Windlas Biotech Ltd Management Discussions

Macroeconomic Landscape

Amidst a moderating global economic environment, the Indian economy continues to stand out, with an estimated growth rate of 6.5% for FY 2024·25, as per MOSPI. In contrast, global growth remains relatively resilient, with the IMF reporting a 3.3% expansion in 2024. Signs of a gradual recovery are becoming evident despite a complex macroeconomic backdrop. According to the IMFs April 2025 World Economic outlook, global GDP is projected to grow by 2.8% in 2025, improving further to 3.0% in 2026, supported by easing inflation and a shift towards more accommodative monetary policies. Global headline inflation, which averaged 5.9% in 2024, is expected to moderate to 4.4% in 2025, as central banks adopt a neutral stance·fostering a more favorable environment for investments and healthcare delivery. While advanced economies like the US and the Euro Area are expected to grow by 1.8% and 0.8% respectively in 2025, emerging and developing Asia remains the global growth engine with a robust 4.5% projection. Meanwhile, China, a critical driver of global growth is forecast to grow by 4%, supported by targeted policy measures and gradual economic stabilisation.

Industry Snapshot: Exploring The Terrains of Global Pharmaceuticals Industry and Key Segments

The global pharmaceutical market is poised for substantial expansion, underpinned by rapid advancements in drug discovery, growing disease prevalence, and enhanced healthcare infrastructure worldwide. Valued at approximately USD 1,772.65 Billion in 2025, the market is projected to reach around USD 3,033.21 Billion by 2034, registering a compound annual growth rate (CAGR) of 6.15% during the forecast period. Total health expenditure fell to USD 9.8 Trillion, accounting for 9.9% of global GDP in 2022 as compared to 10.9% in 2021.This fall can be attributed to countries scaling back health budgets as emergency pandemic measures were phased out. While this marks a normalisation of health budgets, it creates a favourable backdrop for the pharmaceutical and healthcare industries to step in with private investments, innovation, and partnerships to fill emerging gaps and drive growth in a post-pandemic environment.

Emerging economies such as India, Brazil, and South Africa are rapidly establishing themselves as global hubs for generic drug manufacturing, driven by cost-effective production, a skilled workforce, and robust Contract Development and Manufacturing Organisation (CDMO) capabilities. The Asia-Pacific region, particularly India and China, is poised to lead pharmaceutical market growth, supported by expanding healthcare infrastructure and increasing demand. As a result, the share of emerging markets in global pharmaceutical sales is expected to rise steadily, playing a pivotal role in driving the industrys global expansion over the next decade.

Global CDMO Market Overview

Contract Development and Manufacturing Organisations (CDMOs) have emerged as a strategic lever for pharmaceutical companies to accelerate time-to-market, optimize costs, and access specialised technologies. By outsourcing to CDMOs, pharma players can reduce capital outlays while ensuring regulatory compliance and quality standards. The global CDMO market was valued at USD 184.9 Billion in 2024 and is projected to reach USD 197.4 Billion in 2025, with a robust CAGR of 7.2% expected through 2034. Within this, the formulations segment is set to nearly double growing from USD 48.85 Billion in 2025 to USD 96.57 Billion by 2034.

Key growth levers include the rising complexity of drug development and a wave of upcoming patent expirations on high-value drugs such as Keytruda, Humira, and Stelara. With over USD 250 Billion worth of annual global sales expected to go off-patent by 2030, the demand for high-quality, cost-efficient CDMO partners is accelerating.

Source: News18.com - Big opportunity for Indian drugmakers Pharma dept.gov.in - Patent Cliff

Indias Economic Momentum: Healthcare and Pharma as Pillars of Growth

Building on its position as a global growth driver, India continues to demonstrate strong macroeconomic fundamentals. The healthcare and pharmaceutical sectors, in particular, remain integral to this growth story underpinned by expanding health coverage, rising income levels, and continued policy support for affordable, quality healthcare access.

Indias healthcare ecosystem is undergoing rapid expansion. The sector has attracted significant investments totaling Rs. 29,268 Crore, aimed at expanding production capacity and diversifying the pharmaceutical base. Public health spending has doubled in four years, reaching Rs. 6.1 Lakhs Crores depicting 3.8% of GDP in FY 2024·25. The global hospital beds market has witnessed robust growth in recent years, expanding from $4.35 Billion in 2024 to $4.64 Billion in 2025, reflecting a CAGR of 6.7%. This upward trajectory is expected to accelerate further, with the market projected to reach $6.56 Billion by 2029, growing at a CAGR of 9% over the forecast period. Growth will be driven by factors such as the increasing emphasis on patient comfort and quality of care, rising healthcare expenditure, the emergence of home healthcare, and rising demand for bariatric and technologically integrated smart hospital beds. Health insurance coverage is on track to reach 50% of the population, driven by both government-backed schemes like Ayushman Bharat and rising private participation. Initiatives such as the Ayushman Bharat Digital Mission and e-Sanjeevani, now the worlds largest telemedicine network, are modernizing healthcare delivery and creating new digital touchpoints for pharma engagement. For the pharmaceutical sector, these structural tailwinds combined with declining inflation, stronger healthcare access, and continued policy continuity offera highly favourable environment.

India remains well- positioned as a global hub for affordable, high-quality, and innovation-led healthcare solutions, supporting sustained industry growth in the years ahead.

Indias Development Trajectory Extends Well Beyond Conventional GDP Indicators:

Gross National Income (GNI) rose by 9.7%, reaching Rs. 325.90 Lakhs Crores, while per capita GNI increased by 8.7% to Rs. 2,31,462 Per capita Gross National Disposable Income (GNDI) also saw an 8.6% rise, totaling Rs. 2,38,270 Private investment rebounded, with Private Equity and Venture Capital (PE/VC) investments rising 9% to USD 43 Billion across ~1,600 deals, led by growth-stage and venture funding Foreign Direct Investment (FDI) inflows grew 17.9% YoY to USD 55.6 Billion, indicating continued investor confidence Foreign exchange reserves reached USD 640.3 Billion, providing coverage for 10.9 months of imports and ~90% of external debt Total exports (goods + services) grew 5.5% to USD 820.93 Billion, reaffirming Indias global momentum Private Final Consumption Expenditure (PFCE) increased by 7.2%, reflecting sustained domestic demand

The India Retail Pharmacy Market is projected to grow from USD 22,696.01 Millions in 2024 to an estimated USD 37,891.46 Millions by 2032, with a compound annual growth rate (CAGR) of 6.62% from 2025 to 2032. This growth is driven by increasing healthcare awareness, rising demand for prescription and over-the-counter (OTC) medications, and the expansion of retail pharmacy chains across urban and rural areas. Key drivers of the India Retail Pharmacy Market include the expanding geriatric population, which necessitates more frequent medication use, and the increasing prevalence of chronic diseases such as diabetes, hypertension, and cardiovascular disorders. Additionally, the rising popularity of self-medication and preventive healthcare, along with an increase in health insurance coverage, are fueling market growth. Technological advancements in digital health, including telepharmacy and e-prescriptions, are further accelerating the markets expansion.

