Nureca Limited — Interim / Quarterly Report 2022

Jul 31, 2021

Ref: NL/CS/2021-22

Dated: July 31, 2021

• $1.$ National Stock Exchange of India Limited 'G' Block, Exchange Plaza, Bandra Kurla Complex, Bandra (East), MUMBAI - 400 051.
• $\overline{2}$ . BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, MUMBAI - 400001.

Subject: Outcome of the Board of Director's Meeting

Dear Sir/madam,

We wish to inform you that the Board of Directors in their meeting held on July 31, 2021 have inter-alia decided and approved:

• 1. Unaudited Financial Results along with Limited Review Reports of Auditors thereon for the quarter ended June 30, 2021
• 1. To convene the 05th Annual General Meeting (AGM) of the Members of the company on Wednesday, September 29, 2021.
• 1. To close the Register of Members and Share Transfer Books from September 23, 2021 to September 29, 2021 (Both days inclusive) for the purpose of AGM. Accordingly the cut-off date, to ascertain the eligibility of members for remote e-voting and polling/ e-voting at AGM, is September 22, 2021 i.e. the date prior to the commencement of book closure.

We are enclosing herewith presentation on financial results for the quarter ended June 30, 2021

This is for your kind information and records please. Thanking You,

Yours Sincerely, For Nureca Limited

Y withitine

(Gurvikram Singh) Company Secretary and Compliance officer

NURECA LIMITED

Correspondence Office : SCO 6-7-8, 1st Floor, Madhya Marg, Sector 9D, Chandigarh, 160009 Registered Office : 128 Gala Number Udyog Bhavan, 1st Floor Sonawala Lane, Goregaon East Mumbai City Maharashtra 400063 Phone No. +91-172-5292900 CIN: L24304MH2016PLC320868

NURECA LIMITED

128 Gala Number Udyog Bhavan, 1st Floor Sonawala Lane, Goregaon (East), Mumbai - 400063, Maharashtra, India Tel: +91 -172-5292900, E-mail: cs@nureca.com, Website: www.nureca.com Corporate Identification Number: L24304MH2016PLC320868

					(Amount in INR million, unless otherwise stated)
	Statement of Unaudited Standalone Financial Results for the quarter ended 30 June 2021				Year ended
	Ouarter ended
Sr. No.	Particulars	30 June 2021(Unaudited)	31 March 2021(Audited)	30 June 2020(Unaudited)Refer note 4	31 March 2021(Audited)
$\bf{1}$	Revenue from operations	1,194.82	318.20	302.17
$\overline{2}$	Other income	21.39	12.79		2,133.31
3	Total income (1+2)	1,216.21	330.99	1.64303.81	28.17
					2,161.48
$\overline{\mathbf{4}}$5	ExpensesPurchase of stock-in-tradeChanges in inventories of stock-in-tradeEmployee benefits expenseFinance costsDepreciation expenseOther expensesTotal expensesProfit before tax (3-4)	496.78(2.35)25.122.171.46204.88728.06488.15	117.7146.8020.413.800.5690.45279.7351.26	142.66(45.92)4.613.610.9270.91176.79127.02	1,199.00(205.30)45.8315.974.09476.961,536.55624.93
6	Tax expense
	- Current tax- Deferred tax	127.51(0.89)	13.51(0.43)	32.520.01	164.69(5.10)
7	Profit for the period/year (5-6)	361.53	38.18	94.49	465.34
8$\mathbf{A}$	Other comprehensive income/(expense)(i) Item that will not be reclassified to profit or loss(ii) Income tax relating to items that will not bereclassified to profit or loss	0.03(0.01)	0.03(0.01)	0.06(0.01)	0.12(0.03)
$\overline{B}$	(i) Item that will be reclassified to profit or loss(ii) Income tax relating to items that will be reclassifiedto profit or loss			(0.00)	(0.00)
9	Total comprehensive income for the period/ year$(7+8)$	361.55	38.20	94.54	465.43
10	Earnings per share of Rs. 10 eachBasic and diluted (in rupees) (not annualized)	36.15	4.48	13.50	62.25
11	Paid-up equity share capital(Face value of share - Rs.10 each)	100.00	100.00	10.00	100.00
12	Reserve (excluding revaluation reserve)				1,532.92
	See accompanying notes to the unaudited standalonefinancial require

NURECA LIMITED

Correspondence Office : SCO 6-7-8, 1st Floor, Madhya Marg, Sector 9D, Chandigarh, 160009Registered Office : 128 Gala Number Udyog Bhavan, 1st Floor Sonawala Lane, Goregaon East Mumbai City Maharashtra 400063

