SOLARA ACTIVE PHARMA SCIENCES LIMITED — Interim / Quarterly Report 2021

Aug 4, 2021

Communication Address: Solara Active Pharma Sciences Limited Batra Centre No. 28. Sardar Patel Road. Post Box 2630 Guindy. Chennai - 600 032. India Tel : +91 44 43446700. 22207500 Fax : +91 44 22350278 E-mail : investors@solara.com www.solara.co.in

August 4, 2021

Dalal Street, Mumbai – 400 001 Bandra (E), Mumbai – 400 051

Scrip Code: 541540 Scrip Code: SOLARA

The BSE Limited The National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, Bandra-Kurla Complex

Dear Sirs,

Sub: Outcome of Board Meeting

Please refer our letter dated July 28, 2021 under Regulation 29 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, in continuation we wish to inform that at the meeting of Board of Directors held today (August 4, 2021) the Directors has inter-alia approved the following:

• Unaudited financial results (standalone and consolidated) of the Company for the quarter ended June 30, 2021 pursuant to Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015. A copy of the unaudited financial results (standalone and consolidated) for the quarter ended June 30, 2021 along with the Limited Review Report by the Auditors and press release is attached.

As already informed with our letter dated July 28, 2021, kindly note that the Company, as part of investors engagement activities, has scheduled a conference call with the investors and analysts on Wednesday, August 4, 2021 at 4.00 pm to discuss its Q1 financial results. The conference call details are as follows:

Event	Date & Time	Phone Numbers
Post Results Q1 FY22	Wednesday, August 4, 2021,	+91 22 6280 1346
Conference Call	4:00 pm IST	+91 22 7115 8247

URL for prior (early) registration

https://services.choruscall.in/DiamondPassRegistration/register?confirmationNumber=0704988&l inkSecurityString=28f90101c

Communication Address: Solara Active Pharma Sciences Limited Batra Centre No. 28. Sardar Patel Road. Post Box 2630 Guindy. Chennai - 600 032. India Tel : +91 44 43446700. 22207500 Fax : +91 44 22350278 E-mail : investors@solara.com www.solara.co.in

The Board Meeting commenced at 11.00 am and concluded at 2.00 pm.

We request you to take the same on record.

Thanking you, Yours faithfully,

For Solara Active Pharma Sciences Limited

S. Murali Krishna Company Secretary

Chartered Accountants Prestige Trade Tower, Level 19 46, Palace Road, High Grounds Bengaluru – 560 001 Karnataka, India

Tel: +91 80 6188 6000 Fax: +91 80 6188 6011

INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM CONSOLIDATED FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF SOLARA ACTIVE PHARMA SCIENCES LIMITED

• 1. We have reviewed the accompanying Statement of Unaudited Consolidated Financial Results of SOLARA ACTIVE PHARMA SCIENCES LIMITED ("the Parent") and its subsidiaries (the Parent and its subsidiaries together referred to as "the Group") for the quarter ended June 30, 2021 ("the Statement") being submitted by the Parent pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
• 1. This Statement, which is the responsibility of the Parent's Management and approved by the Parent's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India . 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 (ICAI). A review of interim financial information consists of making inquiries, primarily of Parent's personnel 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 specified under Section 143(10) of the Companies Act, 2013 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 SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, to the extent applicable.

• Sl. No. Name of the entities 1 Solara Active Pharma Sciences Limited, the Parent 2 Sequent Penems Private Limited, wholly-owned subsidiary 3 Shasun USA Inc., wholly-owned subsidiary 4 Chemsynth Laboratories Private Limited, subsidiary
• 1. The Statement includes the results of the following entities:

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 SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.

1. The unaudited consolidated financial results includes the interim financial information of 3 subsidiaries which have not been reviewed by their auditors, whose interim financial information reflect total revenue of Rs. 0.47 Crores, total net loss after tax of Rs. 0.45 Crores and total comprehensive loss of Rs. 0.45 Crores for the quarter ended June 30, 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 our reliance on the interim financial information certified by the Management.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants (Firm's Registration No. 117366W/W-100018)

Sathya P Koushik (Partner) (Membership No. 206920) (UDIN: 21206920AAAAHI8548)

