INDIAN INSTITUTE OF

MANAGEMENT,
SAMBALPUR

Financial Acounting
Prof. Prashant Gupta

Financial Ratio Analysis of Healthcare Industry

GROUP NO. 8
ABHISHEK KUMAR BHARTI 2022MBA002
JIVESH 2022MBA022
LEKHNARAYAN 2022MBA028
SAURABH JHA 2022MBA046
HARSHAVARDHAN SHINGARE 2022MBA048
SUMIT SANGWAN 2022MBA052
 Acknowledgement
We wish to use this opportunity to express our gratitude to each and every one who was
instrumental in making this project a real success. We sincerely thank our Professor, Prof.
Prashant Gupta, for his sincere and critical feedback, inspiring guidance and illuminating views
on a number of issues related to this subject.
Secondly, the completion of this project could not have been possible without the
participation and assistance of many individuals contributing to this project directly and
indirectly.
Thank You!
 Introduction
This project's goal is to connect and practically apply what you learned in class to
financial reports from businesses or industries. This will offer us the chance to
research and evaluate various businesses, look through their financial records, and
learn more about them while simultaneously examining those records from a
financial standpoint. We will examine various companies' financial reports and
analyze them using various accounting techniques before commenting on the
financial health of the companies. Finally, we will compare all of the companies
and their organizational structures and draw conclusions for the entire industry
since we have examined the majority of it. We have researched several accounting
procedures and approaches and will use them to carry out the project's goal. We
appreciate Prof. Prashant Gupta's time and advice during the development of our
research
Contents
Industry Overview................................................................................................................................................................3
Management Discussion and Analysis..................................................................................................................................4
1 - Dr. Lal PathLabs Ltd.........................................................................................................................................................4
2 - Divi’s Laboratories Ltd.....................................................................................................................................................8
3 - Max Healthcare Institute Limited..................................................................................................................................12
4 - Thyrocare Technologies Ltd...........................................................................................................................................17
5 - Apollo Hospitals Enterprice Ltd......................................................................................................................................22
6 - Fortis Healthcare Ltd......................................................................................................................................................26
7 - Torrent Pharmaceuticals Limited...................................................................................................................................30
8 Granules India Limited.....................................................................................................................................................35
9 Alkem Laboratories Ltd....................................................................................................................................................38
10 Biocon Ltd...................................................................................................................................................................... 42
11 Abbott India Ltd.............................................................................................................................................................47
12 Narayana Hrudayalaya Ltd.............................................................................................................................................50
Financial Analysis :-.............................................................................................................................................................53
Ratios.................................................................................................................................................................................. 58
1 - Dr. Lal PathLabs Ltd....................................................................................................................................................58
2 - Divi’s Laboratories Ltd...............................................................................................................................................60
3 - Max Healthcare Institute Ltd.....................................................................................................................................62
4 - Thyrocare Technologies Ltd.......................................................................................................................................64
5 - Apollo Hospitals Enterprice Ltd..................................................................................................................................66
6 - Fortis Healthcare Ltd..................................................................................................................................................68
7 - Torrent Pharmaceuticals Ltd......................................................................................................................................70
8 - Granules India ltd.......................................................................................................................................................72
9 - Alkem Laboratories Ltd..............................................................................................................................................74
10 - Biocon Ltd................................................................................................................................................................76
11 - Abbott India Ltd.......................................................................................................................................................78
12 - Narayana Hrudayalaya Ltd.......................................................................................................................................80
Summary table of all company...........................................................................................................................................82
Industry Overview
Healthcare had a significant impact on the global economy in 2021 and 2022, with the worldwide pandemic
hampering global economic activity. The weakening of the pandemic and the steady increase in vaccination
coverage proved to be a catalyst for global resumption of trade and economic activity. As a result, the global
economy grew at an estimated 5.9% in CY2021, registering the strongest growth rate in decades. However,
supply disruptions continued into the subsequent year while a resurgence in COVID cases in certain
geographies, challenges in China and the outbreak of the Russia-Ukraine War have set back the momentum of
the global recovery. Recognizing these challenges, the IMF reduced its projection for global growth in CY2022
from 4.4% to 3.6%, nearly a full percentage point below earlier projection from October 2021. The Global
economy is expected to grow at 3.6% in CY2023, indicating a gradual pickup after current setbacks are
overcome by second half of 2022. This forecast is conditional on the pandemic and its aftermath declining to
low levels in most countries by end-2022 as vaccination rates improve worldwide, and the treatment
therapies become more effective.
Citizens of developing countries, in general, have lower access to health services than those in developed
countries. A comparison of the basic health indicators clearly indicate that developed nations of the world,
fare far better on healthcare provision and utilization, when compared to the developing nations. Developing
nations which have not been able to similarly invest in healthcare infrastructure are characterized by lower
human development. Like most developing countries, India inherited a limited healthcare infrastructure which
was inadequate to meet the demands of a large and diverse population.
The private service providers dominate the Indian Healthcare industry and they are using innovative means to
overcome some of the operational challenges. These healthcare institutions provide world class facilities,
employ highly skilled and globally recognized professionals, leverage advanced technology in treatments, and
maintain high standards of quality. The private sector players have been able to occupy a major share of
nearly 80% of the country’s total healthcare market. They also account for almost 74% of the country’s total
healthcare expenditure.
Today, the healthcare sector in India offers a potent mix of opportunities and challenges. The significant gap
between ‘required’ and ‘actual’ healthcare infrastructure has driven considerable investment over the years
into assets like hospitals and other facilities. Healthcare in India today provides corporations with a unique
opportunity for innovation, differentiation, and profits; it has become a preferred sector for strategic and
financial investments.
The Government has undertaken various initiatives like Ayushman Bharat and National Digital Health Mission
to increase the coverage of and access to healthcare services. The Ayushman Bharat scheme aims to
comprehensively strengthen the healthcare system, right from primary to tertiary care. This scheme provides
healthcare assurance of ` 0.5mn per family (on floater basis) to nearly 107.4mn families. The National Digital
Health Mission (NDHM) aims to create a management mechanism to process digital health data and facilitate
its seamless exchange; develop registries of public and private facilities, health service providers, laboratories,
and pharmacies; and support clinical decision making as well as offer services like telemedicine. NDHM has the
potential to make the health system more evidence based, transparent and efficient.
Management Discussion and Analysis
The Management Discussion and Analysis section of the financial statements is the section in which the
management of the company discusses the performance of the company in the current year using qualitative
and quantitative measures to help the investor realise the details that otherwise would not have been
available for analysis. This section of the financial statements is known as the MD&A section. The MD&A part
covers a variety of themes, such as the Macro-Economic Performance of the industry, the Vision and Strategy
of the Company, as well as certain Key Financial Indicators and Their Rationale.