Phone No. +91-172-5292900 CIN: L24304MH2016PLC320868

For and on behalf of Board of Directors of

Nureca Limited

Saurabh Goval

DIN: 00136037

(Managing Director)

NURECA LIMITED

128 Gala Number Udyog Bhavan, 1st Floor Sonawala Lane, Goregaon (East), Mumbai - 400063, Maharashtra, India Tel: +91 -172-5292900, E-mail: cs@nureca.com, Website: www.nureca.com Corporate Identification Number: L24304MH2016PLC320868

Notes to the unaudited standalone financial results:

• 1 The above unaudited standalone financial results as reviewed by the Audit Committee, have been approved at the meeting of the Board of Directors held on 31 July 2021 and are subjected to Limited Review by the Statutory Auditors. The review report of the Statutory Auditors is being filed with the BSE Limited and National Stock Exchange of India Limited. For more details, visit the investor relation section of our website www.nureca.com and financials results at corporate section at www.bseindia.com and www.nseindia.com.
• 2 The business of the Company falls within single line of business i.e. business of home healthcare and wellness products.
• 3 During the previous year the Company had made Initial Public Offering of 2,500,175 equity shares of face value of INR 10 each for cash consisting 2,496, 675 equity shares to public other than employees at a price of INR 400 per equity share (including a share premium of INR 390 per equity share) and 3,500 equity shares to the employees at a price of INR 380 per equity share (including a share premium of INR 370 per equity shares) aggregating to INR 1000.00 million. The equity shares of the Company were listed on BSE Limited and National Stock Exchange of India Limited on 25 February 2021. The Company had incurred INR 32.21 million as an IPO related expense (excluding taxes). These expenses (excluding taxes) of INR 32.21 million had been adjusted against securities premium.

The utilization of IPO proceeds out of fresh issue is summarized below:
-------------------------------------------------------------------------	--	--

The utilization of IPO proceeds out of fresh issue is summarized below:(NR in million)
Objectives as per Prospectus	Planned proceeds as	Actual proceeds	Utilization upto	Unutilized amount as
	per Prospectus		30 June 2021	on 30 June 2021
Funding incremental working capital requirements	750.00	750.00	731.80	18.20
General Corporate purpose	210.79	217.79	1.08	216.71
Total proceeds	960.79	967.79	732.88	234.91

IPO proceeds which were unutilized as at 30 June 2021 were temporarily invested in term deposits with bank.

The difference in planned proceeds as per prospectus and actual proceeds is due to saving in the planned IPO expenses amounting to INR 7.0 million.

4 The figures for the preceeding quarter ended 31 March 2021, as reported in these unaudited standalone financial results, are the balancing figures between audited figures in respect of the full previous financial year and the unpublished year to date figures upto the end of third quarter of the previous financial year i.e. 31 December 2020 which had only been reviewed and not subject to audit. Further, the standalone unaudited financial results for the quarter ended 30 June 2020 have been prepared solely based on the information compiled by management and have been approved by the Board of Directors which have not been audited or reviewed by our statutory auditor. However, the management has exercised necessary due diligence to ensure that the standalone unaudited financial results provide a true and fair view of the Company's affairs.

• 5 The Company has taken in to account the possible impact of Covid-19 in preparation of the unaudited standalone financial results, including its assessment of there coverable value of its assets based on the internal and external information upto the date of approval of these results and current indicators of future economic conditions.
• 6 During the current quarter, National Pharmaceutical Pricing Authority "NPPA" has issued the notifications dated 03 June 2021 and 04 June 2021 in relation to fixation of the Maximum Retail Price of a non-scheduled medical device w.e.f. 9 June 2021. Additionally, subsequent to the end of the quarter, NPPA also issued orders dated 13 July 2021 and 23 July 2021 in relation to fixation of the Maximum Retail Price of certain additional products w.e.f. 20 July 2021. The Company has taken necessary steps to be in compliance with the aforesaid order.
• 7 The board in their meeting held on 16 June 2021 had proposed a final dividend for the financial year 2020-21, of INR 2 per equity share of INR 10 each fully paid up, subject to approval in the annual general meeting.

