FERMENTA BIOTECH LIMITED — Earnings Release 2024

Nov 28, 2023

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Ref: F.No.:808

November 28, 2023

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

Dear Sir,

Sub.: Intimation of Earnings Presentation for Quarter 2 – Financial Year 2023-2024 [Q2-FY23/FY24] Ref: Scrip Code: 506414

Further to our intimation dated November 08, 2023 regarding approval of Unaudited Financial Results (Standalone and Consolidated) by the Board of Directors for the quarter and half year ended September 30, 2023, we hereby enclose a copy of Earnings Presentation for Quarter 2 – Financial Year 2023-2024.

The said Earnings Presentation will thereafter be uploaded on Company’s website at www.fermentabiotech.com

Kindly take the same on record.

Yours faithfully, for Fermenta Biotech Limited

SRIKANT Digitally signed by SRIKANT NATH NATH SHARMA Date: 2023.11.28 SHARMA 16:09:05 +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 Presentation | Q2/H1-FY24

Snapshot

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Only manufacturer of Vitamin D3 in India

Top 3 Amongst top 3 manufacturers Global Presence in of Vitamin D3 globally 60+ countries

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Proprietary technology to 55 Years of Vitamin D3 manufacture Vitamin D3 manufacturing experience

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Both manufacturing facilities certified by global regulatory bodies

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DSIR approved R&D facility

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10 patents granted in 2022

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Big 4 statutory auditor

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350+ clients across Backward integrated the globe

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Forward Integrating and diversifying to offer more nutraceutical products

Fermenta Biotech Limited

2

Company Overview

• Fermenta Biotech Limited (FBL) (Erstwhile DIL Ltd.) incorporated in 1951 by Dr. DVK Raju, is engaged in development and manufacturing of pharmaceuticals, biotechnology and environmental solutions used across various industries.

• With a rich history of seven decades FBL has evolved as a key global player in manufacturing of Vitamin D3 in all its formats and has a non-China dependent supply chain.

• FBL manufactures a range of Vitamin D3 variants having an optimal mix between human and animal feed products which have applications across multiple sectors like:

• Pharmaceuticals 4. Animal feed 2. Dietary and nutritional supplements 5. Veterinary 3. Food and beverage fortification 6. Rodenticides

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Consolidated Revenue (INR Mn) & EBITDA Margins (%)
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21.65%
3,985
3,773
3,499
15.41%
5.12%
1,394
-2.08%
FY21 FY22 FY23 H1-FY24
Operational Revenue EBITDA Margins (%)
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Revenue Mix % (FY23)

• The company is also involved in manufacturing of APIs for muscle relaxant and anti-flatulent applications.

• FBL delivers innovative enzymes used in manufacturing of active pharmaceutical ingredients and is involved in environmental solutions used for waste water treatment and management.

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Real Estate
Sale
14%
Rental Income
4%
Vitamin D3
Other APIs and
59%
Intermediary
14%
Fish Oil
Cholesterol
9%
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Fermenta Biotech Limited

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Q2/H1-FY24

Q2/H1-FY24 Financial Highlights

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Q2-FY24 Standalone Performance

H1-FY24 Standalone Performance

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INR 513 Mn INR (116) Mn (22.61)% INR 1,281 Mn INR 16 Mn 1.25%
Operational Income Operational EBITDA Operational EBITDA Margin Operational Income Operational EBITDA Operational EBITDA Margin
INR (280) Mn (54.58)% INR (9.69)/share INR (232) Mn (18.11)% INR (8.03) /share
Net Profit/(Loss) PAT Margin Diluted EPS Net Profit/(Loss) PAT Margin Diluted EPS
Q2-FY24 Consolidated Performance H1-FY24 Consolidated Performance
INR 569 Mn INR (139) Mn (24.42)% INR 1,394 Mn INR (29) Mn (2.08)%
Operational Income Operational EBITDA Operational EBITDA Margin Operational Income Operational EBITDA Operational EBITDA Margin
INR (278) Mn (48.85)% INR (9.63)/share INR (260) Mn (18.65)% INR (8.99) /share
Net Profit/(Loss) PAT Margin Diluted EPS Net Profit/(Loss) PAT Margin Diluted EPS
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Fermenta Biotech Limited

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Q2/H1-FY24 Operational Highlights

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• Volumes of Vitamin D3 for Human Nutrition in Q2-FY24 was lower by 17% compared to Q1-FY24 and 49% lower in H1FY24 as compared to H1-FY23, while the average prices of Vitamin D3 for Human Nutrition were higher by 8% in Q2-FY24 as compared to Q1-FY24 and higher by 14% in H1-FY24 as compared to H1-FY23. Animal Feed volumes and prices continue to be subdued.

• The Company inaugurated its customized premix manufacturing plant in Kullu, Himachal Pradesh in September 2023 and expects to start its production in second half of FY24.

