Oxygenta Pharmaceutical Ltd Management Discussions

Annexure - V

INDUSTRY REVIEW:

The Indian pharmaceutical market is the third largest in terms of volume and thirteenth largest in terms of value. The pharmaceutical industry in India produces a range of bulk drugs, which are the key acting ingredients with medicinal properties that form the basic raw materials for formulations. Bulk drugs account for roughly one-fifth of the industry output while formulations account for the rest. India also has the expertise for active pharmaceutical ingredients (APIs) and sees significant opportunities for value-creation. Indias generic drug producers hold a strong position in the global supply chain and play an integral role in developing the pharmaceutical industry.

RISKS AND CONCERNS:

The company is no exception to the competition from the market, new technologies and stringent patent laws. The Company has already identified such risks and trying to counter them over a period of time.

OPPORTUNITIES AND THREATS:

There are opportunities in the pharmaceutical Industry to develop new products through proper research and development and there is no doubt that the industry will thrive. Your Company also has good opportunities in the export markets. Your Company has been making concerted efforts to reach out to the export markets through active participation in Exports Industry Trade Shows. The results of these efforts are and we expect success in the coming years. Another challenge is the continuous increase in the raw material input costs which increases the pressure on the profitability of your Company.

SEGMENT WISE PERFORMANCE:

Segment wise analysis of performance is not applicable to your Company under Accounting Standards 17 because there is only one segment i.e. Pharmaceutical.

OUTLOOK:

The outlook for the industry and consequently for your Company during the current financial year is reasonably good subject however to the effects of government policies, inflationary pressure and general global slowdown which is bound to affect your company.

INTERNAL CONTROL SYSTEMS & ADEQUACY:

The Company has proper and adequate internal control systems to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposal. All the transactions are authorized, recorded and reported correctly. The internal control system provides for well documented policies, guidelines, authorizations approvals and procedures. The observations arising out of audit are subject to periodic review, compliance and monitoring. The significant observations, made in internal audit reports, along with the status of action thereon are reviewed by the Audit Committee of the Board of Directors on a regular basis for future appropriate action, if deemed necessary.

FINANCIAL PERFORMANCE:

Discussion on Financial Performance with respect to Operational Performance:

Total Income:

During the year under review, Oxygenta Pharmaceutical Limited has achieved a gross total income of Rs._ 11060.77 Lakhs /- (One Hundred Ten Crore Sixty Lakh Seventy-Seven Thousand Rupees Only) for the Year 2024-25 against Rs. 4,951.57 Lakhs /- (Forty-Nine Crore Fifty-One Lakh Fifty-Seven Thousand Rupees Only) for the Year 2023-24.

Share Capital:

The paid-up share capital as on 31st March, 2025 is Rs. 36,98,35,000 /- (Thirty-Six Crore Ninety-Eight Lakh Thirty-Five Thousand) divided into 3,69,83,500 (Three Crore Sixty-Nine Lakh Eighty-Three Thousand Five Hundred) fully paid-up equity shares of Rs.10/- (Rupees Ten Only) each.

Net Profit / (Loss):

The Companys net loss is Rs. (1,029.83)/- (Negative Ten Crore Twenty-Nine Lakh Eighty-Three Thousand Rupees Only).

Earnings Per Share (EPS):

The Earning Per Share for the Financial Year 2024-25 is Rs. (2.86)/- (Negative Two Rupees and Eighty-Six Paise Only) per share (Face Value: Rs.10/- (Rupees Ten Only) each).

Your directors are putting continuous efforts to increase the performance of Company and are hopeful that the performance in coming year will improve in faster way.

MATERIAL DEVELOPMENT IN HUMAN RESOURCE / INDUSTRIAL RELATIONS:

Your Company is constantly endeavoring to introduce Human Resource Development activities for overall improvement of its team and induction of professional manpower. Your Company has good industrial relations. Your Company has continued to maintain good relationship with all employees at all the levels which also resulted to in achieving higher production and sales Material Financial and Commercial Transaction.

DETAIL OF SIGNIFICANT CHANGES (i.e CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS):

Financial Ratios	Formula	For the Financial year		Deviation (%)	Remarks/ Reason for Change
		2024-25	2023-24
Debtors Turnover Ratio(times)	[Revenue from operations/Average Trade receivables]	22.61	82.48	-0.73	NA
Inventories Turnover Ratio(times)	[COGS/Average Inventories]	6.39	3.12	1.05	NA
Interest Coverage Ratio(times)	[EBIT/Finance Cost]	-553%	-779%	-0.29	NA
Current Ratio (times)	[Current Asset / Current Liability]	0.36	0.72	-0.50	NA
Debt Equity Ratio (tim es)	[Debt/Shareholders Equity]	-2.49	-2.84	-0.13	NA
Operating Profit Margin Ratio (%)	[EBIT/Revenue fro m Operations]	-8.75%	-30.94 %	-0.72	NA
Net Profit Margin Ratio ( %)	[Profit After Tax # / Revenue from Operations]	-9.0%	-9.0 %	0.01	NA
Return on Net Worth (%)	[Profit for the yea r (before exceptional items and after tax)/Net Worth]	38.69%	17.29%	1.24	NA

DISCLOSURE OF ACCOUNTING TREATMENT:

The Company has prepared financial statements which comply with Ind-AS applicable for periods ending on March 31, 2025, together with the comparative period data as at and for the year ended March 31, 2024, as described in the summary of significant accounting policies. Primarily, a treatment different from that prescribed in an Accounting Standard has not been followed in the preparation of financial statements. However, as regards amendments to certain accounting standards, the applicability / effect on the financial statement has been evaluated and been treated accordingly as explained in Notes to the standalone Financial Statements.

CAUTIONARY STATEMENT:

Statements in this management discussion analysis describing the Companys objectives, projections, estimates, expectations may be forward looking within the meaning of applicable securities-laws and regulations. Actual results may differ materially from those expressed in the statement. Important factors that could make difference to Companys operations include economic conditions affecting the domestic market and the overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and other incidental factors.

	FOR AND ON BEHALF OF THE BOARD OF
	OXYGENTA PHARMACUTICAL LIMITED
	Sd/-
	CHANDRA MOULISWAR REDDY GANGAVARAM
PLACE: HYDERABAD	WHOLE-TIME DIRECTOR
DATE: 25.08.2025	(DIN:00046845)