Place: Chandigarh Date: 31 July 2021

NURECA LIMITED

Correspondence Office: SCO 6-7-8, 1st Floor, Madhya Marg, Sector 9D, Chandigarh, 160009 Registered Office : 128 Gala Number Udyog Bhavan, Ist Floor Sonawala Lane, Goregaon East Mumbai City Maharashtra 400063 Phone No. +91-172-5292900 CIN: L24304MH2016PLC320868

NURECA LIMITED

128 Gala Number Udyog Bhavan, 1st Floor Sonawala Lane, Goregaon (East), Mumbai - 400063, Maharashtra, India Tel: +91-172-5292900, E-mail: cs@nureca.com, Website: www.nureca.com Corporate Identification Number: L24304MH2016PLC320868

(Amount in INR million, unless otherwise stated)
	Statement of Unaudited Consolidated Financial Results for the quarter ended 30 June 2021
		Year endedOuarter ended
Sr. No.	Particulars	30 June 2021	31 March 2021	30 June 2020	31 March 2021
		(Unaudited)	(Audited)	(Audited)	(Audited)
					2,134.54
$\mathbf{1}$	Revenue from operations	1,194.82	318.40	302.17	28.17
$\overline{2}$	Other income	21.39	12.79331.19	1.64303.81	2,162.71
$\overline{\mathbf{3}}$	Total income (1+2)	1.216.21
$\overline{\mathbf{4}}$	Expenses
	Purchase of stock-in-trade	496.78	117.68	142.66	1,200.12
	Changes in inventories of stock-in-trade	(2.35)	46.80	(45.92)	(205.30)
	Employee benefits expense	25.15	20.40	4.61	45.83
	Finance costs	2.19	3.82	3.61	16.03
	Depreciation expense	1.55	0.68	0.92	4.22
	Other expenses	204.31	89.82	70.93	478.48
	Total expenses	727.63	279.20	176.81	1.539.38
5	Profit before tax (3-4)	488.58	51.99	127.00	623.33
6	Tax expense
				32.52	164.69
	- Current tax- Deferred tax	127.51(0.89)	13.51(0.43)	0.01	(5.10)
$\overline{7}$	Profit for the period/year (5-6)	361.96	38.91	94.47	463.74
8	Other comprehensive income/(expense)
A	(i) Item that will not be reclassified to profit or loss	0.03	0.03	0.06	0.12
	(ii) Income tax relating to items that will not be	(0.01)	(0.01)	(0.01)	(0.03)
	reclassified to profit or loss
$\mathbf{B}$	(i) Item that will be reclassified to profit or loss	(0.00)	0.01	0.00	0.02
	(ii) Income tax relating to items that will be reclassified			$\bullet$
	to profit or loss
9	Total comprehensive income for the period/ year	361.98	38.94	94.52	463.85
	$(7+8)$
10	Earnings per share of Rs. 10 each
	- Basic and diluted (in rupees) (not annualized)	36.20	4.56	13.50	62.04
11	Paid-up equity share capital	100.00	100.00	10.00	100.00
	(Face value of share - Rs. 10 each)
12	Reserve (excluding revaluation reserve)				1,530.98
	See accompanying notes to the unaudited consolidated
	financial recults

NURECA LIMITEDCorrespondence Office : SCO 6-7-8, 1st Floor, Madhya Marg, Sector 9D, Chandigarh, 160009Registered Office : 128 Gala Number Udyog Bhavan, 1st Floor Sonawala Lane, Goregaon East Mumbai City Maharashtra 400063

Phone No. +91-172-5292900 CIN: L24304MH2016PLC320868

behalf of Board of Directors of

Nureca Limited

Saurabh Goyal

DIN: 00136037

(Managing Director)

NURECA LIMITED

128 Gala Number Udyog Bhavan, 1st Floor Sonawala Lane, Goregaon (East), Mumbai - 400063, Maharashtra, India Tel: +91 -172-5292900, E-mail: cs@nureca.com, Website: www.nureca.com Corporate Identification Number: L24304MH2016PLC320868

Notes to the unaudited consolidated financial results:

• 1 The above unaudited consolidated financial results as reviewed by the Audit Committee, have been approved at the meeting of the Board of Directors held on 31 July 2021 and are subjected to Limited Review by the Statutory Auditors. The review report of the Statutory Auditors is being filed with the BSE Limited and National Stock Exchange of India Limited. For more details, visit the investor relation section of our website www.nureca.com and financials results at corporate section at www.bseindia.com and www.nseindia.com.
• 2 The business of the Group falls within single line of business i.e. business of home healthcare and wellness products.
• 3 During the previous year the Holding company had made Initial Public Offering of 2,500,175 equity shares of face value of INR 10 each for cash consisting 2,496, 675 equity shares to public other than employees at a price of INR 400 per equity share (including a share premium of INR 390 per equity share) and 3,500 equity shares to the employees at a price of INR 380 per equity share (including a share premium of INR 370 per equity shares) aggregating to INR 1000.00 million. The equity shares of the Holding company were listed on BSE Limited and National Stock Exchange of India Limited on 25 February 2021. The Holding company had incurred INR 32.21 million as an IPO related expense (excluding taxes). These expenses (excluding taxes) of INR 32.21 million had been adjusted against securities premium.