Sources:

Mospi.gov.in- Press Release Economic Survey ‘24-25 Indian Economic Outlook-PIB MOSPI- Gross National Income Economic Survey 2024-25: Indias health spending doubles in four years to Rs 6.1 Lakhs Crore economictimes.indiatimes.com -India to be 3rd largest economy PIB. gov.in- Press Release . MOSPI Press Release - 30 May 2025 Reuters - RBIs bigger-than-expected rate cut Nextias - Indian global pharmaceutical ET Times- Indias pharma sector crosses 19,134 Crore Statisticstimes.com- India GDP sectorwise Economic Survey ‘24-25 Indian Economic Outlook-PIB Newsonair. gov.in PIB Press Release - Drugs & Pharma Exports PIB- Indias Total Exports (Merchandise & Services) Bain.com-India Private Equity Report 2025 https://www.credenceresearch.com/report/india-retail-pharmacy-market

Healthcare Sector in India

Indias healthcare sector continues to be a pivotal component of the nations socio-economic framework, experiencing significantgrowth and transformation. The sector is undergoing a dynamic transformation, shaped by demographic shifts, technological advancements, and increased public and private investment. Over the past few decades, Indias healthcare sector has experienced substantial transformation, driven by improvements in infrastructure, technology, and access to care. This progress reflects the nations ongoing commitment to achieving the Sustainable Development Goals (SDGs) and strengthening public health systems. The pharmaceutical and biotechnology industries are seeing a paradigm shift to move beyond generic drug production into the high-value segment of Contract Development and Manufacturing Organisations (CDMOs). India is emerging as a reliable alternative to China, with global firms switching CDMO contracts to India.

Indias evolving regulatory landscape, particularly with norms like Schedule M, mandates CDMO players to comply with Good Manufacturing Practices (GMP) as prescribed by the Drug Controller General of India (DCGI) and the World Health Organisation (WHO). This has driven the need for advanced, compliant manufacturing infrastructure, particularly among larger CDMO firms with the financial and operational capacity to scale. Leading CDMO pharma players are well-positioned to capitalize on this momentum, supported by robust execution capabilities and a strategic focus on compliance and domain expertise. Additionally, rising consumption expenditure (MPCE), increasing income levels, and sustained population growth have contributed to higher demand for essential services, notably healthcare. This has created a virtuous cycle of sustained consumption, further strengthening the growth prospects of the healthcare and CDMO sectors.

Government Support & Budget Allocations

According to a report by CareEdge, Indias healthcare sector is undergoing a major transformation, fuelled by rising public and private investments, supportive policy measures, and evolving demographic trends.

As of 2024, healthcare expenditure stood at 1.9% of the countrys GDP, and with continued momentum, it is expected to rise to 2.5% by 2025(E) and further to 5% by 2030. The healthcare sector in India is witnessing increased investments and policy interventions. In the Union

Budget for FY 2024 25, the Government of India allocated approximately Rs. 90,958 Crore to the healthcare sector, depicting a modest increase of 2% over the previous years allocation of Rs. 89,155 Crore. The budget continues to prioritize long-term investments in strengthening healthcare infrastructure, reinforcing the implementation of Centrally Sponsored Schemes, and integrating key public health programs particularly those related to maternal and child health under the National Health Policy (NHP). Aligning with NHP 2017s objective, the government has progressively increased public health expenditure, aiming to reach 2.5% of GDP by 2025. An allocation of Rs. 1,000 Crore has been earmarked for the promotion of Bulk Drug Parks, reflecting a strategic push to reduce import dependence for key active pharmaceutical ingredients (APIs). Additionally, Rs. 150 Crore has been allocated for the development of Medical Device Parks, with Rs. 40 Crore set aside for common facility assistance under the AMD-CF scheme. The government has also raised the budget for the Jan Aushadhi scheme to Rs. 284.5 Crore, significantly up from Rs. 110 Crore in FY24, reinforcing its commitment to expanding access to affordable generic medicines across the country.

As of 2025, health insurance coverage in India has reached approximately 50% of the population, marking a significant milestone in the countrys healthcare landscape. The increase from 40% coverage in 2023 to 50% in 2025 reflects concerted efforts by both public and private sectors to enhance healthcare accessibility. This expansion is largely attributed to the growth of government-sponsored schemes like Ayushman Bharat, which now includes citizens aged 70 and above, adding an estimated 60 Million beneficiaries.

Sources:

KPMG-POV - Union Budget (Healthcare) Economic Survey 24-25 :Health spending in IndiaHealthcare & protection.com- Health Insurance coverage to hit 50% of population Brickworkratings- Drug & pharma industry in India.

Mapping Indias Pharma Landscape

India is evolving beyond its traditional role as the ‘pharmacy of the world known primarily for manufacturing and exporting bulk drugs to becoming a dynamic hub for pharmaceutical innovation and digital transformation. India is emerging as a preferred destination for Global Capability Centres (GCCs) in the pharmaceutical sector. Concurrently, rising global demand particularly for specialty and complex generics has prompted pharmaceutical companies to expand their capital expenditure with increased investments in capacity augmentation and high-value supply chain integration. The Indian Pharmaceutical Market recorded a year-on-year growth of 8.4% in FY25, primarily driven by price-led expansion, while volume growth remained modest at 0.4% Reflectingthis upward trajectory, pharmaceutical exports have increased significantly by 8.36% from USD 2.13 Billion in July 2023 to USD 2.31 Billion in July 2024. India ranks third globally in pharmaceutical production by volume and exports to nearly 200 countries and territories. The top five destinations for these exports are the USA, Belgium, South Africa, the UK, and Brazil.

