SMS Pharmaceuticals Limited has informed the Exchange regarding 'Press release and investor presentation'.

~ sms

Pharmaceuticals Limited

Registered & Corporate Office: Plot No. 72, H. No. 8-2-334/3 & 4, Road No.5, Opp. SSI Executive Enclave, Saniara Hills, Hyderabad - 500 034, Telangana, INDIA. Tel: +91-40-2525 9999, Fax: +91-40-25259889 CIN : L24239TG1987PLC008066 Email: info@smspharma.com, www.smspharma.com

Listing / Compliance Departm ent National Stock Exchange of India Lim ited Exchange Plaza, 5'h Floor, Plot No. C-1, Block G, Bandra-Kurla Complex, Bandra (East), Mumbai- 400051

Date: 10'h February, 2022

To, Listing / Compliance Department BSE Limited Phiroze Jeejeeb hoy Towers Da la I Street, Mumbai - 400 001

BSE Code : - 532815

NSE Code: SMSPHARMA

Sub: Press Re lease

Dear Sir/Madam,

Please f ind attached the press re lease on the Financial Results for the quarter ended 31" December, 202 1.

Kindly t ake the same on record.

Thanking you.

You rs Fa ithfully, For SMS Pharm ace ut ica ls Limit ed

~

V. S. Venkatish Company Secretary & Comp liance Officer ICSI M. No.: A21785

`

Press Release

SMS Pharmaceuticals Limited Reports its Q3 & 9M FY22 Financial Results 9MFY22 Revenue, EBITDA & PAT grew by 17%, 50% and 52%, respectively

 EBITDA Margins expanded by 590bps to 26.9%, driven by improved product mix and

realisations for 9MFY22

 Received non-exclusive license to manufacture and supply of molnupiravir (an oral COVID-19

medicine) through the Medicine Patent Pool (MPP)

Hyderabad, February 10, 2022: SMS Pharmaceuticals Limited (SMS Pharma) (NSE: SMSPHARMA; BSE:532815), a Hyderabad based diversified and fully integrated pharmaceutical company, with interests in Active Pharmaceutical Ingredients (API) and Intermediates announced its financial results for the quarter and nine-month ended 31th December 2021.

Particulars (In Rs. Crores)

9M FY22

9M FY21

YoY%

Q3 FY22

Q3 FY21

Revenue

Gross Profit

EBITDA

EBITDA Margin %

Profit Before Tax (PBT)

Reported Profit After Tax (PAT)

PAT Margin %

EPS (in Rs.)

459.0

221.6

123.3

26.9%

84.6

58.7

12.8%

6.60

Segmental Performance Update

391.9

149.4

82.2

17%

48%

50%

121.3

148.9

62.0

29.2

60.2

35.3

21.0%

590bps

24.1%

23.7%

56.8

38.8

9.9%

4.65

49%

52%

291bps

42%

16.3

10.3

8.5%

1.07

26.7

18.3

12.3%

(384)bps

2.53

(58)%

YoY%

(19)%

3%

(17)%

34bps

(39)%

(44)%

Particulars (In Rs. Crores)

9M FY22 9M FY21

YoY%

Q3 FY22 Q3 FY21

YoY%

API

Intermediates & Others

439.8

19.2

376.0

15.9

17%

21%

114.9

142.9

(20)%

6.4

6.0

7%

API Segment Highlights

 Q3 & 9M FY22 revenue for the API segment stood at Rs. 114.9 crores and Rs. 439.8 crores,

down 19% and up 17% YoY, respectively.

 Q3 & 9M FY22 API segment contributed approximately 95% and 96% to the consolidated

revenue, respectively.

 Within the API segment, ~18% of the revenues came from the domestic market and ~82%

from the exports market (including deemed exports) for 9MFY22.

 Within the therapeutic areas, the anti-retroviral therapeutic category contributed ~44%, anti- migraine ~12%, anti-ulcer ~6%, anti-epileptic ~8%, anti-erectile dysfunction ~6% and the rest contributed around 24% to total sales for 9MFY22.

Non-exclusive license to manufacture and supply of molnupiravir

 A non-exclusive license through the MPP to manufacture molnupiravir, an investigational oral

antiviral COVID-19 medicine.

`

 Molnupiravir is the first oral, direct-acting antiviral shown to be highly effective at reducing

nasopharyngeal SARS-CoV-2 infectious virus

 Will increase broad access of treatment in 105 low- and middle- income countries (LMIC).



Important milestone and external validation to the company’s ability to provide high quality, low-cost products

Commenting on the results Mr. P. Vamsi Krishna, Executive Director – SMS Pharmaceuticals Limited said, “The company reported robust growth along with a healthy expansion of the margins on a YTD basis. For 9MFY22, Revenue, EBITDA and PAT grew by 17%, 50% and 52% YoY, respectively. EBITDA margins expanded approximately by 590bps YoY. The margin expansion was beheld despite higher coal, fuel and power prices, one-off expenses related to the royalty payment and increased manpower costs owing to the ongoing capacity augmentation exercise.

