperformance, relative to other G7 economies, points to broader structural weaknesses, necessitating urgent economic reforms to improve competitiveness.

Supply-side reforms are needed to sustain growth, including providing businesses with greater certainty regarding taxation and land-use planning to boost investment, as well as strengthening work incentives to reduce economic inactivity. Reviving national productivity without introducing additional leverage will be a top priority for the government. Improving skills training and addressing regional imbalances, by reducing over-dependence on Londons financial sector, are areas where the government is likely to channelise its efforts.

An increase in public spending and policy reforms aimed at attracting private investment are expected in the near future, with gradual fiscal consolidation expected in the longer term. Better-than-expected performance in the last quarter of CY2024, where the economy grew by 0.1% instead on a predicted recession, augurs well for the country going forward. The recently concluded landmark trade deals with the US and India provide renewed growth prospects for British companies amid an uncertain global trade environment.

Russia Economy⁹

The Russian economy continued to show resilience despite sanctions and predictions of collapse, with GDP growth reaching 4.1% in 2024.¹⁰ The growth, over the last two years, can be attributed to a significant shift towards a wartime footing, driving an increased budgetary spending. Russian defence spending rose by ~ 40% in CY2024, marking the third year of war with Ukraine. In CY2025, defence spending is expected to rise another 25%, accounting for 32% of the entire budget expenditure.¹¹ In GDP terms, the military budget represents nearly 7% of the countrys total output. This extravagant spending has resulted in a budget deficit of 3 trillion Rubles (approximately $ 33 billion) for three consecutive years.

Annual inflation stood at 8.4% significantly exceeding the Central Banks target of 4%.¹² The Central Banks efforts to curb inflation through interest rate hikes have met limited success. As of December, interest rates have risen to 21%, marking an all-time high for the bank. High borrowing costs are severely impacting businesses, leading to increased bankruptcies and restricting homeowners access to loans.

The unemployment rate remained low, at 2.3%, driven by increased employability in the military and defence industries. However, prevailing sanctions, falling oil prices and a weakened Ruble have exacerbated Russias economic challenges. Despite these concerning underlying metrics, consumer confidence in the economy remains unshaken. In the year under review, household incomes rose by 10%, after adjusting for inflation, while consumer spending rose by 6% compared to the previous year. Although inflation remains high, government payments and wages have managed to outpace the rising living costs.

Outlook

The outlook for the Russian economy remains challenging, with the potential for hyperinflation looming as the war economy overheats. As inflation continues to rise, the Ruble is expected to depreciate further, negatively impacting the countrys ability to service its foreign debts. However, Russia maintains a large current-account surplus and holds a healthy stock of net foreign assets. National debt also remains at manageable levels despite high interest rates. In the long term, however, this growth driven by the military-industrial complex will not be sustainable as such goods offer little value in a peacetime economy. Russia will need to adapt to post-war shocks and ongoing sanctions, ensuring it can avoid runaway inflation and economic imbalance.

Australia Economy¹³

Australias economic success has long relied on natural resources, but this dependency has exposed vulnerabilities that have led to the current challenges. The economy corrected itself after the rapid post-pandemic recovery growing at 1% in CY2024.¹⁴ Moreover, GDP per capita continued to contract for the sixth consecutive quarter.

Inflation remained above the Reserve Bank of Australias (RBA) target, at 3.2%, leading to a continuation of restrictive monetary policy.¹⁵ Inflation in Australia has been driven by global factors and record-high government spending as a share of GDP. Foreign debt stood at 26.6% of GDP. However, the increased government spending has not translated to higher consumer activity. Instead, inflation and high interest rates are straining household budgets.

Private investment has also declined over the period under review and job creation has stalled, with the unemployment rate stabilising at 4.1%. The education sector, a vital export industry, is now struggling due to visa restrictions. Moreover, weak demand from China is negatively impacting Australias commodity exports.

Outlook

The government is rolling out cost-of-living relief measures, including tax cuts and wage increases, aimed at boosting household income, marking an essential step toward economic recovery. Inflation is gradually approaching the RBAs target. Moving forward, the government must balance inflation with unemployment while undertaking structural reforms to diversify the economy beyond commodities. Additionally, addressing housing affordability will be crucial for ensuring future economic resilience and stability.

