ZOTANSE16 February 2023

Zota Health Care LImited has informed the Exchange about Investor Presentation

Zota Health Care LImited

February 16, 2023

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 December 31, 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

F E B R U A R Y 2 0 2 2

Q3FY23

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 3 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

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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 (%)

3 , 8 5 7 . 2 6

3 , 4 0 4 . 8 2

3 7 . 1 2 %

3 4 . 2 1 %

3 , 0 9 3 . 8 8

3 , 4 0 4 . 8 2

3 9 . 9 3 %

3 4 . 2 1 %

Q2-FY23

Q3-FY23

Q2-FY23

Q3-FY23

Q3-FY22

Q3-FY23

Q3-FY22

Q3-FY23

Operating Profit (₹ Lakhs)

PAT (₹ Lakhs)

Operating Profit (₹ Lakhs)

PAT (₹ Lakhs)

5 2 2 . 6 2

4 2 2 . 4 0

1 , 2 3 5 . 3 7

3 5 4 . 2 3

1 4 . 7 0

2 5 . 1 3

1 4 . 7 0

2 5 . 1 3

Q2-FY23

Q3-FY23

Q2-FY23

Q3-FY23

Q3-FY22

Q3-FY23

Q3-FY22

Q3-FY23

Revenue Break up- Quar terly

Q3-FY23

3,405

Q2-FY23

3,857

Q3-FY22

3,094

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)

Q3FY23

Q2FY23

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

380.5 1481.8 1542.6 3,404.82 2,240.11 1164.71 34.21% 1150.01 251.10 898.91 14.70 0.43% 79.75 94.45 2.77% 62.18 32.27 0.95% 1.03 31.24 0.92% 11.19 25.13 0.74%

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%

YoY %

-49% 63% 6% 10% 21% -6% -572 BPS 60% 3% 90% -97% -1626 BPS 137% -83% -1501 BPS -18% -93% -1439 BPS -21% -93% -1438 BPS -91% -93% -1071 BPS

QoQ %

-58% 22% -11% -12% -8% -19% -292 BPS 26% 1% 36% -97% -1312 BPS -19% -85% -1333 BPS 8% -94% -1367 BPS -60% -94% -1363 BPS -92% -94% -1021 BPS

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Q3FY22

739.54 910.38 1452.56 3,093.88 1,858.51 1235.37 39.93% 718.87 244.93 473.94 516.50 16.69% 33.64 550.14 17.78% 75.51 474.63 15.34% 1.31 473.32 15.30% 119.10 354.23 11.45%

Management Commentar y

The Company has reported resilient performance in Dava India and Domestic sales, however, Export performance during the quarter took a hit on account of partial unavailability of plant .

Domestic Sales (including sales of Dava India) reported an increase of 28% YoY and 2% QoQ.

The sales contribution from new-age business stood at 55% in Q3FY23 as compared to 55% in Q2FY23 and 53% in Q3FY22.

The Company has witnessed some compression in gross margins during Q3FY23, which stood at 34.21%, compared to 37.12% in Q2FY23.

EBITDA stood at Rs 94.45 Lakhs, with margins at 2.77% driven by a decrease in Gross Margins coupled with higher Operating Expenses (mainly Advertisement expenses).

PAT stood at Rs. 25.13 Lakhs, decreasing 91% YoY basis and 94% QoQ basis.

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Management Commentar y

DOMESTIC OPERATIONS

Domestic Revenues increased by 2% QoQ and a growth of 28% YoY at ₹ 3024.32 Lakhs in Q3FY23 supported by healthy performance on both fronts.

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EXPORTS

Exports revenues declined by 58% on QoQ basis and 49% YoY at ₹ 380.5 Lakhs in Q3FY23.

EBITDA at ₹ 75 Lakhs for Q3FY23, declined by 79% on account of high advertisement expenses.

PAT stood at ₹ 43.01 Lakhs for Q3FY23.

EBITDA at ₹ 19.45 Lakhs for Q3FY23, marginal decreased due to partial unavailability of plant

PAT stood at ₹ (17.88) Lakhs for Q3FY23.