Place: Bengaluru Date: August 04, 2021

					(Ks. in Crores except per snare aata)
SI. No.	Particulars	3 months ended	Preceding3 months ended	Corresponding 3months ended in theprevious year	Previous FinancialYear ended
		30.06.2021	31.03.2021	30.06.2020	31.03.2021
		(Unaudited)	(Refer note 11)	(Unaudited)	(Audited)
т	Revenue from operations	405.57	444.21	348.42	1,616.88
Ħ	Other income	5.91	9.78	4.58	28.77
Ш	Total Income (I + II)	411.48	453.99	353.00	1,645.65
IV	Expenses
	(a) Cost of materials consumed	227.79	193.54	127.70	683.77
	(b) Purchases of stock-in-trade	22.80	19.83	3.02	42.80
	(c) Changes in inventories of finished goods, stock-in-trade and work in progress	(72.13)	(0.48)	18.96	(2.15)
	(d) Employee benefits expense	61.15	56.98	54.50	229.37
	(e) Finance costs	18.96	24.83	19.83	84.48
	(f) Depreciation and amortisation expense	27.68	27.44	26.23	108.66
	(g) Other expenses	74.54	75.23	60.44	277.22
	Total expenses (IV)	360.79	397.37	310.68	1,424.15
v	Profit before exceptional items and tax (III - IV)	50.69	56.62	42.32	221.50
VI	Exceptional item profit / (loss) (Refer Note 9)	(0.58)
۷ı	Profit before tax (V - VI)	50.11	56.62	42.32	221.50
VII	Tax expense
	Current tax	8.84	10.03	7.47	38.80
	Deferred tax	(8.84)	(10.02)	(7.42)	(38.65)
	Total tax expense (VII)		0.01	0.05	0.15
VIII	Profit for the period (VI -VII)	50.11	56.61	42.27	221.35
IX	Other comprehensive income
A	Items that will not be reclassified subsequently to profit or loss:
	(i) Remeasurement gains/(losses) of defined benefit plans		0.65		(2.53)
	(ii) income tax relating to items that will not be reclassified subsequently to profit or loss
B	items that may be reclassified to subsequently to profit or loss:
	(i) Exchange differences on translating the financial statements of foreign operations	(0.06)	(0.02)	0.01	0.13
	(ii) Income tax relating to items that may be reclassified to statement of profit and loss			$\overline{a}$
	Total other comprehensive income for the period (IX)	(0.06)	0.63	0.01	(2.40)
x	Total comprehensive income for the period $(IX + X)$	50.05	57.24	42.28	218.95
XI	Profit for the period attributable to:
	- Equity shareholders of the Company	50.13	56.65	42.28	221.40
	- Non-controlling interests	(0.02)	[0.04]	(0.01)	(0.05)
XII	Offier Comprehensive income athibutable to:
	Equity shareholders of the Company	(0.06)	0.63	0.01	(2.40)
	Non-controlling interests
XIII	Total Comprehensive income attributable to:
	Equity shareholders of the Company	50.07	57.28	42.29	219.00
	- Non-controlling interests	(0.02)	(0.04)	(0.01)	(0.05)
XIV	Paid-up equity share capital (face value of Rs. 10/- each)	35.92	35.92	26.85	35.92
XV	Other equity excluding Non-controlling interest				1,552.60
	Earnings per equity share (face value of Rs. 10/- each)
	(a) Basic (in Rs.)	13.95	15.57	15.75	69.00
	(b) Diluted (in Rs.)	13.88	15.24	14.74	64.53
	See accompanying notes to the financial results

	SOLARA ACTIVE PHARMA SCIENCES LIMITED
	CIN: 124230MH2017PLC291636
	SOLARARead, Office: No. 201 Devavrata, Sector 17, Vashi, Navi Mumbal 400 703.
	Active Pharma SciencCorp. Office: No 28, Sardar Patel Road, Guindy, Chennal - 600 032
	STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS
Notes:	FOR THE QUARTER ENDED JUNE 30, 2021
	The above consolidated financial results of Solara Active Pharma Sciences Limited ("the Company") as reviewed by the Audit Committee has been approved by the Board of
	Directors at its meeting held on August 04, 2021. The results for the quarter ended June 30, 2021 has been reviewed by Deloitte Haskins & Sells LLP, the statutory auditors of theCompany. The statutory auditors of the Company have expressed an unmodified conclusion on the financial results for the quarter ended June 30, 2021.
$\overline{2}$	These consolidated financial results of the Company have been prepared in accordance with the Indian Accounting Standards prescribed under Section 133 of theCompanies Act, 2013 ("the Act") read with relevant rules issued thereunder ('IND AS') and other accounting principles generally accepted in india and guidelines issued by theSecurities and Exchange Board of India ("SEBI").
3	The Group's operations relate to only one reportable segment viz Active Pharmaceutical Ingredient (API). Accordingly no separate disclosure of segment information isrequired.
	The Board of Directors at their meeting held on April 09, 2021 has approved the amalgamation of Aurore Life Science Private Limited, Empyrean Lifesclences Private Limitedand Hydra Active Pharma Sclences Private Limited with the Company. The Appointed Date for the merger is April 01, 2021 and the merger process is expected to becompleted in Q4 FY 2021-22. The merger is subject to certain conditions including approvals from stock exchanges, SEBI, shareholders, jurisdictional National Company LawTribunal and other applicable statutory authorities.
5	The Board at its meeting held on February 3, 2021 has approved to acquire additional share capital in Sequent Penems Private Limited, subsidiary company of the Company.The said transaction is completed and Sequent Penems Private Limited Is wholly owned subsidiary of the Company with effect from April 27, 2021.
					(Rs. In Crores)
6SI. No.	Information on Standalone Results:Parliculars	3 monihs ended	Preceding	Corresponding 3	Previous Financial
			3 months ended	months ended in theprevious year	Year ended
		30.06.2021	31.03.2021	30.06.2020	31.03.2021
		(Unavalled)	(Refer note 11)	(Unciudified)	(Audited)
	Total Income	411.37	454.07	353.00	1,645.29
Ш	Profit before tax	50.56	57.15	42.09	220.96
Ш	Profit after tax	50.56	57.15	42.09	220.96
	adopted measures to curb the spread of infection in order to protect the health of the employees and ensure business continuity with minimal disruption.In assessing the recoverability of property plant and equipment, investment property, goodwill, receivables and intangible assets, the Group has considered internal andexternal information up to the date of approval of these financial results. The impact of the global health pandemic may be different from that estimated as at the date ofapproval of these financial results and the Group will continue to closely monitor any material changes to future economic conditions.
8	The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020.The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Group will assess the impact ofthe Code when it comes into effect and will record any related impact in the period the Code becomes effective.
	Exceptional item profit / (loss):				(Rs. in Crores)
ISI. NO	Particulars		Preceding3 months ended	months ended in theprevious year	Corresponding 3 Previous FinancialYear ended
		30.06.2021	31.03.2021	30.06.2020	31,03.2021
		(Unaudited)	(Refer note 11)	(Unaudited)	(Audilled)
	Business combination and restructuring expenses	(0.58)
10	The Group has carry forward losses as per the return of income filed with the tax culthorities. Tax credits in respect of the above are recognised to the extent such credits areconfirmed to be available and meet the recognition criteria.
$\mathbf{11}$	The figures for the quarter ended March 31, 2021 are the balancing figures between the audited figures in respect of the full financial year ended March 31, 2021 andpublished year to date figures up to third quarter of the financial year ended March 31, 2021.
	12 Previous period figures have been regrouped to conform with the classification adopted in these financial results
		QAACTIL		For and on behalf of board
				Bharath R Sesha
	Place: Bengaluru			Managing Director & CEO
	Date: August 4, 2021