The utilization of IPO proceeds out of fresh issuer is summarized below:$\left(\frac{INR}{I}\right)$ in million)
Objectives as per Prospectus	Planned proceedsas per Prospectus	Actual proceeds	30 June 2021	Utilization upto Unutilized amount ason 30 June 2021
Funding incremental working capital requirements	750.00	750.00	731.80	18.20
General Corporate purpose	210.79	217.79	1.08	216.71
Total proceeds	960.79	967.79	732.88	234.91

IPO proceeds which were unutilized as at 30 June 2021 were temporarily invested in term deposits with bank.

The difference in planned proceeds as per prospectus and actual proceeds is due to saving in the planned IPO expenses amounting to INR 7.0 million.

• 4 The figures for the preceeding quarter ended 31 March 2021, as reported in these unaudited consolidated financial results, are the balancing figures between audited figures in respect of the full previous financial year and the unpublished year to date figures upto the end of third quarter of the previous financial year i.e. 31 December 2020 which had only been reviewed and not subject to audit.
• 5 The Group has taken in to account the possible impact of Covid-19 in preparation of the unaudited consolidated financial results, including its assessment of there coverable value of its assets based on the internal and external information upto the date of approval of these results and current indicators of future economic conditions.
• 6 During the current quarter, National Pharmaceutical Pricing Authority "NPPA" has issued the notifications dated 03 June 2021 and 04 June 2021 in relation to fixation of the Maximum Retail Price of a non-scheduled medical device w.e.f. 9 June 2021. Additionally, subsequent to the end of the quarter, NPPA also issued orders dated 13 July 2021 and 23 July 2021 in relation to fixation of the Maximum Retail Price of certain additional products w.e.f. 20 July 2021. The Group has taken necessary steps to be in compliance with the aforesaid order.
• 7 The board in their meeting held on 16 June 2021 had proposed a final dividend for the financial year 2020-21, of INR 2 per equity share of INR 10 each fully paid up, subject to approval in the annual general meeting.

Place: Chandigarh Date: 31 July 2021

NURECA LIMITED

Correspondence Office : SCO 6-7-8, 1st Floor, Madhya Marg, Sector 9D, Chandigarh, 160009 Registered Office : 120 Gala Number Udyog Dhavan, 1st Floor Sonawala Lanc, Goregaon East Mumbai City Maharashtra 400063 Phone No. +91-172-5292900 CIN: L24304MH2016PLC320868

BSR&Co.LLP

Chartered Accountants

Unit No. A505 (A), 5th Floor, Plot No.178-179A. Industrial & Business Park, Phase -1, Chandigarh-160002 Telephone: + 91 172 664 4000 $+911726644004$ Fax:

Limited review report on unaudited quarterly consolidated financial results under Regulation 33 of the Listing Regulations

To Board of Directors of Nureca Limited

• 1. We have reviewed the accompanying Statement of unaudited consolidated financial results of Nureca Limited and its subsidiaries (the Parent and its subsidiaries together referred to as "the Group") for the quarter ended 30 June 2021 ("the Statement"), being submitted by the Parent pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ('Listing Regulations').
• This Statement, which is the responsibility of the Parent's management and approved by the Parent's $2.$ Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33 (8) of the Listing Regulations, to the extent applicable.

• 1. The Statement includes the results of the following entities:
  • a. Nureca Inc., U.S.A.
  • b. Nureca Healthcare Private Limited, India
  • Nureca Technologies Private Limited, India $C_{+}$
• 1. Attention is drawn to the fact that the figures for the 3 months ended 31 March 2021 as reported in these financial results are the balancing figures between audited figures in respect of the full previous financial year and the unpublished year to date figures up to the third quarter of the previous financial year. The figures up to the end of the third quarter of previous financial year had only been reviewed and not subjected to audit.

