SMS Pharmaceuticals Ltd — Earnings Release 2024

May 30, 2024

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Date: 30[th ] May, 2024

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 fourth quarter and year ended 31[st] March, 2024.

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

For SMS Pharmaceuticals Limited

THIRUMALESH Digitally signed by THIRUMALESH TUMMA TUMMA Date: 2024.05.30 19:09:15 +05'30' Thirumalesh Tumma Company Secretary

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Press Release

SMS Pharmaceuticals Limited reports record performance in Q4FY24 and FY24

• Q4FY24 Revenue up by 65% y-o-y to a record Rs. 246 crore

• Q4FY24 PAT up by 178% y-o-y at Rs. 17 crore

• Board recommends a higher final dividend of 40% vs final dividend of 30% in FY23

• Significant increase in the sales volume of multiple products.

• Strong performance in anti-diabetic and Ibuprofen segments.

• Undertaking Rs. 150 crore of capex for backward integration and new product lines

Hyderabad, May 30, 2024: 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 and year ended 31[st] March 2024.

Particulars (In Rs. Crores)	Q4 FY24 Q4 FY23 YoY% Q3 FY24 QoQ%	FY24 FY23 YoY%
Revenue Gross Profit EBITDA Profit After Tax (PAT)	245.80 149.42 64.5% 161.48 52.2% 63.26 47.27 33.8% 50.17 24.7% 33.63 23.24 44.7% 29.00 16.0% 17.28 6.22 177.8% 11.47 50.7%	709.26 522.05 35.9% 211.56 132.56 59.6% 116.62 54.48 114.1% 49.83 -7.06 NA

Segmental Performance Update

Particulars (In Rs. Crores)	Q4FY24 Q4 FY23	Q3 FY24	FY24 FY23
API Intermediates & Others	242.05 146.30 3.74 3.12	160.30 1.17	698.10 515.03 11.16 7.02

API Segment Highlights

• Q4 & FY24 revenue for the API segment stood at Rs. 242.1 crores and Rs. 698.1 crores respectively.

• Q4 & FY24 API segment contributed approximately 98.5% and 98.4% to the consolidated revenue respectively.

• Within the API segment, ~11% of the revenues came from the domestic market and ~89% from the exports market (including deemed exports) for Q4FY24.

• Within the therapeutic areas, anti-retroviral (ARV) contributed ~16%, anti-diabetic contributed ~29%, anti-migraine ~14%, anti-ulcer ~7%, anti-epileptic ~3%, anti-erectile dysfunction ~5%, anti-inflammatory ~19% and the rest contributed around 8% to the total sales for Q3FY24.

Commenting on the results Mr. P. Vamsi Krishna, Executive Director – SMS Pharmaceuticals Limited said , “In FY24, we have experienced robust growth across all our product segments, driven by sales volume growth. Our strategic focus on diversification and backward integration has significantly contributed to maintaining stability in our product portfolio and gross margins.The deliberate shift

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towards higher-margin products and a focus on therapeutic segments with strong market demand have improved our product mix.

We effectively managed our raw material costs through strategic sourcing and robust backward integration to mitigate fluctuations in solvent and raw material prices. Our EBITDA margins increased by 601 bps to 16.4% in FY24. Our focus will remain on optimizing costs, enhancing operational efficiencies, and leveraging the growth potential in various product segments.

The ARV segment's contribution to the top line was around 20% for the full year. We anticipate maintaining the ARV segment's contribution at pre-covid level in the coming years. The demand for ARV products remains stable, supported by our strong presence in the market.

Sales of Ibuprofen nearly doubled compared to the previous quarter, driven by widening customer base and increasing traction with existing customers, along with optimized production. This product has been a consistent performer in our portfolio. We expect continued growth in Ibuprofen sales, supported by stable raw material prices.

Our antidiabetic products have grown rapidly and shown strong market penetration. This segment has been a significant growth driver, reflecting our strategic focus on high-demand therapeutic areas. We anticipate sustained growth in this segment, with plans to introduce additional products to meet market demand.

We are undertaking Capex of approximately Rs. 150 crore in FY25 focusing on backward integration and new product lines. This capex will be funded by a combination of internal accruals, term loan and recent fundraise through issuance of convertible equity warrants of Rs. 114.3 crore. These investments are aimed at enhancing our production capabilities and introducing new, high-margin products. Also, our R&D efforts are directed towards developing products in high-demand therapeutic areas, ensuring a robust pipeline for future growth.

I am pleased to share that the Board has recommended a final dividend of Rs. 0.4 (40%) per equity share of face value of Rs.1/-each for FY24. This reaffirms our commitment to creating value for shareholder”.

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

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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:

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Strategic Growth Advisors Pvt. Ltd. SMS Pharmaceuticals Limited CIN: U74140MH2010PTC204285 CIN: L24239TG1987PLC008066 Mr. Jigar Kavaiya / Mr. Parin Narichania Mr. Thirumalesh Tumma Email: jigar.kavaiya@sgapl.net / parin.n@sgapl.net Email: complianceofficer@smspharma.com Contact no.: +91 9920602034 / +91 9930025733 Contact no.: +91 9100123244