• During the quarter ended September 30, 2023, considering the prolonged subdued global demands, the Company has revisited its projected future cash flows from its subsidiary Fermenta USA LLC and has determined the value in use of its investments in the said subsidiary. Accordingly, a provision for impairment of investment of Rs. 900 lakhs has been recorded as an exceptional item in the current quarter in the books of the Company and an impairment of Rs. 742.64 lakhs has been recorded as an exceptional item in the books of the its subsidiary against Goodwill created at the time of acquisition of such subsidiary.

Fermenta Biotech Limited

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Vitamin D3 500 Animal Feed Price Trend

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85
80
75
60
33
32
30
25
22
20 20
16
13
12
10
9 9
8 8 7 8
6 6 6
8 7
7
7
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q1 2023 Q2 2023 Q3 2023
Calendar Year
Source: feedinfo.com
Min of Low Max of High
Price (Euro/kg)
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Fermenta Biotech Limited

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Quarterly Standalone Financial Performance

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PARTICULARS (INR Mn)	Q2-FY24	Q2-FY23	Y-o-Y	Q1-FY24	Q-o-Q
Operational Revenue	513	901	(43.1)%	768	(33.2)%
Total Expenses	629	789	(20.3)%	636	(1.1)%
Operational EBITDA	(116)	112	NA	132	NA
Operational EBITDA Margins (%)	NA	12.43%	NA	17.19%	NA
Other Income	20	26	(23.1)%	21	(4.8)%
Depreciation	57	62	(8.1)%	57	0.0%
Finance Cost	37	49	(24.5)%	48	(22.9)%
Profit/ (Loss) Before Tax and Exceptional Items	(190)	27	NA	48	NA
Exceptional Items	(90)	-	-	-	-
Tax	-	6	-	-	-
Profit/(Loss) after Tax	(280)	21	NA	48	NA
PAT Margins (%)	NA	2.33%	NA	6.25%	NA
Other Comprehensive Income	-	1	-	0	-
Total Comprehensive Income	(280)	22	NA	48	NA
Diluted EPS (INR)	(9.69)	0.73	NA	1.66	NA

Fermenta Biotech Limited

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Half Yearly Standalone Financial Performance

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PARTICULARS (INR Mn)	H1-FY24	H1-FY23	Y-o-Y
Operational Revenue	1,281	1,746	(26.6)%
Total Expenses	1,265	1,554	(18.6)%
Operational EBITDA	16	192	(91.7)%
Operational EBITDA Margins (%)	1.25%	11.00%	(975) Bps
Other Income	41	65	(36.9)%
Depreciation	114	124	(8.1)%
Finance Cost	85	94	(9.6)%
Profit/ (Loss) Before Tax and Exceptional Items	(142)	39	NA
Exceptional Items	(90)	-	NA
Tax	-	7	NA
Profit/(Loss) after Tax	(232)	32	NA
PAT Margins (%)	NA	1.83%	NA
Other Comprehensive Income	-	-	-
Total Comprehensive Income	(232)	32	NA
Diluted EPS (INR)	(8.03)	1.10	NA

Fermenta Biotech Limited

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Quarterly Consolidated Financial Performance

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PARTICULARS (INR Mn)	Q2-FY24	Q2-FY23	Y-o-Y	Q1-FY24	Q-o-Q
Operational Revenue	569	980	(41.9)%	824	(30.9)%
Total Expenses	708	946	(25.2)%	715	(1.0)%
Operational EBITDA	(139)	34	NA	109	NA
Operational EBITDA Margins (%)	NA	3.47%	NA	13.23%	NA
Other Income	19	27	(29.6)%	20	(5)%
Depreciation	59	91	(35.2)%	59	NA
Finance Cost	37	49	(24.5)%	48	(22.9)%
Profit/ (Loss) Before Tax and Exceptional Items	(216)	(79)	NA	22	NA
Exceptional Items	(75)	-	NA	-	NA
Tax	-	5	NA	-	NA
Non-controlling interests	13	3	NA	(4)	NA
Profit/(Loss) after Tax	(278)	(81)	NA	18	NA
PAT Margins (%)	NA	NA	NA	2.18%	NA
Other Comprehensive Income	8	8	(0.0)%	(2)	NA
Total Comprehensive Income*	(283)	(76)	NA	21	NA
Diluted EPS (INR)	(9.63)	(2.80)	NA	0.64	NA

*Total OCI is calculated Excluding Non-controlling Interest

Fermenta Biotech Limited

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Half Yearl Consolidated Financial Performance y

