Trimurthi Ltd Management Discussions

The Management Discussion and Analysis Report

The Management Discussion and Analysis Report have been prepared in compliance with the requirements of Listing Agreements and contain expectations and projections about the strategy for growth. Certain statements in the Management Discussion and Analysis Report are forward looking statements which involve a number of risks and uncertainties that could differ from actual results performance or achievements which such forward looking statements on the basis of any subsequent developments, information or events for which the Company do not bear any responsibility.

The Indian pharmaceutical industry continues to play a pivotal role in the global healthcare ecosystem, being the largest supplier of generics by volume and a critical source of affordable medicines worldwide. The industry is witnessing a shift towards specialty drugs, biologics, complex generics, and an increasing emphasis on research-driven innovation.

Globally, rising healthcare spending, aging populations, and the prevalence of chronic and lifestyle-related diseases are expected to drive sustained demand for pharmaceutical products. Domestically, supportive government policies, PLI (Production-Linked Incentive) schemes, and growing healthcare awareness present significant opportunities for companies like Novelix Pharmaceuticals Limited.

INDUSTRY OVERVIEW

Indias bulk drug and intermediates ecosystem anchors a pharma export engine that reached USD 30.47 billion in FY 2024-25, with bulk drugs & intermediates contributing USD 4.87 billion (?16%); India remains the worlds #3 producer by volume and supplies roughly 20% of global generics, with the domestic industry projected to top USD 130 billion by 2034 (?10%+ CAGR). Policy tailwinds include the PLI scheme for KSMs/Drug Intermediates, which has cleared 48 projects (34 already commissioned) to reduce import dependence and scale local manufacturing.

Hyderabad/Telangana stands out as Indias bulk-drug powerhouse-often called the "Bulk Drug Capital" - accounting for about 40% of national bulk drug output and roughly 50% of bulk drug exports, supported by the ~2,000-acre Genome Valley life-sciences cluster and the planned ~19,000-acre Hyderabad Pharma City, billed as the worlds largest integrated pharma park. This cluster depth-R&D institutes, USFDA-registered sites, and export infrastructure-underpins Hyderabads leading share in APIs and intermediates and positions the city to capture the next wave of value (high- science APIs, biologics inputs) as India moves from volume to value in global pharma supply chains.

The pharma sector has been contributing significantly to Indias economic growth as one of the top 10 sectors in reducing trade deficit and attracting the Foreign Direct Investment (FDI). The industry employs over 2.7 million people either directly or indirectly, and ranks third in terms of volume and 14th in terms of value globally.

Your company has its Registered and Operational sales office presence in Hyderabad, TS, India. Hyderabad has a dominant position in Pharma Sector; it ranks first in manufacturing of bulk drugs and third in formulations in the country.

• Telangana and Andhra Pradesh has over 2500 Pharma companies and is home to few of the top pharma companies. There are more than 200 Active Pharmaceutical Ingredients (API) units in the state, which are poised to grow at a rate of 10 to 15 per cent annually in the coming days.

• Hyderabad is also referred to as the Vaccine Hub of India. The city is home to leading vaccine producers and the Clinical Trial sector in Hyderabad has also witnessed a steep rise, with leading clinical trial companies having their presence.

OPPORTUNITIES AND EXISTING THREATS AND RISKS FACED BY THE INDUSTRY.

Opportunities

1. The global population aged above 60 is expected to reach 2.1 billion by 2050, leading to higher health expenditures relative to gross domestic product (GDP).

2. Global use of medicines increase is expected through 2028, bringing annual use to 3.8 trillion defined daily doses.

3. The world is anticipating a shortage of healthcare professionals in the upcoming years, increasing stress on current workers and negatively impacting patient experiences. It opens doors for AI-driven diagnostics, self-administered therapies, and digital health tools that reduce reliance on overburdened professionals while accelerating demand for preventive medicines, home-based care solutions, and automation technologies that streamline treatment delivery.

4. Pharmaceutical companies are progressively embracing novel modalities (innovative therapeutic approaches) and mechanisms of action as they seek to build diverse and substantial portfolios to redefine care standards.

5. Drug manufacturers are increasingly targeting therapy areas deemed significant unmet needs, with many large pharmaceutical firms expanding their focus beyond traditional core areas.

6. Increasing demand for cost-effective medicines in developed and emerging markets creates export growth potential.

7. Hyderabads Strategic Positioning

a. The city accounts for ~40% of Indias bulk drug production and ~50% of exports.

b. Supported by Genome Valley (2,000-acre R&D hub) and the upcoming Hyderabad Pharma City (19,000-acre integrated pharma park).

