SMS Pharmaceuticals Ltd — Earnings Release 2022

Aug 13, 2022

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Date: 13[th] August, 2022

To, The Manager, Corporate Filings Department, BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001

Security Code: 532815

The Manager, Listing Compliance Department, National Stock Exchange of India Ltd. Exchange Plaza, Plot no. C/1, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051.

Symbol: SMSPHARMA

Dear Sir/Madam,

Sub: Press release on Financial Results

Please find enclosed the press release on the Financial Results for the first quarter ended 30[th] June, 2022.

This press release may also be accessed on the website of the Company at www.smspharma.com

Kindly take the same on record and disseminate on your website.

Thanking you Yours Faithfully

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Press Release

SMS Pharmaceuticals Limited Reports its Q1FY23 Financial Results

• ✓ Turnaround at the EBITDA level on a sequential basis

• ✓ Healthy growth in recently launched anti-diabetic products

Hyderabad, August 13, 2022: SMS Pharmaceuticals Limited (SMS Pharma) (NSE: SMSPHARMA; BSE:532815), a Hyderabad based diversified and fully integrated pharmaceutical company, with interests in Active Pharmaceutical Ingredients (API) and Intermediates announced its financial results for the quarter ended 30[th] June 2022.

Particulars (In Rs. Crores)	Q1 FY23 Q4 FY22 YoY%	Q1 FY22 QoQ
Revenue Gross Profit EBITDA EBITDA Margin % Profit Before Tax (PBT)	64.4 60.9 6% 29.2 27.8 5% 0.0 -4.0 NA 0.0% -6.6% 658 bps -12.8 -16.3 NA	163.0 -61% 78.4 -63% 45.7 NA 28.1% NA 32.8 NA

Segmental Performance Update

Particulars (In Rs. Crores)	Q1 FY23 Q1 FY22	Q4 FY22
API Intermediates & Others	63.6 150.8 0.4 12.2	59.8 1.1

API Segment Highlights

• Q1FY23 revenue for the API segment stood at Rs. 63.6 crores.

• Q1FY23 API segment contributed approximately 99.4% to the consolidated revenue.

• Within the API segment, ~18% of the revenues came from the domestic market and ~82% from the export market (including deemed exports) for Q1FY23.

• Within the therapeutic areas, the anti-retroviral therapeutic category contributed ~2%, antimigraine ~29%, anti-ulcer ~11%, anti-epileptic ~5%, anti-erectile dysfunction ~16%, antidiabetic ~10% and the rest contributed around 27% to the total sales for Q1FY23.

Commenting on the results Mr. P. Vamsi Krishna, Executive Director – SMS Pharmaceuticals Limited

said , “The company witnessed an improvement in financial and operational metrics on a sequential basis with the turnaround at the EBITDA level. However, the company continued to witness the impact of lower offtake for the ARV products by key international customers. The non-ARV product portfolio for the company continued to witness healthy traction. The company is also witnessing strong traction for Ibuprofen which has been recently commercialised. The company has recently received the CEP approval for Ibuprofen. With this, the company can start selling Ibuprofen in the European markets. The company will continue to explore avenues to further grow the revenue from Ibuprofen through new customer addition and geographic expansion. The company also expects to grow its revenue through the recently patent expired anti-diabetic products.

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The company remains confident of overcoming the short-term challenges. The company will continue to invest in R&D and product launches along with new customer addition and geographic expansion to grow the revenue and profitability, going forward.

As a strategy, the company will also launch some tactical products as per need and market demand which will further deepen the customer engagement and will provide the operating leverage for the company.”

About SMS Pharmaceuticals Limited

Established in 1990, SMS Pharma is a global player in API and intermediates manufacturing having strong research and the manufacturing team supported by state-of-the-art facilities. The Company has capabilities in a wide range of APIs / intermediates and has handled varied process reactions and reactor volumes up to 2,000 KL. The company undertakes contract manufacturing of API, Intermediates (advanced and basic) offering a competitive advantage to its clients especially in the late-stage lifecycle of products. The Company has demonstrated its manufacturing excellence over the past 2 decades in a broad portfolio of therapeutic segments by being a trusted partner to a customer base in over 70 countries (including clientele in the top 20 pharma companies). With 2 manufacturing facilities (two USFDA inspected), 2 pilot plants, 1 R&D center and 1 USFDA approved Independent Testing Laboratory, SMS Pharma is an ideal partner for custom synthesis, process development and mass manufacturing of customer’s own discovery products.

For more information, please visit smspharma.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 more information please contact:

Strategic Growth Advisors Pvt. Ltd. SMS Pharmaceuticals Limited CIN: U74140MH2010PTC204285 CIN: L24239TG1987PLC008066 Mr. Jigar Kavaiya / Mr. Chinmay Madgulkar Mr. Thirumalesh Tumma Email: jigar.kavaiya@sgapl.net / chinmay.m@sgapl.net Email: complianceofficer@smspharma.com Contact no.: +91 9920602034 / +91 9860088296

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Contact no.: +91 9100123244