PARTICULARS (INR Mn)	H1-FY24	H1-FY23	Y-O-Y
Operational Revenue	1,394	1,899	(26.6)%
Total Expenses	1,423	1,818	(21.7)%
Operational EBITDA	(29)	81	NA
Operational EBITDA Margins (%)	NA	4.27%	NA
Other Income	39	65	(40.0)%
Depreciation	119	157	(24.2)%
Finance Cost	85	93	(8.6)%
Profit/ (Loss) Before Tax and Exceptional Items	(194)	(104)	(86.5)%
Exceptional Items	(75)	-	NA
Tax	-	7	NA
Non Controlling Interest	9	6	50.0%
PAT	(260)	(104)	NA
PAT Margins (%)	NA	NA	NA
Other Comprehensive Income	6	12	(50.0)%
Total Comprehensive Income*	(263)	(98)	NA
Diluted EPS (INR)	(8.99)	(3.62)	NA

*Total OCI is calculated Excluding Non-controlling Interest

Fermenta Biotech Limited

11

Historical Standalone Income Statement

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PARTICULARS (INR Mn)	H1-FY24	FY23	FY22	FY21
Operational Revenue	1,281	3,289	3,880	3,728
Total Expenses	1,265	2,902	3,120	2,791
Operational EBITDA	16	387	760	937
Operational EBITDA Margins (%)	1.25%	11.77%	19.59%	25.13%
Other Income	41	76	75	66
Depreciation	114	245	237	190
Finance Cost	85	209	172	181
Profit/ (Loss) Before Tax and Exceptional Items	(142)	9	426	632
Exceptional Items	(90)	(596)	-	-
Tax	-	(12)	124	112
Profit/(Loss) after Tax	(232)	(575)	302	520
PAT Margins (%)	(18.11)%	NA	7.78%	13.95%
Other Comprehensive Income	-	1	(2)	(1)
Total Comprehensive Income	(232)	(574)	300	519
Diluted EPS (INR)	(8.03)	(19.94)	10.43	17.92
Fermenta Biotech Limited 12

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Historical Standalone Balance Sheet
PARTICULARS (INR Mn) H1-FY24 FY23 FY22 PARTICULARS (INR Mn) H1-FY24 FY23 FY22
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PARTICULARS(INR Mn)	PARTICULARS(INR Mn)
		H1-FY24	FY23	FY22		PARTICULARS(INR Mn)	H1-FY24	FY23	FY22
Equity		3,095	3,360	3,959		Assets
a) Equity share capital		144	144	144		Non-current Assets	3,802	4,105	3,974
						a)Property, plant and equipment	1,977	2,048	1,935
b) Other equity		2,951	3,216	3,815
						b)Capital work-in-progress	488	419	299
Liabilities						c)Right of use assets	111	117	157
						d)Investmentproperty	139	287	668
Non-current liabilities		873	1,152	1,300
						e)Goodwill	41	41	41
a) Financial liabilities						f)Other intangible assets	58	74	66
i) Borrowings		535	835	1,147		g )Intangible assets under development	31	31	47
						h)Investments
ii) Lease liabilities		17	20	37
						i)Investments in subsidiaries	32	122	127
iii) Other financial liabilities		13	11	7		i)Financial assets
b) Provisions		47	46	57		i)Investments	4	4	3
						ii)Loans	74	72	64
d) Other non-current liabilities		261	240	52
						iii)Others financial assets	216	210	67
Current Liabilities		2,116	2,126	1,867		iv)Trade Receivables	161	180	-
						j)Deferred tax assets(Net)	333	333	333
a) Financial liabilities
						k)Non-current tax assets(Net)	119	103	132
i) Borrowings		1,163	1,333	1,214		l)Other non-current assets	18	64	35
ii) Lease liabilities		2	7	11		Current Assets	2,282	2,533	3,152
						a) Inventories	924	1,097	1,296
ii) Trade payables		608	519	456
						b)Financial assets
iii) Other financial liabilities		118	91	128		i)Trade receivables	589	674	1,178
						ii)Cash and cash equivalents	48	321	102
b) Provisions		6	6	8
						iii)Bank balances other than(iii)above	456	230	206
c) Other current liabilities		216	166	47		iv)Investments	-	28	-
						v)Loans	47	10	-
d) Current tax liabilities (Net)		3	3	3
						vi)Other financial assets	15	9	50
e) Contract Liability		-	1	-		c)Other current assets	188	132	320
TOTAL EQUITY AND LIABILITIES		6,084	6,638	7,126		d)Contract assets	15	32	-
						TOTAL ASSETS	6,084	6,638	7,126
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Fermenta Biotech Limited