This was largely driven by a healthy product mix, pick-up in the key therapeutic areas, continued focus on backward integration and the operating leverage. The company is expected to maintain this growth trajectory in the upcoming period underpinned by the company’s leadership position in top therapeutic areas, strong order enquiries in exports markets and favourable product mix.

However, the company witnessed some disruptions in Q3FY22, which were primarily due to lower than anticipated offtake by the customers on account of de-stocking at the customer’s end. ARVs witnessed lower traction due to delays in the bidding process. The company continued to focus on R&D, manufacturing capabilities augmentation and sales of its own products supported by the R&D along with growing exports share to attenuate such issues in the future. We firmly believe that this quarter was an exceptional quarter and these issues are ephemeral in nature. The ARV demand is expected to pick up along with increased traction for APIs in other key therapies from Q4FY22 onwards. We firmly believe that these issues are transient in nature rather than structural. With high stickiness of the existing customer base along with new customer addition will drive the next leg of growth, in the coming quarters.

With a meticulous focus on quality, backward integration and maintaining leadership in top therapies along with strong R&D capabilities, the company expanded the margins notwithstanding the recent supply chain issues and higher input costs. This, along with diversified global presence, strong domain expertise, cost leadership, economies of scale and long-standing relationships with suppliers and customers would drive further margin expansion along with revenue growth.

The commercialisation exercise of the brownfield capex at the Vizag facility which is aimed towards capacity augmentation of multiple products and therapies, predominantly aimed towards Ibuprofen is well on track. The majority of this capex is funded through internal accruals and minimal debt, thus maintaining the robust Balance Sheet position. Higher margins and profitability ratios are expected through the operating leverage and incremental revenue. This capacity is expected to commercialize fully by the end of FY22.

The company is witnessing multiple growth triggers both internally and externally. Relentless focus on quality, product portfolio, financial prudence and governance would help the company to sustain and scale-up the growth trajectory, going forward.”

About SMS Pharmaceuticals Limited

`

Established in 1990, SMS Pharma is a global player in API and intermediates manufacturing having a strong research and manufacturing team supported by state-of-the-art facilities. The Company has capabilities in wide range of APIs / intermediates and has handled varied process reactions and reactor volumes up to 2,000 KL. The company undertakes contract manufacturing of API, Intermediates (advanced and basic) offering a competitive advantage to its clients especially in late stage lifecycle of products. The Company has demonstrated its manufacturing excellence over the past 2 decades in a broad portfolio of therapeutic segments by being a trusted partner to a customer base in over 70 countries (including clientele in top 20 pharma companies). With 2 manufacturing facilities (two USFDA inspected), 2 pilot plants, 1 R&D center and 1 USFDA approved Independent Testing Laboratory, SMS Pharma is an ideal partner for custom synthesis, process development and mass manufacturing of customer’s own discovery products.

For more information, please visit smspharma.com

Safe Harbor

Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of research and development, potential project characteristics, project potential and target dates for project related issues are forward-looking statements based on estimates and the anticipated effects of future events on current and developing circumstances. Such statements are subject to numerous risks and uncertainties and are not necessarily predictive of future results. Actual results may differ materially from those anticipated in the forward-looking statements. The company assumes no obligation to update forward-looking statements to reflect actual results changed assumptions or other factors.

For more information please contact:

SMS Pharmaceuticals Limited CIN: L24239TG1987PLC008066

Mr. V.S. Venkatish Email: cs@smspharma.com

Strategic Growth Advisors Pvt. Ltd. CIN: U74140MH2010PTC204285

Mr. Jigar Kavaiya / Mr. Chinmay Madgulkar Email: jigar.kavaiya@sgapl.net / chinmay.m@sgapl.net

Contact no.: +91 9989322673

Contact no.: +91 9920602034 / +91 9860088296

SMS Pharmaceuticals Limited

Investor Presentation

February 2022

1

1

Safe Harbour

This presentation and the accompanying slides (the “Presentation”), which have been prepared by SMS Pharmaceuticals Limited (the “Company”), have been prepared solely for

information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in

connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing

detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty,

express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This

Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this

Presentation is expressly excluded.

Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively

forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions

that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international

markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and

expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks,

as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this

Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by

third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third-party statements and projections.

2

Table of Contents

Company Overview ………………………………………………………………………….04-13

Key Strategic Focus…….…………………………………………..………………..……...14-20

Financial Highlights ……………………………………………………………………….…21-25

Historical Performance at a Glance ………………………………………………….26-31

3

Company Overview

4

Company at a Glance

▪

▪

▪

▪

▪

▪

Genesis

A 30-years old research-driven company headquartered in Hyderabad.

focused company with 2 world class operating facilities in

API Hyderabad & Vizag, India.

Backward-integrated with low dependency on imports for material

raw

CRAMS Business

▪ Engaged in providing quality alternative manufacturing destination to multinationals for

their contract research and manufacturing needs.

▪ Installed Capacity: 1951 KL

▪ Top Customers: Mylan, Laurus, Pharmathen & Lupin

▪ Other Details: Huge manufacturing facility to support various range of APIs

Integrated model

80% of the intermediates are consumed by the API in-house business. Low import dependency.