Potential stimulus measures from China could bolster demand for Australian resources, offering a glimmer of hope for the economy. Future growth is expected to remain modest, with potential increases in government spending.

Emerging markets & developing economies¹⁶

Emerging markets & developing economies (EMDEs) grew by 4.3% in 2024. While goods inflation eased, services inflation remained higher. Market sentiment was affected by geoeconomic uncertainties, resulting in net capital outflows from EMDEs as the US dollar appreciated in comparison to local currencies. Widening interest rate differentials with the US further strengthened the dollar. The net capital outflows, combined with currency pressures, tightened financial conditions and increased risk premiums in EMDEs.

Chinas growth, at 5% in CY2024, fell short of expectations due to slowing domestic consumption, property market fluctuations and persistently low consumer confidence. However, this was partially offset by faster-than-expected net export growth. Indias growth also slowed more than expected, led by a sharper-than-expected deceleration in industrial activity.¹⁷

Outlook¹⁸

Emerging markets will play a crucial role in shaping the global economy over the next decade, with an average GDP growth rate of 4.06% through 2035. EMDEs are expected to account for about 65% of global economic growth by 2035, with nine key emerging markets projected to rank among the worlds 20 largest economies. Over the next decade, favourable demographics and technological advancements could enhance productivity of emerging markets, driving economic growth. Moreover, the energy transition and shifting supply chains present opportunities for these economies to capitalise on their abundant natural resources, large workforces and manufacturing strengths.

By 2030, Mainland Chinas contribution to global GDP is likely to surpass that of advanced economies. India is on the track to cement its position as the worlds third-largest economy by 2035. However, despite these growth opportunities, emerging markets will face an evolving geopolitical landscape, marked by ongoing conflicts and other disruptions. These nations will need to adapt to a world where policymakers in advanced economies appear less inclined to support unrestricted trade and globalisation, adding complexity to the growth outlook for emerging markets.

India Economy¹⁹

In FY 2025, Indias GDP grew at 6.5%, demonstrating strong resilience despite global economic instability and geopolitical tensions in Europe and the Middle East.

While urban consumption showed signs of stagnation, rural consumption remained solid, bolstered by strong agricultural performance. The services sector continued to play a vital role in driving growth.

Manufacturing exports, especially in high-value sectors like electronics, semiconductors, defence equipment and pharmaceuticals, have remained strong, highlighting Indias growing position in global value chains. However, geopolitical uncertainties and supply chain disruptions, particularly in the Red Sea region, have impacted exports. On a positive note, India maintained a fiscal deficit of 4.4%-4.5% of GDP, providing the government with additional fiscal space to increase spending and stimulate demand. Further, increased allocation of funds to the Pradhan Mantri Jan Arogya Yojana (PMJAY) is set to augment health insurance coverage to a broader population bolstering demand and widening the customer base for healthcare service providers.

Outlook

Indias economic outlook is promising, supported by a robust domestic foundation. The country is set to retain its position as one of the worlds fastest-growing economies, with growth expected to accelerate due to lower inflation, favourable weather conditions boosting agricultural output and stronger rural consumer spending. Infrastructure spending (capital expenditure) saw a notable increase of 38.8% between FY 2020 and FY 2025. Although capital expenditure remained moderate in the first half of FY 2025, the government is anticipated to ramp up spending in the latter part of the year, which will stimulate demand and attract greater private sector investment.

Additionally, as multinational corporations seek cost-effective expansion options, India is positioned to draw more investment. This influx of capital is expected to support long-term job creation and sustained economic growth.

Forecasts

GDP is projected to grow at 6.5% for FY2026. The Union Budget for FY2026 includes significant income tax relief for salaried individuals, which will boost urban spending. The 8th Pay Commission will further drive consumption, reinforcing economic momentum. Retail inflation is also showing signs of easing and is projected to stabilise around 4% in FY 2026, contributing to overall economic strengthening.

