SHILPAMEDNSE25 May 2023

Shilpa Medicare Limited has informed the Exchange about Investor Presentation

Shilpa Medicare Limited

Shilpa Medicare Limited Corporate & Admin Office: “Shilpa House”, # 12-6-214/A-1, Hyderabad Road, Raichur – 584 135, Karnataka, India Tel: +91-8532-238704, Fax: +91-8532-238876 Email: info@vbshilpa.com, Web: www.vbshilpa.com CIN: L85110KA1987PLC008739

National Stock Exchange of India Limited, Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Bandra Kurla Complex, Bandra (E), Mumbai-400 051

25 May 2023

Corporate Relationship Department, BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai-400 001

Dear Sir/Ma’am,

Scrip Code: BSE - 530549/Stock Symbol: NSE – SHILPAMED

Sub: Investor Presentation of the Company for the quarter ended 31 March 2023 Ref: Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements)

Regulations, 2015

With reference to the captioned subject, the Investor Presentation for the Quarter ended 31 March 2023 with regard to financial performance and Business highlights of the Company is attached herewith for your consideration.

We request you to take the same on record and disseminate it to stakeholders of the Company.

Thanking you.

Yours faithfully, For Shilpa Medicare Limited

Ritu Tiwary Company Secretary & Compliance Officer

Shilpa Medicare Limited (SML)

Q4 & FY23 Results Presentation

API Units, Raichur

Disclaimer

Certain statements in this document may be forward-looking statements. Such forward looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Shilpa Medicare Limited (SML) will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

Table of content

Company overview

Financial performance

Business highlights

Annexures

Company Overview

Established presence in Active Pharmaceutical Ingredients (APIs) and Formulations for domestic & international markets

Pursuing niche growth businesses like Biologics, Transdermal & Oral Dissolving Films Formulations

Affordable & Effective Pharmaceutical Solutions

Robust research orientation resulting in innovative products

Very strong R&D background including development, pathway engineering and characterization of biologics

Best in class manufacturing and supply of high-quality affordable drugs

Managing Director’s Message

Commenting on Q4 FY’23 performance, Mr. Vishnukant Bhutada, Managing Director Shilpa Medicare Limited said

“We have maintained revenue performance relative to the sequential previous quarter and have benefited from an enhanced business mix during the quarter, translating into improvement in margins QoQ.

For our Jadchalra formulation unit, all the actionable of MCAP have been completed and letter has been sent to USFDA informing the same. With this we expect the remedial costs to remain under control. We are also actively driving initiatives to rationalize over all costs across various units within the group.

For our formulation business, we are making progress on our strategy of activating third party sites. I am happy to state that we have recently received our first 505(b)(2) NDA approval from USFDA for our novel formulation of Pemetrexed RTU, which will be commercialised by Amneal Pharmaceuticals LLC for the US market. Additionally, our ANDA for Apremilast tablets, has also received USFDA’s final approval. This should provide boost to our US formulation business as we continue to scale up in EU, RoW, India markets with a select portfolio of products.

The CDMO business is witnessing a good traction where are partnering with MNCs for their high-end requirements. We continue to witness a stream of enquiries and few of them have been crystallized, while we also have received repeat orders from existing customers. This can become a future growth vertical for the company.

We expect continuing impact in the form of lower pricing for key products and are engaged in mitigating this through better efficiencies at manufacturing levels and focusing on complex products where we have a specific advantage. Our robust portfolio combined with our research/manufacturing capabilities position us well for performance-oriented business partnerships.”

Financial Performance

Financial Performance – SML Standalone

(INR in Cr.)

Particulars Q4 FY23 Q3 FY23 % change Q4 FY22 % change FY23 FY22 % change Revenues86.869.225%83.24%316.3397.8-20%Gross Margin61.554.712%72.6-15%234.1319.0-27%Gross Margin %71%79%87% 74%80% Employee Cost26.326.6-1%30.1-13%110.5110.60%Other Expenses28.620.738%33.8-15%99.1145.9-32%EBITDA6.67.4-10%8.8-25%24.662.6-61%EBITDA %8%11%11%8%16%Finance Cost6.66.60%1.7282%20.89.1130%Depreciation12.012.3-3%10.316%46.534.834%PBT Continued Business-12.0-11.5-3.2-42.718.7Execeptional Item-(Income)/Exp15.00.00.115.5-8.8PAT Continued Business - (A)-28.9 4.8 -3.6-2.9-49.520.2PAT Discontinued Business-(B)0.0 - 038.4106.7120.8PAT (A + B)-28.94.80.035.557.2141.0Balance Sheet – SML Standalone

(INR in Cr.)