JV with Spanish pharma giant Chemo Iberica S.A. for R&D

Vertically integrated through VKT Pharmaceuticals Pvt. Ltd. - An Associate company for semi-finished and finished formulations

Reach

▪

▪

▪

▪

▪

800+ Customers

75+ Countries

36+ Products

80 Regulatory Fillings

30 Process Patents

API Business

▪ ~90% of revenue is derived through API business

▪ 36+ products spread across 14 therapeutic segments.

▪ Top therapeutic segments - Anti-Ulcer, Anti-Migraine, ARV, Anti-Epileptic & Anti-

Erectile Dysfunction

▪ Global and Domestic leadership in key complex, specialized products like Famotidine, Rizatriptan Benzoate, Tadalafil, Sumatriptan Succinate, Itraconazole , Eletriptan HBr, Ibuprofen, Tenofavir, Ranolazine, Levetiracetam, Lamuvidine, Lamotrigine , Efavirenz & Sitagliptin.

▪

Hyderabad Plant:

Capacity Overview

▪

▪

Installed Capacity: 120 KL

Products: Famotidine, Rizatriptan Benzoate, Tadalafil, Sumatriptan Succinate, Itraconazole , Eletriptan HBr

▪

Visakhapatnam Plant:

▪ ▪

▪

Installed Capacity: 3,000 KL Products: Lamuvidine, Lamotrigine, Efavirenz & Sitagliptin. One of the largest single-block, single-product plant in Asia

Ranolazine,

Ibuprofen,

Tenofavir,

Levetiracetam,

▪

Certifications : USFDA, EUGMP, KFDA, CDCSO & PMDA

5

Transformation Over the Years

Diversification + Value-Addition + Expansion

Scaling Up

Became the largest manufacturer of Ranitidine API in the world

Acquisition

Acquired a facility to manufacture Niche and High value products to have a diversified portfolio.

Got Listed

SMS got listed on the NSE, BSE (Indian stock exchange) – Public Listed company.

Awards & Recognitions

Won the prestigious “Indian Pharma Bulk drug company of the year” award and “Best bulk drug export company of the year” award from Govt. of India

Way Forward

Successfully developed & commercialized Covid-19 treated APIs (Favipiravir & Remdesivir) in short time.

1989

1995

1997

2000

2003

2007

2010

2015

2017

2021

Inception

SMS Pharma was started with a single unit-product facility

Recognition

Recognized by govt. of India with a Jawaharlal Silver rolling trophy for the best productivity of the year.

USFDA Audit

Faced our first USFDA audit (successfully); SMS API was Part of a Para IV filing from an MCN company.

Green Field Project

Started a green field project to build an API facility in more than 100 acres of Land.

Demerger

Demerged SMS group into 2 Entities – SMS Pharmaceuticals, SMS Lifesciences.

6

Highly Competent Team…To Drive the Future Growth

Mr. Ramesh Babu Potluri Chairman & MD

Mr. P. Sarath Kumar Director

Sri Sarvepalli Srinivas Director

Sri Sravan Kudravalli Director

Mr. Vamsi Krishna Potluri Executive Director

• Post-graduate Technocrat. • Started his career in the year 1984 with Cheminor Drugs Limited (Group of Dr. Reddy’s Laboratory), Limited Hyderabad.

• Played a key role in getting for

approval

US FDA Ibuprofen

• With his innovative skills and methodological approaches in R & D he developed cost effective Ibuprofen by using cyanide route.

• Acquired

SMS Pharmaceuticals Limited in the became 1990 Managing Director of the Company.

and

• Founder

partner

of

the

• Holds a B.Com. Degree from

Sarath & Associates.

• Chartered Accountant with about 26 years of standing in the Profession of Chartered Accountancy and Consulting. Bachelor Law and of Certified Fraud Examiner & Certified Forensic Accounting Professional.

•

the University of Delhi.

• Accomplished

Business leader with 3+ decades of proven leadership experience in leading Public / Private Sector with enterprises decisive and forward thinking with a strong vision and strategic capability.

Bureau

Central

• Advisor to C.I.D. of AP Police and of Investigation in investigation of major Economic Offence cases and is a Member of Multi Disciplinary Investigation team.

/

• 32+ years of experience in leading Private Public Sectors)-National Handloom Development Corporation – Managing Ltd (NHDC) Textile Director – Corporation Ltd (NTC) Chairman Managing Director.

-National

&

•

• Commerce Graduate

from Osmania University and a Fellow member the Institute Chartered Accountants of India.

of

of

• Partner

a

in

of

reputed Chartered Accountancy firm and has experience in the Auditing, area Accountancy, Company Law matter, and Income Finance. Involved in handling Internal and of various Public and Private Companies Systems designing for clients.