*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

No. of SKU’s

New Stores rolled-out

1 , 7 0 2

1 , 6 9 2

5 9

5 1

5 4

1 , 6 5 3

1 , 6 4 4

3 1

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

Davaindia Key Figures

Gross Mercantile Value (GMV) Total GMV of Davaindia Stores stood at 2,323 Lakhs during Q3FY23 an increase of 20% QoQ

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Average Wallet Spend (₹)

No. of Customers Served (#)

Gross Mercantile Value – GMV (₹ Lakhs)

2 6 7

2 4 8

2 5 4

2 6 9

2 3 7

2 2 9

2 2 0

2 0 9

2 0 4

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

Q 3 - F Y 2 3

4 , 4 0 , 4 5 8

Q 4 - F Y 2 1

4 , 7 3 , 1 8 1

Q 1 - F Y 2 2

3 , 2 3 , 3 9 5

Q 3 - F Y 2 1

8 , 6 3 , 7 4 1

7 , 5 9 , 2 0 7

1593

1 4 3 3

6 , 4 1 , 7 1 2

6 , 4 3 , 1 2 0

5 , 6 8 , 1 8 3

5 , 4 0 , 9 2 4

2326

1 8 4 3

1929

1 6 1 7

3 1 1

1 6 0

4 8 3

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

Q 3 - F Y 2 3

Q1-FY23

Q2-FY23

Q3-FY23

FOFO

COCO

Davaindia- Generic Phar macy

During the quarter Davaindia has catered to the highest-ever number of customer i.e. 8.64 lakhs against 7.59 lakhs in the previous quarter. The Company witnessed an increase in Average Wallet Spends which stood at ₹269 against ₹254 in the previous quarter.

Davaindia has led the revolution of patients opting for generic medicines against branded counterparts. As of Q3FY23, Davaindia has catered to more than 7.55 million happy customers.

Davaindia expansions continues in Q3FY23, the Company rolled-out 25 COCO stores on a base of 42 stores in the previous quarter. The Company will pursue rapid store roll-out on the COCO front. The Company also rolled out additional 29 FOFO stores, taking the total FOFO count to 470, and the total store count to 537.

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. 1,702 has enabled Davaindia to better serve customers across all segments. Thus, increasing its customer spends across varied price points, the Average Wallet Spend was ₹269 in Q3FY23.

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Davaindia- Generic Phar macy

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Davaindia- COCO Stores

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Operational FOFO Stores

470

Operational FOFO stores as on 31.12.2022

Franchise Owned Franchise Operated (FOFO) Stores

Note – The Company did a one-time closure of under-performing stores in Q3FY23, leading to a decrease in total store count.

States

Uttar Pradesh

Madhya Pradesh

Odisha

Gujarat

Maharashtra

Haryana

West Bengal

Delhi

Rajasthan

Kerala

Bihar

Tamil Nadu

Assam

Punjab

Tripura

Jharkhand

Uttarakhand

Karnataka

Jammu And Kashmir

Telangana

Himachal Pradesh

Arunachal Pradesh

Chhattisgarh

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No. of Stores

90 55 53 45 40 31 28 24 22 13 13 13 7 6 6 5 5 4 3 2 2 2 1

States

Maharashtra

Gujarat

Uttar Pradesh

Rajasthan

Delhi

Haryana

Madhya Pradesh

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No. of Stores

21 18 11 7 5 4 1

Operational COCO Stores

Operational COCO stores as on 31.12.2022

Company Owned Company Operated (COCO) Stores

Operated by wholly-owned subsidiary Davaindia Health Mart Limited

Management Commentar y

Commenting on Q3FY23 financial performance and operational highlights, Management Team of Zota Health Care said,

“Q3FY23 has been a challenging quarter on some fronts, to begin with our exports performance took a hit during the quarter on account of disturbances in production activities due to the plant upgradation exercise undertaken at Sachin SEZ site. On the domestic sales front we witnessed some degrowth QoQ.

Our profitability took a hit during the quarter, on account of some compression in gross margins coupled with lower sales and higher operating expenses, such as advertisement expenses. We expect this to normalize in the coming quarters.

Our Dava India performance continues to scale to new heights on all counts including growing GMV, revenues, customer footfall and average ticket size. We reported a healthy 20% QoQ growth in GMV during the quarter which translated into a 22% revenue growth in this vertical. On the store rollout front, we have stepped up our expansion in the COCO format, where we added a record 25 stores during the quarter, taking the total count to 67 operational COCO stores and many more in the works. We also added 29 FOFO stores & did some one-time closure of under performing stores, taking the total FOFO store count to 470 and the consolidated store count to 537.”

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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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