Source: TOI - India moves to innovation in pharma IBEF- Pharma Industry in India Bain .com- Healing The World - A Roadmap for Making Indian A Global Pharma Exports Hub Globenewswire - Pharma Market Size Snsinsider.com- Global Pharma market WHO - Global Healthcare spending

Growth Trajectory: Overview of The Factors Charting Progression for the Indian Pharma Sector

The healthcare demand in India experiences unprecedented growth because of its rapidly expanding population and rising individual income along with its status as one of the worlds fastest expanding demographics. Various strategic government programs combined with rising healthcare expenditures from both public and private sectors alongside expanding health insurance penetration continue to transform healthcare systems. The products manufactured by the Indian pharmaceutical industry can be broadly classified into bulk drugs (active pharmaceutical ingredients - API) and formulations. Approximately 77% of pharmaceutical manufacturers in India are engaged in the production of formulations, while the remaining 23% focus on manufacturing bulk drugs (Active Pharmaceutical Ingredients or APIs). The Indian domestic formulation industry can be divided into two main segments- chronic therapies and acute therapies. The chronic segment primarily addresses long-term conditions such as diabetes, cardiovascular diseases, and cancer. In contrast, the acute segment comprises treatments for short-term ailments, including infections, gastrointestinal disorders, pain management, and the use of analgesics. As of January 2025, the Indian pharmaceutical market recorded a robust year-on-year growth of 8.4%, primarily propelled by the chronic therapy segment. The sectors upward trajectory underscores the countrys increasing focus on chronic disease management, complemented by the launch of new brands and innovative formulations. Cardiac therapies led the segment with a growth rate of 10.7%, followed closely by anti-diabetic medications at 7.9%. In contrast, acute therapies witnessed a comparatively modest growth of 6.3%. The chronic therapies segment in India is projected to grow at a compound annual growth rate (CAGR) of 8.5% to 9.5% between FY 2024 and FY 2029, driven by increasing incidence of lifestyle-related diseases and rising demand for long-term care treatments. In comparison, the acute therapies segment is anticipated to expand at a relatively moderate CAGR of 7.0% to 8.0% during the same period.

Growth Catalysts For The Pharmaceutical Industry in India

Indias pharmaceutical sector is undergoing a strategic transformation as it progresses toward its ambitious goal of achieving a market size of USD 130 Billion by 2030. The industry is witnessing the emergence of several key trends, including the rising dominance of chronic therapies, accelerated growth in Contract Development and Manufacturing Organisations (CDMOs), increasing digitalisation, and a sharper focus on innovation and R&D.

Source: ET Times- India could account for 8-10% of work share outsourced in pharma

Strategic Outsourcing as a

A Key Growth Lever

Outsourcing has emerged as a major growth driver and revenue contributor for the Indian pharmaceutical industry. This model enables sponsor companies to tap into the advanced technologies, specialised expertise, infrastructure, and capacity of contract developers that may not be readily available in-house. By accelerating molecule development, especially for drugs nearing patent expiration, outsourcing significantly enhances speed-to-market, thereby offering a competitive advantage in capturing market share and maximizing product lifecycle value.

B Flexible Business Model

In India, this model is gaining considerable traction. As of FY 2024·25, it is estimated that nearly 40·45% of pharmaceutical production activities are outsourced to contract manufacturing partners. This is a significant increase from 35·40% in FY 2023, signalling a strong movement towards asset-light business models.

C Robust Growth of Formulation Market

The domestic formulations market within India is projected to grow at a compound annual growth rate (CAGR) of to FY2029 to reach8-9%overthefive-year Rs. 2.9-3.0 Trillion in fiscal 2029, This robust growth trajectory is supported by several structural drivers, including the rising prevalence of chronic diseases, greater health awareness, and enhanced access to quality healthcare services, especially in semi-urban and rural areas.

Increasing Prevalence of

D Chronic Diseases

Chronic conditions such as cancer, cardiovascular diseases, obesity, and diabetes are witnessing a notable rise across all age groups, placing substantial pressure on global healthcare systems. In India, these concerns are particularly pronounced among the elderly. As per the Report on the Status of the Elderly in Select States of India (UNFPA, September 2023), conditions like arthritis, hypertension, diabetes, asthma, and heart disease are widespread among senior citizens.

This growing burden is expected to significantly boost demand for both essential and therapeutic medications across multiple segments.

Expanding Insurance

E Coverage Fueling

Healthcare Access

Indias pharmaceutical sector continues to benefit from robust structural demand, supported by rising healthcare awareness, increasing consumption, and expanding health insurance coverage. Health insurance penetration has seen a significant rise, with coverage now approaching 50% of the population·enabled by both government schemes such as Ayushman Bharat and rising private sector participation.

F Demographic Shifts

Rise in aging population - According to the United Nations World Population Prospects 2022, the global population aged 65 years and older is projected to increase from approximately 761 Million in 2021 to 1.6 Billion by 2050, accounting for over 16% of the total population. This updated projection reflects a more pronounced ageing trend compared to earlier estimates, underscoring the growing significance of geriatric healthcare and associated pharmaceutical needs. In India, the elderly population (aged 60 and above) is expected to double, reaching 346 Million by 2050. This significant increase underscores the need for enhanced investments in healthcare, housing, and pension systems to support the ageing population.

TOI- Worlwide Age demographics

The Hindu - Elderly population in Idia expected to double

India Emerges as a Global Hub for CDMO Services

The Indian CDMO market was valued at USD 7.9 Billion in 2024 and is projected to grow to USD 15.4 Billion by 2033, at a CAGR of 7.7% from 2025 to 2033. This expansion is driven by global pharmaceutical companies increasingly outsourcing development and manufacturing processes, as well as the adoption of the ‘China Plus One strategy to diversify supply chains. Indias cost-effective manufacturing capabilities and skilled workforce make it an attractive destination for such outsourcing needs.

The Indian CDMO industry is currently fragmented, with numerous small-scale players. However, the sector is expected to undergo consolidation, driven by the cost optimisation strategies of leading pharmaceutical companies and the growing demand for integrated service offerings. Regulatory frameworks, including Schedule M, mandate adherence to Good Manufacturing Practices (GMP) as outlined by the Drug Controller General of India (DCGI) and the WHO. Larger CDMOs, backed by stronger capital bases and wider operational scales, are better positioned to invest in advanced technologies such as nanomaterials, nano-drug delivery systems (NDDS), and modified-release dosage forms, enhancing their ability to support complex drug development and manufacturing needs.

Catalysts Powering Indias CDMO Market Growth

1 Strategic Shift Toward Outsourcing

Pharmaceutical companies are increasingly outsourcing R&D, manufacturing, and regulatory functions to CDMOs to reduce capital expenditure and gain access to specialised expertise. CDMOs now offer comprehensive services, including product development, clinical and commercial manufacturing, supply chain logistics, and regulatory support positioning themselves as indispensable partners in the drug development lifecycle.