Statutory

Audits

and

Tax

•

of

• Bachelor’s in Engineering in EEE from BITS Pilani Dubai Campus. in Engineering And Masters from Missouri Management & Science University Technology- Rolla. Joined Ohm Labs – the biggest manufacturing hub of Ranbaxy in US in the supply chain group and had hands on experience in managing the supply chain. • Eldest son of Mr. Ramesh Babu Potluri, Chairman and Managing Director, SMS Pharmaceuticals Ltd.

7

State-of-the-art Manufacturing Facilities

Particulars

Hyderabad

Visakhapatnam

Year of Establishment

2000

2010

Area (units in Sq. M)

Plant Area: 19,685 Built Up: 5,127

Plant Area: 3,45,007 Built Up: 39,704

Capacity

120KL

3,000 KL

Key Products

Famotidine, Rizatriptan Benzoate, Tadalafil, Sumatriptan Succinate, Itraconazole, Eletriptan HBr etc.

Ibuprofen, Tenofavir, Ranolazine, Levetiracetam, Lamuvidine, Lamotrigine, Efavirenz, Sitagliptin etc.

Regulatory Approvals

USFDA,EUGMP, KFDA,CDSCO,PMDA USFDA,KFDA,CDSCO,PMDA

Key Features

• •

•

5 times approved by USFDA. Facility aligned for manufacturing niche small volume molecules. One of the largest exporter of Triptans

• •

•

•

•

3 times approved by USFDA. Flagship, Multipurpose API manufacturing facility. Facility aligned for manufacturing niche large-volume molecules. Huge CMO facility to cater highly reputed clients Dedicated Ibuprofen largest single -block, single product plant in Asia

Disclaimer: Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness

8

Strong Thrust on R&D

Research & Development: Backbone of APIs

01

02

03

04

05

06

07

Product Development

▪ Added 20 new products to the company’s product basket over the past few years.

Technical Team ▪ Comprises 100+ scientists & 8 PHDs; 45 scientists ensure disciplined adherence to regulatory

standards and client specifications

Quality Management ▪ Optimized many Anti-Ulcer APIs to position the company as a leader in the respective

therapeutic area.

Equipped Technology ▪ Equipped with cutting edge technology & sophisticated equipment that has the capability to

support the entire R&D life cycle

DMFs & Patents

▪ Over 80+ DMFs filed; over 30 process patents filed

Scaling Up ▪ Product scale-up infrastructure comprises a kilo lab and a pilot plant. Pilot Plant is well equipped for DMF Filling. Kilo lab has a total capacity of scale up systems – 4,500 Ltrs

Innovation

▪ Developed an innovative path to recycle methyl mercaptan gas into useful solvent DMSO in Ranitidine with a goal of environment protection; received the Indo-US GCNC award for this successful achievement

9

Self-reliant Manufacturing Plants

➢ Pre-treatment plant capacity (MGF & Softner) 1750 Lts/ Hr.

▪ DM Water generation by RO & EDI - 1000 Lts / Hr. ▪ DM Water Storage capacity – 5000 Lts

➢ Power Generation by DG set 640 KV & 320 KV. Boilers 2Tons/Hr. & 3

Tons/Hr.

➢ Vacuum Pumps, Steam & Water jet ejectors & Nitrogen Plant 20 NM3/ Hr.

Particulars

Total No. of Reactors

Minimum Size

Maximum Size

Total Capacity

Glass Lined Reactors

SS Reactors

Hydro-generators

Distillation Still

Glass Flasks

SS Centrifuges

Rubber Lined Centrifuges

Dryers

No.

50

50 L

3,000 L

57 KL

17

31

2

1

5

18

1

16

10

…and a Wide Array of Manufacturing Capabilities

Equipment Name

Stainless steel Reactors Glass lined Reactors Leaf Filters Nutsch Filters Agitated Nutsche Filter Drier Sparkler Filter Centrifuges Rotary Cone Vacuum Drier Vacuum Tray Drier / Tray drier De-lumper Fluid Bed Drier Co-Mill Multi Mill Poly Gonal Blender Micronizer Micro Pulverizer Sifter Roller Compactor

MOC

SS MS-GL SS SS SS SS SS SS & MS GL SS SS SS SS SS SS SS SS SS SS

Capacity (Min-Max) 50 L – 32 KL 63 L – 10 KL 80 – 100 L 80 – 1500 L 2500 – 15000 L 10-177 L 24" - 60" 200 L – 3000 L 12 – 96 Trays 1000 – 2000 Kg/Hr 300 – 500 Kg 500 – 750 Kg/Hr 50-300 Kg/Hr 150 L – 3 KL 20 – 200 Kg/Hr 50-250 Kg/Hr 100-500 Kg/Hr 400 Kg/Hr

Note: SS – Stainless Steel , MS GL – Mild Steel Glass Lined

11

Supported by Comprehensive Chemicals and Process Capabilities…

Distillation (Normal & Vaccum)

Distillation (Normal & Vaccum)

Condensation

Oxidation

Fridel Craft

Mesylation

Silyation

Bromination

n o i t a r t i N

n o i t a r d y h e D

Oxidations & Reductions

Cyclisation

Methylation

Reduction

Condensation

Epoxidation

Electrophillic aromatic substitutions Ketone Reductions

Salt Formation

Grignard Reaction

n o i t a l y k l A

Salt Formations

Hydro-Carbon Reactions

Alkylation

Dechlorination

Suzuki Coupling Reactions

n o i t a n i r o h C

l

s i s y l o r d y H

n o i t a l y c A

Coupling Reaction

Hydrogenation

Acid Chloride reaction

▪ Minimum temperature as -105°C and maximum temperature as 170°C in the reactor while manufacturing of various

products in our manufacturing plant.