Particulars31-Mar-2331-Dec-2231-Mar-22Fixed Assets 608.9602.2565.8Tangible Assets517.0526.7548.3Intangible Assets92.075.517.5Capital WIP226.4246.9293.1Tangible Assets41.849.152.6Intangible Assets184.6197.9240.5Slump Sale Consideration Receivable/Assets & Liabilities held for sale Net 316.0341.1435.8Other Non-current Assets1047.11004.3833.0Net Working Capital242.1285.2221.9Current Assets314.4317.6294.2Cash and cash equivalents4.55.615.5Current Liabilities-76.8-38.0-87.9Total Assets ( Net)2440.52479.72349.5Equity2117.52143.72065.7Borrowings (Current & Non current)287.5274.5194.0Other Non Current Liabilities35.661.589.9Total Liabilities2440.52479.72349.5Financial Performance Consolidated

(INR in Cr.)

Particulars Q4 FY23 Q3 FY23 % change Q4 FY22 % change FY23 FY22 % change Revenues265.7265.20%346.1-23%1067.51159.8-8%Gross Margin176.3159.710%233.0-24%651.6776.6-16%Gross Margin %66%60%67% 61%67% Employee Cost72.468.56%73.4-1%287.3264.59%Other Expenses63.557.211%79.9-21%244.6294.0-17%EBITDA40.434.019%79.7-49.3119.7218.1-45.1EBITDA %15%13%23%11%19%Finance Cost17.717.9-1%9.390%58.741.242%Depreciation25.724.17%22.315%95.579.820%PBT-3.0-7.962%48.0-106%-34.497.2-135.4PAT-8.1-6.6-22%29.6-127%-30.953.8-157%Balance Sheet Consolidated

(INR in Cr.)

Particulars31-Mar-2331-Dec-2231-Mar-22Fixed Assets 1,368.31,365.71,341.8Tangible Assets1,179.51,190.11,213.6Intangible Assets188.9175.7128.2Capital WIP655.3625.5506.2Tangible Assets358.0319.7190.0Intangible Assets297.3305.8316.1Other Non-current Assets110.7127.4140.3Net Working Capital492.0523.5604.0Current Assets746.7795.9853.4Cash and cash equivalents21.323.133.8Current Liabilities-276.0-295.4-283.2Total Assets ( Net)2,626.42,642.22,592.3Equity1,774.21,777.61,811.1LiabilitiesBorrowings (Current & Non current)795.7798.1681.9Other Non Current Liabilities56.366.599.2Total Liabilities2,626.42,642.22,592.3 Consolidated Business Highlights

FY’23 Consolidated Performance

Revenue

0.4%

-23%

265.2 266.2

346.1

Q3 FY'23 Q4 FY'23 Q4 FY'22

-8%

1,159.0

1,068.0

FY'23

FY'22

% to Sales

(INR in Cr.)

EBIDTA

19%

-49%

-45%

79.2

40.4

34.0

218.1

119.7

62%

-107%

PBT

8%-135%

47.5

97.1

Q3 FY'23 Q4 FY'23 Q4 FY'22

FY'23

FY'22

-127%

-22% -22%

29.6

PAT

-157%

53.8

-7.9

-3.0 Q3 FY'23 Q4 FY'23 Q4 FY'22

-34.5 FY'23

FY'22

*Excluding exceptional items

-6.6 -8.1 Q3 FY'23 Q4 FY'23 Q4 FY'22

-30.9 FY'23

FY'22

Consolidated Revenue Break-up – Q4 FY’23

Q3 FY’23 INR 265.2 Cr.

Q4 FY’23 INR 266.2 Cr.

(INR in Cr.)

Q4 FY’22 INR 346.1 Cr.

Degrowth of -23% vs Q4 FY’22

12.5, 5%

55.7 , 21%

196.8 , 74%

22.1, 8%

56.8 , 21%

187.3 , 71%

30.0 , 9%

86.5 , 25%

229.6 , 66%

Growth of 0.4% vs Q3 FY’22

API

Formulation

Others

Consolidated Revenue Break-up – FY’23

FY’23

INR 1068 Cr.

52.1, 5%

258.2 , 24%

(INR in Cr.)

FY’22 INR 1159.8 Cr.

58.9 , 5%

757.8 , 71%

-8% Dgwth

747.7 , 65%

353.2 , 30%

API Formulation Others

API Business

API Business-Highlights Q4 FY’23

Oncology

-9%

-37%

134.2

92.6

84.6

CDMO/Service

286%

608%

8.5

2.2

1.2

Q3 FY'23 Q4 FY'23 Q4 FY'22

(INR in Cr.)