2 Rising Demand for Generic Drugs

The growing number of patent expiries for high-value drugs has intensified the demand for generics. Indian pharmaceutical firms, benefiting from a strong track record in ANDA approvals, are actively pursuing this opportunity. CDMOs, with extensive process development experience and robust manufacturing capabilities, are emerging as preferred partners for global players seeking cost-effective production.

3 CDMOs as Integrated Development Partners

Indian CDMOs are evolving from service providers into strategic partners capable of managing the full drug development cycle from molecule co-development to finished dosage production. This shift is fueled by the upcoming revised Schedule M guidelines, which emphasize quality systems, risk management, stability studies, GMP-compliant digital systems, and validation protocols enabling CDMOs to deliver high-standard, end-to-end services under a single contract.

4 Surge in Clinical Trials and Early-Stage R&D

Indias favourable patient demographics, cost advantage, and regulatory evolution are making it a preferred destination for clinical trials. CDMOs are extending services into clinical trial material manufacturing and early-phase development, covering a broader spectrum of the pharma value chain.

5 Patent Expiries and Rise of Biosimilars

A wave of global patent expirations especially in biologics is opening up the market for biosimilars. With biopharmaceuticals worth over USD 190 Billion expected to go off-patent between 2024 and 2028,CDMOs in India are well-positioned to support both generic and biosimilar manufacturing. The reduced need for all-phase clinical trials in generics further accelerates time-to-market, benefiting outsourcing partners. With a surge in demand for biologics and biosimilars, Indian CDMOs are expanding into high-value segments such as monoclonal antibodies, vaccines, and recombinant proteins. Indias biologics expertise, coupled with competitive pricing, positions it as a rising CDMO hub for biologics.

Sources: Persistence market Research- Indian CDMO market HDFC Fund -Indian Pharma Growth export Et Times - Indian CDMO market set to double

Indian Trade Generics market overview

The Indian pharmaceutical market is poised for significant growth across all segments by 2030. Patented drugs, though currently holding a smaller share, are expected to rise to Rs. 15,500 Crore. Branded generics, which dominate the market with an 87% share, are projected to grow from Rs. 2.10 Lakh Crore in 2023 to Rs. 3.71 Lakh Crore whereas trade generics, accounting for 10% of the market, is forecasted to expand from Rs. 24,000 Crore to Rs. 68,000 Crore by 2030.

Government -Led Initiatives in FY 2024-25

A The Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) is a flagship initiative by the Government of India aimed at enhancing access to affordable and quality generic medicines for all segments of the population. The scheme seeks to reduce the out-of-pocket healthcare expenditure for citizens by promoting the use of cost-effective generic alternatives.As of April 8, 2025, a total of 15,479 Jan Aushadhi Kendras have been established across the country.

B Allocation for Pradhan Mantri Ayushman Bharat Health Infrastructure Mission was increased by 63% YoY from Rs. 2,300 Crore in 2023-24 to Rs. 3,756 Crore in FY 2024-25 focusing on strengthening primary healthcare infrastructure and disease surveillance.

Sources: PIB- A dose of Atamnirbhar Bharat Business Today - Indian Pharma Industry

C For the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) the allocation was raised from Rs. 6,800 Crore in FY 2023-24 to Rs. 7,300 Crore in FY 2024-25 showcasing a 7% increment YoY.

DAyushman Bharat Digital Mission received the equivalent budget as last year with an allocation of Rs. 200 Crore, emphasizing the integration of digital health records and services.

E Pradhan Mantri Swasthya Suraksha Yojana saw a 16% increase in allocation, rising to Rs. 2,200 Crore in FY 2024-25 from Rs. 1,900 Crore in the previous year.

Indian Exports Market Overview

Indias pharmaceutical exports grew by 9.67% year-on-year, reaching USD 27.8 Billion in FY 2023 24. The country ranks as the third-largest pharmaceutical producer globally by volume and 13th by value, manufacturing over 60,000 generic drugs across 60 therapeutic areas.

The formulation and biologics exports have also witnessed steady growth, recording an 8% CAGR and this momentum is expected to continue, driven by several key factors: drug shortages in the developed market, a wave of patent expirations unlocking large generic opportunities, and increasing global demand for biosimilars and contract manufacturing services. Indias robust manufacturing capabilities and growing R&D expertise have further strengthened its standing as a trusted player in the global pharmaceutical landscape.

Sources: ET Times- India pharma exports rise to USD 27.9 Bn HDFC Fund -Indian Pharma Growth export

Company Overview

Windlas Biotech Limited (hereinafter referred to as ‘the Company or ‘Your Company) is a prominent player in Indias Generic Formulations CDMO space, committed to delivering high-quality, cost-effective pharmaceutical solutions.

The Company partners with leading pharmaceutical brands to provide formulation development and commercial manufacturing services, through its generic formulations CDMO vertical and Providing Accessible, Affordable and

Authentic medications to underserved population of India and various health institutions through Trade Generics and Institutional vertical and expanding in emerging semi-regulated markets through Export vertical.

With a focused presence in the chronic and sub-chronic therapeutic segments, Windlas offers a diverse portfolio of complex generics aimed at enhancing accessibility and affordability in rural & semi-urban markets. Company engaged in

Formulations, Oral solid dosage form, Liquid dosage form and Injectables (Ampoules, Vials, Lyophilised). Guided by its mission to bridge critical healthcare gaps, the Company continues to develop targeted, value-driven solutions through advanced manufacturing capabilities and a strong compliance framework ensuring impactful delivery of care across economic segments.

Mission of the Company

To serve the unmet healthcare needs of society by accelerating drug research of our customers, by manufacturing high-quality products and by creating innovative solutions that improves the affordability of medicines.

Highlights That Underscore Our Commitment to Excellence

Windlas Biotech Ltd is amongst the top five players in the domestic pharmaceutical Generic FormulationsContract Development and Manufacturing Organisation (CDMO) industry in India.

There was also successful scaling up of OSD capacity through Plant-2 extension and acquisition of a Brownfield facility in Selaqui, Dehradun, which will operate as Plant-6, focused on expanding oral solid capacities.

Received Good Manufacturing Practices (GMP) certification from the Food Safety & Drugs Administration Authority of Uttarakhand, confirming compliance with WHOs TRS Guidelines across all five plants. The Company serves 7 out of the 10 largest pharmaceutical companies in India through its CDMO operations. The Company has five state-of-the-art manufacturing facilities, offering comprehensive dosage capabilities across tablets/capsules, pouches/sachets, and liquid bottles. Together, these plants (excluding injectables) have an annual installed capacity of approximately.