▪ Capable to handle the above-mentioned reactions for various Active pharmaceutical ingredients of different therapeutic

categories to human consumption manufactured on site.

12 12

…Resulting into Long Lasting Relationships with Marquee Clients

13

Certifications

14

CSR Activities

✓ Sponsored & Constructed Z.P. High School at Poosapatriga Village, Andhra Pradesh

✓ Sponsored for Borewell drilling Chinthapalli Village, Andhra Pradesh

✓ Donation of Oxygen cylinders at Kopperla

Village in aid of Covid 19 victims

15

CSR Activities

✓ Sponsored & Constructed R.O water plant at Thammayapalem

Viliage, Andhra Pradesh

✓ We also Donated INR 20 Lakh to the police force to support their selfless service during covid times.

✓ Extended financial support to Campus

challenge

16

Awards/Accolades

Indo US NCGC Award

❑ First Indian pharma company to receive Indo-US GCNC award for adopting green chemistry practices

Pandit Jawaharlal Nehru Silver Rolling Trophy

❑ Awarded Pandit Jawaharlal Nehru Silver Rolling Trophy for the best productivity effort in Andhra Pradesh

Bulk Drug Company of the Year

❑ India Pharma Bulk Drug Export Company of the Year Award from Government of India.

❑ Received the Indian Pharma Bulk Drug Company

of the Year Award

17

Key Strategies

18

Key Strategic Focus

Niche Product Portfolio Carved out a strong presence in complex, niche API therapies with a global leadership in multiple products

Expansion

Brownfield capex of Rs. 200 crores in FY21 to augment leg of growth

the next

Unique Value Proposition domain Global expertise, long- standing relationships, Economies of scale

Strong leadership,

presence, cost

Diversification

Portfolio of 36+ products across 10+ therapies catering 75+ countries in regulated and semi-regulated markets

De-risked and Integrated Value Chain Backward and Vertical Integration provides cost synergies and growth opportunities. Strategic focus on backward integration and intermediates has reduced supply chain and forex risks significantly. (~10%-15% of the imports from China)

19

Niche Product Portfolio

Leadership in Select High-Value, Complex APIs

API portfolio comprises of specialized and profitable products in niche therapeutic areas. Reflects the strong ability to foray into other high-value, niche and complex products

Currently developing multiple products every year across 10+ therapeutic areas, which include High Value as well as High Volume Products

SMS Pharma has demonstrated an ability in the past to foray into new complex, profitable products and currently enjoys leadership position in multiple API molecules.

The company has presence in multiple margin-lucrative, non- commoditized therapeutic areas like ARV, Anti-Epileptic, Anti- Migraine, Anti-Anginal, etc.

The company has an expertise in synthesis and R&D which can be leveraged to foray into complex API products and therapies

The company enjoys global products across therapies.

leadership position across 10+

Growing share of High Value Products

10%

By Value (%)

6%

12%

5%

7%

37%

23%

ARV

Anti-Ulcer

Anti-Epileptic

Anti-Aginal

Anti-Migraine

Hypertension

Other

1%

1%

By Volume (%)

11%

53%

15%

6%

13%

ARV

Anti-Ulcer

Anti-Epileptic

Anti-Aginal

Anti-Migraine Hypertension Other

Note: As of FY21

20

Expansion

With ~ Rs. 200 crores capex at Vishakhapatnam Facility in FY21, the company is fully geared up for the next level of growth.

•

•

The brownfield capex is aimed towards capacity augmentation of multiple products and therapies.

The incremental capacity addition through the capex is 1,300 KL, predominantly aimed towards Ibuprofen capacity expansion.

• With this capex, company is expected to be one of the largest Ibuprofen manufacturers

globally.

•

The company is also leveraging long-standing relationships, domain expertise and strong R&D knowledge to foray into new therapies, products and geographies

• Majority of the capex is funded through internal accruals and minimal debt, thus

maintaining the robust Balance Sheet position.

• Higher margins and profitability ratios expected through operating leverage and

incremental revenue.