1 - Dr. Lal PathLabs Ltd.

Company Overview
Dr. Lal PathLabs is one of India's most trusted diagnostic healthcare service providers. It offers services
through more than 5,000 diagnostic tests and related healthcare services through a nationwide network of
277 clinical labs, which includes the National Reference Lab in Delhi and the Regional Reference Lab in
Kolkata. The company's labs have a number of certifications, including NABL, CAP (College of American
Pathologists) accreditation, and ISO 9001.
Dr. Lal PathLabs Limited keeps improving its strong infrastructure, which now includes 277 clinical labs in India
and abroad, including the National Reference Lab in Delhi and the Regional Reference Lab in Kolkata.
Also, we keep adding to their Patient Service Network, which now has 4,731 Patient Service Centres, 10,599
Pick-up Points, and a staff of 4,110 people. This helps us be more efficient and give their customers better,
faster service.

Financial Performance
1. Consolidated performance
A 31% rise in the company’s consolidated income was recorded, rising to Rs. 21,399.54 million from Rs.
16,325.99 million in the prior year. The groups’ net profit after taxes increased by 18% to Rs. 3,502.91 million
from Rs. 2,964.79 million.
2. Standalone Performance
During the year under review, the standalone income of the Company increased to Rs. 19,257.22 million
compared to Rs. 15,418.22 million in the previous year, registering growth of 25 %. the standalone Net profit
after tax for the year increased by 23% to Rs. 3,440.54 million compared to Rs. 2,801.06 million in the previous
year.

REVENUE
The Company’s consolidated revenues for the year ending March 31, 2022 came in atRs.20,874 Mn, resulting
in a 32% rise. Revenue from non-Covid stheirces totaledRs.16,913 Mn, representing a rise of 34.5%. The
number of patients increased by 34.7% compared to FY21, and non-Covid business almost reached pre-Covid
levels.
With the Covid pandemic in full swing, the contribution of Covid and Covid-related tests to overall business is
19%, totalling Rs.3,961 Mn, with the exception of a slight increase in the period from December 2021 to
January 2022 due to the omicron variant.
Revenue from non-Covid operations increased over the previous year by 34.5%, totalingRs.16,913 Mn.
Mobility relaxations following a spike in Covid caseloads were the main drivers of the growth, which was also
strongly boosted by b2b expansion, sweating of the franchise network, and rising home collections.

COST
Dr. Lal PathLabs focuses a lot on cost management with the goal of making as much profit as possible. The
total cost went up by 33% from one year to the next, which was in line with the growth in sales. Compared to
last year, this seems a little high because last year, because of the Covid pandemic, there were multiple
lockdowns and other restrictions on movement put in place by the government. This is now the way things
are.
The biggest costs for the company are the cost of reagents and chemicals, the cost of staff, the cost of fees to
collection centres, and the costs of logistics, IT, and infrastructure, among other things.

EBITDA
Consolidated Normalized EBITDA grew by 29.8% in FY22, after the effects of stock-based compensation and
CSR costs were taken out of the picture. Normalized EBITDA margins stood at 28.8% after stock-based
compensation and CSR costs were taken out of the picture.

PBT and PAT

Normalized PBT for FY22 (excluding notional depreciation on consolidation of Suburban) came in atRs.4,938
Mn, which is an increase of 25.2%. PAT said that it had grown by 18.1% from the previous year toRs.3,503 Mn.
Normalized PAT (not counting the notional depreciation from the consolidation of Suburban) was Rs.3,691
Mn, which was a 24.5% increase. 17.7% was the normalised PAT margin. The diluted EPS went up by 18% to
Rs.41.57 per 10 equity share.

