India, the pharmacy of the world, is experiencing a compelling growth
trajectory with high single-digit growth. Despite challenges in CIS countries, the global
reception of Indian pharmaceuticals remains positive. Moreover, the domestic market has
exhibited a healthy double-digit growth.
Dear Shareholders,
I am privileged to present the Annual Report for the fiscal 2023-24.
Your Company has progressed well and is poised to significantly contribute to a healthier
world through its affordable and innovative medicines. FY24 marked a year of resurgence
and transformation for our company, characterized by remarkable export sales and a
considerable improvement in our financial performance. Looking back on the past year, we
are grateful for your unwavering support and collective efforts that have propelled your
company to survive despite challenges.
Global Markets
As per the World Economic Outlook Report, global growth, estimated at
3.2% in 2023, is projected to continue at the same pace in 2024 and 2025. While there is
an uptick in growth from the lows of 2022, the current economic expansion rate remains
comparatively low considering historical standards of 3.8% from 2000-2019. This can be
attributed to both near-term factors such as still-high borrowing costs and withdrawal of
fiscal support, and longer-term factors such as the pandemic and the geo political
conflict; weak productivity growth; and increasing geo economic fragmentation. Advanced
economies are expected to see a slight rise in growth, with the increase mainly reflecting
a recovery in the Euro area from low growth in 2023. In contrast, emerging markets and
developing economies are projected to maintain stable growth throughout 2024 and 2025,
with regional differences. Low-income developing countries are expected to experience
gradually increasing growth, from 4.0% in 2023 to 4.7% in 2024 and 5.2% in 2025.
With inflation projected to continue declining toward targets and
longer-term inflation expectations remaining anchored, policy rates of central banks in
major advanced economies are expected to start declining during the rest of the FY.
The Future of The Indian Pharma Sector
India, the pharmacy of the world, is experiencing a compelling growth
trajectory with high single-digit growth. Despite challenges in CIS countries, the global
reception of Indian pharmaceuticals remains positive. Moreover, the domestic market has
exhibited a healthy double-digit growth. These realities position the domestic industry
firmly on the path to reach the US $130 billion mark by 2030.
Indian healthcare is undergoing a transformative phase - an
irreversible change in healthcare consumption, with patients and doctors increasingly
embracing technology for healthcare interactions. This change is largely attributed to the
rapid advancements made by health tech companies. Interestingly, these disruptions have
unlocked new value pools within the sector.
The digital transformation of India's healthcare industry has the
potential to accelerate tenfold, from US$2.7 billion in
2022 to approximately US$37 billion by 2030.1 This will rub off into a
stronger demand for pharmaceutical products.
Our Performance
Reflecting upon FY24, it is crucial to recognize the various challenges
stemming from macro economic headwinds in our operating environment. Despite the hurdles,
we are delighted that we have had a decent financial performance this year.
During the year the company achieved a consolidated revenue from
operations of Rs 502.25 Crores against turnover of Rs 410.95 Crores in the previous
financial year registering growth of 23.47%. The company achieved an export turnover of
Rs. 379.61 Crores as compared to Rs. 282.66 Crores in the previous financial year thus
registering an increase of 34.30%. The domestic sales of the Company have marginally
decreased by 2.85% from Rs. 116.22 Crores in the previous financial year to Rs. 112.91
Crores in the financial year 202324. During the year the company earned EBIDTA of Rs 63.70
Crores as compared to EBIDTA of Rs 51.13 Crores in the previous year. Your Company earned
net profit (after tax and extraordinary items) of Rs. 14.23 Crores as compared to net
profit (after taxand extraordinary items) of Rs. 26.03 Crores in the previous financial
year.
I take this opportunity to inform you regardingthe changes in the Board
of Directors of your Company. Dr. Vinay Arora and Sh. S.P. Sharma, who had been associated
with company as Independent Directors for more than a decade, completed their final tenure
during the year. I express my heartfelt appreciation for their support and guidance. I
also extend a warm welcome to Sh. Subodh Gupta and Sh. Prabhat Khurana who joined the
Board as Independent Directors this year.
Way Ahead
Ever since our journey began 38 years ago, we have strived hard to
preserve value for all our stakeholders. Keeping the same approach in mind the Board of
Directors, last year approved the Scheme of Arrangement for Amalgamation of the Company
with its group company, M/s Ind Swift Laboratories Limited. The merger of both companies
will help in leveraging marketing/distribution strength of the merged entity in domestic
and exports markets and realize significant synergies in operations and create competitive
advantage leading to expansion of Product Range, Sales growth and improve profitability of
the Company. Considering that M/s
Ind-Swift Laboratories Limited has the financial strength and your
company has the required expertise & market presence in the Formulation business, the
merger is expected to result in pooling of physical, financial and human resource of both
the Companies for the optimal utilization of these factors in the combined entity by
gaining from the strengths of each other.
In closing, I extend my heartfelt gratitude to your company's
exceptional employees, partners, and stakeholders for their unwavering support and
dedication. It is through their collective efforts that westand poised to achieve our
milestones and create lasting impact in the lives of thosewe serve. Together, we are
shaping a future where healthcare reaches new heights of excellence.
As we move forward, we are excited about the opportunities ahead and
remain steadfast in our missionto bring innovative healthcare solutions to our customers
worldwide.
| With regards |
| S.R. Mehta |
| Chairman |