Chartered Accountants Prestige Trade Tower, Level 19 46, Palace Road, High Grounds Bengaluru – 560 001 Karnataka, India

Tel: +91 80 6188 6000 Fax: +91 80 6188 6011

INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF SOLARA ACTIVE PHARMA SCIENCES LIMITED

• 1. We have reviewed the accompanying Statement of Unaudited Standalone Financial Results of SOLARA ACTIVE PHARMA SCIENCES LIMITED ("the Company"), for the quarter ended June 30, 2021 ("the Statement"), being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
• 1. This Statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India. 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 (ICAI). A review of interim financial information consists of making inquiries, primarily of the Company's personnel 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 specified under section 143(10) of the Companies Act, 2013 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.
• 1. Based on our review conducted 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 SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants (Firm's Registration No. 117366W/W-100018)

Sathya P Koushik (Partner) (Membership No. 206920) (UDIN:21206920AAAAHH4809)

Place: Bengaluru Date: August 04, 2021

					(Ks. In Crores except per snare aava)
SI. No.	Particulars	3 months ended	Preceding	Corresponding 3	Previous Financial
			3 months ended	months ended in the	Year ended
				previous year
		30.06.2021	31.03.2021	30.06.2020	31.03.2021
		(Unauclified)	(Refer note 10)	(Unaudited)	(Audited)
$\mathbf{1}$	Revenue from operations	405.57	444.21	348.42	1,616.88
и	Other income	5.80	9.86	4.58	28.41
Ш	Total Income (1 + II)	411.37	454.07	353.00	1,645.29
1V	Expenses
	(a) Cost of materials consumed	227.79	193.54	127.69	683.76
	(b) Purchases of stack-in-trade	22.80	19.83	3.02	42.80
	(c) Changes in inventories of finished goods, stock-in-trade and work in progress	(72.13)	(0.48)	18.96	(2.15)
	(d) Employee benefits expense	60.36	56.40	54.08	227.63
	(e) Finance costs	18.92	24.86	19.83	84.47
	(f) Depreciation and amortisation expenses	27.60	27.36	26.14	108.31
	(g) Other expenses	74.89	75.41	61.19	279.51
	Total expenses (IV)	360.23	396.92	310.91	1,424.33
v	Profit before exceptional items and tax (III - IV)	51.14	57.15	42.09	220.96
	Exceptional item profit / (loss) (Refer Note 7)	(0.58)
VI	Profit before tax (IV - V)	50.56	57.15	42.09	220.96
VII	Tax expense
	Current tax	8.84	10.01	7.42	38.64
	Deferred tax	(8.84)	(10.01)	(7.42)	(38.64)
	Total tax expense (VIII)
VIII	Profit for the period (VI -VII)	50.56	57.15	42.09	220.96
IX.	Offier comprehensive income
A	litems that will not be reclassified subsequently to profit or loss:
	(i) Remeasurement gains/(losses) of defined benefit plans		0.65		(2.53)
	(ii) Income tax relating to items that will not be reclassified subsequently to profit or loss
В	liems that may be reclassified to subsequently to profit or loss:
	Income tax relating to items that may be reclassified to statement of profit and loss			۰
	Total other comprehensive income/(loss) for the period (IX)	ä,	0.65	$\overline{\phantom{a}}$	(2.53)
X	Total comprehensive income for the period (VIII + IX)	50.56	57,80	42.09	218.43
XI	Paid-up equily share capital (face value of Rs. 10/- each)	35.92	35.92	26.85	35.92
XW	Oliner equily				1,556.86
	Earnings per equity share (face value of Rs. 10/- each)
	(a) Basic (in Rs.)	14.07	15.74	15.67	68.86
	(b) Diluted (in Rs.)	14.00	15.40	14.67	64.40
	See accompanying notes to the financial results