Cash and Bank

At the end of FY21, there wasRs.9,859 Mn in cash and cash equivalents. At the end of FY22, there wasRs.3,442
Mn. His has gone down since last year because the money was used to pay for the purchase of Suburban
Diagnostics. Before changes in working capital, operating cash flows came in at Rs.4,158 million. CAPEX cash
outflow wasRs.1,086 million, compared toRs.672 million the year before. Other income, which includes
interest and dividends from mutual funds, rose from $513 million in FY21 to $421 million in FY22, which was
in line with changes in cash position.
KEY FINANCIAL RATIOS
Particulars FY 22
Revenue Growth 32.0%
Patient Growth 34.7%
Sample Growth 32.7%
Basic EPS 41.70
Diluted EPS 41.57
Inventory Turnover Ratio (times) 9.6
Due to lockdowns and other restrictions put in place to stop the COVID-19 infection, last years’ revenue was low, so this
years’ growth seems to be high. This was because of the increase in volume and the growing share of non-COVID
business in the total portfolio. Even though the revenue per patient is lower than it was last year, this is because the
COVID test portfolio is contributing less.

Divide the Normalized PAT for the year by the average net worth to get the Return on Net Worth. During the past year,
Normalised PAT From Rs. 2,965 Mn to Rs. 3,691 Mn, the increase was huge, which made the Return on Net Worth ratio
for FY2022 better.

HIGHLIGHTS OF THE YEAR

Update on Suburban Diagnostics
According to the terms of the Share Purchase Agreement, the Company bought Suburban Diagnostics (India)
Private Limited ("SDIPL") on November 12, 2021, for a cash payment of Rs.9,250 million plus certain
performance-linked payments capped atRs.2,250 million and subject to certain adjustments.
On a fully dilutive basis, which takes into account employee stock options (ESOPs) given by SDIPL, the
Company has estimated that the cost of buying shares of SDIPL isRs.9,667 million. After the acquisition was
finished, Suburban Diagnostics (India) Private Limited became a wholly-owned subsidiary, and as of March 31,
2022, the Company had putRs.9,489 million into SDIPL.
Suburban Diagnostics fits perfectly with the Company’s plans for growth because it has a strong presence in
the Western markets, which is where the Company wants to grow. With 38 labs and 177 collection points in
Maharashtra and a strong presence in the cities of Mumbai and Pune, Suburban gives Dr. Lal PathLabs a
strong platform with room to grow in the region.
The company will use a dual-brand strategy. Dr. Lal PathLabs will focus more on the business-to-business
(B2B) side of things, while Suburban Diagnostics will focus on growing its footprint through business-to-
consumer (B2C). The goal is to increase market share in the Western region and speed up revenue growth.
This would be done by investing wisely in customer-facing things like technology integration and home
collections to grow and reach more parts of West India and make the most of both companies Rs. capacities
and back-end infrastructure.

Specialised service
The company has been developing specialised service segments so that it can pay more attention to the
treatment of certain long-term and short-term illnesses.
Here is a detailed list of the main goals:
• Changing how the home collection channel works to make it easier for some patients to get their
prescriptions. Making sure that the brand's experience is smooth and consistent. Having a well-
 organized online presence with a focus on how easy it is to use. Complementing and integrating the
services of other healthcare providers for Company's patients.
 Having dedicated Business Development teams to get higher rates of B2B sampling. Changing the
testing menu to better reflect the latest technology and standards of patient care. With a larger
number of owned laboratories, the focus should be on expanding both routine and specialised
services.
 Growing clusters to make it easier to scale up samples faster in specific locations
• Taking a selective approach to lab management in hospitals where it adds value
• Creating the "network effect" by having more and more PSCs and touch points interact with each
other

Opportunities and threats

In India, the most important thing to do to get a correct diagnosis is to put more focus on both routine and
diagnostics. When it comes to the need for a population, both the quality and the availability of testing
infrastructure are lacking. Larger cities and towns, like diagnostics, have more than one brand of healthcare,
but many smaller towns and villages are still left out. There is a slow but growing presence of big national
brands in the back country. The COVID-19 pandemic has only shown how important the sector is and how it
can't be replaced. It has been shown beyond a doubt that larger diagnostic chains have more flexibility and
restheirces to deal with emergencies. Patients have benefited from their high level of service and the fact that
they are easy to get to. Even though well-known chains were able to show off all of their skills, regional and
smaller brands also did a good job of sampling scale up, which was in line with COVID-19's waves. Tomorrow,
these groups will try to match the national presence of existing brands. Web-aggregators and other online-
only businesses have also made a big difference. And some are already setting up infrastructure for testing in
the real world. As they add more capacity and try to grow all over the country, they will face the same barriers
to growth. Also, a number of health care brands have moved into diagnostics. And these will also join the
industry as a whole as it faces the same problems.
2 - Divi’s Laboratories Ltd.
Company Overview
Divi's has been around for more than 30 years and has two factories in Hyderabad, India. It is one of the best
pharmaceutical companies in India. It is known as a "Reliable Supplier of generic APIs" and a "Reliable Custom
Manufacturer" to Big Pharma. They are also one of the top API manufacturers in the world.
Divi's is the leading maker of APIs (Active pharmaceutical ingredients), Intermediates, and Registered starting
materials. They offer high-quality products with the highest level of compliance and integrity to more than
100 countries. It has just become one of the top three API manufacturers in the world and one of the top API
companies in Hyderabad.
At Divi's, 16,500 well-trained people in different departments and 400 scientists work together to make sure
customers get world-class products.
A public limited company that is listed on the Indian stock exchange. For the year 2021-22, they expect to
make about $1.2 billion in sales. The USFDA, EU GMP (authorities in the UK, Slovenia, Germany, and Ireland),
HEALTH CANADA, TGA, ANVISA, COFEPRIS, PMDA, and MFDS have all inspected advanced manufacturing
facilities in both Hyderabad and Vizag more than once.

