ZOTANSE22 November 2022

Zota Health Care LImited has informed the Exchange about Investor Presentation

Zota Health Care LImited

November 22, 2022

To, The Manager Listing Department, The National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai – 400051

Dear Sir/Madam,

Trading Symbol: ZOTA

Sub: Investor Presentation

Ref: Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

With reference to the captioned subject we, Zota Health Care Limited are submitting herewith enclosed the Investor Presentation in respect of Unaudited Financial Results for the quarter ended September 30, 2022.

This is for your information and record.

Thanking you,

Yours faithfully,

For Zota Health Care Limited

Ashvin Variya (Company Secretary & Compliance Officer) Place: Surat

Encl: a/a

Registered Office: Zota House, 2/896, Hira Modi Street, Sagrampura, Surat-395002 Ph: +91 261 2331601 Email: info@zotahealthcare.com Web: www.zotahealthcare.com

CIN: L24231GJ2000PLC038352

N O V E M B E R 2 0 2 2

Q2FY23

P E R F O R M A N C E H I G H L I G H T S

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Safe Harbour

This presentation has been prepared by the Zota Health Care Limited (the “Company”) only for information purpose to the stakeholders and does not contain any offer or invitation to subscribe the securities of the Company. No offering of securities shall be made except by means of offer documents.

This presentation has been prepared on the basis of information and data available with the Company consider reliable. This presentation may not contain all the information that you may consider material. Any liability in respect of the content of or any omission from this presentation is expressly excluded.

Stakeholders are advice to compare the data provided in the presentation with the full financial results available on the website of the Company as well as on website of NSE.

This presentation contains “forward looking statement”, including “future oriented financial information” and “financial outlook”. This forward looking statement is based on management’s current expectations and belief, and subject to uncertainty. Actual result may be vary from the material facts contained in this presentation due to changes in government policies, regulations, economics reforms, natural calamities, competition, technology, etc. Company is not under obligation to inform any update or alter in forward looking statement, whether as a result of any new information or future events

Table of Contents

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R E S U L T H I G H L I G H T S

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O P E R A T I O N A L M E T R I C S

1 1

D A V A I N D I A

2 0

B U S I N E S S O U T L O O K & S T R A T E G Y

2 4

F I N A N C I A L S U M M A R Y

1Q 2 F Y 2 3 R e s u l t

Highlights

0 5

S t a n d Q u a r t e r l y F i n a n c i a l H i g h l i g h t s

0 6

R e v e n u e B r e a k u p – Q u a r t e r l y

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Stand Quarterly Financial Highlights

Q-o-Q

Y-o-Y

Revenues (₹ Lakhs)

Gross Profit (%)

Revenues (₹ Lakhs)

Gross Profit (%)

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3 , 8 5 7 . 2 6

3 7 . 3 0 %

3 7 . 1 2 %

3 , 5 3 9 . 7 0

3 , 8 5 7 . 2 6

3 3 . 8 2 %

3 7 . 1 2 %

2 , 9 4 8 . 7 8

Q1-FY23

Q2-FY23

Q1-FY23

Q2-FY23

Q1-FY23

Q2-FY23

Q1-FY23

Q2-FY23

Operating Profit (₹ Lakhs)

PAT (₹ Lakhs)

Operating Profit (₹ Lakhs)

PAT (₹ Lakhs)

5 2 2 . 6 2

4 2 2 . 4 0

4 9 3 . 6 2

5 2 2 . 6 2

4 2 2 . 4 0

3 3 1 . 6 3

2 0 6 . 1 4

1 4 6 . 4 1

Q1-FY23

Q2-FY23

Q1-FY23

Q2-FY23

Q1-FY23

Q2-FY23

Q1-FY23

Q2-FY23

Revenue Break up- Quar terly

Q2-FY23

3,857

Q1-FY23

2,949

Q2-FY22

3,540

Domestic Sales

Dava India Sales

Export Sales (SEZ)

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2F Y R e s u l t

Highlights

0 8

S t a n d P r o f i t & L o s s S t a t e m e n t – Q u a r t e r l y

0 9

M a n a g e m e n t C o m m e n t a r y

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Stand Profit & Loss Statement- Quar terly

Particulars (Rs Lakhs)

Q2FY23

Q1FY23

YoY %

QoQ %

Q2FY22

Export Sales (SEZ)