The Indian economy is expected to inch closer to the $7 trillion mark before 2031, becoming the third largest economy in the world. Rise in per capita income would put India in the upper middle-income category.²⁰

Indias real GDP growth

Industry Overview

Global Pharmaceutical Industry

US Pharma²¹

US leads the world in per-capita expenditure on prescription drugs, accounting for approximately 30-40% of the world market, around 45% of global pharmaceutical sales and manufacturing 22% of all the medicines. The American pharma market size was $639 billion in 2024²² and is expected to reach around $1,093.79 billion by 2033, expanding at a CAGR of 6.15%. Federal initiatives like the Affordable Care Act and the BIOSECURE Act are expected to have a revolutionary impact on the industry.

Recently the market has experienced moderation largely due to a significant drop in COVID-19 vaccines and treatments. Excluding COVID-19 vaccines and therapeutics, spending growth surged to 9.9%, driven by innovation in areas like oncology, immunology, diabetes and obesity.

Health services utilisation, including visits, diagnostics, elective procedures and medications saw a decline from its peak post-pandemic with a 4-6% decline across all indicators except for new prescriptions, which increased by 3%. The average out-of-pocket cost per retail prescription rose in 2023, mainly due to higher brand costs for GLP-1 agonists used in diabetes and obesity treatment. However, patient out-of-pocket costs remained below $20 for 90% of prescriptions. Big Pharma is expected to grow with a CAGR of 4.4% in the next 5 years.²³

While pharmaceuticals have been exempted from the ambit of reciprocal tariffs, the threat of future inclusion poses challenges for the business exporting to the nation. The US healthcare industry saved $ 445 billion in 2023 from generic and biosimilars, which could be impacted as result of tariffs, leading to prospects of a potentially softer tariff.²⁴

With emerging transformative technologies and dynamic policy shifts, the pharmaceutical industry in the US needs to keep pace. Breakthrough medicines are making significant strides in once-challenging areas like obesity and Alzheimers disease, bringing hope to patients. However, for these developments to have a meaningful impact, improvements in affordability and reliability are essential.

FDA new drug approvals (2005-2024)

Source: S&P Global

UK and Eurozone Pharma²⁵

UK and the major European countries (Germany, France, Italy, Spain) have historically spent up to 2% less on medicine than projected invoice figures. Spending in Europe is projected to increase by $70 billion on a list-price basis by 2028, driven by the introduction of new brands, though this will be partially offset by the growth of generics and biosimilars.

Eastern Europe is expected to experience strong growth, driven by increased volume and adoption of novel medicines. In 2023, growth slowed due to geopolitical conflict in Ukraine, but it rebounded in 2024, surpassing the global average. Growth in western Europe remained muted due to already high per capita use of medicines.

Spending in Eastern Europe is projected to rise by 55% over the next five years, with volume growing by 8%. This growth comes after the peak of disruptions caused by the Ukraine conflict and reflects the expected adoption of new drugs, though this growth will occur later than in Western Europe and other developed markets.

The UK government has allocated an investment of ?13.9 billion for research and development in the fields of life sciences, green energy, engineering and other sectors.²⁶ However, the UK continues to be slow in adopting new treatments and innovation within the NHS. The UK pharmaceutical manufacturing sector employs nearly 50,000 people, ranking sixth among comparable countries. Despite this, the NHS is under immense pressures due to declining productivity and shortage of manpower. The UK government has acknowledged this strain and plans to invest in reviving the countrys deteriorating health service.²⁷

Russia Pharma

Russia is home to more than 900 pharmaceutical manufacturers (92 companies with revenue exceeding $15 million in 2021). Last year, Russia imported a total of 15,800 tonnes of pharmaceutical substances worth RUB 195.4 billion or $ 2.13 billion, mostly from India and China. The countrys import substitution agenda has gained greater significance due to recent geopolitical challenges. To achieve self-sufficiency in medicines, medical devices and equipment, the Russian government will need to provide financial support for domestic production, build technological supply chains across all stages of production and develop its logistics networks to substitute raw material imports, while preventing shortage of essential components and medical products.

Australia and New Zealand Pharma²⁸

In 2024, the Australian pharmaceutical market was valued at $24.7 billion. This growth is fuelled by factors such as an aging population, the rise of chronic diseases, increased government healthcare funding, advancements in biopharmaceuticals, growing demand for generic medications, the expansion of telehealth and e-pharmacy services and a stronger emphasis on preventive healthcare. Through the Pharmaceutical Benefits Scheme (PBS), the government provides subsidised prescription medicines to all Australians.