Financial Performance
The company have been able to keep their business growing and making money for another year. They have
been able to run its business with flexibility and resiliency. It has been able to handle the unprecedented covid
pandemic and respond quickly to new opportunities.
During the year, the MNC customer's fast-track project was fully operational and brought in a lot of business.
With their flexible business model and manufacturing facilities that can be used for different things, we've
been able to meet customer needs and deliver quickly.
The year's total income has gone up by 31%, to Rs. 8,99,108 lakhs. Operating profit (PBDIT) for the year was
Rs. 3,98,772 lakhs, compared to Rs. 2,88,321 lakhs for the previous year. Profit before taxes (PBT) for the year
is Rs. 3,67,652 lakhs, which is 40% higher than last year's PBT of Rs. 2,62,787 lakhs.
The tax bill for the current year was RS. 63,720 lakhs, while the tax bill for the previous year was Rs. 60,905
lakhs. Instead of Rs. 6,410 lakhs, the deferred tax bill for the year was Rs. 9,078 lakhs.
Profit after Tax (PAT) for the year grew by 51% to Rs. 2,94,854 lakhs as against a PAT of Rs. 1,95,472 lakhs last
year.

Other income
Most of the other income comes from interest on deposits, gains from trading currencies, and income from
other sources.
Other income for the year was H 11,126 lakhs, which is more than last year's Rs. 6,253 lakhs. We made a loss
of Rs. 77 lakhs on forex transactions and translations last year, but we made a gain of Rs. 3,798 lakhs this year.
This is part of "Other Expenses."
Exports
Exports constituted 90% of sales revenue during the year. Exports to advanced markets comprising Europe
and America accounted for 77% of business.

MATERIAL COST
Material use varies from one product to the next. The company makes a number of active pharmaceutical
ingredients, intermediates, and nutraceuticals in the Generic and Customs Synthesis groups.
For any product to be made, its chemistry has to be controlled and changed step by step until it meets the
requirements of the standard operating practises that meet cGMP standards.
Compared to 33.3% last year, this year's material consumption is about 33.7% of revenue from operations
after taking into account changes in stock.

EMPLOYEE BENEFITS EXPENSES

Employee benefits costs include salaries, benefits, and fixed and variable managerial pay for Whole-time
Directors, as approved by Members.
The costs for the year were Rs. 92,655 lakhs, up from Rs. 80,868 lakhs the year before.
The pay for full-time directors was Rs. 24,300 lakhs up than the Rs. 17,891 lakhs they got the year before.
The cost of employees for the year is about 10.4% of total sales.

Other Expenses
Power and Fuel, Repairs, Stores & Spares, Packing Materials, R&D Expenses, Carriage Outward, Traveling &
Conveyance, Sales Commission, Environment Management Expenses, and CSR Expenses are the main
categories of Other Expenses.
Other costs for the year were Rs. 1,08,701 lakhs, compared to Rs. 90,375 lakhs the year before.
12.2% of total income goes to other costs.

Capital Expenditure
During the year, we put a value of H 93,456 lakhs on Property, Plant, and Equipment (PPE) and Intangible
Assets (IA). At the end of the year, the capital WIP was worth H 46,993 lakhs.
During the past year, the company has worked on a number of programmes to increase the capacity of its
manufacturing facilities, as well as to improve the infrastructure for utilities and support.

Non-current Investments
Non-current Investments as at the end of the current year amounted to H 7937 lakhs as against H 737 lakhs as
at the end of the last year.
Income-tax assets
Net of provisions, refunds, and adjustments, income-tax assets show how much has been paid but not yet
assessed or refunded. When orders for refunds from earlier years have not been received, those amounts
have been marked as "non-current."

