Dear and Esteemed Shareholders
My sincere wishes that each of you is safe and well in these uncertaintimes.
This is my first letter to you since succeeding our founder Late Mr.Vijay Batra as Chairman and Managing Director. I would like to begin by acknowledging myfather's (Mr. Vijay Batra) immense contribution towards building this company sinceits inception. He was a visionary and businessman par excellence. He had foreseen thescope in a niche segment like Oncology and laid the foundation of Indian PharmaMultinational in Oncology segment. I along with my brother Mr. Varun Batra (Joint ManagingDirector) will carry on his legacy forward and make sure that we deliver long term valueto all stakeholders.
Even in the middle of the most challenging times that the world hasseen in over a century we can look at Beta's fiscal 2021 performance with fairsatisfaction. The company delivered industry-leading growth and is firmly poised for yetanother year of market-beating performance as we start looking at the post-pandemic era.
Beta consolidated revenues for FY 2020-21 increased by 28% to Rs 116.12crores from Rs 90.8 crores compared with the same period a year ago. While consolidatedEBITDA grew by 38% to Rs 25.24 crores from 18.3 crores. EBITDA margin expanded to 22% from20%. This was despite the fact that first two months of the fiscal were washed out due toCOVID-19 related lockdowns. Top line growth was aided primarily by higher Own brand salesExports and API sales to third parties.
Overall improvement in EBITDA was on account of higher sales of brandedproducts and exports. Cost rationalization initiatives and backward integration due toacquisition of Adley Lab Limited also pushed the margins higher across the board.
Beta Drugs is committed to becoming a global leader in complex brandedgenerics Oncology space by focusing on new innovative product development that includesNIBs NDDS & PARP inhibitors. It has highly accomplished team of dedicated scientistsfor process and analytical work Pre-formulation studies Physico-ChemicalCharacterization and Reverse Engineering. The Research & Development (R&D) teamhas ability to support small molecules non-biological complex drugs.
All these efforts have helped the company build a strong pipeline andplans to launch six new molecules in FY 21-22. The company has gained leadership positionin the Indian market with 57 molecules and over 90 SKUs. Beta's products areavailable in over 80% of major corporate & Govt hospitals.
On the exports front Beta has presence in over 16 countries and hasmore than 50 products registered. The company has recently added senior management talentto its exports team and expects it to be a major growth driver going forward. With ourresearch development and marketing co-operations we are determined to strengthen ourposition in the global pharmaceutical market.
Beta's API plant (Adley Lab Limited.) recently received its WHO-GMP approval. This accreditation has opened the door for accelerated growth in the comingyears. It will not only help to consolidate company's API business in domestic marketbut also aid exports to ROW markets and some of the Semi Regulated countries thus pavingway for increasing sales in the future.
The company is also expanding its manufacturing capacity and workingtowards filing it's DMF in mid of next year in the European market which will helpthe company to enter regulated markets. It has already launched 5 new APIs in FY 2020-21and is working to launch 3-4 innovative cytotoxic molecules every year.
Beta is witnessing decent momentum across all its four segments; OwnBrands Exports OEMs & API and is poised for strong growth in FY22 and for many yearsto come.
On behalf of the Board and management I would like to thank ourshareholders customers distributors and other stakeholders for their continued supportand trust. And a special thanks to all our employees for their sheer hard work andcommitment which has helped the company to deliver strong performance. It is an honor toserve you all.
|With Warm Regards Sd/- Rahul Batra |
|Chairman & Managing Director |