21

Unique Value Proposition

Global Presence ~80% Exports Revenue (including deemed exports) in 75+ countries across 5 continents – Lower dependency on single country/region

Strong Domain Expertise Promoters and Senior Management with a strong business pedigree and domain expertise in APIs and Intermediates – internal Alignment of stakeholders

interest of all

Cost Leadership From procurement to production till sales have a strong foundation and sound setup. Backward cost- efficient Higher Profitability

integration manufacturing

ensures –

Long-standing Relationships

standing

relationships

Long with suppliers and customers - Cost-efficient, consistent, sustainable raw material supply and revenue

Economies of Scale Leadership position in key products, coupled with integration provides economies of scale – Lower Competitive Intensity & Higher Margins

backward

22

Diversification

Well-diversified across Geographies, Markets, Therapies, Products and Customers = Risk Reduction and Multiple Growth Avenues

01

02

03

04

Geography

Markets

API Therapies

Customers

• Domestic - Export mix at

10%:90% for FY21

• Presence across 75+

countries

• None of the region

contributes more than 2/3rd of the revenue with Africa contributing the highest at ~38.0% of total sales

• Regulated Markets contributed ~52% of sales in FY21, with USA being the highest at ~37%

• Semi- Regulated Markets

contributed ~41% of sales in FY21, with Africa being the highest at ~38%

• Domestic Markets contributed

~7% of sales in FY21, with Zydus Cadila being the highest at ~3%.

• Top 5 therapies contributes 86%

of sales in FY21

• ARV products contributed

highest at 38% to sales in FY21

• Top 10 products contribute to

81% to sales in FY21

• Leaders in Domestic market in

most of top 10 products

• Domestic: Largest client contributes ~35% of domestic sales whereas top 10 clients contribute ~76%.

• Exports: Largest client contributes ~20% of exports sales whereas top 10 clients contribute ~80%.

23

De-risked & Integrated Value Chain

Backward Integration

➢ Over the years, SMS Pharma has strategically invested in backward integration to be self-reliant and reduce supply chain risk.

• 80% of the intermediates are

consumed by the API in-house business.

• Low dependency on China for raw material sourcing (~10% of the raw material sourced from China)

Strategic Investments across the Value Chain

Verticle Integration

➢ Vertically integrated through VKT

Pharmaceuticals Pvt. Ltd. - An Associate company

• VKT Pharma Private Limited is engaged in formulations & semi-

manufacture of finished formulations viz. pellets.

• Company holds 42.6% as on 31st December 2021 in VKT Pharma and balance is held by promoters which give the entire control in the manufacturing cycle.

• VKT Pharma has gives an edge by saving costs & eliminating imports with respect to formulations.

• VKT has 6 approved ANDA’s out of which

4 received in January 2022.

24

Financial Highlights

25

9MFY22 Result Highlights

Rs. crores

Revenue

EBITDA & EBITDA Margin (%)

PAT & PAT Margin (%)

+17%

459

392

21.0%

26.9%

9.9%

12.8%

+50%

123

+52%

59

82

39

9MFY21

9MFY22

9MFY21

9MFY22

9M FY21

9M FY22

26

26

Q3FY22 Result Highlights

Rs. crores

Revenue

EBITDA & EBITDA Margin (%)

PAT & PAT Margin (%)

23.7%

27.6%

24.1%

12.3%

14.3%

8.5%

175

149

48

25

121

35

29

18

10

Q3FY21

Q2FY22

Q3FY22

Q3FY21

Q2 FY22

Q3FY22

Q3 FY21

Q2 FY22

Q3 FY22

27

27

Consolidated Revenue Break-up – Nine-Months Ended

Q1FY21 9MFY21 Q1FY21

9MFY22

e s i w

- t n e m g e S

e s i w - y h p a r g o e G

96%

4%

96%

4%

API

Intermediates & Others

API

Intermediates & Others

Q1FY21 9MFY21 Q1FY21

92%

8%

9MFY22

82%

18%

Domestic

Exports

Domestic

Exports

28

Consolidated Revenue Break-up – Quarterly

e s i w

- t n e m g e S

e s i w - y h p a r g o e G

Q1FY21 Q3FY21 Q1FY21

Q2FY22

Q3FY22 Q1FY22

96%

4%

99.6%

0.4%

95%

5%

API

Intermediates & Others

API

Intermediates & Others

API

Intermediates & Others

Q1FY21 Q3FY21 Q1FY21

91%

Q2FY22

92%

9%

8%

Q3FY22 Q1FY22

89%

11%

Domestic

Exports

Domestic

Exports

Domestic

Exports

29

API Therapy-wise Revenue Break-up – Nine-Months Ended

9MFY21

9MFY22

5% 9%

23%

9%

14%

12% 6%

8%

6%

23%

40%

44%

ARV

Anti-Ulcer

ARV

Anti-Epileptic

Anti-Migraine

Anti-Epileptic

Anti-Ulcer

Anti-Migraine

Anti-Erectile Dysfunction

Others

Anti-Erectile Dysfunction

Others

30

API Therapy-wise Revenue Break-up – Quarterly

Q1FY21 Q3FY21 Q1FY21

Q2FY22

Q3FY22 Q1FY22

32%

5%

8%

3%

15%

37%

5% 14%

7%

10%

15%

50%

14% 3%

30%

7%

9%

37%

ARV

Anti-Ulcer

ARV

Anti-Ulcer

Anti-Erectile dysfunction

Anti-Migraine

Anti-Erectile dysfunction

Anti-Migraine

Anti-Epileptic

Others

Anti-Epileptic

Others

ARV

Anti-Ulcer

Anti-Erectile dysfunction

Anti-Migraine

Anti-Epileptic

Others

31

Consolidated Profit & Loss Statement

Particulars (Rs. Crores)

Q3FY22

Q3FY21

9MFY22

9MFY21

Net Revenue from Operations (Net of Excise)

Other Income

Total Revenue

COGS

Gross Profit

Gross Margin (%)

Employee Expenses

Other Expenses

EBITDA

EBITDA Margin (%)

Finance Costs

Depreciation

Exceptional Item

PBT

Taxes

Reported PAT

Add: Share of Associate Profit / (Loss)

PAT After MI & Assoc.

