Scaling higher peaks through confidence
As a responsible corporate, we believe in nurturing holistic development of our people.
Along with a staunch focus on internal governance, we have adopted dedicated efforts to
create a lasting change in communities and pave the path for balanced ecological
prosperity.
V.C. Nannapaneni
Chairman and Managing Director
Dear Shareholders,
At the outset, we are elated to state that FY2024 was a remarkable year for us, despite
geopolitical tensions and supply chain disruptions. We have recorded the highest ever
consolidated revenue and profits for your company, during the financial year - a milestone
demonstrating our diligent efforts over the years on taking the business to higher peaks.
Our strong R&D focus, a vertically integrated business model and the thrust on
developing niche highly potential molecules have enabled us to become one of the leading
players in the pharmaceutical industry and accomplish numerous milestones with agility.
Our strengths empowered us to deliver strong performances, during the year under review.
Our persistent efforts over the past decade have enabled us to deliver a consolidated
total revenue of H 41,269 million in FY24, against H 28,117 million in the previous year,
marking a 47% growth in topline. Simultaneously, net profit on a consolidated basis was H
13,883 million, as compared to H 7,153 million last year. We also improved our EBITDA
margin from 37% last year to 45.5%. Our business strategy of focusing on niche and complex
molecules with limited competition has synergised well with our R&D expertise and
first-to-market approach.
Through R&D investments, the creation of robust Para IV and Solo First to File
(FTFs) pipelines, expansion of our geographic footprint, foray into new therapeutic areas
and the diversification into the Crop Health Sciences segment, we are capitalising on our
strengths to secure the path for a sustainable future for all our stakeholders.
Your company is also making strategic investments in new cutting edge technologies such
as, Cell Gene Therapy (CGT) and CRISPR-Cas9 technology.
These technologies have wide variety of applications including basic biological
research, development of biotech products and treatment of hereditary diseases, cancers,
viral infections and we believe that future wave of growth for our shareholders, will come
from these technologies.
We always believed in creating value for the shareholders and on the quest of doing so,
during the financial year, we issued three dividends totalling to H 9.5 per share. The
total dividend payout was of H 1,702 million, which constituted 13% of the total
standalone profit after tax. We remain committed in rewarding our shareholders.
A year of resilience, agility and milestones
Pharma Business Domestic
Despite pricing pressures on some of our products, our performance in the domestic
market has been stable in FY24 with formulation sales achieving H 3,867 million. Growth in
the oncology segment was primarily driven by new product launches and increase in market
share of some of the key products. During the financial year, moving ahead, we launched 8
products in the domestic business, and we plan to strengthen our market presence in the
specialty pharma, cardiology and diabetology segments with an increased thrust on new
product launches and expansion of our marketing and sales force.
International
The year under review has seen robust growth in the international pharmaceutical
business with revenue from formulations reaching H 32,369 million. While the growth was
led by Lenalidomide sales in the US, our other key products in portfolio have also helped
in gaining momentum in our earnings. Our pipeline in the US remains strong with several
FTF products including Semaglutide injections for the indication of diabetes and weight
loss. We believe that we are the sole FTF for the generic drug of blockbuster weight loss
product Wegovy. Our endeavour is to file 8-10 niche molecules every year and attempt to be
the first-to-market in some of them.
Our formulations Rest of World (RoW) business excluding US and India has performed well
with a total revenue of H 6,064 million on the back of increased market share and launch
of new products. Our subsidiaries in Canada and Brazil continue to deliver strong growth.
We are also aiming to expand our footprint in Colombia and Indonesia, through
subsidiaries, while actively pursuing inorganic opportunities in the RoW business. We are
also participating in tenders in major RoW markets, which will add value to the business.
Diversifying into Crop Health Sciences
Extending our chemistry capabilities, we have reported revenue of H 1,083 million in
FY24 from H 409 million in FY23. We are beginning to establish as a quality conscious
player in the market.
Through R&D investments, the Para IV and Sole First-to-File (FTFs) pipelines,
expansion of our geographic footprint, foray into new therapeutic areas and
diversification into Crop Health Sciences segment, we are capitalising on our strengths to
secure the path for a sustainable future for all our stakeholders.
Rajeev Nannapaneni
Vice Chairman and Chief Executive Officer