FERMENTA BIOTECH LIMITED — Earnings Release 2020

Nov 13, 2019

==> picture [426 x 66] intentionally omitted <==

Ref: DIL:DIL/BSE/2019-20/F.No.:49

November 13, 2019

Corporate Relations BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai – 400 001

Dear Sir,

Sub.: Intimation of Earnings Release dated November 13, 2019 Ref: Scrip Code: 506414

Further to our intimation regarding approval of Unaudited Financial Results (Standalone and Consolidated) by the Board of Directors for the quarter and half year ended September 30, 2019, we hereby enclose a copy of Earnings Release of the Company for the quarter ended September 30, 2019.

The said Earnings Release is also available on Company’s website www.dil.net

Kindly take the same on records.

Thanking you,

Yours faithfully, for Fermenta Biotech Limited [Formerly known as DIL LIMITED]

SRIKANT NATH SHARMA Digitally signed by SRIKANT NATH SHARMA DN: c=IN, o=Personal, postalCode=400610, st=Maharashtra, 2.5.4.20=2ab07dc675b7405348b9f50416c712c738a3c6f165ca6b8e70474cfdc158e5cb, serialNumber=c7cd7ec99adaae2c3bd286ac4378ffadd7148c27ff6647d896904fb3e2d0942e, cn=SRIKANT NATH SHARMA Date: 2019.11.13 19:57:54 +05'30'

Srikant N Sharma Company Secretary CS Membership No: F3617

A-1501, Thane One, DIL Complex, Ghodbunder Road, Majiwade, Thane (W) 400610

Encl: As above

==> picture [426 x 58] intentionally omitted <==

Earnings Release

==> picture [75 x 39] intentionally omitted <==

Fermenta Biotech Limited (Formerly known as DIL Limited)

The National Company Law Tribunal, Bench at Mumbai, has approved the Scheme of Amalgamation (‘Scheme’) between the Transferee company i.e. DIL Limited (DIL) and the Transferor company i.e. Fermenta Biotech Limited (FBL) and their respective shareholders. The Scheme has become effective from September 26, 2019. The appointed date of the Scheme is April 1, 2018. Accordingly, the effect of the Scheme has been given in these unaudited consolidated financial results for the quarter and half year ended September 30, 2019 and the figures for the corresponding previous periods/year have been restated.

The name of the amalgamated company has been changed from DIL Limited to Fermenta Biotech Limited.

Standalone Financial Performance – Q2 FY20

• Total Revenue (including other income) at Rs. 85.98 Cr as against Rs 130.56 Cr in Q2 FY19

• EBITDA (including other income) at Rs. 20.82 Cr, margin is at 24%

• PAT at Rs. 32.66 Cr as against Rs 27.34 Cr in Q2 FY19, which includes recognition of deferred tax asset of Rs 16.03 Cr in the current quarter.

Mumbai, 13[th] November 2019: Fermenta Biotech Limited announced its unaudited financial results for the quarter and half year ended 30th September, 2019.

	Fermenta Biotech Limited (Standalone Results)	Fermenta Biotech Limited (Standalone Results)	Fermenta Biotech Limited (Standalone Results)	Fermenta Biotech Limited (Standalone Results)	Fermenta Biotech Limited (Standalone Results)
Particulars(Rs. Crs)	Q2 FY20	Q2 FY19	YoY%	H1 FY20	H1 FY19	YoY%	FY19
Revenue*	85.98	130.56	(34.1)	170.09	214.01	(20.5)	417.01
EBITDA*	20.82	46.49	(55.2)	48.25	75.64	(36.2)	153.62
Margin(%)	24.2	35.6		28.4	35.3		36.8
PAT	32.66	27.34	19.5	46.71	44.01	6.1	110.35
Margin(%)	38.0	21.0		27.5	20.6		26.5

*includes other income

1

Earnings Release

==> picture [75 x 39] intentionally omitted <==

Business Update:

• Backward Integration: The Board of Directors have decided to utilise the multi-synthesis plant at Dahej for manufacturing of Cholesterol (Key raw material) from wool grease. The production is expected to commence in Q4 FY20.

• Wholly owned subsidiary in Germany: FBL has opened a wholly owned subsidiary in Germany, to be closer to our customers. This subsidiary would also manufacture our value-added products like D3 500 Feed grade, D3 100 Food grade etc. in Europe through third parties. These value-added products would typically be new variants wherein we would utilise third party resources in terms of plant, equipment etc. This will strengthen our position in terms of quality, reach and tap into new customers without any additional CAPEX.

Commenting on the performance and merger, Mr. Krishna Datla, Managing Director, Fermenta Biotech Ltd. said,

“We are pleased to announce that The National Company Law Tribunal, Bench at Mumbai has approved the Scheme of Amalgamation between DIL Limited and Fermenta Biotech Limited. This would bring overall efficiency in the running and management of the business. The merger has further strengthened our balance sheet and cash flows which has enabled us to retire a significant part of longterm debt. The Company has announced an interim dividend of 100% and is well placed to implement and execute appropriate returns to the shareholders and at the same time have the bandwidth to undertake our organic and inorganic growth plans.

As part of our ongoing efforts to be a fully integrated entity in the entire value chain of Vitamin D3 production and products, we are pleased to announce that our multi-synthesis plant at Dahej would start manufacturing cholesterol from wool grease soon. This will bring in self-sufficiency, de-risk us from vagaries as experienced in FY2015 apart from cost savings.

During H1FY20 the revenue was Rs 170.09 crores as against Rs 214.01 crores in H1FY19. The EBDITA margins was 28.4% in H1FY20 as against 35.3% in H1FY19. This is basically due to decline in Vitamin D3 Animal Feed prices. The major outbreak of African swine fever in several Asian countries has effected consumption which also led to this price decline. The technical issues faced by one of our largest Vitamin D3 customer at their production facility, continues impacting the revenue.

Looking at the demand for Vitamin D3 backed by growing awareness, we continue to believe that the volume will continue to grow at 15-20% CAGR over the next 5 years. We continue to look at avenues to monetise our real estate assets to strengthen our efforts towards transforming from solely Vitamin D3 to a multi-vitamin & value-added ingredient based, Nutraceutical Company”

2

Earnings Release

==> picture [75 x 39] intentionally omitted <==

About Fermenta Biotech Limited:

FBL is engaged in manufacturing of Vitamin D3, other specialty APIs, biological enzymes and also offers integrated biotech based environmental solutions. It has 2 manufacturing facilities:

• Kullu in Himachal Pradesh – cGMP certified and currently manufactures Vitamin D3, specialty API’s and Enzymes

• Dahej SEZ – set up in 2011 and manufactures Vitamin D3

FBL has also developed premium office spaces named ‘THANE ONE’, with a total leasable area of 200,000 sq. ft., which is 100% occupied.

For more information about the Company and its businesses, please visit our website www.dil.net www.fermentabiotech.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 further details please contact:

Company

Fermenta Biotech Limited

CIN No: L99999MH1951PLC008485 Name: Sumesh Gandhi Email id: sumesh.gandhi@f ermentabiotech.com

3