13

Historical Consolidated Income Statement

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PARTICULARS (INR Mn)	H1-FY24	FY23	FY22	FY21
Operational Revenue	1,394	3,499	3,985	3,773
Total Expenses	1,423	3,320	3,371	2,956
Operational EBITDA	(29)	179	614	817
Operational EBITDA Margins (%)	NA	5.12%	15.41%	21.65%
Other Income	39	77	81	82
Depreciation	119	282	255	203
Finance Cost	85	208	171	180
Profit/(Loss) before Exceptional Items and Tax	(194)	(234)	269	516
Exceptional Items	(75)	(285)	-	-
Tax	-	17	118	91
Non-controlling interests	9	21	3	30
Profit/(Loss) after Tax	(260)	(515)	154	455
PAT Margins (%)	NA	NA	3.86%	12.06%
Other Comprehensive Income	6	(15)	7	(2)
Total Comprehensive Income	(263)	(530)	161	423
Diluted EPS (INR)	(8.99)	(17.85)	5.33	15.69

*Total OCI is calculated Excluding Non-controlling Interest

Fermenta Biotech Limited

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Historical Consolidated Balance Sheet

PARTICULARS(INR Mn)	H1-FY24	FY23	FY22		PARTICULARS(INR Mn)	H1-FY24	FY23	FY22
Equity	2,830	3,126	3,714		Assets
a) Equity share capital	144	144	144		Non-current Assets	3,561	3,835	3,928
					a)Property, plant and equipment	1,977	2,048	1,935
b) Other equity	2,722	3,009	3,577
					b)Capital work-in-progress	488	419	299
c) Non-controlling interests	(36)	(27)	(7)
					c)Right of use assets	111	117	139
Liabilities					d)Investmentproperty	139	287	673
Non-current liabilities	872	1,152	1,283		e)Goodwill	41	115	109
					f)Other intangible assets	81	102	129
a) Financial liabilities
					g )Intangible assets under development	31	31	47
i) Borrowings	534	836	1,147
					h)Financial assets
ii) Lease liabilities	17	20	20
					i)Investments	4	4	3
iii) Other financial liabilities	13	11	7		ii)Loans	3	2	-
b) Provisions	47	46	56		iii)Others financial assets	215	210	67
					i)Deferred tax assets(Net)	333	333	360
c) Other non-current liabilities	261	239	52
					j)Non-current tax assets(Net)	120	103	132
Current Liabilities	2,244	2,087	2,071
					k)Other non-current assets	18	64	35
a) Financial liabilities					Current Assets	2,385	2,530	3,140
i) Borrowings	1,163	1,333	1,214		a)Inventories	1,083	1,301	1,595
ii) Lease liabilities	2	7	11		b)Financial assets
					i)Trade receivables	484	416	871
ii) Trade payables	732	458	646
					ii)Cash and cash equivalents	94	353	130
iii) Other financial liabilities	118	91	128
					iii)Bank balances other than(iii)above	456	230	206
b) Provisions	9	26	10		iv)Investments	-	28	-
c) Other current liabilities	217	168	59		v)Loans	47	10	-
					vi)Other financial assets	12	4	3
d) Current tax liabilities (Net)	3	3	3
					c)Other current assets	194	156	335
e) Contract Liability	0	1	-
					d)Contract Assets	15	32	-
TOTAL EQUITY AND LIABILITIES	5,946	6,365	7,068		TOTAL ASSETS	5,946	6,365	7,068

Fermenta Biotech Limited

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Historical Consolidated Financial Performance

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Operational Revenue (INR Mn) Operational EBITDA (INR Mn) & Margins (%)
3,985
3,773 21.65%
817
3,499
15.41% 614
1,394 5.12%
179
-2.08%
FY21 FY22 FY23 H1-FY24
-29
FY21 FY22 FY23 H1-FY24
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25%
21.65%
817
20%
15.41% 614
15%
10%
5.12%
179
5%
-2.08%
0%
FY21 FY22 FY23 H1-FY24
-5%
-29
EBITDA (INR Mn) EBITDA Margins (%)
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Working Capital Days
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RoCE & RoE (%)

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97 98
46
FY21 FY22 FY23
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19%
12%
4% -2%
12% 13%
7%
FY20 FY21 FY22 FY23
-17%
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PAT (INR Mn) & Margins (%)
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455
12.06%
154
3.86%
FY21 FY22 FY23 H1-FY24
-14.72% -260
-18.65%
-515
PAT (INR Mn) PAT Margins (%)
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Net Debt to Equity (x)

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0.55
0.51
0.45
0.41
FY21 FY22 FY23 H1-FY24
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RoCE (%) RoE (%)

Fermenta Biotech Limited

16

Disclaimer

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No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management Fermenta Biotech Limited (“Company” or “FBL”), which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment.

Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments.

This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration there from.

This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner.

Valorem Advisors Disclaimer:

Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review.

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For further information please contact our Investor Relations Representatives: Mr. Anuj Sonpal Valorem Advisors Tel: +91-22-4903-9500 Email: fermenta@valoremadvisors.com

Fermenta Biotech Limited

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Thank You