Granules India Ltd. — Investor Presentation 2021

Jul 27, 2021

REGISTERED OFFICE

GRANULES INDIA LTD., 2nd Floor, 3rd Block, My Home Hub, Madhapur, Hyderabad - 500 081, Telangana, INDIA. Tel: +91 40 30660000, Fax: +91 40 23115145, mail@granulesindia.com, www.granulesindia.com CIN: L24110TG1991PLC012471

Dated July 27, 2021

To, National Stock Exchange of India Limited BSE Limited Symbol: NSE: GRANULES; BSE: 532482

Dear Sir,

Sub: Presentation to the Analysts/Investors

We refer to Un-audited financial results for the first quarter ended June 30, 2021, submitted to you today i.e., on 27" July 2021.

We are now enclosing the presentation in this regard to the Analysts/Investors which is also being uploaded on our website.

This is pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Kindly take the above information on record.

Thanking you.

Yours faithfully,

(CHAITANYA TUMMAL A) __-< COMPANY SECRETARY & = COMPLIANCE OFFICER

As Encl:

Granules India Limited Q1FY22 Earnings Presentation

Safe Harbor

The Presentation is to provide the general background information about the Company's activities as at the date of the Presentation. The information contained herein is for general information purposes only and based on estimates and should not be considered as a recommendation that any investor should subscribe / purchase the company shares. The Company makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information contained herein.

This presentation may include certain "forward looking statements". These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties which could cause actual outcomes and results to differ materially from these statements. Important factors that could cause actual results to differ materially from our expectations include, amongst others general economic and business conditions in India, ability to successfully implement our strategy, our research and development efforts, our growth and expansion plans and technological changes, changes in the value of the Rupee and other currencies, changes in the Indian and international interest rates, change in laws and regulations that apply to the Indian and global pharmaceuticals industries, increasing competition, changes in political conditions in India or any other country and changes in the foreign exchange control regulations in India. Neither the company, nor its directors and any of the affiliates or employee have any obligation to update or otherwise revise any forward-looking statements. The readers may use their own judgment and are advised to make their own calculations before deciding on any matter based on the information given herein. No part of this presentation may be reproduced, quoted or circulated without prior written approval from Granules India

Limited.

Q1FY22 - Financial Highlights

(In ₹ Mn)

PAT value

EPS (In ₹)

Income from Operations Gross margin and margin % EBITDA and EBITDA margins

• benefit. 4.85

Share of Finished Dosage and PFI increased YoY

Finished Dosage and PFI segments grew 25% and 18% (In ₹ Mn) 7,356 8,498

Share of other molecules increased to 18%

Q1FY22- Key Financial and Business Highlights

• Successfully completed USFDA inspection for its Virginia facility on 20th Jul'21 and EIR received. Paracetamol KSM supply disruption has continued and affected our Revenue and PAT adversely. The KSM supply situation is likely to improve with an increase in the number of domestic suppliers and the recommencement of supply from the Chinese source. • Q1FY22 revenues at INR 8,498 Mn, growth of 15.5% YoY. EBITDA stood at INR 2,014 Mn, a growth of 9.7% YoY. EBITDA margins stood at 23.7% compared to 25.0%. PAT at INR 1,202 Mn a growth of 7.9% • Pharmaceutical Formulation Intermediates (PFI) segment grew 25% YoY, Active Pharmaceutical Ingredients (API) segment grew 5% YoY and Finished Dosage (FD) grew 18% YoY • During the quarter we filed one ANDA, two EU dossiers, one UK dossier and one South African dossier. We received one ANDA approval and launched one ANDA in the US. • Focus on ESG is continuing and as a part of ESG initiative, the company has identified areas of improvement and

• initiated a Carbon & Emission, Water & Waste Foot printing exercise and taken up Operational Excellence projects in these areas. • Completed COVID-19 vaccination drive for the entire Granules family including contract labours.

* Increased business has resulted in temporary increase in CCC, while planned capex has brought the Free Cash down for current quarter.

Core includes Paracetamol, Metformin, Ibuprofen, Methocarbamol and Guaifenesin

ANDA/Dossier filing status as of June'21

ANDA/Dossier filing status as of June'21
	GPI IP	GIL IP
Filing Status	USA	USA	Europe	Canada	South Africa	UK	Total
Approved	19	24	2	1			46
Tentatively Approved	1	1					2
To be approved	8	4	3	2	2	2	21
Total Products	28	29	5	3	2	2	69
Total GPI products include:
						CII –7
						PFOS –4
						Liquid Orals -3

Improving returns; focus on OCF generation for funding capex while meeting increased working capital requirement: 5-year trajectory

Net Debt & Net debt-to-EBITDA (x) ROCE (%) Cash-to-Cash cycle (days) Free Cash Flow (FCF) 135 125 114 109 117 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 6,138 8,704 9,082 6,058 5,752 2.1x 3.1x 2.4x 1.2x 0.7x Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 23.7% 14.7% 17.0% 20.5% 30.7% Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 -1,284 -4,471 -172 2,919 1,615 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 21.0% 12.0% 16.7% 19.9% 27.4% Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 ROE (%) FCF= CF from operating activities - Capex Operating Cash Flow (OCF) 1,882 -651 2,622 4,762 4,325 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21

ROCE = [EBIT/Avg. Capital Employed (Total assets-current liabilities]

(In ₹ Mn)

5-year trajectory: Creating value for stakeholders

Increasing share from FDs while focussing on backward integration

(In ₹ Mn)

Source: S&P Global CRISIL Ranking

CSR Initiatives

13

As a part of CSR initiative, we have donated Paracetamol tablets to the government of Telangana for fighting against COVID

In Summary

Timely launches of products expected FY22 while increasing the market share of existing products by passing on cost benefits realized through operational

Continue rationalizing R&D portfolio while building towards sustainability

Timely completion of new block construction in Gagillapur and other

Ensure employee safety while increasing productivity and ensuring Regulatory

2–3-year Financial Goals: Revenue CAGR ~20%+ PAT CAGR ~20%+ ROCE ~25%+

Focus on Cash conservation and liquidity management

Focus on Free cash flow generation and reduction in net debt

Improve profitability through better capacity utilization and by enhancing product mix and operational cost efficiencies

Working capital management with high focus on inventory management to ensure supply security

Glossary

• API: Active Pharmaceutical Ingredient
• PFI: Pharmaceuticals Formulation Intermediates
• FD: Finished Dosage
• OTC: Over the counter drugs
• Rx: Prescription drugs
• IR: Immediate Release
• ER: Extended Release
• CII: Control substances
• PFOS: Powder for oral suspensions and solutions
• MUPS: Multi-unit pellet system
• Para: Paracetamol
• MF: Metformin
• IBU: Ibuprofen
• GGF: Guaifenesin
• MCB: Methocarbamol

Thank you

Granules India Ltd

Floor 2 Block 3 My Home Hub Madhapur Hyderabad 500081

CIN: L24110TG1991PLC012471

Voice: +91 40 30660000/30663600 Fax: +91 40 23115145/30663602

Granules India IR

Krishna Raghunathan Granules India Ltd VP Finance and Investor Relations Voice: +91 9963027693

www.granulesindia.com krishna.raghunathan@granulesindia.com

Gauri Kanikar

Consulting Ernst & Young Investor Relations Practice