Financial Performance Snapshot/ Key Highlights

In FY 2024-25, Windlas Biotech reported a strong operational and financial performance, achieving its highest-ever revenue and EBITDA. Revenue grew by 20% year-on-year to Rs. 7,599 Million, reflecting sustained demand across key business verticals. EBITDA increased by 20% to Rs. 941 Million, with the EBITDA margin maintained at 12.4%, underscoring continued focus on cost optimisation and operational efficiency. Growth was broad-based across verticals: the Generic Formulations CDMO vertical delivered a 15% increase, reaching Rs. 5,551 Million, supported by steady order flows and therapeutic diversification.

The Trade Generics and Institutional vertical recorded a 41% growth, led by deeper market penetration and institutional customer acquisition. The Export vertical expanded by 19%, driven by increasing traction in select international markets. This performance reflects the Companys ability to execute a balanced growth strategy while maintaining financial discipline, positioning it well for long-term value creation.

Revenue and Profitability Growth

Windlas Biotech delivered a strong performance, supported by efficient execution and disciplined financial management. The Company reported revenue of Rs. 7,599 Million, with EBITDA at Rs. 941 Million, translating to a healthy EBITDA margin of 12.4%. Profit after tax (PAT) stood at Rs. 610 Million, reflecting a solid PAT margin of 8.0%.

Generating Returns Efficiently

The Company continues to deploy capital prudently across its core businesses, particularly within the asset-intensive CDMO vertical and the Trade Generics & institutional vertical. These verticals offer scalable growth and operational leverage, contributing to strong capital productivity. Return ratios remained healthy, with Return on Capital Employed (RoCE) at 25% and Return on Equity (RoE) at 23% underscoring effective capital utilisation and shareholder value creation.

**Adjusted for exceptional items in FY21 (Negative Impact of Rs. 216 Million)

1. All ratios calculated considering capex for Injectables (Plant-5), Plant-2 extension and Plant-6 (upcoming). For FY25 two bars have been shown, one considering complete capex and second *excluding CWIP of Plant-6.

2. For ROCE & ROE, Capital Employed & Equity at the end of period after removing cash/bank & mutual fund balances at the end of period

Strong Liquidity and Operational Efficiency

Windlas Biotech maintained a healthy liquidity position in FY 2024-25, supported by robust internal accruals and disciplined working capital management. The Company generated net operating cash flows of efficie conversion from core operations. With working capital days at just 14, Windlas Rs. 682Millions,reflecting demonstrated strong operational efficiency and prudent inventory capital deployment, ensured uninterrupted supply chain operations, and reinforced the Companys overall financial stability.

Rewards to the Shareholders

In FY 2024-25, the Company delivered its highest-ever earnings per share (EPS) of Rs. 29.2, up 4.4% YoY, reflecting sustained profitability. Supported by healthy internal accruals and consistent cash flow performance, the Company proposed a final dividend of Rs. 121 Millions, with Rs. 5.8 per share. This shows the Companys commitment to enhancing shareholder value while maintaining prudent capital allocation.

World-Class Manufacturing Infrastructure

Indias pharmaceutical formulations market continues to exhibit steady growth, driven by sustained demand for oral solids, liquids, and injectables. Oral solid dosages remain the dominant category due to their stability, cost-efficiency, and widespread therapeutic applications, while oral liquids and injectables are gaining momentum, particularly in pediatric, geriatric, and acute care segments. Within this expanding landscape, Windlas Biotech Limited has emerged as a key player, particularly in the oral solid and liquid formulation segments, serving both domestic and international B2B markets.

Formulation Market Distribution by Product Segment

The Company operates five state-of-the-art manufacturing facilities in Dehradun, all compliant with Schedule M and WHO-GMP standards. These facilities (excluding injectables) offer an impressive annual production capacity of approximately 8,522 Million tablets/capsules, 54 Million pouches/sachets, and 61 Million liquid bottles. This infrastructure is supported by a robust electronic Quality Management System and a dedicated team of 177 quality control professionals (as of FY 2024·25), underscoring Windlas focus on regulatory compliance and process excellence. In January 2025, Windlas received GMP certification from the Food Safety & Drugs Administration Authority of Uttarakhand, validating its alignment with WHO TRS guidelines. As of March 2025, the Companys Gross Block stood at Rs. 3,520 Million, reflecting sustained investment in infrastructure and capabilities to meet growing formulation demand with quality and scale.

Categories	FY 25
Tablets & Capsules	8,522 Mn
Pouch & Sachet	54 Mn Packs
Liquid Bottles	61 Mn

Building trust with clients through strong track record of quality & regulatory compliance

The Companys robust regulatory adherence and stringent quality control have evolved into a significant strategic moat. Company operates five WHO-GMP compliant manufacturing facilities, underscoring its commitment to international quality standards. It has successfully cleared audits by several multinational and large domestic pharmaceutical clients, reinforcing its credibility and reliability. This proactive compliance posture strengthened by a team of 177 quality control professionals·ensures readiness for evolving regulations like Schedule M, which are reshaping the industry landscape. As smaller, non-compliant players face regulatory exits, Windlas stands out with its validated infrastructure and track record, becoming a preferred partner for pharmaceutical major players. Its emphasis on manufacturing excellence, regulatory preparedness, and end-to-end documentation practices acts as a formidable entry barrier, enabling long-term partnerships, customer retention, and sustained growth in a consolidating CDMO market.

Robust and Growing Client Base

Windlas Biotech Limited continues to serve a broad spectrum of marquee clients, including leading pharmaceutical companies in India. The Company has successfully established itself as a trusted partner in the Generic Formulations CDMO space, providing products and services to 7 of the top 10 and 16 of the top 20 Indian pharmaceutical companies. This impressive client portfolio growth is driven by multiple strategic and operational factors. Your Companys commitment to product excellence is demonstrated through its focus on dosage form expanation and the development of complex generic formulations. In addition, the strong track record in manufacturing excellence, reflected in high responsiveness, adherence to rigorous quality and technical standards, and quick turnaround times, has built long-term customer confidence. Strategic capital investments in specialised infrastructure and advanced equipment have enabled your Company to offer tailored solutions, expanding our capabilities and attracting a broader customer base.

Diversified and Growing Portfolio

Windlas Biotechs product portfolio is strategically across Generic Formulations CDMO, Trade diversified Generics & Institutional, and Export verticals. With a strong focus on chronic and sub-chronic therapies and complex generics , the Company continues to expand its offerings through new product launches and geographic reach. As of FY 2024-25, Windlas served 757 CDMO customers, marketed 280 brands across 29 states, and exported 69 products, reinforcing its position as a trusted and scalable pharmaceutical partner.