BSR&Co.LLP

• 1. Based on our review conducted and procedures performed as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.
• 1. The Statement includes the interim financial information of three subsidiaries which have not been reviewed/audited, whose interim financial information reflect total revenue (before consolidation adjustments) of Rs. 1.04 million, total net profit after tax (before consolidation adjustments) of Rs. 0.38 million and total comprehensive income (before consolidation adjustments) of Rs. 0.38 for the quarter ended 30 June 2021, as considered in the Statement. According to the information and explanations given to us by the management, these interim financial information are not material to the Group.

Our conclusion on the Statement is not modified in respect of the above matter.

For B S R & Co. LLP Chartered Accountants Firm's Registration No.: 101248W/W-100022

Gauray Mahajan Partner Membership No. 507857 UDIN: 21507857AAAABM2761

Place: Chandigarh Date: 31 July 2021

B S R & Co. LLP

Chartered Accountants

Unit No. A505 (A), 5th Floor, Plot No.178-179A, Industrial & Business Park. Phase -1, Chandigarh-160002 Telephone: + 91 172 664 4000 Fax: + 91 172 664 4004

Limited review report on unaudited quarterly standalone financial results under Regulation 33 of the Listing Regulations

To

Board of Directors of Nureca Limited

• 1. We have reviewed the accompanying Statement of unaudited standalone financial results of Nureca Limited for the quarter ended 30 June 2021 ("the Statement"). Attention is drawn to the fact that the standalone figures for corresponding quarter ended 30 June 2020, as reported in these financial results have been approved by the Company's Board of Directors, but have not been subject to review since the Company got listed on Stock Exchange in India on 25 February 2021.
• 1. This Statement, which is the responsibility of the Company's management and approved by the Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. Our responsibility is to issue a report on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.
• 1. Attention is drawn to the fact that the figures for the 3 months ended 31 March 2021 as reported in these standalone financial results are the balancing figures between audited figures in respect of the full previous financial year and the unpublished year to date figures up to the third quarter of the previous financial year. The figures up to the end of the third quarter of previous financial year had only been reviewed and not subjected to audit.
• Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with applicable accounting standards and other recognised accounting practices and policies has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 including the manner in which it is to be disclosed, or that it contains any material misstatement.

For B S R & Co. LLP Chartered Accountants ICAI Firm's Registration No.: 101248W/W-100022

Gaurav Mahajan Partner Membership No. 507857 UDIN: 21507857AAAABL4861

Place: Chandigarh Date: 31 July 2021

• No. BA67223 converted stric 8 S R & Co. LLPstat No. AAB-8121) with affect from October 14, 2013

NURECA

Q1FY22 Earnings Presentation

DISCLAIMER

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 and abroad, ability to successfully implement our strategy, our research & development efforts, our growth & expansion plans and technological changes, changes in the Indian and international interest rates, change in laws and regulations that apply to the healthcare industry, increasing competition, changes in political conditions 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 Nureca Ltd.

Our Focus Areas

NURECA, IS A LEADING DIGITAL HEALTHCARE AND WELLNESS SOLUTIONS PROVIDER

ORTHOCARE

2021

Listed On Stock Exchanges

₹ 163CR

GMV For Q1FY22

₹ 119CR

Revenue For Q1FY22

50+

USFDA Approved Products

₹ 49CR

EBITDA For Q1FY22

03 Established Brands

150SKUS

Respiratory, Physiotherapy, Cardiac, Diabetes And Mother & Child Care

₹ 155CR

Cash and Cash equivalents

MANAGEMENT COMMENTARY

"ARYAN GOYAL

Founder and CEO

Our brands – Dr Trust, Dr Physio and Trumom have grown exceptionally over the past few years and now enjoy higher credibility and pull on all the digital channels. We were able to grow a large loyal customer base in a relatively short period of time as a result of our focused marketing strategy, exceptional product quality and better features compared to other players.

During the last year, we witnessed acceleration in consumers demand shifting from offline channels to online channel which is very positive for Nureca which is solely focused on digital sales channel.

Nureca has been able to capitalize on this trend and our Q1FY22 results are a testament of the same. We saw a very strong growth in Q1 due to robust demand for quality preventive healthcare products supported by shifting consumer demand and restricted movements due to lockdown. Higher demand also resulted in lower discounts and better margins.

We expect the growth momentum to continue in coming quarters supported by strong demand, new product launches and improved last mile reach.