Dava India Sales

Domestic Sales

Revenues from Operations

Cost of Goods Sold

Gross Profit

% Margin

Operational Exp

Employee cost

Other expenses

Operating Profit

% Margin

Other Income

EBITDA

% Margin

Depreciation

EBIT

% Margin

Interest Cost

EBT

% Margin

Taxes

Profit After Taxes

% Margin

903.9 1217.1 1736.3 3,857.26 2,425.27 1431.99 37.12% 909.37 249.40 659.97 522.62 13.55% 98.43 621.05 16.10% 57.36 563.69 14.61% 2.59 561.10 14.55% 137.00 422.40 10.95%

766.6 1019.3 1162.8 2,948.78 1,848.88 1099.90 37.30% 893.76 256.59 637.17 206.14 6.99% 54.18 260.32 8.83% 55.96 204.36 6.93% 1.64 202.72 6.87% 47.37 146.41 4.97%

-9% 44% 2% 9% 4% 20% 3.30% 29% 11% 38% 6% -0.40% 446% 21% 1.65% -13% 26% 2.02% 118% 26% 1.99% 21% 27% 1.58%

18% 19% 49% 31% 31% 30% -18 bps 2% -3% 4% 154% 656 bps 82% 139% 727 bps 3% 176% 768 bps 58% 177% 767 bps 189% 189% 599 bps

991.7 848.1 1,699.9 3,539.70 2,342.47 1197.23 33.82% 703.61 224.49 479.12 493.62 13.95% 18.04 511.66 14.45% 66.02 445.64 12.59% 1.19 444.45 12.56% 112.83 331.63 9.37%

Management Commentar y

The Company reported a comeback in Revenues in Q2FY22, on account of higher throughput in both Domestic & DavaIndia verticals, coupled with a recover in Exports vertical.

Domestic Sales reported an increase of 49% YoY and 2% QoQ, at the same time Export performance also recovered after a subdued Q1FY23.

The sales contribution from new-age business stood at 51% in Q2FY23 as compare d to 61% in Q1FY23 and 52% in Q2FY22.

The Company has maintained its gross margins at 37.12% in Q2FY23 compared to 37.30% in Q1FY23.

EBITDA stood at Rs 621.05 Lakhs, with margins at 16.10% driven by an increase in Gross Margins coupled with higher Other Income.

PAT stood at Rs. 422.40 Lakhs, increasing 27% YoY basis and 189% QoQ basis.

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Management Commentar y

DOMESTIC OPERATIONS

Domestic Revenues increased by 35.34% QoQ and a growth of 15.91% YoY at ₹ 2953.39 Lakhs in Q2FY23 supported by healthy performance on both fronts.

EXPORTS

Exports revenues increased by 17.91% on QoQ basis and declined by 8.85% YoY at ₹ 903.9 Lakhs in Q2FY23.

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EBITDA at ₹ 354.32 Lakhs for Q2FY23, backed by strong recovery in demand of Prescription Based Drugs.

PAT stood at ₹ 195.06 Lakhs for Q2FY23.

EBITDA at ₹ 266.73 Lakhs for Q2FY23, in line with the decrease in export sales volume.

PAT stood at ₹ 227.34 Lakhs for Q2FY23.

*Here,Domestic Operations includes the operations of Davaindia.

3G e n e r i c P h a r m a c y

Davaindia

1 2

D a v a i n d i a K e y F i g u r e s

1 4

D a v a i n d i a - G e n e r i c P h a r m a c y

1 6

D a v a i n d i a - C O C O S t o r e s

1 7

O p e r a t i o n a l F O F O S t o r e s

1 8

O p e r a t i o n a l C O C O S t o r e s

1 9

M a n a g e m e n t C o m m e n t a r y

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Davaindia Key Figures Gross Mercantile Value (GMV)

Total GMV of Davaindia Stores stood at 1,926 Lakhs during Q2FY23 an increase of 21% QoQ