KEY FINANCIAL RATIOS

Particulars FY 22
Return on Net Worth 28.13%
Return on Capital Employed 33.85%
Debtors Turnover 4.09
Basic EPS 111.07
Current ratio 7.10
Net profit margin (%) 32.79%

HIGHLIGHTS OF THE YEAR

INTERNAL CONTROL SYSTEMS
The company has put in place well-thought-out processes and procedures that cover all of its operations,
financial, and compliance functions. This is to make sure that its business is run efficiently and in an orderly
way, that its assets are safe, that fraud and mistakes are prevented and found, that its accounting records are
accurate and complete, and that reliable financial information is made available on time.
There are appropriate review and control systems in place to make sure that the internal control systems
work well. The internal control system is backed up by trained staff and a programme of continuous internal
audits. The main goal of these kinds of audits is to make sure that all of the internal control systems set up by
management are adequate and work well. They also look at the strength of internal processes, policies, and
accounting procedures, as well as their compliance with laws and rules. In order to do this, the Audit
Committee of the Board of Directors will approve an audit plan that will be made every year.
The internal audit function reports directly to the Audit Committee and does its job in a neutral and
independent way. The process owners in each area take corrective action based on the reports from the
internal audit function. The Audit Committee regularly looks at the important audit observations and the steps
that have been taken to fix them.
The Audit Committee also looks at the internal controls for financial reporting and checks with the statutory
auditors to make sure they are adequate and work well.
During the year, the internal financial controls are good and work well, according to the review and report of
the statutory auditors. The company also encourages and rewards changes in the way work is done. The
Management takes the suggestions of the internal auditors, the statutory auditors, and the Audit Committee
into account and acts on them as needed.

Risk Management
Divi's focuses on risk management and has an enterprise-wide approach to risk management, which focuses
on finding and managing the most important operational and strategic risks with a dynamic business
continuity plan, you can deal with strategic risks. The company tries to find opportunities that improve
organisational values and manage or lessen risks that could hurt its future performance.
It does this through:
• an integrated process for identifying, assessing, and reporting opportunities and risks
• decentralised management of specific opportunities and risks
• aggregation at the corporate level, which is overseen by the Risk Management Committee and controlled by
the Board.
The company keeps up its efforts to assess and avoid or reduce the impact of different risks on its business, as
well as to control costs and improve efficiency across all of its businesses and functions. It does this by taking
the right steps and reviewing them from time to time. The company's risk management and control
procedures include putting these risks in order of importance and evaluating them constantly. They also come
up with the right controls, evaluate and review the control mechanism, and redesign it from time to time
based on how well it works.

Competition
To keep up with its competitors in Europe and the US, the Company puts a lot of emphasis on leveraging its
inherent skills and strengths in chemistry by building strong relationships with customers and supporting them
with a cost-effective and quick delivery structure. But competition is part of the business of the Company, as
there are always efforts to improve processes and keep prices low. Divi's continues to work on optimising its
processes and upgrading its plant capacities and capabilities at its multipurpose manufacturing facilities to
stay competitive and in line with regulations. It is also building more capacity to take advantage of business
opportunities that are expected or growing. This would help the company reduce risks and threats and take
advantage of business growth opportunities.
3 - Max Healthcare Institute Limited

INDUSTRY STRUCTURE AND DEVELOPMENTS

India’s economic growth and its tremendous future potential have been making global headlines for years. In
FY21, the COVID-19 pandemic stalled economic progress around the world, ensuing a temporary blip in India’s
growth story as well. However, India’s economy displayed great resilience, rebounding sharply, and growing
by ~9% in FY22. Despite being one of the fastest growing economies in the world, and the second most
populous country, India’s performance, when judged on healthcare parameters remains poor.

INDIA’S HEALTHCARE SPEND REMAINS LOW, COMPARED TO THE GLOBAL AVERAGE

According to the Global Health Expenditure Database compiled by the World Health Organisation (WHO),
India's expenditure on healthcare was 3.5% of gross domestic product (GDP) in 2018. India’s real GDP in fiscal
2019 was INR 139.8 trillion (constant fiscal 2012 prices). Accordingly, India’s healthcare expenditure during
fiscal 2019 was approximately INR 4.9 trillion. India trails behind not just developed countries, such as the
United States (US) and the United Kingdom (UK), but also developing countries, such as Brazil, Nepal,
Vietnam, Singapore, Sri Lanka, Malaysia, and Thailand, in healthcare spending, in terms of percentage of GDP .

STRUCTURAL SUPPLY SIDE DEFICIENCIES; LAG IN KEY PARAMETERS

The adequacy of a country's healthcare infrastructure, and personnel, are the barometers of the quality of its
healthcare. Similar to most of the other developing nations, India’s healthcare infrastructure is currently
inadequate to serve its growing population base. The country comprises nearly a fifth of the world's
population, but has an overall bed density of merely 15 hospital beds per 10,000 people, with the situation
being far worse in rural India. India's bed density not only falls far behind the global median of 29 beds, but
also lags behind developing nations, such as Brazil (21 beds), Malaysia (19 beds), and Vietnam (26 beds)

COVID-19 VACCINATION
Despite all the stumbling blocks, including low government spending, structural shortage of healthcare
infrastructure, and limited supply of medical personnel, Indian healthcare confronted the COVID-19 pandemic
with utmost strength, and took swift steps towards vaccination of the majority of its population. As of March
2022, India administered more than 1.83 billion doses since the nationwide immunisation drive was launched
in January 2021.