MANAGEMENT COMMENTARY

SAURABH GOYAL "

Managing Director

Over the last decade, rising income and standard of living has led to increase in lifestyle related chronic deceased. Although, advancement in medical technology has made it possible to treat these chronic deceases, it remains very expensive for most Indians. This has led to higher consumer awareness around preventive care. At Nureca, we are investing in technology and tools that make effective and affordable remote patient monitoring more accessible to Indians. Our state of the art, USFDA approved products are designed to help patients monitor their health in the comfortable environment of their home. We are investing in value added technologies which will empower Indians to take control of their health and improve their longevity of life.

The evolving trend of health-conscious India, has also benefited the nutraceutical sector, which has been growing at a CAGR of 21%. Exercise, a balanced diet, and the use of nutritional supplements have all become part of a healthy lifestyle. The average urban and semi-urban Indian is growing increasingly health and fitness conscious. This presents India's nutraceuticals industry a huge growth opportunity. To cater to the increasing demand, we have introduced a range of niche supplements, backed by scientifically proven ingredients. Going forward, we will continue to add more products in this category.

OUR GROWING CUSTOMER BASE

CUSTOMER BASE (CUMULATIVE)*

STEADY IMPROVEMENT IN REPEAT CUSTOMER

Our customer base has grown exceptionally over the last 4 years which is a result of remarkable quality of our products that led to word-of-mouth marketing by our loyal customer base. Currently, most of our products enjoy 4+ Star ratings out of 5 star ratings across e-commerce platform. At Nureca, we have a focused marketing strategy to grow our brands and our advertisement expenditure in the range of 3-5% of our revenue which lower compared to the Industry average.

*Gross Market Volume

RECENT CHANGES IN REGULATION

• § The National Pharmaceutical Pricing Authority (NPPA) has capped the price of five medical devices namely Pulse Oximeter, Blood Pressure Monitoring Machine, Nebulizer, Digital Thermometer and Glucometer under "Trade Margin Rationalisation Approach" by invoking the provisions of Paragraph 19 of the Drugs Prices Control Order (DPCO) – 2013.
• § The revised prices shall come into effect from July 20, 2021. The price so fixed shall remain in force up to January 31, 2022, or until further orders, whichever is earlier.
• § The latest notification doesn't impact manufacturers or distributors margins, nor does it change the buying price of the consumer. The impact is expected on the Maximum Retail Price (MRP) label on the products which is expected reduce as the per new calculation. Even with the reduced products price our products will be available at the same price to the consumer albeit at lower discount to the MRP.

OPERATIONAL HIGHLIGHTS

FINANCIAL HIGHLIGHTS

• § GMV for the Q1F22 at Rs. 1,627mn as compared to Rs. 423mn in Q1FY21, an increase of 285%
• § Operating Revenue was Rs. 1,195mn in Q1FY22 as compared to Rs. 302mn in Q1FY21, an increase of 295%
• § EBITDA was Rs. 492mn as compared to Rs. 132mn in Q1FY21, an increase of 274%
• § PAT stood at Rs. 362mn as compared to Rs. 94mn in Q1FY21, a growth of 283%
• § Strong balance sheet with Cash and Cash equivalents of Rs. 155 Cr.

OUR DIGITAL DNA HELPED US SAIL THROUGH DEADLY SECOND WAVE OF COVID-19

• § Digital DNA of our company helped us continue our operations uninterrupted, illustrating the resilience of our unique business model
• § COVID-19 has changed the healthcare ecosystem with people moving towards pre-diagnostic and preventive care leading to higher demand for medical devices
• § Our strategy of selling high quality products through online channel has helped us garner huge loyal customer base leading to continuous demand for our products
• § Being a responsible healthcare company, we made sure that our products are available on all the platforms during the difficult times of COVID-19
• § During calendar year 2021, Nureca received prestigious "Economic Times Best Healthcare brands 2021" award.

KEY PERFORMANCE INDICATORS

STRONG GMV GROWTH

• Operating Revenue surged 4x as compared to Q1FY21 driven by strong demand for medical products, launch of new SKUs and sustainable movement of demand from offline channels to online channels
• New product launched during the quarter have received positive response from our customers and we expect this trend to further strengthen our top line in coming quarters. We have discussed new products launched on slide 9
• Commentary on Revenue Growth • As we enter the festival season, we remain optimistic to continue the growth momentum as festival seasons are known for big discount sells on various ecommerce sites which leads to higher demand for products during the period
• Revenue grew faster than GMV due to lower discounts because of higher demand for the products in the market

KEY PERFORMANCE INDICATORS

(INR mn)