		SOLARA ACTIVE PHARMA SCIENCES LIMITED
		CIN: L24230MH2017PLC291636
		Regd. Office: No. 201 Devavrata, Sector 17, Vashi, Navi Mumbal 400 703.
	Active Pharma Sciences	Corp. Office: No 28, Sardar Patel Road, Guindy, Chennal - 600 032
		STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS
		FOR THE QUARTER ENDED JUNE 30, 2021
Notes:
L	The above standalone financial results of Solara Active Pharma Sciences Limited ('the Company') as reviewed by the Audit Committee has been approved by the Board ofDirectors at its meeting held on August 04, 2021. The results for the quarter ended June 30, 2021 has been reviewed by Deloitte Haskins & Sells LLP, the statutory auditors of theCompany. The statutory auditors of the Company have expressed an unmodified conclusion on the financial results for the quarter ended June 30, 2021.
$\mathbf{2}$	These standalone financial results of the Company have been prepared in accordance with the Indian Accounting Standards prescribed under Section 133 of the CompaniesAct, 2013 ("the Act") read with relevant rules issued thereunder ('IND AS') and other accounting principles generally accepted in India and guidelines issued by the Securities andExchange Board of India ("SEBI").
3	The Company's operations relate to only one reportable segment viz Active Pharmaceutical Ingredient (API). Accordingly no separate disclosure of segment information isrequired.
4	The Board of Directors at their meeting held on April 09, 2021 has approved the amalgamation of Aurore Life Science Private Limited, Empyrean Lifesciences Private Limited andHydra Active Pharma Sciences Private Limited with the Company. The Appointed Date for the merger is April 01, 2021 and the merger process is expected to be completed in Q4FY 2021-22. The merger is subject to certain conditions including approvats from stock exchanges, SEBI, shareholders, jurisdictional National Company Law Tribunal and otherapplicable statutory authorities.
5	COVID 19 is the infectious disease caused by the recently discovered coronavirus, SARS CoV 2. In March 2020 the WHO declared COVID 19, a pandemic. The Company hasadopted measures to curb the spread of infection in order to protect the health of the employees and ensure business continuity with minimal disruption.
6	external information upto the date of approval of these financial results. The impact of the global health pandemic may be different from that of estimated as at the date ofapproval of these financial results and the Company will continue to closely monitor any material changes to future economic conditions.The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. TheCode has been published in the Gazelte of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of theCode when it comes into effect and will record any related impact in the period the Code becomes effective.
7
SI. No.	Exceptional ilem profit / (loss) :				(Rs. In Crores)
	Parliculars	3 months ended	Preceding3 months ended	Corresponding 3months ended in theprevious year	Previous FinancialYear ended
		30.06.2021	31.03.2021	30.06.2020	31.03.2021
	Business combination and restructuring expenses	(Unaudited)(0.58)	(Refer note 10)	(Unaudiled)	(Audiled)
89	The Company has carry forward losses as per the return of income filed with the tax authorities. Tax credits in respect of the above are recognised to the extent such credits areconfirmed to be available and meet the recognition criteria.The Board at its meeting held on February 3, 2021 has approved to acquire additional share capital in Sequent Penems Private Limited, subsidiary company of the Company. Thesaid transaction is completed and Sequent Penems Private Limited is wholly owned subsidiary of the Company with effect from April 27, 2021.
10	The figures for the quarter ended March 31, 2021 are the balancing figures between the audited figures in respect of the full financial year ended March 31, 2021 and publishedyear to date figures up to third quarter of the financial year ended March 31, 2021.
п	Previous period figures have been regrouped to conform with the classification adopted in these financial results.
	Place : Bengaluru			For and on behalf of boarBharailh R Sesha

PRESS RELEASE

Q1'22

WWW.SOLARA.CO.IN | BSE:541540 NSE: SOLARA BLOOMBERG: SOLARA: IN | SECTOR: PHARMACEUTICALS

• » Solara Announces a healthy Q1FY22 financial performance
• » Unveils the Version 2.0 of the Company to accelerate growth and set ambition to become a Global Top 10 API Company by 2025
• » Introduces the new Board with industry thought leaders and seasoned promoters
• » Aditya Puri joins Solara Board as the Chairperson
• » Vineeta Rai inducted into the Board as an Independent Director

Bengaluru, India – August 4, 2021: Solara Active Pharma Sciences Ltd (Solara) (NSE: SOLARA; BSE: 541540), a leading Active Pharmaceutical Ingredient /CRAMS company today announced the financial results for the first quarter (Q1'22).

Financial Performance for Q1'22 Rs. In Mn

Particulars	Q1'22	Q4'21	QoQ	Q1'21	YoY
Revenue	4,115	4,540	-9%	3,530	17%
Operating EBITDA	1,076	1,203	-11%	1,007	7%
Operating EBITDA Margins	26.2%	26.5%	-30 bps	28.5%	-230 bps
R&D Cost	-141	-140		-140
Forex gain/(Loss)	16	-12		-4
Reported EBITDA	951	1,051	-10%	863	10%
Reported EBITDA Margins	23.1%	23.2%	-10 bps	24.4%	-130 bps
PAT	501	566	-11%	423	19%
Basic EPS (Rs. Per share)	13.95	15.57		15.75
Adjusted EPS (Rs. Per share) *	13.95	15.57		11.80

*Adjusted EPS is after adjusting for full impact of conversion of preferential warrants

Commenting on the performance, Bharath Sesha, the MD & CEO of the Company, remarked

"Second wave of Covid has had an impact on Solara. More than 275 employees tested positive for Covid during the quarter, leading to challenges in site manning and operations. In line with advisories issued by relevant authorities and our safety protocols, we took temporary shutdowns at the impacted locations.

I am proud to state that our employees have once again shown exemplary fortitude and met our commitments to customers while keeping health and safety paramount. Solara continues to enjoy the advantage of having a committed and engaged workforce, and we have supported our employees through a host of humane measures for those impacted by the pandemic.

Our base business witnessed demand stress mainly on account of the pandemic, and we expect this trend will normalize over the next 3-6 months. The reduced demand, especially in the regulated markets, has been to a large extent mitigated via the growth in new products, new geographies, and our CRAMS business. Despite the significant challenges, Solara has delivered the highest ever Q1 performance on Revenue, EBITDA, and PAT in its history.

We have also made stellar progress on our strategic levers. In this context, two notable developments are the upcoming validation and scale-up of our backward integration facility for Ibuprofen at Vizag and the rapid progress in identifying synergies with Aurore. These actions, along with the progress on new products and technology platforms, put us firmly on the path for delivering significant value over the medium term.

