It is truly a pleasure to present to you the second annual report of your company postour IPO in FY 18; which was one of the largest ever witnessed in the pharmaceuticalindustry. We recently completed our first year of being a listed company and it gives megreat joy to share that the immense faith our shareholders and the financial communityhave demonstrated in our business model has ensured that we are in the Top 25 highestmarket capitalisation companies in the pharmaceutical sector today. Moving ahead on thisprogressive trajectory Eris is well poised to herald in the next phase of growth boostedby its own robust fundamentals and tailwinds in the Indian Pharmaceuticals Market("IPM").
The IPM witnessed many developments in the year gone by. While the industry overcamedisruptions like the GST and demonetisation and apprehensions around regulatory and policyoverhang it also has its share of opportunities and tailwinds.
The country often colloquially referred to as the diabetes and blood pressure capitalof the world is today more than ever saddled by lifestyle related disorders. Changinglifestyle and rapid urbanisation has led to the average age for incidence of chronicdiseases decreasing alarmingly. Increasing amount of research is being dedicated tounderstand the link of this high and ever increasing incidence of chronic diseases-diabetes early puberty PCOS PCOD infertility- to among other things generations ofmalnourished mothers. A major challenge for the nation is to effectively manage thisburden of metabolic diseases and nutritional deficiency. Among other trends that weobserve is an increased awareness leading to the trend of healthy people who want toremain healthy and productive. In this backdrop increased penetration of healthinsurance the herald of which is going to be the National Health Protection Mission orAyushman Bharat will be a growth driver for the pharma and healthcare industry as itpaves way to a more efficient diagnostic infrastructure and delivery ecosystem. Technologywill also increasingly be used as an enabler to deliver better healthcare outcomes. Ourunique patient care initiative platform is a case in point where technology is extensivelybecoming the impetus that drives the business forward.
Highlights of FY 18
Eris recorded Revenue from Operations of INR 8556 million; a year-on-year growth of14.2%. While our acquired businesses contributed to the growth in revenue the growth wasbroad based across therapy areas and was driven by our consistent focus on patientengagement initiatives and robustness of products in our top mother brands. For FY 18EBITDA margins saw an expansion to 37.6% of Revenue from Operations from 35.9% in FY 17.Net profit margin was 34.3% in FY 18 compared to 32.9% in FY 17. The expansion in marginswas mainly attributable to operating efficiency demonstrated consistently through ascalable and tax efficient business model. During the year we also undertook strategicacquisitions which include:
Acquiring the Indian Branded Domestic Formulations business of Strides ShasunLtd. The acquisition provides us with enhanced visibility in Neurology PsychiatryNutraceuticals and Women Healthcare therapeutic areas.
Acquiring the entire shareholding of UTH Healthcare Ltd largely engaged in thesegments of Obesity Diabetes Gestational diabetes mellitus and Maternal Nutrition Inaddition to these we are actively exploring new acquisition and in-licensingopportunities to further strengthen our product offerings and diversify to newertherapeutic areas. Consolidation of the existing therapy areas and their further expansionthrough new launches in-licensing entering new therapy areas and acquisitions form thecore of our strategy to take the company ahead and maximise shareholder value. With thisI also wish to thank and appreciate all our stakeholders who have partnered with us andcontinue to support us going forward.