HEALTHCARE DELIVERY INDUSTRY TO GROW BY 15-17%, TO INR 7.7 TRILLION BY 2025

With renewed impetus from the Pradhan Mantri Jan Arogya Yojana (PMJAY), and the government focus
shifting onto healthcare sector post COVID-19 crisis, the healthcare delivery market is expected to grow at
15% to 17% compounded annual growth rate (CAGR) and reach INR 7.7 trillion in fiscal 2025.
KEY DRIVERS OF HEALTHCARE DELIVERY INDUSTRY
Rising Income Levels Enhancing Healthcare Affordability
Growth in household incomes, and the resulting disposable incomes, are critical to the overall growth in
demand for healthcare delivery services in India. The share of households falling in the income bracket above
INR 0.2 million, is expected to go up to 35% in fiscal 2022 from 23% in fiscal 2017, providing potential target
segment (with more paying capacity) for hospitals. The increased a’ordability is also set to enhance the
demand for superior clinical care being o’ered by the private healthcare players.

Increasing health awareness to boost hospitalisation rates

The recent pandemic has made people further realise the importance of their health and need for quality and
timely interventions by medical experts. Further, with increasing urbanisation (migration of population from
rural to urban areas) and awareness among the general populace regarding presence and availability of
healthcare, services for both preventive and curative care would increase.

Improving Life Expectancy, Changing Demographics and Population Growth

Increased healthcare awareness and better clinical outcomes have led to improved life expectancy, bringing
about a change in the country’s demographic profile. As of 2021, nearly 10% of the Indian population was
more than 60 years old, and this is expected to surge to 12.5% of the population by 2026.

Rising Incidence of Non-Communicable Diseases (NCDs)

While the rate of communicable diseases is declining, lifestyle-related illnesses or non-communicable diseases
(NCDs) have been increasing rapidly in India over the past few years. The contribution of NCDs to the disease
profile has risen from 30% in 1990 to 55% in 2016. Statistics show that these illnesses accounted for nearly
62% of all deaths in India in 2016. As per the World Economic Forum, the world will lose nearly USD 30 trillion
by 2030 for NCD treatments, and India's burden from this will be USD 5.4 trillion.

Rising Medical Tourism in India

Given the relatively low cost of surgery and critical care in India, the medical value travel has gained
momentum in the country over the years, and is fast emerging as a major medical tourism destination. Some
of the factors, which make India an attractive destination for the same, are the presence of technologically
advanced hospitals with specialised doctors and facilities, and provisions such as e-medical visa.

Better Healthcare Accessibility, Geographically and Digitally

With 65% of India’s population living in tier 2 and 3 cities, the government is incentivising private investments
in these regions. However, the private players find it diˆcult to replicate the model that worked for them in
tier 1 and creamy tier 2 locations, due to the relatively lower revenue per bed, and inability to recruit/relocate
highly skilled clinical talent in these regions.

Government Policies to Improve Healthcare Coverage

As part of the Union Budget FY2022-23, the government has raised its healthcare allocations , with INR 86,200
crore to the Ministry of Health and Family Welfare (MoHFW), INR 37,000 crore to the National Health Mission,
and INR 10,000 crore to the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY).

FUTURE TRENDS
Despite India’s healthcare delivery sector grappling with several issues, it also presents immense
opportunities for the incumbent as well as the new players. Factors such as inadequate bed density and
insuˆcient personnel, highlight India's poor healthcare infrastructure versus global levels, reflecting the
immense potential in store for healthcare delivery players in the country.

COMPANY OVERVIEW
Currently, MHIL, its subsidiaries, and silos, comprise 13 healthcare facilities, including 5 hospitals and 3
medical centres in Delhi and the NCR region, with the others located in Mumbai, Maharashtra; Mohali and
Bathinda in Punjab; and Dehradun in Uttarakhand. The super speciality hospitals in Mohali and Bathinda are
under PPP arrangement with the government of Punjab. Across all our 13 healthcare facilities, we had an
average of 2,275 operating beds

DIGITAL TRANSFORMATION
In FY22, our digital revenue through web-based marketing activities and online appointments, stood at ~11%
of overall revenue. Further, this fiscal year, we embarked on a journey to consolidate our o’erings into an app,
which will not only help improve customer experience significantly, but also allow us to deploy marketing
spend more eˆciently.

CORPORATE SOCIAL RESPONSIBILITY

Giving back to the society is one of our core beliefs, and even during the peak of COVID-19 pandemic we
continued to serve the needy. During the year, we touched lives of over 2.95 lakh indigent patients across our
Network and provided them free medical services worth over INR 157.8 crore. The free treatment was
provided across almost all medical specialities and included advanced lifesaving surgeries such as cardiac
sciences, neuro sciences, orthopaedics and surgical oncology.

COVID-19 CRISIS MANAGEMENT

We operationalised one of the largest COVID-19 vaccination centres across India, spread over 1.65 acres, that
could operate 50 billing and 40 nursing counters with a capacity to administer ~10,000 vaccine doses in a day.
We inoculated up to ~48,600 individuals in a single day across all the channels combined with a total of ~17
lakh doses, administered as of March 31, 2022.