STRONG PAT & PAT MARGIN

• EBITDA increase by 3.7x as compared to Q1FY21
• EBITDA Margin remain stable on YoY basis due to higher employee cost whereas on QoQ basis margin expanded 2,342 BPS
• Q1FY22 was affected second wave of COVID-19 in terms of higher input cost, due to disruption in supply chain
• Even with the operational challenges we were able to deliver robust EBITDA margin of 40%
• Better operating leverage and strong gross margins contributed to higher EBITDA margins
• PAT stood at Rs. 362mn as compared to Rs. 94mn in Q1FY21, a growth of 283%
• PAT Margin remain stable on YoY and on QoQ basis margin expanded 1,801 BPS
• PAT grew slightly higher than EBITDA due to higher other income and lower interest expense as the company repaid part of its borrowing in previous quarters which helped negate the impact of higher depreciation

KEY PERFORMANCE INDICATORS

STRONG RETURN RATIOS

• EPS stood at Rs. 36.2 as compared to Rs. 13.5 in Q1FY21, a growth of 168% YoY
• EPS continue to grow on the back of strong Revenue and PAT numbers.
• Our products continue to enjoy premium over our competitors due to strong brand loyalty, better quality products approved by USFDA and better features leading to higher margins and stronger return on investment
• The capital raise of INR 100cr. in Q4FY21 and lower revenue due to change in the policy of government which led to some of our key products coming under drug license, and sales were impacted until license were obtained, resulted in lower return ratios for Q4FY21.

FINANCIALS – INCOME STATEMENT

Particulars (INR Mn)	Q1FY22	Q1FY21	Y-o-Y (%)	Q4FY21	Q-o-Q (%)
Revenue from operations	1,194.8	302.2	295.4%	318.4	275.3%
Other Income	21.4	1.6		12.8
TOTAL REVENUE	1,216.2	303.8	300.3%	331.2	267.2%
Cost of Goods Sold	494.4	96.7	411.1%	164.5	200.6%
Employee benefits expense	25.2	4.6	445.6%	20.4	23.3%
Other expenses	204.3	70.9	188.0%	89.8	127.5%
Total Expenses	723.9	172.3	320.2%	274.7	163.5%
EBITDA	492.3	131.5	274.3%	56.5	771.5%
Finance Cost	2.2	3.6	-39.3%	3.8	-42.7%
Depreciation	1.6	0.9	68.5%	0.7	127.9%
PBT	488.6	127.0	284.7%	52.0	839.7%
Current tax	127.5	32.5		13.5
Deferred tax	-0.9	0.0		-0.4
PAT	362.0	94.5	283.2%	38.9	830.2%
EPS	36.2	13.5	168.2%	4.6	693.2%

NEW PRODUCTS LAUNCHED

EXPANDING OUR PRESENCE IN WELLNESS AND PREVENTIVE HEALTHCARE MARKET

• We launched 8 new products this quarter taking the total SKUs to 150 1
• Majority of products launched during the quarter were Nutraceuticals, focusing on dietary supplements to capitalize on higher demand for such products driven by awareness and health-conscious Gen-Z 2
• Nutraceuticals are part of preventive healthcare market which has been core focus area for Nureca since inception. Our brands such as Dr. Trust already enjoys high credibility and loyal customer base which facilitates easier cross selling opportunity for our new products. 3
• Chronic patients has been our focus since inception and we have launched few products focusing on chronic illness such as migraine, chest pain, anxiety and high blood pressure. We will continue to innovate and bring more products to help patients tackle chronic illness 4
• Dietary supplements such as multivitamin gummies, fish oil tablets, antioxidant capsules and biotin capsules were launched during the quarter. 5
• We launched Pediatric Pulse Oximeter to cater to customer demand for the product as the third wave is expected affect children coupled with nonavailability of vaccines for children below 18 years of age
• Products have seen strong positive response from customers and have gained great traction since launched

NUTRACEUTICALS MARKET FOR INDIA AND NEIGHBOURING COUNTRIES*

By 2023, India is also expected to hold at least 3.5% market share of the global market from current levels of ~2%.

Nutraceutical market has seen exceptional demand since last 2 years driven by higher wellness and preventive healthcare awareness among millennials and Gen-Z. During Q1FY22, we entered nutraceutical market with 7 products which has seen very positive response from the market. We will continue to penetrate the nutraceutical market by introducing extensive line up of niche products to cater to ever growing demand in the segment.

