It is truly a pleasure to present to you the second annual report of your company post our IPO in FY 18; which was one of the largest ever witnessed in the pharmaceutical industry. We recently completed our first year of being a listed company and it gives me great joy to share that the immense faith our shareholders and the financial community have demonstrated in our business model has ensured that we are in the Top 25 highest market capitalisation companies in the pharmaceutical sector today. Moving ahead on this progressive trajectory, Eris is well poised to herald in the next phase of growth, boosted by its own robust fundamentals and tailwinds in the Indian Pharmaceuticals Market (“IPM”).
The IPM witnessed many developments in the year gone by. While the industry overcame disruptions like the GST and demonetisation and apprehensions around regulatory and policy overhang, it also has its share of opportunities and tailwinds.
The country, often colloquially referred to as the diabetes and blood pressure capital of the world, is today more than ever saddled by lifestyle related disorders. Changing lifestyle and rapid urbanisation has led to the average age for incidence of chronic diseases decreasing alarmingly. Increasing amount of research is being dedicated to understand the link of this high and ever increasing incidence of chronic diseases -diabetes, early puberty, PCOS, PCOD, infertility- to, among other things, generations of malnourished mothers. A major challenge for the nation is to effectively manage this burden of metabolic diseases and nutritional deficiency. Among other trends that we observe is an increased awareness leading to the trend of healthy people who want to remain healthy and productive. In this backdrop, increased penetration of health insurance, the herald of which is going to be the National Health Protection Mission or Ayushman Bharat, will be a growth driver for the pharma and healthcare industry, as it paves way to a more efficient diagnostic infrastructure and delivery ecosystem. Technology will also increasingly be used as an enabler to deliver better healthcare outcomes. Our unique patient care initiative platform is a case in point where technology is extensively becoming the impetus that drives the business forward.
Highlights of FY 18
Eris recorded Revenue from Operations of INR 8,556 million; a year-on-year growth of 14.2%. While our acquired businesses contributed to the growth in revenue,the growth was broad based across therapy areas and was driven by our consistent focus on patient engagement initiatives and robustness of products in our top mother brands.
For FY 18, EBITDA margins saw an expansion to 37.6% of Revenue from Operations from 35.9% in FY 17. Net profit margin was 34.3% in FY 18 compared to 32.9% in FY 17. The expansion in margins was mainly attributable to operating efficiency demonstrated consistently through a scalable and tax efficient business model.
During the year we also undertook strategic acquisitions, which include:
- Acquiring the Indian Branded Domestic Formulations business of Strides Shasun Ltd. The acquisition provides us with enhanced visibility in Neurology, Psychiatry, Nutraceuticals and Women Healthcare therapeutic areas.
- Acquiring the entire shareholding of UTH Healthcare Ltd, largely engaged in the segments of Obesity, Diabetes, Gestational diabetes mellitus and Maternal Nutrition
In addition to these, we are actively exploring new acquisition and in-licensing opportunities to further strengthen our product offerings and diversify to newer therapeutic areas. Consolidation of the existing therapy areas and their further expansion through new launches, in-licensing, entering new therapy areas and acquisitions form the core of our strategy to take the company ahead and maximise shareholder value.
With this, I also wish to thank and appreciate all our stakeholders who have partnered with us and continue to support us going forward.