Windlas Biotech Ltd

We are filled with pride at how Windlas has not only recorded growth in its current endeavours but also laid a strong foundation for brighter future prospects along with discharging equally fulfilling social commitments.

Dear Shareholder's

Warm greetings to all of you. It gives us immense pleasure to address you all as we conclude the financial year 202324. As we look back on the turn of events that have marked the business year gone by, we are filled with pride at how Windlas has not only recorded growth in its current endeavours but also laid a strong foundation for brighter future prospects along with discharging equally fulfilling social commitments. It is a testament to our motto of accomplishing growth and robust performance across various parameters.

As the global economy slowly resurfaces after experiencing a little slowdown following the monetary tightening and elevated interest rates by major central banks, India has emerged as a robust emerging economy with a GDP growth rate of 8.2% in FY 2023-24 compared to 7.0% in FY 2022-23. More pharmaceutical giants are adopting leaner, flexible business models, outsourcing critical functions like research & development and manufacturing to the producers in the emerging economies. Additionally, there is an increased demand observed for high-quality, generic medicines across these economies and India, as a result of the expiry of patents on branded drugs as well as government thrust on healthcare expenditure.

Windlas has identified these levers of growth well ahead in time and is strategically poised to utilise these to its advantage. Our strategic initiatives involve expanding our customer base, enrich product portfolio and extend distribution network while focusing on strict quality control to meet international technical standards and modernisation. We have perceived robust growth across all the three of our Strategic Business Verticals viz. Generic Formulation CDMO, Trade Generics & Institutional and Exports. Under Generic Formulations CDMO vertical, we cater to the Formulations manufacturing needs of the 15 out of the top 20 pharmaceutical companies in India. Our Trade Generics and Institutional vertical, focuses on providing Authentic, Affordable and Accessible medication to the underserved semi-urban and rural markets in India. Government policies such as Ayushman Bharat and Jan Aushadhi, which extend medical coverage to a vast number of economically disadvantaged Indians, further boost institutional purchases. We continue to build our export vertical by broadening into semi-regulated market and through filing of dossiers in different geographies.

We are happy to see that these strategic endeavours have started bearing fruits of our passion and persistence. Not only have we registered highest ever yearly revenue of ? 6,310 million but also generated substantial net operating cash flows ?1,090 million. Our liquidity position end of period strengthens our ability to invest boldly in profitable growth. Furthermore, we commenced manufacturing at our state-of-the-art injectables facility in Q4 of this fiscal which is built to meet international cGMP standards.

Before we conclude, we would like to lay out the strategic goals for the coming fiscals for Windlas.

.With our highly modernised five manufacturing facilities, including the latest functional Injectables facility; we aim to tap increasingly larger opportunities presented across all the three SBVs.

.f We continue to focus on operational efficiency and ensuring strict quality control

.f We seek to ascend the growth trajectory further with our customer-centric approach and taking advantage of the near-term patent expiry of key molecules.

.f With the said liquidity at hand, we are ready to make effective utilisation of funds and seize any opportunity for business enhancement.

In the end, we would like to offer our sincere gratitude to our Board of Directors for their valued guidance and industry acumen and show our genuine appreciation for all the members of Windlas Biotech family for their unwavering commitment, enthusiastic energy and diligent efforts. Also, we would like to thank our shareholders for their belief in our vision.