No. of SKU’s

New Stores rolled-out

1 , 6 9 2

5 9

5 1

3 4

3 1

1 , 6 5 3

1 , 6 4 4

1 , 6 1 4

Q3-FY22 Q4-FY22 Q1-FY23 Q2-FY23

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Davaindia Key Figures

Average Wallet Spend

No. of Customers Served

2 6 7

2 4 8

2 5 4

2 3 7

2 2 9

2 2 0

2 0 9

2 0 4

1 8 1

Q 2 - F Y 2 1

Q 3 - F Y 2 1

Q 4 - F Y 2 1

Q 1 - F Y 2 2

Q 2 - F Y 2 2

Q 3 - F Y 2 2

Q 4 - F Y 2 2

Q 1 - F Y 2 3

Q 2 - F Y 2 3

7 , 5 9 , 2 0 7

6 , 4 1 , 7 1 2

6 , 4 3 , 1 2 0

5 , 6 8 , 1 8 3

5 , 4 0 , 9 2 4

4 , 7 3 , 1 8 1

4 , 4 0 , 4 5 8

Q 4 - F Y 2 1

Q 1 - F Y 2 2

Q 2 - F Y 2 2

Q 3 - F Y 2 2

Q 4 - F Y 2 2

Q 1 - F Y 2 3

3 , 5 2 , 6 2 3

Q 2 - F Y 2 1

3 , 2 3 , 3 9 5

Q 3 - F Y 2 1

Davaindia- Generic Phar macy

During the quarter Davaindia has catered to the highest-ever number of customer i.e. 7.59 lakhs against 6.43 lakhs in the previous quarter. The Company witnessed an increase in Average Wallet Spends which stood at ₹254 against ₹248 in the previous quarter.

Davaindia has led the revolution of patients opting for generic medicines against branded counterparts. As of Q2FY23, Davaindia has catered to more than 6.69 million happy customers.

Davaindia expansions continues in Q2FY23, the Company rolled-out 6 COCO stores on a base of 36 stores in the previous quarter. The Company will pursue rapid store roll-out on the COCO front. The Company also rolled out additional 25 FOFO stores, taking the total FOFO count to 562, and the total store count to 604.

The company has adopted various advertisements, marketing, and promotional channels like Print, TV, Digital, and Outdoor mediums to increases top-of-the mind brand recall in the minds of its customers. This exercise that begun to gain traction and has led to footfall & wallet share increase among its users.

Davaindia retail pharmacy stores’ focus continues to be chronic ailments – Cardiac, Diabetic, Thyroid, among others – as repeat orders from existing and new customers remain high, thus aiding the overall growth of Davaindia's business model.

A higher number of SKU’s i.e. 1,692 has enabled Davaindia to better serve customers across all segments. Thus, increasing its customer spends across varied price points, the Average Wallet Spend was ₹254 in Q2FY23.

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Davaindia- Generic Phar macy

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Davaindia- COCO Stores

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Operational FOFO Stores

562

Operational FOFO stores as on 30.09.2022

Franchise Owned Franchise Operated (FOFO) Stores

States

Uttar Pradesh

Madhya Pradesh

Gujarat

Maharashtra

Odisha

Delhi

Haryana

West Bengal

Rajasthan

Kerala

Bihar

Tamil Nadu

Karnataka

Assam

Jharkhand

Telangana

Punjab

Tripura

Uttarakhand

Jammu And Kashmir

Chhattisgarh

Himachal Pradesh

Arunachal Pradesh

Goa

Meghalaya

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No. of Stores

104 70 55 52 52 32 31 30 28 19 17 11 10 8 7 7 6 6 6 4 2 2 1 1 1

States

Gujarat

Maharashtra

Rajasthan

Uttar Pradesh

Delhi

Haryana

Madhya Pradesh

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No. of Stores

14 13 5 4 3 2 1

Operational COCO Stores

Operational COCO stores as on 30.09.2022

Company Owned Company Operated (COCO) Stores

Operated by wholly-owned subsidiary Davaindia Health Mart Limited

Management Commentar y

Commenting on Q2FY23 financial performance and operational highlights, Management Team of Zota Health Care said,

“The Company has made a comeback in Q2FY23 after a challenging Q1. With stabilization of operations post shifting to the new warehousing facility, the Company witnessed a pick up in both Davaindia & Domestic dispatches. As a result, both Davaindia & Domestic sales have reported growth on QoQ as well as YoY basis. Davaindia has reported its highest quarterly GMV in Q2FY23, supported by both, an increase in Average Wallet Spend and a substantial increase in the footfall at the stores. Operations have recovered in Exports vertical as well, although not to their full potential. Nonetheless, given our recent product registrations & sales efforts we remain confident on the prospects of this vertical for the coming quarters.

Davaindia expansion continues, with a rollout of 31 additional stores in Q2FY23, 6 of which were COCO stores. The Company has a good pipeline for store additions in the coming months, with a special emphasis on COCO stores.”

