FERMENTA BIOTECH LIMITED — Earnings Release 2020

Feb 12, 2020

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Ref: F.No.:49

February 12, 2020

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

Dear Sir,

Sub.: Intimation of Earnings Release dated February 12, 2020

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 nine months ended December 31, 2019, we hereby enclose a copy of Earnings Release of the Company for the quarter and nine months ended December 31, 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: 2020.02.12 14:11:16 +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

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Earnings Release

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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 – Q3 FY20

• Total Revenue (including other income) at Rs. 69.90 Cr as against Rs 112.93 Cr in Q3 FY19

• EBITDA (including other income) at Rs. 17.39 Cr, margin is at 24.9%

• PAT at Rs. 9.75 Cr as against Rs 27.99 Cr in Q3 FY19.

Mumbai, 12[th] February 2020: Fermenta Biotech Limited announced its unaudited financial results for the quarter and nine months ended 31[st] December, 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)	Q3 FY20	Q3 FY19	YoY%	9M FY20	9M FY19	YoY%	FY19
Revenue*	69.90	112.93	-38.1%	238.07	324.20	-26.6%	417.01
EBITDA*	17.39	45.83	-62.1%	65.64	121.47	-46.0%	161.24
Margin(%)	24.9%	40.6%		27.6%	37.5%		38.7%
PAT	9.75	27.99	-65.2%	56.46	72.01	21.6%	117.90
Margin(%)	13.9%	24.8%		23.7%	22.2%		28.3%

*includes other income

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Earnings Release

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Business Update:

• Backward Integration: The Board of Directors had decided to utilise the multi-synthesis plant at Dahej for manufacturing of Cholesterol (Key raw material) from wool grease. Successful trial run has been completed and the production run has been initiated.

• 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. The Company has manufactured and invoiced its first sales of Vitamin D3 500 Feed grade from German subsidiary.

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

“Based on the recommendation of the Board of Directors in its meeting held on 24[th] December 2019, the members of the Company through Postal Ballot approved on January 28, 2020 the issue of bonus shares in the ratio of two (2) fully paid up equity share of Rs 5/- each for every one (1) existing fully paid up equity share of Rs. 5/- each held by the members.

We are pleased to inform that the trial run for the manufacturing of cholesterol from wool grease has been successfully completed in February 2020. The Company has received the CEP certification for the same. This will bring in self-sufficiency, de-risk us from vagaries as experienced in FY2015 apart from cost savings in the future years.

The coronavirus outbreak and disruption of supplies out of China would not have any negative impact on the operations of the Company.

During 9MFY20 the revenue was Rs 238 crores as against Rs 324 crores in 9MFY19. The EBDITA margins are 27.6% in 9MFY20 as against 37.5% in 9MFY19. The margins continue to be under pressure due to decline in Vitamin D3 Animal Feed prices.

We are happy to inform that the company has been able to recover an amount of Rs 608.48 lakhs against the share application money of Rs 597.00 Lakhs given to Noble Explochem Limited. This matter was earlier qualified by the statutory auditors in their review report. This now no longer remains a matter of qualification by the statutory auditors.

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Earnings Release

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”

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

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