*Frost & Sullivan

Respiratory Care
Nebulizer	√	√	√	√	x	√
Pulse Oximeter	√	x	x	√	x	√
Cardiac Care
BP Monitor	√	√	x	√	x	√
Heart Rate Monitor	√	√	x	√	x	x
Diabetes Care
Blood Glucometer	√	x	x	x	x	√
Niche Categories
Massagers	√	√	x	√	x	x
Baby Care	√	x	√	√	x	x
Others
Personal Scales	√	√	x	√	√	√
Thermometer	√	√	x	√	x	√
Vaporizer	√	x	x	√	x	√
Nutritional supplements	√	x	x	x	x	√

HEALTHCARE AND WELLNESS PRODUCTS OPPORTUNITY IN INDIA AND NEIGHBORING COUNTRIES

• Overall Indian Healthcare and wellness products market is expected to growth at 11% to INR 38,880cr in 2025 with Lifestyle products market expected to grow fastest at 14.5% CAGR. 1
• The overall growth is driven by rising awareness of Health and wellness, increasing spending power, growing burden of chronic diseases, and the need for Healthcare stakeholders to reduce healthcare costs 2
• The home healthcare market continues to expand as consumers are buying preventive healthcare products as a result of increased awareness and changing lifestyle. 3

CHRONIC DISEASE PRODUCTS MARKET

Increasing Chronic diseases contribution to the deaths, higher spending power and availability of affordable healthcare products is driving the demand for chronic disease management products at their homes.

ORTHOPEDIC PRODUCTS MARKET (INR Cr) (INR Cr)

The growth in this market is primarily driven by the increasing incidence of chronic diseases, increasing accidents, rising geriatric population and increasing awareness for therapy.

WHAT MAKES NURECA DIFFERENT?

Product Quality

• International standards quality and design of the products

Regulatory Compliance

• Our products are manufactured to be safe, accurate, long-lasting and compliant to national and international regulations. Our chronic monitoring devices are USFDA approved.

Wide product range

• Nureca offers an entire bouquet of digital home healthcare devices

Price-value proposition

• Superior consumer price-value proposition with stringent quality control

Brand Loyalty

• Over the course of last 5 years, Nureca has generated a loyal customer base of over 8 million customers

Focused digital strategy

• Emphasis on 'Point of Sales' (POS) marketing via online channels; Videos on digital shelf and YouTube channel; Presence across multiple digital media; Strong emphasis on search engine optimisation (SEO).

BUSINESS OUTLOOK

ADDING PRODUCTS AND CATEGORIES

MARKETING

OFFLINE EXPANSION • Increase tie-ups with modern retail brands, pharmacy chains, hospital chains and leading electronics chains.

• Strong focus on connected devices for remote patient monitoring

• Create a pipeline of innovative healthcare and wellness products

• A strong customer base for cross-selling of different products

• Expansion into supplement and nutrition categories

• Increase online and offline advertising

• Increase influencer marketing

• The Company plans to leverage data analytics and artificial intelligence for higher conversions

With the launch of our connected devices eco system, we will leverage data science capabilities to empower more people living with chronic and lifestyle diseases to live better and healthier lives. Our software will analyze clinical data and apply iterative insights to our user's lifestyle to deliver a more personalized care experience. This will reinforce our theme of shifting India's healthcare sector from curative to preventive and further from preventive to pre-diagnostics. We will be one step closer to our goal of making a positive impact on the lifestyle and health of our esteemed users and eventually enhance the longevity of their lives.

Q1FY22 Earnings Presentation

USE OF IPO PROCEEDS

The Net Proceeds are utilized in accordance with the details provided in the following table: (INR Mn)

Objectives as per Prospectus	Planned proceeds asper Prospectus	Actual proceeds	Utilization upto30 June 2021	Unutilized amount ason 30 June 2021
Funding incrementalworkingCapital requirements of ourcompany	750	750	732	18
General Corporate purpose	211	218	1	217
Total	961	968	733	235

SHARE INFORMATION (AS ON 30THJULY 2021)
NSE Ticker	NURECA
BSE Ticker	543264
IPO Listing Date	25thFebruary 2021
Share Price (INR)	1,725
Market Cap (INR Cr)	1,725
% free-float	25.00%
Free-float market cap (INR Cr)	431
Shares Outstanding	1,00,00,175
3M ADTV (Shares 000)	37.1
3M ADTV (INR cr)	5.7
Industry	Healthcare

Source: NSE

SHAREHOLDING AS ON 30TH JUNE 2021

(Shares pledged – Nil)

INVESTOR RELATIONS AT NURECA

Gurvikram Singh cs@nureca.com

CHRISTENSEN ADVISORY

Rahul Thakur rthakur@christensenir.com

THANK YOU…23