Given the continued uncertainty in the demand picture for the base products, we anticipate a sober first half on financial indicators followed by a much improved second half."

Solara Unveils Version 2.0: Ambition to become a global top 10 API player by 2025

Having achieved the business goals for Version 1.0 (2018-2021), Solara today unveiled version 2.0 and the playbook for achieving its ambition. In its new avatar, the Company has set an ambition to be a top 10 Pureplay API Company across the Globe by 2025. The Company anticipates growing at a CAGR of 25% over FY21- FY25 with targeted EBITDA margins of 23-25%.

As Solara's merger with Aurore concludes in a few months, the Company will attain a top 2 India positioning in the pure-play API space with 3,000KL+ reactor capacities, eight manufacturing sites, three R&D centres, 100+ commercialized products, and a combined revenue base of ~$300 million. The Company envisages more synergies to play out as the business attains significant scale backed by high R&D velocity and marketing outreach across the Globe. More details on Solara Version 2.0 are captured in the attached presentation.

Broad Based Solara Board to include industry thought leaders & seasoned promoters

The Company has inducted new members to the Board for thought leadership, capability, diversity, and strategic experience to drive the business and financial outcomes for Solara Version 2.0. The new members include:

• a) Aditya Puri, Former MD of HDFC Bank and a senior advisor to a large PE fund, joins Solara Board as the Chairperson. He will also head the Nomination and Remuneration Committee of the Board.
• b) Vineeta Rai*, a former IAS officer and Revenue Secretary, is inducted as an Independent Director. She will also chair the CSR committee of the Board.
• c) Arun Kumar, Founder of the Company, has joined as a non-executive Director.
• d) Rajender Rao, Founder of Aurore Life Sciences, joins as an Executive Director and Vice-Chairman Designate.
• e) Kartheek Raju, a seasoned investor and partner at iLabs group, joins as Non-executive Director *(Appointment will be effective from the date of share holders approval)

EBITDA Reconciliation				Rs. In Mn
Particulars	Q1'22	Q4'21	Q1'21	FY21
Profit/(loss) before exceptional items and tax	507	566	423	2,215
Add :Finance costs	190	248	198	845
Add: Depreciation and amortisation expense	277	275	262	1,086
Less:Interest income	-23	-38	-21	-142
Consolidated Reported EBITDA as per pressrelease	951	1,051	863	4,004

More details included in the attached investor presentation

Earnings Conference Call

The Company will conduct an earnings call at 4.00 PM IST on August 4, 2021, where the Management will discuss the Company's performance and answer questions from participants. To participate in this conference call, please dial the numbers provided below ten minutes ahead of the scheduled start time. The dial-in numbers for this call are +91 22 6280 1346 or +91 22 7115 8247. Please note that the transcript of the conference call will be uploaded on the Company website in due course.

About Solara

Solara Active Pharma Sciences Ltd (BSE-541540, NSE-SOLARA) headquartered in Bengaluru, India offers a basket of diversified, high-value Commercial APIs and Contract manufacturing services in over 75 countries. It has a manufacturing base comprising five globally compliant API facilities, with approvals including the USFDA, EU GMP and PMDA in Japan.

Investor / Analyst contact	Statutory and corporate affairs
Abhishek Singhal	Murali Krishna S
abhishek.singhal@solara.co.in	Raghavan. V
+91 99877 66968	investors@solara.co.in
	+91 44 4344 6700

Disclaimer: Certain statements in this document that are not historical facts and are forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local, political or economic developments, technological risks, and many other factors that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. Solara Active Pharma Sciences Ltd will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

ACCELERATING GROWTH

TOWARDS A HEALTHIER TOMORROW

Q1'22 RESULTS: RESILIENT PERFORMANCE DESPITE COVID HEADWINDS

August 4, 2021

Resilient business performance in Q1'22

"Second wave of Covid has had an impact on Solara. More than 275 employees tested positive for Covid during the quarter, leading to challenges in site manning and operations. In line with advisories issued by relevant authorities and our safety protocols, we took temporary shutdowns at the impacted locations.

Bharath.R.Sesha MD & CEO

I am proud to state that our employees have once again shown exemplary fortitude and met our commitments to customers while keeping health and safety paramount. Solara continues to enjoy the advantage of having a committed and engaged workforce, and we have supported our employees through a host of humane measures for those impacted by the pandemic.

Our base business witnessed demand stress mainly on account of the pandemic, and we expect this trend will normalize over the next 3-6 months. The reduced demand, especially in the regulated markets, has been to a large extent mitigated via the growth in new products, new geographies, and our CRAMS business. Despite the significant challenges, Solara has delivered the highest ever Q1 performance on Revenue, EBITDA, and PAT in its history.

We have also made stellar progress on our strategic levers. In this context, two notable developments are the upcoming validation and scale-up of our backward integration facility for Ibuprofen at Vizag and the rapid progress in identifying synergies with Aurore. These actions, along with the progress on new products and technology platforms, put us firmly on the path for delivering significant value over the medium term.

Given the continued uncertainty in the demand picture for the base products, we anticipate a sober first half on financial indicators followed by a much improved second half."