The Pharmaceutical Management Agency of New Zealand (PHARMAC) employs several strategies to secure lower drug prices, including competitive tendering, sole supply contracts, reference pricing, bundling agreements, risk-sharing arrangements and encouraging the use of generics. As a result, New Zealand provides universal and consistent national pharmaceutical coverage, with patient co-payments for medications being lower than those in many other comparable countries. Moving forward, the market is projected to grow to $31.1 billion by 2033, reflecting an estimated compound annual growth rate (CAGR) of 2.60% from 2025 to 2033.

Global Biologics Industry

Global Generic Industry²⁹

The demand for generic medicines continues to rise, highlighting their integral role in modern healthcare. In 2023, generic medicines accounted for 70% of treatment volume and 19% of market value in Europe. The growth of generic medicines in Europe has been driven by commoditisation and policy reforms in both regulated and unregulated markets. Besides being affordable and accessible, generic medicines are now used to treat a majority of complex chronic diseases.

Generic manufacturers also continue to invest in Active Pharmaceutical Ingredient (API) manufacturing, even as Europes share of global API production has declined from 53% in 2000 to 25% in 2022.³⁰ The generic medicines industry alone comprises over 400 manufacturing sites in Europe, with over 20 projects currently underway to support production.

Global OTC Industry³¹

The global over-the-counter (OTC) drugs market was valued at $178 billion in 2024. North America currently holds the largest share of the OTC drugs market, accounting for 42.2% in 2024. This dominance is attributed to factors such as significant healthcare spending, strong consumer preference for self-medication, widespread availability in retail and favourable regulations supporting non-prescription medications. Rising awareness of preventive healthcare and wellness trends is driving the demand for vitamins, supplements and pain relievers, providing a boost to the market. Additionally, the growth of e-commerce and online pharmacies is improving accessibility and boosting sales worldwide.

Trends

The integration of AI-driven recommendations with subscription services enhances customer satisfaction by providing personalised suggestions and automated reorder options. Moreover, the growing wellness trend and increased focus on disease prevention are encouraging consumers to purchase herbal products that boost immunity, relieve pain and support digestive health. As medical costs rise, health awareness grows and access to medical information expands, more consumers are turning to self-care and self-medication. The market of global OTC drugs is projected to reach $288.29 billion by 2033, with a CAGR of 5.23% from 2025 to 2033.

Indian Pharma³²

India is recognised as the ‘pharmacy of the world, controlling ~20% of the global generics supply by volume and addresses approximately 60% of the worldwide demand for vaccines.

India exports to around 200 countries making it the third-largest drug and pharmaceutical producer in the world by volume. The industry estimated at $ ~58 billion in 2024 and is anticipated to expand 2 to 2.2 times by 2030, while raising Indias share from 3% now to almost 5% by 2030. ^{33 34} Indias drug and pharmaceutical exports increased by 8.36% from $2.13 billion in July 2023 to $2.31 billion in July 2024.³⁵ India supplies 57% of the APIs on the WHO prequalified list, with its market size valued at $18 billion in 2024.³⁶

Indias biotechnology sector has grown 13-fold over the past decade, rising from $10 billion in 2014 to more than $130 billion in 2024. It is expected to reach $300 billion by 2030. The growth of the Indian pharmaceutical industry is being driven by a trifecta of metropolitan cities, Tier I cities and rural markets, each contributing approximately 30% to the overall market share.

Encouraging trends

For sustained growth and innovation, collaboration between public and private research institutions, along with increased funding and government support, is vital. Moreover, initiatives such as the Production Linked Incentive Schemes and the Bulk Drug Park, which align with the ‘Make in India initiative, create a conducive environment for investment, innovation and business development in the pharmaceutical sector. As part of the India@100 vision, the Indian pharmaceutical industry aims to reach $130 billion by 2030 and $450 billion by 2047.³⁷

Company Overview

Geography-wise overview

US and North America

US & North America market, which remains a strategic focus area for the Company, reached _ 1,237 crore in FY2025, marking an increase of 35% on a year-on-year basis, driven by new product launches and increased market share. The Company serves this region through Time Cap Labs Inc., its wholly owned subsidiary acquired in June 2015.