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4I n d u s t r y

Snapshot

2 1

R e t a i l G e n e r i c M e d i c i n e L a n d s c a p e i n I n d i a

2 2

I m p a c t o f P M B J P

2 3

U n d e r p e n e t r a t e d G e n e r i c M e d i c i n e M a r k e t

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Retail Generic Medicine Landscape in India

To achieve the objective of making available quality generic medicines at affordable prices to all, ‘Jan Aushadhi Scheme’ was launched by the Department of Pharmaceuticals, Ministry of Chemicals & Fertilizers, Government of India across the county. The scheme was later renamed to Pradhan Mantri Bhartiya Janaushadhi Pariyojna (PMBJP)

Objectives of PMBJP

Savings to the common man

Strong Implementation

• To make available quality medicines consumables and surgical items at affordable prices for all and thereby reduce out of pocket expenditure of consumers/patients.

• To popularize generic medicines among the masses and dispel the prevalent notion that low priced generic medicines are of inferior quality or are less effective.

• Generate employment by engaging individual entrepreneurs in the opening of PMBJP Kendras.

• A medicine under

• The Product Basket of

PMBJP is priced on the principle of a maximum of 50% of the average price of the top three branded medicines. Therefore, the price of Jan Aushadhi Medicines is cheaper at least by 50% and in some cases, by 80% to 90% of the market price of branded medicines.

the scheme now covers more than 1,449 medicines and 204 surgical & consumables.

• Presence in all major therapeutic categories such as Anti-infective, Anti-allergic, Anti- diabetics, Cardiovascular, Anti- cancers, Gastro-intestinal medicines, etc.

• As on 24/06/2021, 7,855 PMBJP Kendras are functional in the country. Pradhan Mantri Bhartiya Janaushadhi Pariyojana has marked its presence in almost every district of India by covering 732 districts out of 734.

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Impact of PMBJP

In the financial year (2019-20), PMBJP has achieved sales of ₹258 crores (at MRP), up to 30-11-2019. This has led to savings of approximately ₹1,800 crores of the common citizens of the country.

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Growth in number of stores* (Number of stores as on 31st March of the year)

Growth in turnover* (Sales value in crore)

Product basket* (No of Medicines)

Price of Janaushadhi medicines to branded medicines

5 , 9 2 8

5 , 1 4 0

3 , 3 2 2

2 0 1 7 - 1 8

2 0 1 8 - 1 9

2 0 1 9 - 2 0

1 , 0 8 0

2 0 1 6 - 1 7

8 0

2 0 1 3 - 1 4

9 9

2 0 1 4 - 1 5

2 6 9

2 0 1 5 - 1 6

*Note : 2019-20 – till 31/12/2019

3 1 5

3 0 3

1 4 1

2 0 1 7 - 1 8

2 0 1 4 - 1 5

1 2

2 0 1 5 - 1 6

3 3

2 0 1 6 - 1 7

2 0 1 8 - 1 9

2 0 1 9 - 2 0

6 0 0

2 0 1 7 - 1 8

4 8 8

2 0 1 6 - 1 7

7 0 0

2 0 1 8 - 1 9

9 0 0

2 0 1 9 - 2 0

3 7 1

9 0 %

C h e a p e r

b y 8 0 -

2 9 5

C h e a p e r

b y 5 0 %

1 4 1

8 0 %

C h e a p e r

b y 7 0 -

9 4

7 0 %

C h e a p e r

b y 6 0 -

Underpenetrated Generic Medicine Market

4 pillars to drive healthcare

4 A s o f h e a l t h c a r e

Branded and generic mix of Indian pharma market (%)

Generic GX

Branded GX

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Accessibility

Affordability

Awarness

Aliments

• Setting up of new hospitals • Higher number

of doctors

• Higher per

capita income • Rising insurance

penetration • Cost advantage

of India

• Rising literacy • Government initiatives

• Growing

incidence of non- communicable diseases • Growing

urbanization

O v e r a l l I n d i a

U r b a n I n d i a

R u r a l I n d i a

Source : CLSA

Source : IQVIA, CLSA

5F i n a n c i a l

Summary

2 5

P r o f i t & L o s s S t a t e m e n t

2 6

B a l a n c e S h e e t & K e y R a t i o s

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Profit & Loss Statement

Particulars (INR Lakhs)