Revenues ₹ 4,115m 17% YoY

EBITDA ₹ 951m 10% YoY

PAT ₹ 501m 19% YoY

Performance Overview: Revenue Growth Of 17% And EBITDA Growth Of 10% YoY

* Q1'21 reported EPS based on weighted average equity shares is ₹ 15.75 per share. Adjusted for full conversion of preferential warrants EPS is ₹ 11.80 per share

	YoY and QoQ Performance
	Year on Year Comparison		₹ In Million
Particulars	Q1'22	Q1'21	Change
Revenue	4,115	3,530	17%
Gross margins	2,293	2,014	14%
Gross margins %	55.7%	57.0%	-130 bps
Operating EBITDA	1,076	1,007	7%
Operating EBITDA Margins	26.2%	28.5%	-230 bps
R&D Cost	-141	-140
Forex gain/(Loss)	16	-4
EBITDA	951	863	10%
EBITDA Margins	23.1%	24.4%	-130 bps
PAT	501	423	19%
Basic EPS (₹/Share)*	13.95	11.80
	Quarter on Quarter Comparison		₹ In Million
Particulars	Q1'22	Q4'21	Change
Revenue	4,115	4,540	-9%
Gross margins	2,293	2,370	-3%
Gross margins %	55.7%	52.3%	340 bps
Operating EBITDA	1,076	1,203	-11%
Operating EBITDA Margins	26.2%	26.5%	-30 bps
R&D Cost	-141	-140
Forex gain/(Loss)	16	-12
EBITDA	951	1,051	-10%

Business and Operations Update

Overall Business

• Revenue growth of 17% YoY despite the impact of COVID
• Regulated markets performance experienced demand pressure due to Ibuprofen and other base products which was mitigated to a large extent through:
  • Record contribution of New products with ₹ 800+ million revenues
  • Other markets revenue up from ₹ 712 million to ₹ 2,336 million YoY led by focussed growth in geographies like APAC
  • Healthy growth in the CRAMS business
• Regulated markets revenues at ₹ 1,779 million, down from ₹ 2,818 million YoY. Contributed to 43% of Q1'22 revenues
• Strong demand visibility for new products. Capacities for key new products underlined by the firm customer commitments for the next few quarters

CRAMS

• Added 4 new customers in Q1 '22 which is the highest quarterly addition in the last 3 years
• Opportunity pipeline has increased by 40%+ QoQ
• Current business visibility indicates a growth of over 50% year on year
• Differentiated technologies are generating new business opportunities

R&D and Operations

• 7 product development reports concluded in this quarter and filings are on track to deliver 10-12 DMFs this year
• R&D Spend for the quarter was ₹141 million (3.4% of Revenue)

* Q1'21 reported EPS based on weighted average equity shares is ₹ 15.75 per share. Adjusted for full conversion of preferential warrants EPS is ₹ 11.80 per share

EBITDA Margins 23.1% 23.2% -10 bps PAT 501 566 -11%

Basic EPS (₹/Share) 13.95 15.57

Quarter On Quarter Trends

• EBITDA margins consistently in the guided range
• Higher equity base, post warrant conversion impacted EPS. Earlier quarters reflect full impact of conversion of preferential warrants

Balance Sheet with Q1'FY22 performance

Statement of Assets and Liabilities
	Source of Funds
Particulars Rs Mn	Mar'20Mar'21Jun'21
Shareholders' funds	10,860	15,885	16,406
Less: Goodwill	-3,651	-3,651	-3,651
Net worth	7,209	12,234	12,755
Term Loan	3,530	2,460	3,030
Working Capital	3,538	3,609	4,264
Gross Debt	7,068	6,069	7,294
Less: Cash	-1,068	-1,985	-2,044
Net Debt	6,000	4,084	5,250
Total	13,209	16,318	18,005

	Utilization of Funds

Particulars	Mar'20	Mar'21	Jun'21
Net Tangible Fixed Assets	9,932	10,359	10,773
Net Non-current Assets	183	735	676
Net Current Assets	3,094	5,224	6,556
Total	13,209	16,318	18,005

• Net Debt to EBITDA at ~1.4x, significant leverage left on the Balance Sheet to enable our inorganic expansion plans
• Net Debt to Equity at ~0.4x
• Fixed Assets Turnover ratio at 1.6 x
• Net debt has increased from 4,084 Mn to 5,250 Mn, driven by increase in net current assets due to:
  • Higher production for planned shutdown in Q2
  • Less offtake of contractual quantities by customers
  • Receivables impacted due to higher sales from the less regulated markets

The above trends are expected to normalize over the next couple of quarters

ROCE, ROE and Fixed Assets Turnover for Jun'21 is computed by annualizing the results of Q1'22 and show a decline mainly due to the impact of the pandemic on the base business

Medium term growth is along 5 Levers, complementing and amplifying each other

04

NEW PRODUCTS/MARKETS

In a short span of 2 years Solara has established a foothold not only in key regulated markets but also in all important markets across the world. We have invested in dedicated teams and focused approach to win in these markets with both existing and new products.

03

CRAMS

Building the business from our legacy customer base, non-compete position, strong foundation on quality and environment and investing in new technologies. Solara has unique advantages to scale up the business to be one of the strong pillar of growth.

01

CONTINUOUS IMPROVEMENT

At Solara continuous improvement is in the culture of the company. We have delivered year on year improvements in costs and the company is well positioned to carry this momentum forward.

CUSTOMER CENTRICITY

Solara has strong customer relationships lasting many years. We will continue to leverage this to introduce new products to our customers. We have always approached our key customers with a strategic view and this has and will enable us to continue to grow with them.

05

INORGANIC

Grow via a "right priced" acquisition on the axes of science and/or scale. Inorganic growth is an important element of our future growth

Solara Conference Call Wednesday, 4th Aug 2021: 4:00 pm IST

Pure play APIs.