PAT Margin

EPS

40.4%

1,069 bps

46.4%

475 bps

121.3

2.1

123.4

61.4

62.0

51.1%

13.2

19.6

29.2

148.9

0.9

149.7

89.5

60.2

10.8

14.1

35.3

24.1%

23.7%

4.8

8.1

0.0

16.3

6.1

10.3

-1.3

9.0

8.5%

1.07

2.9

5.6

0.0

26.7

8.4

18.3

3.1

21.4

12.3%

2.53

YoY%

(19)%

3%

Q2FY22

174.7

1.4

176.1

95.1

81.0

QoQ%

(31)%

(23)%

12.1

20.8

48.2

(39)%

27.6%

(350) Bps

4.8

8.1

0.0

35.3

10.2

25.0

-2.0

23.0

(54)%

(59)%

(61)%

(17)%

34 bps

(39)%

(44)%

(58)%

459.0

4.8

463.7

242.1

221.6

48.3%

37.2

61.1

123.3

26.9%

14.5

24.2

0.0

84.6

25.9

58.7

-2.9

55.8

(384) bps

14.3%

(585) Bps

12.8%

(58)%

2.72

(61)%

6.59

391.9

2.2

394.0

244.6

149.4

YoY%

17%

48%

38.1%

1,017 bps

28.8

38.4

82.2

50%

21.0%

590 bps

8.6

16.7

0.0

56.8

18.1

38.8

0.6

39.4

9.9%

4.65

49%

52%

42%

291 bps

42%

32

Historical Performance at a Glance

33

Strong Financial Performance

Revenue (Rs. Crores)

EBITDA (Rs. Crores)

PAT (Rs. Crores)

Consolidated

447

463

+6%

465

412

563

+13%

121

63

93

90

80

75

+22%

40

29

32

32

FY17

FY18

FY19

FY20

FY21

FY17

FY18

FY19

FY20

FY21

FY17

FY18

FY19

FY20

FY21

EBITDA Margin (%)

PAT Margin (%)

+480bps

20.2%

19.4%

19.4%

21.5%

16.7%

11.1%

+470bps

8.6%

7.7%

6.4%

6.9%

34

FY17

FY18

FY19

FY20

FY21

FY17

FY18

FY19

FY20

FY21

34

Strong Financial Performance

EPS (In Rs)

Net Worth (In Crores)

Leverage (X)

7.4

+21%

4.7

3.4

3.8

3.7

558

+14%

384

416

329

356

0.29

0.25

0.19

0.20

Consolidated

0.36

FY17

FY18

FY19

FY20

FY21

FY17

FY18

FY19

FY20

FY21

FY17

FY18

FY19

FY20

FY21

ROCE (in %)

21.3%

+90 bps

19.3%

17.4%

ROE (in %)

18.3%

15.1%

11.2%

11.2%

+400bps

12.4%

15.2%

9.1%

35

FY17

FY18

FY19

FY20

FY21

FY17

FY18

FY19

FY20

FY21

35

Consolidated Profit & Loss Statement

Particulars (Rs. crores)

Net Revenue from Operations

Other Income

COGS

Gross Profit

Gross Margin (%)

Employee Expenses

Other Expenses

EBITDA

EBITDA Margin (%)

Finance Costs

Depreciation

PBT before exceptional item

Exceptional Expense/(Gain)1

Share in Profit/(loss) in JV and Associates

PBT

Taxes

Reported PAT

Cash PAT

PAT Margin1 (%)

Earnings Per Share2 (EPS)

FY21

563.2

3.5

379.4

183.8

32.6%

41.2

21.5

121.1

21.5%

11.2

22.3

91.1

0.0

1.6

92.7

30.2

62.5

84.8

11.1%

7.39

FY20

411.9

5.1

280.0

131.9

32.0%

39.4

12.7

79.9

FY19

464.9

3.4

327.6

137.4

29.5%

35.6

11.7

90.1

FY18

462.7

2.4

324.4

138.3

29.9%

32.8

12.1

93.3

FY17

446.7

1.4

332.8

113.9

25.5%

26.9

12.2

74.8

19.4%

19.4%

20.2%

16.7%

12.2

22.1

50.7

0.0

-1.1

49.6

18.1

31.6

53.6

7.7%

3.73

11.9

19.3

62.3

0.0

-1.4

60.9

20.9

40.0

59.3

8.6%

4.70

15.5

19.9

60.3

0.0

-8.7

51.6

19.9

31.7

51.6

6.9%

3.80

15.5

19.2

41.6

0.0

-7.1

34.5

6.0

28.5

47.7

6.4%

3.40

36

Consolidated Balance Sheet

Equities & Liabilities (Rs. crores)