Income from Operations

Other Income

Total Income

Operating Expenses

EBITDA

Margin %

Depreciation

EBIT

Margin %

Financial Charges

PBT

Margin %

Tax

PAT

Margin %

EPS

FY15

5,646.3

1.4

5,647.8

4,796.5

851.3

15.1

150.6

700.7

12.4

66.5

634.2

11.2

207.6

426.7

7.6

3.0

FY16

6,473.3

7.7

6,481.0

5,516.8

964.2

14.9

123.5

840.8

13.0

68.3

772.4

11.9

261.5

510.9

7.9

3.6

FY17

7,158.0

5.6

7,163.6

6,153.8

1,009.8

14.1

105.4

904.4

12.6

68.2

836.2

11.7

282.1

554.1

7.7

3.9

FY18

7,785.2

151.9

7,937.0

6,695.0

1,242.0

16.0

93.7

1,148.3

14.8

12.1

1,136.2

14.6

407.4

726.8

9.3

4.2

FY19

8,562.9

154.5

8,717.4

7,788.7

928.7

10.8

139.4

789.3

9.2

3.7

785.6

9.2

230.7

554.8

6.5

2.3

FY20

9,511.3

151.3

9,662.6

9,059.7

602.9

6.3

209.8

393.1

4.1

6.9

386.2

4.1

112.0

274.1

2.9

1.1

FY21

FY22

10,684.12

125.66

10,809.78

10,490.90

193.22

1.8

316.68

-123.46

-1.2

10.97

-134.43

-1.3

-15.3

-16.24

-0.2

-0.07

13,153.33

164.56

13,317.89

11,453.82

1,699.51

12.9

273.05

1,426.46

10.8

7.32

1,419.14

10.8

376.56

1,058.01

8.0

4.25

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Balance Sheet & Key Ratios

Particulars (INR Lakhs)

Share capital

Reserves and Surplus

Non-current liabilities

Current liabilities

Total Equity and Liabilities

Non-current assets

Current assets

Total Assets

Key Ratios

RoCE (%)

RoE (%)

Net debt to equity (x)

Interest coverage (x)

Inventory days

Receivables days

Payable days

FY14

1,196.9

384.2

521.3

1,381.7

3,484.1

926.3

2,557.8

3,484.1

FY14

17.4

19.7

0.3

7.5

91.2

77.8

109.0

FY15

1,436.3

395.7

548.7

1,657.6

4,038.4

842.4

3,196.0

4,038.4

FY15

20.0

23.3

0.3

10.5

113.9

75.6

116.2

FY16

1,436.3

707.8

272.7

1,988.3

4,405.2

855.6

3,549.5

4,405.2

FY16

23.5

23.8

0.1

12.3

92.1

89.0

126.5

FY17

1,436.3

1,262.0

466.8

2,215.4

5,380.5

932.5

4,447.9

5,380.5

FY17

19.3

20.5

0.1

13.3

121.9

87.1

148.4

FY18

1,754.3

5,223.4

64.7

2,137.0

9,179.4

3,605.4

5,574.1

9,179.4

FY18

10.5

10.4

0.0

94.8

113.8

107.5

117.8

FY19

1,754.3

5,138.2

87.1

1,981.0

8,960.7

2,723.3

6,237.4

8,960.7

FY20

2,456.0

4,426.9

105.3

1,859.6

8,847.9

2,961.4

5,886.4

8,847.8

FY19

FY20

8.0

0.0

214.5

138.6

94.2

103.5

4.0

0.0

56.6

97.2

111.8

82.5

FY21

2456.03

4,181.2

94.5

1,820.0

8,551.6

2438.13

6,113.5

8,551.6

FY21

-1.8

-0.2

0.0

-11.3

96.1

98.5

77.6

FY22

2,516.0

6,621.4

102.9

3,287.63

12,527.93

5007.36

7520.57

12,527.93

FY22

15.4

11.6

0.0

194.9

77.6

106.3

76.4

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Thank You

C o n t a c t I n f o r m a t i o n

M r . H i m a n s h u Z o t a / M r . A s h v i n V a r i y a

" Z O T A H O U S E " , 2 / 8 9 6 , H i r a M o d i S t r e e t , S a g r a m p u r a , S u r a t - 3 9 5 0 0 2 ( G u j a r a t )

c s z o t a @ z o t a h e a l t h c a r e . c o m w w w . z o t a h e a l t h c a r e . c o m

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