8. Government Incentives

c. Production Linked Incentive (PLI) Scheme for APIs, Key Starting Materials (KSMs), and intermediates is encouraging domestic manufacturing.

d. Policy push to reduce import dependence (currently ~70% of APIs imported from China).

EXISTING THREATS AND RISKS FACED BY THE INDUSTRY.

1. Regulatory Stringency in Global Markets

a. Compliance with USFDA, EMA, and WHO-GMP standards is mandatory; any lapses can lead to import bans, product recalls, or reputational damage.

2. Overdependence on Imports

a. Despite being a bulk drug hub, India imports a large portion of raw materials from China, exposing the sector to geopolitical and supply chain risks.

3. Price Erosion & Margin Pressure

a. Intense competition in generics leads to price erosion, particularly in regulated markets like the US.

4. Environmental Compliance Costs

a. Bulk drug manufacturing generates effluents that require strict treatment; environmental violations can result in penalties or shutdowns.

b. Hyderabad, being a major bulk drug producer, faces heightened environmental scrutiny.

5. Global Market Volatility

a. Currency fluctuations, trade policy changes, and global recessionary trends can impact export revenues.

6. Talent Retention Challenges

a. Increasing competition for skilled chemists, formulation scientists, and regulatory affairs experts within Hyderabads pharma ecosystem.

OUTLOOK

The outlook of the Company remains positive. Novelix Pharmaceuticals Limited is cautiously optimistic about its prospects in the coming years. The Company aims at providing quality products to the customers and to provide them with greater satisfaction. Last year, the company has taken a number of initiatives to restructure and re- engineer the operation to enable the company to compete better in this profound competitive regime.

BUSINESS OPERATIONS:

Your companys objects were altered in the year 2024 to venture into pharmaceutical bulk drug business and in Healthcare Research, Analytics & Technology. To suit the business the companys name was also changed to Novelix Pharmaceuticals Limited. Thus, your company has successfully ventured into bulk drug business and in the first 2 quarters of operations itself has established its presence in the Intermediates field. There is a change in nature of business as the company has entered in the business of Manufacturing/Trading of Pharmaceuticals and Pharmaceutical Intermediates (Bulk drugs), and in Healthcare Research, Analytics & Technology.

Revenue and net profits:

(i) Revenue:

The Company has recorded revenue of Rs. 307,344.43 thousand against the Income of Rs. 45,311.83 thousand and 1,492.45 thousand other comprehensive income in the previous financial year ending 31.03.2024.

(ii) Net profits:

Profit after Tax (PAT) recorded Rs. 845.20 thousand to Rs.1,596.58 thousand during the previous FY.

(iii) Earnings:

Earnings per share for the F.Y 2024 - 2025 stood at Rs. 0.09 as against Rs. 0.01 recorded during the previous financial year.

Operational Highlights

(i) During the year the Telangana Govt. has allotted a research lab in genome valley Hyderabad to the company.

HUMAN RESOURCE STRATEGY

Strategic human resource (HR) management is the foundation of a strong business. At Novelix, a young dynamic team of promising and talented employees, work relentlessly to pursue Novelix business plans. With high focus on the values of Innovation, Initiative, Passion and Humility, the HR of the Company is aligned towards hiring, developing and retaining highly proficient talent and works to provide an inclusive environment that is welcoming to all diversities. The HR department continuously benchmarks best practices across the industry -in the areas of Talent Management, Learning & Development, Performance Management System and Employee Care.

Internal Controls

An external agency is auditing the Companys internal controls. This results in an unbiased and independent examination of the adequacy and effectiveness of the internal control systems in achieving the Companys goal of optimal operation. The activities are safeguarding and protecting the Companys assets from unauthorized use or disposition, keeping proper accounting records, and verifying the authenticity of all transactions.

The independent Audit Committee and the Board of Directors regularly review the Companys performance to ensure that it is by overall corporate policy and in line with predetermined objectives.

Risk and Concerns

Novelix Pharmaceuticals Limited faces risks and uncertainties typical to that faced by global pharmaceuticals industry, which could have a material impact on earnings and the ability to operate in the future. These are determined via robust assessment considering our risk context by the Board of Directors with inputs from the executive management. The Board is satisfied that these risks are being managed appropriately and consistently.

Cautionary Statement

The Management Discussion and Analysis statements describing Novelix Pharmaceuticals Limiteds objectives, projections, estimates, and expectations may be "forward-looking statements" within applicable securities laws and regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand-supply and price conditions in the domestic and overseas markets. It operates changes in the government regulations, tax laws, and other statutes & other incidental factors.