SOLARA ACTIVE PHARMA SCIENCES | Aug'21

Speakers

Arun Kumar, Founder & Non Executive Director Rajender Rao Juvvadi, Executive Vice Chairman (Designate) Mr. Bharath R. Sesha, MD & CEO Mr. Subhash Anand, Executive Director & CFO

Dial in Details:	For Solara's conference call, Wednesday 4thAug 2021, 4:00 pm IST
Universal Access	+91 22 6280 1346+91 22 7115 8247
Copy this URL in yourbrowser(for early registration)	https://services.choruscall.in/DiamondPassRegistration/register?confirmationNumber=0704988&linkSecurityString=28f90101c

CORPORATE OFFICE

3 rd & 4th Floor, Batra Centre, No.28, Sardar Patel Road, Guindy, Chennai - 600 032 Tel.: +91 44 4344 6700 / 2220 7500 Fax No.: +91 44 2235 0278

THANK YOU

REGISTERED OFFICE

201, Devavrata, Sector 17, Vashi, Navi Mumbai - 400 703. Tel.: +91 22 2789 2924 Fax No. +91 22 2789 2942 Email: investors@solara.co.in Website: www.solara.co.in CIN: U24230MH2017PLC291636

UNVEILING SOLARA 2.0

OUR PLAYBOOK TO ACCELERATE GROWTH

Solara Active Pharma Sciences August 04, 2021

WE HAVE BUILT A STEADY FOUNDATION AND DELIVERED ON OUR PROMISES

3

4

• supports various customers from virtual pharma to branded pharma players
• Supplies Generic APIs to partners with a growing CRAMS platform
• 2,500+ employees with 200+ scientists and experienced leadership

• Attractive portfolio of APIs with capabilities in complex APIs; 60+ commercialized products and 180+ DMF filings
• Global market and cost leadership in several large molecule APIs
• Strong pipeline of products expected to commercialize in 2-3 years

• Customer centricity demonstrated by Solara's long-term relationships with leading pharma companies globally
• Diversified Customer Base in 75+ countries with >20% innovator companies
• 350+ active partners with 10-15 years relationship with key customers

• 2,000KL+ reactor capacity and the various reactor sizes showcasing diversity and flexibility
• 6 Globally compliant API facilities with necessary regulatory approval (4 USFDA approved)
• 25+ US FDA audits successfully completed across manufacturing facilities

HAVING ACHIEVED OUTCOMES IN VERSION 1.0 WE ARE UNVEILING "SOLARA VERSION 2.0"

OUR PLAYBOOK TO ACHIEVE OUR VERSION 2.0 AMBITIONS

GROW BASE GENERICS

• Anchor regulated market position
• Backward integrate for better margin management
• Anchor customer partnerships especially in the regulated markets
• Continued cost leadership via operational efficiencies and backward integration
• Leverage market leadership in niche product variants

LAUNCH NEW PRODUCTS

• Increase R&D velocity
• Refresh product selection process
• Focus on speed and science
• Right product selection (product complexity and market attractiveness)
• Differentiated product offering coupled with fast time-to-market
• Focus on strategic customer partnerships to achieve sustained growth

EXPAND CRAMS BUSINESS

• Transition from 'incubation' to fast growth business
• Science based differentiation via additional capabilities on technology
• Positioning based on capability to solve "tough" chemistry challenges via technology platform
• Leverage existing innovator customer base for rapid scaling

INORGANIC AMBITION

• Accretive inorganics by Identifying growth targets
• Acquire to add to 'science' capabilities
• Footprint in the West as an enabler to accelerate business development
• Significant acceleration of organic CRAMS business

Pivots

• ▸ Core products provide a strong base for consistent growth
• ▸ Significant focus on cost improvement programs to drive efficiencies and cost leadership
• ▸ High focus on reducing dependency on high volume products such as Ibuprofen and create new streams

• ▸ New API launches to provide growth impetus along with an R&D pipeline tailored to emerging customer needs.
• ▸ Attractive portfolio of APIs with capabilities in complex APIs
• ▸ New product pipeline includes some star products such as Saproprotein, Sodium Zirconium amongst others

• ▸ 180+ DMF filings with a focus on increasing filing momentum
• ▸ Spread in geographies outside of US for a diversified play
• ▸ Product selection strategy focuses on New Chemical Entity (NCE) molecules, quick to launch approach and market extensions.
• ▸ Focus on the selection of higher margin molecules with emphasis on leveraging strong chemistry, technical and infrastructure capabilities.

10

• Transition from 'incubation' to fast growth business and demonstrate >30% revenue CAGR over 5 years
• Acquire science based differentiation via additional capabilities on technology
• Build footprint in the Western World as an enabler to accelerate business development

ANNOUNCED MERGER WITH AURORE IS A "RIGHT STEP FORWARD"

12

#2

Through our merger with Aurore Life Sciences, we will emerge as the secondlargest pure play API / CRAMs company in India providing significant strategic boost

Solara	Aurore	Combined
6	2	8
Manufacturing Sites	Manufacturing Sites	Manufacturing Sites
2	1	3
R&D Centre	R&D Centre	R&D Centre
60+	40+	100+
Commercial products	Commercial products	Commercial products
90+	20+	110+
DMFs	DMFs	DMFs
2,500+	700+	3,200+
Employees	Employees	Employees

Significant asset & cost synergies with diversified customer base and >3,000KL capacity

13

Aurore's capacity demand meets Solara's recent capex investments

• ▸ Aurore has created ~800 KL capacity and will need more capacity as it expands its market footprint and product basket
• ▸ Solara's significant capex outlay to build capacity in Vizag will meet Aurore's need for capacity and enable faster ramp up
• ▸ Aurore's intermediates presence will help in supply chain de-risking by backward integration for key KSMs
• ▸ Scale provides opportunities for supply chain and procurement efficiencies

