It gives me immense privilege and pleasure to present to you the AnnualReport of Shilpa Medicare Limited for the FY 2018-19.
Let me first give you a summary of your Company's performanceduring the year under review. For the full year Shilpa Medicare delivered a subduedfinancial performance.
Standalone revenues stood at र 67966.86 Lakhs which was 11% lesscompared to the previous year. Profit After Tax (PAT) during the year was र 12410.63Lakhs as against र 13323.87 Lakhs in the previous year. Our profitswere majorly impacteddue to 100% provisioning of र 1437.38 Lakhs for investment in IL&FS LimitedCommercial Paper as there is significant uncertainty regarding recovery and furthermorereduction in exchange gain by र 958.69 Lakhs.
Despite the moderate performance we witnessed impressive growth acrossour core business verticals. The formulations business reported a strong growth withrevenues increasing from र 8908.67 Lakhs in the previous year to र 16600.69 Lakhs in thecurrent fiscal.API business decreased by 4% to र 34816.65 Lakhs from र 36218.56 Lakhs inthe previous fiscal.The revenue of our Contract Research and Manufacturing Services(CRAMS) business declined by 16% on the back of its lower and insignificant contributionto the overall revenue. This move is in line with our conscious strategy to reduce ourdependence on CRAMS business and push growth of our API and formulations business.
What is worth noting is that we managed to reduce our raw materialcosts considerably and expect to scale it down further in the coming years. A majority ofour formulations are developed with APIs manufactured at our own plants. This enables usto ensure greater control over the production process resulting in cost savings andmargin enhancement across the entire value chain.
At Shilpa Medicare throughout our three-decade long journey we haveremained committed to developing innovative and affordable medicines and ensuring itsaccess to people across the world. Over the years we have strengthened our position andbolstered portfolio through our performance capabilities and massive investments whilebuilding the blocks for future growth.
Our unequivocal focus on innovation and excellence has enabled us tobecome one of the leading manufacturers of high-volume oncology products. drugs are highlyeffective and Looking ahead the next leg of pharmaceutical industry growth will be drivenby specialty therapies emergence of biologics and newer and innovative launches. With ourmultiple growth levers we are well-positioned to capture the emerging opportunities andaddress the healthcare needs of the future. We shall continue to invest in capacityexpansion innovation technology and portfolio diversification and most importantlyoptimize operations to solidify our business and develop complex products to sustain ourleadership position.
We are focused on scaling up our core API and formulations businessacross oncology and non-oncology therapeutic areas and increase its contribution to theoverall revenue in the long-term. Diversification into other therapeutic areas likebiologics portfolio expansion to transdermal dosage forms expanding our and oral thinpresence in emerging markets and ROW through strong business associations will be ourgrowth drivers going forward.
Further recognizing the ample opportunities in biologics we haveinitiated the establishment of a biologics manufacturing plant equipped with best-in-classtechnologies at Dharwad Hubli inKarnatakaIndiatocatertotheglobalbiologicsmarket.ThePhaseI of the facility is expected tobe commissioned by March 2020. Following this we expect to launch one novel biologicproduct in
India by FY 2020-21. A core part of our strategy is to invest inR&D to drive innovative product development. Focused on this we have envisagedsetting up a state-of-the-art R&D center with a pilot plant facility in DabaspetBengaluru Karnataka India. The construction of this facility is estimated to becompleted by December 2019.
In another strategic move we are building a world-class manufacturingunit of Transdermal Patch and Oral Films at Dabaspet Bengaluru Karnataka India.Transdermal Patches act as an alternative therapeutic for numerous diseases and are widelyrecognized due to their pain-free convenient and easy application. Similarly thin filmbeneficial to patients. Growth of transdermal and thin film treatment is on the riseespecially in the global markets. I would also like to highlight that we successfullyupgraded our Oral Thin Films facility situated in Hyderabad Telangana India in-line withthe European regulatory standards.
To sum up all the above initiatives will take your Company to the nextlevel of growth and success. We are thrilled to seize the opportunities that lie ahead aswe continue to innovate to improve the lives of patients.
On behalf of the Board of Directors I would like to thank ourshareholders our partners our employees our customers and our vendors for theircontinued support over the years. I look forward to communicating with you all in thecoming year and hope that you continue to repose your confidenceand trust in us.
|Warm Regards |
|Omprakash Inani |