Investing for the Future

Our proactive investments in quality systems, infrastructure, and digital transformation continue to position us strongly with respect to Schedule M compliance. We have begun utilizing Plant-2 extension in Q4 FY25 which gives us the required room for growth in upcoming period. We continue to augment our manufacturing network through modernization and retrofit of our recently acquired Plant-6 oral solids facility as per plan. We remain focused on enhancing long-term value for shareholders through diversification of client base, increasing operational efficiencies, retaining & rewarding of key talent and expansion of dosage forms.

Research & Development (R&D) Capabilities

We operate a DSIR-approved, state-of-the-art R&D laboratory equipped with pilot-scale facilities to support cutting-edge pharmaceutical development. Our team comprises highly experienced professionals across formulation and analytical development, medical affairs, and regulatory functions. With a strong focus on developing low-cost, first-to-launch generic products, we bring significant expertise in the formulation of complex multi-drug products. Our innovation-driven approach has led to the creation of novel dosage forms such as medicated chewing gum enriched with multi-vitamins, chocolate-flavored chewable tablets, dispersible tablets, and sustained-release formulations. We continue to explore and develop innovative formulations of existing molecules to enhance therapeutic outcomes and patient compliance.

Creating Value: End-To-End Value Chain Presence

Windlas Biotech Limited continues to strengthen its position as a leading player in the Indian CDMO pharmaceutical landscape with a sharp focus on the entire generics value chain. Our strategic focus is on formulation development, manufacturing, and marketing, enabling us to deliver high-quality, affordable healthcare solutions through both GenericFormulations CDMO and Trade Generics.

A strong investment in formulation technologies allows us to develop products with complete in-house capabilities, giving us full ownership of Intellectual Property (IP) from initial formulation development (post patent expiry) to regulatory approval. This deep integration and control across the generics value chain not only enhances operational also makes Windlas a trusted and preferred partner for pharmaceutical companies seeking end-to-end development and manufacturing solutions.

Glimpse of Strategic Business Verticals (SBV)

Windlas Biotech Limited has achieved robust and sustained growth across all three of its Strategic Business Verticals (SBVs) viz., Generic Formulation CDMO, Trade Generics & Institutional, and Exports. This performance is a result of the Companys unwavering commitment to continuous process optimisation, the introduction of innovative, high-quality formulations, and the establishment of strong internal operational efficiencies.

Generic Formulations CDMO

Windlas Biotech Limited is a distinguished contract development and manufacturing organisation (CDMO) that proudly serves 757 esteemed clients within the pharmaceutical sector. Our commitment to meeting the diverse needs of our clientele is underscored by a strategically structured and diversified product portfolio. This encompasses a comprehensive range of fixed dosage forms, including immediate-release and modified-release formulations, customised generic medications, and patient-friendly chewable and dispersible tablets, as well as conventional oral solid dosage forms. The Company retains the Intellectual Property Rights for almost all of the products that are supplied to pharma companies.

From a therapeutic perspective, the Company strategically focuses on the rapidly expanding and high-margin market segments associated with chronic and sub-chronic diseases. Our manufacturing capabilities extend across a broad spectrum of dosage forms, including formulations, complex generics encompassing solid, liquid, and injectable preparations, alongside other conventional pharmaceutical products. As of March 31, 2025 this vertical generated a total revenue of Rs. 5,551 Millions, representing a significant 15% YoY growth.

Internal Strengths

Client acquisition growth

The Company has implemented a methodical approach to client acquisition and retention, leveraging its internal strengths to drive growth and maintain strong client relationships. The Company has developed a strong IT system that supports its direct distribution model, enabling effective management of operations and client interactions. Windlas Biotech manufactures complex generic formulations and multi-drug fixed-dose combinations that caters to the specific needs of the clients. By meeting diverse and complex client requirements efficiently, The Company is able to secure a greater share of existing clients business.

Windlas Biotech commitment to cutting-edge research resources, strategic capital allocation, and advanced manufacturing technologies ensures that products are not only innovative but also meet stringent quality benchmarks.

Introducing new products to build a well rounded Portfolio

The Company expanded its product offerings from over 1,000 in FY 2019 20 to over 5,582 by FY 2024 25 encompassing complex generics and conventional products across chronic, sub-chronic, and acute segments. The Company has strategically focused a significant portion of its product portfolio on chronic and sub-chronic therapies.

Expanding Customer base to mitigate client concerntration risk

Windlas Biotech Limited has expanded its clientele to include a wide range of pharmaceutical companies Windlas Biotech Limited has made consistent progress in diversifying its customer base, effectively reducing the dependency on its largest customer over the past five years. The contribution of the highest revenue-generating customer to the Companys total revenue has steadily declined from 11.7% in FY2021 to 6.1% in FY2025. The Company undertook focused initiatives to broaden its client portfolio, resulting in an improvement over the subsequent years. Top customers contribution reduced from 11% in FY21 to 6.1% in FY25 while the 5 year revenue CAGR is 18%.

Domestic Trade Generics and Institutional Vertical

Our Trade Generics offerings focus on high-demand therapeutic areas such as respiratory, anti-diabetic, gastroenterology, and other chronic and sub-chronic conditions. These are off-patent pharmaceutical products that serve as cost-effective alternatives to brandedgenerics,therebysupportingwideraccessibility and affordability in healthcare. They are primarily sold to various institutional clients and distributors rather than through conventional medical representative channels As of FY 2024-25, this vertical contributed 23 % to the overall revenue mix, with a growing portfolio of over 400 brands. This vertical reported revenue of Rs. 1,721 Million in FY 2024- 25 reflecting a strong 41% year-on-year growth.

We have significantly broadened our sales force in both core and surrounding geographies, thereby enhancing market penetration and improving customer engagement. Continued expansion through diversified channels, new product launches, and geographic penetration remains central to our strategy, reinforcing Windlas Biotechs position as a trusted provider in the trade generics and institutional space. Driven by its core commitment to delivering Accessible, Affordable, and Authentic (AAA) medication to the underserved rural regions of India, Windlas Biotech Limited is actively expanding its footprint in the Trade Generics and Institutional Business vertical. The Company is pursuing a multi-pronged growth strategy focused on channel development, product diversification, and geographic reach. Through a strategic umbrella branding initiative, the Company is steadily enhancing brand recognition across numerous villages and semi-urban markets, reinforcing its AAA value proposition. Parallelly, the Company continues to strengthen its engagement with government institutions and public healthcare facilities, which are pivotal in extending access to quality medications at scale. A major catalyst in this space is the Indian governments ambitious expansion of the Jan Aushadhi Yojana, which is poised to transform the generics landscape. With a target of nearly 25,000 Jan Aushadhi stores by March 2026 bringing a 2.5-fold increase from current levels. This initiative is expected to significantly improve the availability of affordable medicines across rural and remote regions. Windlas Biotech Limited is well-positioned to capitalize on this opportunity by aligning its growth efforts with national healthcare priorities, thereby contributing meaningfully to public health outcomes while scaling its institutional and generics portfolio.