FY21

FY20

FY19

FY18

FY17

Assets (Rs. crores)

FY21

FY20

FY19

FY18

FY17

Equity

Equity Share capital

Other Equity

Non Controlling Interest

Total Equity

Financial liabilities

(i) Borrowings

(ii) Other Financial liabilities

Other non current Liability

Deferred tax liabilities (Net)

Provisions

8.5

402.1

0.0

410.5

147.8

4.1

0.0

53.9

1.8

8.5

339.8

0.0

348.2

68.2

4.8

0.0

39.7

1.7

Total Non Current Liabilities

207.6

114.5

Financial liabilities

(i) Borrowings

(ii) Trade Payables

(iii) Other financial liabilities

Provisions

Other current liabilities

Current tax liabilities (Net)

Total Current Liabilities

70.9

65.4

48.8

0.8

8.2

0.0

61.2

44.5

28.4

0.7

10.4

0.0

8.5

313.5

0.0

321.9

8.5

276.0

0.0

284.5

8.5

246.3

0.0

254.7

62.2

0.0

0.0

30.6

1.5

94.3

70.8

47.7

13.0

0.7

10.4

0.0

71.4

0.0

0.0

23.0

2.2

96.6

58.4

38.7

17.5

0.7

5.9

0.0

74.2

0.0

0.0

15.8

1.3

91.4

59.8

66.8

15.9

0.5

4.1

0.0

194.1

145.2

142.5

121.5

147.0

Non Current assets

Property, Plant and Equipment

452.3

Capital work in progress

Intangible assets

Right to use assets

Financial Assets

(i) Investments

(ii) Other Financial Assets

Deferred Tax Assets (net)

Other non-current assets

Total Non Current Assets

Current Assets

Inventories

Financial Assets

Investments

(i) Trade receivables

(ii) Cash and Bank Balances

(iii) Bank Balances & Financial Assets

Current Tax Assets(Net)

Other current assets

Total Current Assets

Non current Asset held for sale

275.2

42.1

0.8

4.5

0.0

25.8

5.6

0.0

35.1

389.1

280.1

18.3

1.1

0.0

0.0

27.0

5.6

0.0

19.1

351.2

278.9

290.0

8.2

0.4

0.0

0.0

28.4

4.4

0.0

13.8

334.0

7.8

0.4

0.0

0.0

29.1

4.3

0.0

4.2

335.8

6.7

1.6

3.6

0.0

27.3

5.8

0.0

5.5

502.9

137.8

129.2

136.4

107.5

92.50

0.0

0.0

105.7

40.4

0.4

3.0

22.0

309.3

0

0.0

0.0

48.8

9.5

0.4

3.1

27.8

218.8

0

0.0

0.0

26.0

14.8

0.3

0.4

29.6

207.6

0.0

0.0

0.0

24.1

12.6

0.6

0.0

23.6

168.5

0.0

0.0

0.0

21.3

12.3

0.1

1.2

30.0

157.3

0.0

Total Equity and Liabilities

812.2

607.9

558.8

502.5

493.1

Total Assets

812.2

607.9

558.8

502.5

493.1

37

Consolidated Cashflow Statement

Particulars (Rs. crores)

Net Profit before Tax and Extraordinary items

Adjustments for: Non Cash Items / Other Investment or Financial Items

Operating profit before working capital changes

Changes in working capital

Cash generated from Operations

Direct taxes paid (net of refund)

Net Cash from Operating Activities

Net Cash from Investing Activities

Net Cash from Financing Activities

Net Decrease in Cash and Cash equivalents

Add: Cash & Cash equivalents at the beginning of the period

Cash & Cash equivalents at the end of the period

FY21

91.1

27.8

118.9

-12.4

106.5

16.0

90.5

-151.6

92.0

30.9

9.5

40.4

FY20

50.8

28.7

79.4

-27.6

51.8

12.1

39.7

-42.6

-2.4

-5.3

14.8

9.5

FY19

62.4

26.8

89.2

-26.0

63.1

13.4

49.8

-34.7

-12.9

2.2

12.6

14.8

FY18

60.3

31.1

91.4

-48.5

43.0

11.1

31.8

-16.6

-14.9

0.3

12.3

12.6

FY17

41.6

31.58

73.2

9.4

82.6

9.1

73.5

-39.0

-33.2

1.3

11.3

12.6

38

For further information, please contact

Company:

Investor Relations Advisor:

CIN: L24239TG1987PLC008066

CIN: U74140MH2010PTC204285

Mr. V. S. Venkatish Email: cs@smspharma.com Contact no.: ++91 9989322673

Mr. Jigar Kavaiya / Mr. Chinmay Madgulkar E: jigar.kavaiya@sgapl.net / chinmay.m@sgapl.net T: +91 9920602034 / +91 9860088296

www.smspharma.com

www.sgapl.net

39

39