The Company aims to increase store brand penetration in North America and double its US store brand OTC revenue by expanding its product pipeline.

UK and Europe

UK & Europe performance improved by 9% year-on-year with _1,030 crore in FY2025. The Company serves this region through its wholly owned subsidiary Marksans Pharma (UK) Ltd, which includes 2 step-down subsidiaries- Bell, Sons & Co. (OTC portfolio) and Relonchem (High-end Rx portfolio).

It is one of the top five Indian pharmaceutical companies in UK by revenue, with a target of reaching the top three within the next 2-3 years. The Company is making significant investment in R&D in the UK, preparing for several filings and capitalising on the revenue potential from new product launches.

Australia and New Zealand

In 2005, Marksans acquired a 60% stake in Nova to establish a strong presence in Australia. Nova specialises in R&D and marketing of generic OTC products and is a leading supplier of branded generic and private label products in Australasia. The Companys primary focus areas include analgesics, anti-histamines, anti-fungals, anti-allergy, dermatology, essential oils and gastrointestinal medicines. Despite a strong performance, the OTC market in Australia remains conservative, with gradual growth expected in the near future. In FY2025, performance in this market improved by 16% y-o-y with H 253 crore revenues.

Rest of the World

In the rest of the world (RoW), revenues saw a 6% year-on-year growth with H 104 crore revenues demonstrating a favourable demand. In FY2025, 44 products are approved for sale in RoW markets with another 128 products awaiting approval. The Company is undertaking efforts to expand its product portfolio and market reach.

Outlook

The newly acquired manufacturing facility from Teva Pharma in Goa is on track for expansion. The Company aims to scale capacity to 8 billion units per annum in three phases. The facility will be used for the production of tablets, hard capsules, ointments, liquids and creams.

The Company is doubling its low-cost manufacturing capacity in India from 8 billion to 16 billion units. It aims to achieve a revenue of _ 30 billion in the next two years. Moreover, the Company plans to double its revenue in the US and North America, positioning itself among the top 5 private label OTC companies in the region. In the UK, it seeks to move up from its current position among the top five Indian pharmaceutical firms to the top three in terms of revenue. To drive growth in Europe, the Company plans to pursue mergers and acquisitions with strategic partners.

Financial review [consolidated]

Revenue

In FY2025, the revenue generated by the Company increased from _ 21,774.07 million in FY2024 to _ 26,228.45 million in FY2025, an increase of 20.46%.

Cost of goods sold

Cost of goods sold of the Company increased from _ 10,381.21 million in FY2024 to _ 11,437.42 million in FY2025, an increase of 10.17%.

Employee benefits expense

Employee benefits expense of the Company increased from _ 2,936.41 million in FY2024 to _ 3,503.00 million in FY2025, an increase of 19.29%.

Depreciation and amortisation expenses

The depreciation and amortisation expenses of the Company increased from _ 742.70 million in FY2024 to _ 833.86 million in FY2025, an increase of 12.27%.

Finance Cost

The finance cost of the Company increased from _ 112.03 million in FY2024 to _ 116.60 million in FY2025, an increase of 4.08%.

Profit after tax

Profit after tax of the Company increased from _ 3,148.95 million in FY2024 to _ 3,826.19 million in FY2025, an increase of 21.51%.

Reserves and Surpluses

The reserves and surpluses of the Company increased from _ 20,197.38 million in FY2024 to _ 24,215.96 million in FY2025, an increase of 19.90%.

Trade payables

The trade payables of the Company increased from _ 2,682.77 million in FY2024 to _ 3,057.00 million in FY2025, an increase of 13.95%.

Non-current liabilities

The non-current liabilities of the Company increased from _ 2,052.00 million in FY2024 to _ 2,729.11 million in FY2025, an increase of 33.00%.

Other financial liabilities

The other financial liabilities of the Company increased from 154.26 million in FY2024 to _ 236.49 million in FY2025, an increase of 53.31%.

Provision- current liabilities

The provision for current liabilities of the Company decreased from _19.55 million in FY2024 to _ 14.47 million in FY2025, a decrease of 25.98%.

Property, Plant and Equipment (PPE) (including right of use assets)

The PPE of the Company increased from _ 6,757.10 million in FY2024 to _ 8,864.09 million in FY2025, an increase of 31.18%.