ASSET AND COST SYNERGIES LARGER & DIVERSIFED CUSTOMER BASE

Improved product portfolio will enable Solara to grow further with Solara's marquee customers

• ▸ Solara customers will benefit from the combination which offers sizeable cross-selling opportunities
• ▸ Increased product portfolio will provide more opportunities for partnering with customers
• ▸ Solara's strategic customer-focused approach will leverage Aurore's product portfolio and strengthen long-term relationships with customers

Faster penetration of combined business in the US and growing APAC region

14

Solara's leadership position in the US gets further augmented by strong filings of Aurore

• Aurore has filed 20+ DMFs for the US market and these products are complementary to Solara's existing filings
• 4 DMFs have been triggered for source variation/Abbreviated New Drug Application (ANDA) filings
• These DMFs will result in near-term upsides for Solara in the US

BOLSTERED PRESENCE IN US GREATER MARKET PRESENCE IN APAC

Solara's focussed APAC market benefits from Aurore's strong presence in the region

• Solara will be in a position to significantly increase its APAC region sales with particular emphasis on Japan and South Korea
• ~29% of Aurore's sales are from APAC region. Transaction will make the combination one of the largest API suppliers in the region (excluding India) with revenues in excess of ₹300 Crores
• Aurore complements Solara's China focus by the addition of 7 DMF submissions, taking the total submissions to 14

3x R&D velocity for diversifying products & >2x growth in CRAMS segment

15

ACCELERATED CRAMS GROWTH HIGH R&D VELOCITY

CRAMS business revenue fortifies with the addition of Aurore's CRAMS portfolio

• Solara's nascent CRAMS business benefits from significant addition of Aurore's CRAMS revenue of ₹150 Crores to reach a meaningful size
• Customer profile of CRAMS business will be significantly diversified, providing runway for future growth
• Existing Aurore partnerships with innovators for high value molecules can be leveraged

Addition of 40+ new products from Aurore and significant R&D speed

• Well-balanced product pipeline/portfolio with a good mix of high volume (Amlodipine, Valacyclovir) and niche products (Nafamostat Camostat, Levothyroxine) complementing Solara's similar strategy
• Aurore's strong track record of filings (15+ products a year) will accelerate Solara's offerings up to 25+ new products a year
• Aurore has completed sizeable investments in developing portfolio of Antiretroviral (ARV) products, which allows us to enter a new space

Enhanced financial outcomes with high growth focus in the coming years

16

margins)

17

cost savings)

Annualized cost savings)

Annualized cost savings)

POISED TO MAXIMIZE ON OPPORTUNITIES WITH SIGNIFICANT STRATEGIC OVERSIGHT

ACCELERATE THE GENERIC API BUSINESS

• Favourable Macro Tailwinds with Solara Poised to be a partner of choice for its current and future customers
• Unique combination of stable core products, fast growing new launches & an advanced pipeline to accelerate growth and profitability
• Rapid growth of complex products that have high barriers to entry

>30% CAGR TO BLITZSCALE OUR PRESENCE IN CRAMS

• Rapidly scale the CRAMS play for global markets and leverage inorganic avenues to leapfrog growth and be a significant player
• Maximise synergy benefits with Aurore and strengthen our position to capitalise on the growth potential of API manufacturing and CRAMS globally.
• Differentiating capabilities on technology platforms

Become a Top 10 global Pure-play API Companies

FY21-FY25E Revenue growth CAGR

23-25% Targeted EBITDA margins

>20%

Targeted ROCE%

19

Aditya Puri

Chairman of the Board and NR Committee Ex-MD of HDFC Bank, Senior advisor to large PE fund and ranked #24 in India's 50 Most Powerful People of 2017

Vineeta Rai

Independent Director & Chairperson of CSR committee Former IAS officer and Revenue Secretary, voted one of the 25 Most Powerful people in Business in India in 2020

Dr. Kausalya S Independent Director

Patent attorney registered with the Indian Patent Office as well as the US Patent and Trademark Office

Ramakrishnan R

Independent Director and Chairman of Audit Committee Practicing Chartered Accountant with experience of 36 years in Direct tax matters, Audit and Assurances

Nirmal Bhogilal

Independent Director and Chairman of Risk Committee Chairman of the Batliboi Group, Ex- President and currently a Committee Member of the IMTMA and CII committees

Arun Kumar

Founder

First gen entrepreneur and co-founder of several pharma enterprises that have delivered significant shareholders value

Ankur Thadani Non-executive Director Partner at TPG Growth, and serves on the board of CTSI, Rhea Healthcare, Fourth Partner Energy and Asiri Hospitals

Kartheek Raju Non-Executive Director Seasoned investor with significant interest in multiple industries and pharmaceutical space

Rajender Rao Executive Vice Chairman Designate Founder of Aurore Life Sciences with 2 decades experience in APIs and intermediate space

Bharath Sesha

Managing Director and CEO 20+ years experience across diverse industries and has held CXO level positions in DSM Sinochem and Royal DSM NV

Subhash Anand

Executive Director & CFO 3 decades in Multinational and Indian companies with extensive experience in Operational & strategic finance

THANK YOU

CORPORATE OFFICE

3rd & 4th Floor, Batra Centre, No.28, Sardar Patel Road, Guindy, Chennai - 600 032 Tel.: +91 44 4344 6700 / 2220 7500 Fax No.: +91 44 2235 0278

REGISTERED OFFICE

201, Devavrata, Sector 17, Vashi, Navi Mumbai - 400 703. Tel.: +91 22 2789 2924 Fax No. +91 22 2789 2942 Email: investors@solara.co.in Website: www.solara.co.in CIN: U24230MH2017PLC291636