CRAMS

-26%

-74%

23.1

8.3

6.1

Q3 FY'23 Q4 FY'23 Q4 FY'22

Non Oncology

-5%

35%

88.9

84.4

62.5

Q3 FY'23 Q4 FY'23 Q4 FY'22

*Numbers are excluding captive consumptions

Q3 FY’23 196.8

Dgwth 5%

Q4 FY’23 187.3

Dgwth -18%

Q4 FY’22 229.6

Others

-24%

-57%

8.6

4.9

3.7

Q3 FY'23 Q4 FY'23 Q4 FY'22

API Business-Highlights FY’23

Oncology

CDMO/Service

Crams

(INR in Cr.)

-18%

447.5

368.5

FY'23

FY'22

Non Oncology

56%

307.6

197.6

FY'23

FY'22

*Numbers are excluding captive consumptions

264%

21.1

5.8

FY'23

FY'22

FY’23 757.7

Gwth 1%

FY’22 747.5

Others

-62%

76.9

29.6

FY'23

FY'22

54%

30.7

19.9

FY'23

FY'22

DMF Filing update New product introduction and increase in geographical coverage replicated with 227 number of DMF filings done with major regulatory authorities

US FDA

EU/ EMEA GCC / ROW

MFDS

TPD-Canada

TGA

CHINA

PMD

RUSSIA

MEDSAFE

WHO

As on 31-Mar-23

Formulation Business

Formulation Business-Highlights Q4 FY’23

Europe

-35%

-57%

50.6

33.6

22.0

License Fees/ CDMO -53%32% -23%

ROW

85%

19.0

14.6

11.1

Q3 FY'23 Q4 FY'23 Q4 FY'22

37%

3.7

2.7

2.0

Q3 FY'23 Q4 FY'23 Q4 FY'22

(INR in Cr.)

83%

15%

13.7

11.9

7.5

Q3 FY'23 Q4 FY'23 Q4 FY'22

Q3 FY’23 55.7

Gwth 2%

Q4 FY’23 56.8

Dgwth 34%

Q4 FY’22 86.5

Domestic

93%

26%

2.9

2.3

1.5

Q3 FY'23 Q4 FY'23 Q4 FY'22

Formulation Business-Highlights FY’23

Europe

License Fees/ CDMO

-36%75%

ROW

-36%

196.1

126.3

FY'23

FY'22

-53%

112.1

53.0

FY'23

FY'22

54.1

30.9

FY'23

FY'22

FY’23 258.2

Dgwth -27%

FY’22 353.3

Domestic

(INR in Cr.)

99%

18.3

9.2

FY'23

FY'22

61%

16.8

6.5

FY'23

FY'22

Regulatory Filings

Robust regulatory filings to strength the base for growth in the formulation segment

Approved

Pending

US ANDA (SML)

As on 31-Mar-23

EU Filings

384

215

169

ROW

1 US NDA (SML)

Annexures

Manufacturing Excellence

Dharwad

Jadcherla Unit

• Biologicals Manufacturing plant & R&D

Facility

• Formulations (Onco & Adjuvant Therapy of

Onco – Injectable & Oral)

Bengaluru Unit

Hyderabad

• TDS & ODF Manufacturing Facility &

Formulation R&D

• Formulations (Oral Dissolving Films) • Bio Analytical Lab, Pharmacovigilance Lab &

Quality control lab

Raichur Unit I & II

Ahmedabad

• API (Oncology – Non-Oncology) • API (Oncology – Non-Oncology) and R&D

API • CRAMS • Peptide • Polymer

• CRO & CDMO • R&D Formulation

About Shilpa Medicare Ltd.

Shilpa Medicare Limited (SML) started its operations as API manufacturer way back in 1989 at Raichur, Karnataka- India. Today Shilpa Medicare Limited is a global brand in manufacturing and supplying of affordable API and Formulation globally in different regulated markets.

Shilpa Medicare has been on path of expansion ever since its inception. With a regulatory recognized manufacturing set up and excellent scientific expert team in place, Shilpa Medicare has since been on a steady growth path. Currently they are one of the leaders in the Oncology market and offer a complete range of products in this segment spanning to consolidate in field of across APIs, Oncology, API and formulations, they are striving to put in efforts in field of novel drug delivery systems and biotech products along with widening their focus to other therapy areas. Where Shilpa Medicare Ltd is today is the result of their constant endeavors for more than three decades.

formulations both in terms of R&D and manufacturing capabilities. Further

Siddharth Rangnekar Mit Shah

CDR India

+91 22 6645 1209 / 1217

siddharth@cdr-india.com mit@cdr-india.com

Thank You

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