Other financial assets (non-current)

The other non-current financial assets of the Company increased from _ 26.19 million in FY2024 to _ 35.71 million in FY2025, an increase of 36.35%.

Other current financial assets

The other current financial assets of the Company decreased from _ 69.01 million in FY2024 to _ 35.57 million in FY2025, a decrease of 48.46%.

Inventories

The inventories of the Company increased from _ 6,179.44 million in FY2024 to _ 8,455.16 million in FY2025, an increase of 36.83%.

Trade receivables

Trade receivables of the Company increased from _ 4,531.77 million in FY2024 to _ 5,400.43 million in FY2025, an increase of 19.17%.

Other current assets

The other current asset of the Company increased from _ 789.81 million in FY2024 to _ 977.94 million in FY2025, an increase of 23.82%.

Other non-current assets

The other non-current assets of the Company decreased from

_ 293.79 million in FY2024 to _ 217.60 million in FY2025, a decrease of 25.93%.

Cash and cash equivalents

The cash and cash equivalents of the company increased from

_ 4,032.77 million in FY2024 to _ 4,957.86 million in FY2025, an increase of 22.94%.

Bank balance other than cash and cash equivalents

The bank balance other than cash and cash equivalents of the Company decreased from _ 2,703.00 million in FY2024 to _ 2,084.23 million in FY2025, a decrease of 22.89%.

Lease (current)

The lease (current) of the Company increased from _ 249.51 million in FY2024 to_ 354.92 million in FY2025, an increase of 42.25%.

Other current liabilities

The other current liabilities of the Company increased from _ 302.41 million in FY2024 to _ 580.26 million in FY2025, an increase of 91.88%.

Borrowings

The borrowings of the Company decreased from _ 291.00 million in FY2024 to _ 230.85 million in FY2025, a decrease of 20.65%.

Key Financial Ratios (Consolidated)

Particulars	2024-25	2023-24	YoY growth	Details of significant changes
Debtors turnover ratio (days)	69	73	(5.48%)	-
Inventory Turnover (days)	234	194	20.62%	Effective inventory management and increase in sales.
Interest Coverage ratio (times)	45.34	40.93	10.77%	-
Operating profit margin (%)	19.66%	19.97%	(1.55%)	-
Return on net worth (%)	15.37%	15.10%	1.79%	-
Net Profit (%)	14.59%	14.46%	0.90%	-
Current ratio (times)	4.62	4.78	(3.35%)	-
Debt-equity ratio (times)	0.13	0.12	8.33%	-

Key Financial Ratios (Standalone)

Particulars	2024-25	2023-24	YoY growth	Details of significant changes
Debtors turnover ratio (days)	143	145	(1.38%)	-
Inventory Turnover (days)	113	123	(8.13%)	-
Interest Coverage ratio (times)	173.81	141.63	22.72%	Due to increase in profitability
Operating profit margin (%)	20.81%	20.26%	2.71%	-
Return on net worth (%)	13.61%	10.94%	24.41%	Due to increase in profitability
Net Profit (%)	16.03%	15.68%	2.23%	-
Current ratio (times)	3.13	3.48	(10.06%)	-
Debt-equity ratio (times)	0.01	0.01	-	-

Internal Control System and their adequacy

The Companys internal control system is designed to ensure efficiency, effectiveness and compliance with all relevant laws and regulations. It integrates various personnel who coordinate their responsibilities to maintain a robust oversight and risk management processes. The Board of Directors of the Company provides strategic supervision, while specialised committees and the head of the audit department operates under the guidance of Board-appointed statutory auditors. Regular reviews conducted by key executives, including the Chairman, Managing Director, COO and CFO, help in the prompt identification and resolution of discrepancies, thereby ensuring the overall adequacy and reliability of the system.

Cautionary Statement

In accordance with applicable securities laws and regulations, the objectives, projections and estimations presented in this section may be considered ‘forward-looking statements. These statements are based on certain presumptions and expectations regarding future events. The Company does not, however, guarantee the accuracy of these forecasts or their eventual realisation. A number of external factors beyond the Companys control may cause actual results to differ materially from those stated or implied in these statements. The Company disclaims any obligation to update, change, or modify forward-looking statements in response to future developments.