Internal Strengths

Accessibility

Windlas Biotech Limited has adopted a innovative approach to pharmaceutical distribution by bypassing the traditional marketing route of large distributors and medical representatives. Instead, the Company is establishing a direct-to-market model that ensures better control, responsiveness, and agility in reaching end-users across India. The Company has built a robust distribution network comprising 1095 stockists and distributors, strategically positioned across 29 states. This expansive footprint allows the Company to tap into Tier 2, Tier 3 cities, rural areas, and remote hinterlands, thereby extending its reach to underserved markets. The Companys direct distribution model is further bolstered by its strong presence in institutional sales, which includes partnerships with government health departments, public sector hospitals, and welfare programs.

Windlas Biotech Limited has adopted an agile approach to building a synergistic and scalable product portfolio that aligns with both market demand and therapeutic innovation. A key enabler of this strategy is the Companys highly fungible manufacturing infrastructure, which provides the flexibility to pivot swiftly between verticals CDMO, Trade Generics, and Institutional Sales based on emerging opportunities and market trends. The Companys manufacturing facilities are not only GMP-compliant but are also designed with modular expandability, allowing new production lines or capabilities to be added with minimal disruption. This built-in scalability enables Windlas to accelerate time-to-market for new formulations and address spikes in demand without significant lag, especially in high-growth therapeutic areas such as chronic, sub-chronic, and complex generics. The growth momentum built by Windlas in this vertical is demonstrated here:

Affordable prices

The Company has built a strong reputation for offering cost-effective, high-quality products by leveraging its efficient manufacturing infrastructure, economies of scale, and vertically integrated operations. This optimize production costs without compromising on quality, making its products more accessible to a broader segment of the population. Our well-established Trade Generics and Institutional business further amplifies this advantage, offering affordable medicines through bulk procurement channels to hospitals, government institutions, and Jan Aushadhi stores. The Companys direct-to-stockist distribution model also removes multiple intermediaries from the supply chain, enabling competitive pricing while maintaining healthy margins.

Authentic Products

Windlas Biotech Limited operates state-of-the-art manufacturing facilities that are WHO-GMP compliant, incorporating robust quality control (QC) and qualitytheCompanyto assurance (QA) systems across the value chain. Every product undergoes meticulous testing for purity, stability, efficacy, and safety, with batch-wise documentation and real-time quality monitoring to ensure consistency and traceability. This dedication to superior quality is a key differentiator for our Company in both domestic and global markets.

Exports

Our Export vertical continues to gain momentum over the years, reflecting the Companys focused strategy on expanding into emerging and semi-regulated international markets. The Companys strategy involves developing and registering product dossiers to secure marketing authorisations for both medicines and health supplements. For FY 2024-25, the Export segment reported revenue of Rs. 326 Millions, marking a 19% year-on-year (YoY) growth. This contribution is expected to scale as the Company deepens its international footprint. During the year, the Company exported 69 products, comprising a mix of generic medicines and health supplements, to its global partners.

Quality, Health, Safety and Environment

Windlas Biotech Limited maintains a robust electronic Quality Management System (eQMS) throughout its manufacturing facilities. This system ensures that all products meet the necessary standards for safety, identity, strength, quality, and purity. Compliance with regulatory directives and current Good Manufacturing Practices (GMP) is rigorously upheld. The Companys facilities are WHO-GMP compliant, and its new injectable facility has received

GMP certification as per World Health Organisation (WHO) TRS Guidelines.

Ensuring the health and safety of our workforce, while minimizing our environmental footprint, remains a cornerstone of our operational philosophy. In FY 2024·25, we further strengthened our sustainability initiatives and worker safety protocols, embracing innovative practices across all our facilities. Reducing emissions and advocating cleaner environmental solutions continue to be critical priorities. We utilize eco-friendly briquette-fired energy-efficient utilities, significantly lowering our carbon footprint. Innovative production techniques have driven a meaningful reduction in water consumption, complemented by rainwater harvesting systems operational at multiple sites. In laboratories, the installation of advanced fuming hoods with multi-stage filtration systems ensures effective control of volatile organic compounds (VOCs), protecting both the environment and lab personnel.

Recognizing the importance of proactive safety management, our Company conducts regular training programs focusing on personal protective equipment usage, safety awareness, and adherence to safety protocols. Fire safety systems have been fortified with the strategic installation of fire hydrants, smoke detectors, heat detectors, and fire extinguishers across all facilities, all maintained through rigorous periodic inspections and servicing schedules. Our focus on health, safety and environment goes beyond the internal programs and extends to various initiatives in our supply chain, local communities and is also the guiding factor for our social initiatives.

Material Developments In Human Resources / Industrial Relations Front, Including Number of People Employed

To unlock employee potential, drive productivity, and sustain operational excellence, we conduct regular training and development programs, focusing on technical competencies, quality, safety compliance, and leadership skills. These initiatives empower employees, foster collaboration, and encourage personal and professional growth. In our commitment to employee engagement and retention, we have implemented Employee Stock Option Schemes (ESOP 2021 and ESOS 2023) to recognize contributions and align personal success with organisational goals. Additionally, our Reward & Recognition (R&R) program, celebrated monthly, acknowledges exceptional performances and key milestones, significantly boosting team morale and fostering a culture of high performance and appreciation.

As of March 31, 2025, Windlas Biotech Limited employed 1,346 personnel, compared to 1,154 in FY 2023-24.

Information Technology

At Windlas Biotech Limited, a robust and scalable Information Technology (IT) infrastructure forms the backbone of our strategic growth and operational efficiency. Anchored by a clearly articulated IT policy, our digital initiatives are purposefully aligned with the evolving business landscape and regulatory environment. Our in-house IT team plays a critical role in designing, deploying, and maintaining enterprise systems and infrastructure that are tailored to our functional requirements. Furthermore, a Sales Personnel Management System has been instituted, providing comprehensive tracking and performance analytics at both the corporate and field levels. This system is fully integrated with our ERP backbone, ensuring seamless reporting and streamlined performance evaluations. Our IT infrastructure also extends to quality management and regulatory oversight. Automation tools have been deployed to digitize documentation, minimize manual errors, and ensure paperless operations, thereby improving turnaround boilers and other time and maintaining compliance with stringent regulatory frameworks.