OPPORTUNITIES
Expansion in Existing Facilities and newly acquired land parcels
We have a total bed build-out potential of 700+ in our existing facilities, through brownfield expansion.
Additionally, there is a potential of adding ~1,600 beds in our PHFs, out of which 500 beds will be added as a
result of a transaction consummated in FY22 where we acquired the rights to aid development of a hospital
on 3.5 acres of land owned by Vikrant Children’s Foundation.
Invest in and Grow Retail Pathology and Home Care Services
For Max Lab, our initial focus is to deepen and widen our presence in the cities wherein Max Healthcare
already has a presence through Network facilities. In the long term, we plan to expand into new cities and
grow our business by opening new collection centres , partnering with local collection centres for sample
collection and signing new hospital lab management contracts.

Improve Case and Channel Mix

We continue to focus on investing in state-of-the-art medical technology, attracting skilled clinical talent, and
developing our expertise in tertiary and quaternary care areas. Our Network bed share of the institutional
patients has been reduced to ~31% in FY22 compared to ~34% during FY21, partially due to dis-empanelment
of few institutional accounts at some of the hospitals in NCR and Mohali, during H2 FY22.

THREATS
Increasing Competition Intensity
Healthcare being a high growth sector is attracting a lot of new entrants, including established business
houses and entrepreneurs. Most of these players are focused on metros and tier 1 cities. Thus, there is an
increased competition in these markets that adversely impacts the profitability and growth potential for the
existing players. New players might offer lower rates, adopt unfair practices.

Regulatory Risks Faced by the Healthcare Industry

Our business is susceptible to various challenges being faced by the Indian healthcare industry, including the
provision of quality patient care in a competitive environment and managing costs at the same time.
Healthcare costs in India have increased significantly over the past decade, and there have been and may
continue to be proposals by legislators and regulators to limit the rate of tariff increase, cap margins and fix
the price of procedures and diagnostics in order to lower the healthcare costs in India.

Technology Disruption
The market for healthcare equipment and products is characterised by rapid technological changes, frequent
new healthcare equipment and product introductions and technology enhancements, changes in patients’
needs, and evolving industry standards. New equipment and products based on new or improved
technologies or new industry standards can render existing equipment and products obsolete .

FINANCIAL PERFORMANCE
In FY21, pursuant to the merger of the healthcare undertaking of Radiant with MHIL, Radiant shareholders
were issued equity shares of MHIL (merged entity) and its pre-acquisition stake of 49.7% were cancelled upon
implementation of scheme. The merger resulted in Radiant promoters taking control of the merged MHIL.

HUMAN RESOURCES
We strongly believe in the importance of having a pool of highly skilled and talented professionals to pursue
our endeavour to be among the most well-regarded healthcare organisations, delivering the highest standards
of clinical excellence.

ENVIRONMENT, ENERGY AND FIRE SAFETY MATTERS

In FY22, green power constituted 44% of our total energy consumption across the Network facilities. We have
installed 25 rain water harvesting (RWH) plants of an aggregate capacity of 700 KL pits in all big units to
augment our water supply, and subsequently, support our water neutrality efforts. We conducted regular
reviews of energy consumption, and devised ways for effective control on utilisation of energy, subsequently
reducing the average energy consumed per bed by 10% in FY22 as compared to FY21

RISKS AND CONCERNS

Given the wide scale of operations, our Company is exposed to an array of strategic and operational risks. We
have an elaborate risk management system in place, which is aimed at identifying, analysing, assessing,
mitigating, and monitoring risks or potential threats to achievement of our strategic and business objectives
covering various aspects of our business, including operations, legal, treasury, regulatory, strategic and
financial

INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has a robust and well-embedded system of internal controls, facilitated through appropriate IT
system and workflows, which are reviewed and upgraded based on risk control testing, performed from time
to time. Comprehensive policies, guidelines and procedures are laid down for all business processes, and
these are accessible to the concerned employees, through the designated web page.
4 - Thyrocare Technologies Ltd.
Due in large part to our decades of experience dealing with people's diagnostic needs, we have processed
more than 21 million samples in the past year, serving more than 16 million patients, with remarkably fast
turnaround times, accuracy in reporting, and compliance. We served more than 500 districts across the nation
and conducted more than 110 million clinical investigations in the preceding year, more than any of our
competitors in the business. More than 50000 swab samples can now be processed and reported across three
dedicated COVID testing laboratories thanks to built-in capacity. Through our RTPCR facilities, we conducted
4.72 million Covid-RTPCR studies in the previous year. By March 31st, 2022, we had 636 different tests and 90
profiles available.
We run a network of molecular imaging facilities in New Delhi, Navi Mumbai, Hyderabad, central Mumbai,
western Mumbai, Nashik, Baroda, and Bangalore through our fully owned subsidiary, Nueclear Healthcare
Limited, with a focus on early and efficient cancer monitoring.