Risks and Concerns

Addressing challenges within the pharmaceutical industry necessitates recalibrating the following strategic response

Responses, by Strategic Domain	From	To	Mitigation Measures
Network and Resilience	Reactive and Cost- conscious approach	Weaving in elements of resilience, proactiveness, agility, and prompt responsiveness	Windlas Biotech Limited has strengthened its supply chain diversification, introduced dual sourcing for critical APIs, and invested in inventory management tools to avoid stockouts. The Company has also deployed predictive analytics to improve supply forecasting and crisis resilience.
Digital	Targeted, single-use cases	Fully scaled and ready for ecosystem leadership	Implemented full ERP (Enterprise Resource Planning) across procurement, manufacturing, distribution.
Operating Model and Ecosystem	Traditional hub configuration centered on originators	Cultivating an end- to-end ecosystem of partners	Shift towards collaborative R&D partnerships with emerging biotech firms and academic institutions. Ecosystem-based supplier management platforms initiated for better vendor performance tracking.
Talent	Focused on recruitment and training efforts driven by HR department	Proactive and strategic human resource planning, reskilling, and automation	Windlas launched employee development initiatives such as digital learning platforms, technical skill upgrading programs (GMP, QC automation, advanced analytics), and leadership training. ESOP 2021 and ESOS 2023 schemes operational to incentivize long-term retention. New health and wellness programs were also introduced in FY24.

Risk Management at Windlas Biotech

1 Industry Risk

Given the dynamic nature of the pharmaceutical industry, we maintain a sharp focus on monitoring macroeconomic trends, regulatory changes, and geopolitical developments across our diverse markets. By staying agile and adaptive, we ensure swift strategic responses to mitigate emerging risks.

2 Operational Risk

Our manufacturing facilities strictly adhere to cGMP (Current Good Manufacturing Practices) standards and regulatory requirements. Digital enablers like Quality Management Systems (QMS), Laboratory Information Management Systems (LIMS), Enterprise Resource Planning (ERP), strengthen our operational controls, ensure compliance, and enhance production efficiency.

3 Competition Risk

To maintain a competitive edge, we focus on deepening customer relationships, expanding our product portfolio, and investing in research and innovation. Our R&D efforts are directed at cost optimisation, faster product development, and differentiated offerings that deliver superior value to customers and investors alike.

4 Supplier Risk

Recognizing the volatility in raw material pricing and supply chain disruptions, we have built a diversified, multi-geography supplier network. Strategic sourcing initiatives and close collaboration with key vendors ensure uninterrupted supply, cost efficiencies, and quality consistency.

5 Financial Risk

Our financial risk management framework includes robust hedging strategies to manage forex volatility, particularly given our diversified of Chartered Accountants global revenue streams. Risk mitigation policies are reviewed periodically to align with market realities, ensuring financial resilience.

Internal Financial Controls

Windlas Biotech Limited maintains a comprehensive and dynamic internal financial controls framework, essential for supporting transparent, compliant, and efficient business operations. Our internal financial control systems are meticulously designed to continuously assess and strengthen the adequacy, effectiveness, and across all levels of the organisation. Advanced ERP systems have been integrated for real-time financial tracking, budgetary control, and transparent reporting. A risk-based internal audit approach ensures that critical financial processes are closely monitored.

Clear segregation of duties has been enforced to minimise fraud risks and maintain robust checks and balances. Quarterly financial health reviews and compliance updates are conducted, with oversight from senior management and the Audit Committee. Continuous training programs are conducted to enhance employees understanding of financial control processes and regulatory compliance.

Internal Control Systems and Adequacy

Windlas Biotech Limited has instituted a comprehensive internal control framework, aligned with the best global practices, to safeguard assets, ensure regulatory compliance, and enhance operational efficiencies. We regard internal controls not merely as compliance requirements but as enablers of sustainable, efficient business practices. An integrated digital compliance management system centralizes all statutory and regulatory obligations, ensuring real-time monitoring, timely documentation, and escalation of non-compliances. We have deployed end-to-end digitised control systems that enable real-time tracking of key operational, financial, and compliance activities. The Audit Committee of the

Board plays a pivotal role in overseeing our internal control framework. It ensures that all systems governing financial transactions, asset management, and operational reporting are robust, transparent, and aligned with regulatory expectations. Independent internal audits are conducted by Grant Thornton .Bharat LLP, a leading firm

The Committee reviews findings from both internal and external auditors on a regular basis, ensuring timely action on any observations, gaps, or compliance issues.

Changes in Key Financial Ratios

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefore, including:

Sr. No. Ratio	Value in FY 2025	Value in FY 2024	Increase/ Decrease	Percentage Change	Reasons for Significant Change
1 Debtors Turnover Ratio	5.01	4.99	0.02	0.6%	·
2 Inventory Turnover	6.57	5.79	0.78	13.6%	·
3 Interest Coverage Ratio	0.05	0.02	0	150%	Increased due to Interest on Cash Credit Limit facility from Bank
4 Current Ratio	2.11	2.52	-0.41	-16.3%	·
5 Debt Equity Ratio	0	0	0	0.0%	·
6 Operating Profit Margin (%)	12.4%	12.4%	0	0.1%	·
7 Net Profit Margin (%) or sector-specific equivalent ratios, as applicable	8.0%	9.2%	-1.2%	-13.4%	·
8 Return on Net Worth As compared to the immediately previous financial year along with a detailed explanation thereof	12.69	13.63	-0.94	-6.9%	·

Cautionary Statement

The Management Discussion and Analysis contains ‘forward-looking statements, identified by words like ‘plans,‘expects, ‘will, ‘anticipates, ‘believes, ‘intends, ‘projects, ‘estimates and on within the meaning of applicable securities laws and regulations concerning WBLs future business prospects and business profitability. All statements that address expectations or projections about the future, the Companys strategy for growth, product development, market position, expenditures and financial results, are forward-looking statements. All these prospects are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, ability to manage growth, competition (both domestic and international), economic growth in India and the target countries worldwide, ability to attract and retain highly skilled professionals, time and cost overruns on contracts, ability to manage international operations, Government policies and actions with respect to investments, fiscal deficits, regulations, interest and other fiscal costs generally prevailing in the economy, etc. Past performance may not be indicative of future performance. The Company does not undertake to make any announcement in case any of these forward-looking statements become materially incorrect in future nor shall the Company update any forward-looking statements made from time to time by or on its behalf.