Summary of Financial Performance

When compared to FY2021, when Thyrocare's operating revenue totaled'474.27 crore, it increased by 18.4%
to'561.53 crore in FY2022.
Thyrocare's unadjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA)
totaled'230.83 crore in FY2022 as opposed to'170.74 crore in FY2021.
In comparison to FY2021, Thyrocare's profit after tax and after exceptional items (PAT) (unadjusted)
totaled'152.01 crore in FY2022.
In FY2022, Thyrocare's total assets, net of liabilities, totaled '520.70 crore, up from '445.46 crore in FY2021.

Dividend
The payment of an interim dividend in the amount of '15/- (Rupees Fifteen only) per equity share with a face
value of '10/- was suggested and approved by the board of directors on April 29, 2022. yearly report

from operations revenue

From FY2021 to FY2022, the revenue from operations climbed by 18.4% (18.3% in FY2021), rising from'474.27
crore to'561.53 crore. The second wave of the Covid for the Government contract, which generated revenue
from COVID RT-PCR testing, was primarily responsible for the reported revenue growth of 18.4% over FY2021;
but, as we reflect back on the year, our non-COVID business also had a notable recovery.
The cost of materials used increased from'159.18 crore in FY2021 to'161.79 crore in FY2022, and the cost of
materials used to income from diagnostic services was 28.88% (33.66% in FY2021).
testing, however because of the reagent/consumable costs, the profit margin for the non-COVID tests has not
much increased.

Cost of traded materials in FY2022

Cost of material includes the price of consumables and point-of-care testing equipment that have been
purchased; these items have primarily been sold under the brand name "ThyroMart" since the current year.
The numbers from the prior year have been reorganised. In comparison to FY2021, the cost of products
exchanged increased to'3.44 crore in FY2022.

Cost of Materials Traded and Consumed in FY2022

Thus, from 160.71 crore in FY2021 to 165.23 crore in FY2022, the total cost of material consumed or traded
has grown. The ratio of the cost of material used or exchanged to operating income was 29.42% (33.89% in
FY2021).

Expense for employee benefits in FY2022

In FY2022, total employee benefits costs were 58.82 crore, up slightly from 56.79 crore in FY2021.
Benefits costs for the employee as a share of operating income were 10.47% in FY2022 (11.97% in FY2021).
While employee compensation increases typically ranged from 5 to 6 percent each year, key employees were
given additional benefits and raises in recognition of their contributions. Due to a change in the leave
encashment policy and the encashment of some employees' leaves during FY2022, the provision for
compensated absences is reversed during the year.

FY2022 Other Expenses

Other costs' share of sales was nearly unchanged at 18.99% in FY2022 (from 18.17% in FY2021). The majority
of other costs were made up of service fees, sales incentives, power and fuel, etc. The majority of the order
service credits, accounting for 45-76% of the total service charges, constituted order service fees paid to
blood/swab technicians for sample collection.
Additionally, the Company paid third parties for shipping and logistics of COVID test swabs, as well as (a) swab
technician fees for collection and handling of COVID test swabs, (b) service fees for updating COVID patient
data on the ICMR portal, and (c). Incentives for direct sales made up the majority of sales incentives.

Prior to interest, taxes, depreciation, and amortisation (EBITDA)

EBITDA (unadjusted) increased from '170.08 crore (35.86% of income from operations) in FY2021. In FY2022 it
was '228.45 crore (40.68% of income from operations). After accounting for CSR, bad and doubtful loan
provisions, and IndAS 116 adjustments, the normalised EBITDA was'242.06 crore (43%) as opposed to'175.66
crore (37%) in FY2021. Since we were processing the collected swab samples as part of our contract with the
state government, our Covid company had a much larger EBITDA margin than our Non-Covid business. Our
non-Covid business has significantly recovered in the latter part of FY2022.

Amortization and depreciation

From '21.08 crore in FY2021 (4.44% of income from operations) to '28.47 crore in FY2022 (5.07% of income
from operations), depreciation and amortisation increased.

Gain before taxes (PBT)

PBT was'207.38 crore (' 161.28 crore in FY2021) in FY2022. PBT was 36.93% of income from operations in
FY2022 (compared to 34.01% in FY2021).
Tax liability
The company's effective tax rate is 25.7%, and the tax provision for the current fiscal year was 55.33 billion
rupees (up from 41.51 billion in FY2021).

The annual profit (PAT)

As opposed to'119.77 crore (25% of income from operations) in FY2021, the net profit in FY2022 was'152.05
crore (27% of income from operations).

Standing alone share capital in the financial position

The company only issues equity shares with a par value of 10 cents apiece. The 100.00 crore authorised share
capital was divided into 10 crore equity shares at 10 cents each. As of March 31, 2022, the issued, subscribed,
and paid-up capital was 52.90 crore.

Excess and reserves

Reserves and surplus were "467.80 crore" as of March 31, 2022 (compared to "392.59 crore" as of March 31,
2021).

financial reserve
'30.25 crore ('30.25 crore as of March 31, 2021) was the capital reserve as of March 31, 2022.

Account for premium securities

After taking into account transfers of accrued stock option premium after stock option exercises and
adjustments for equity shares purchased back at premium, the securities premium as of March 31, 2022 was
'71.51 crore ('69.71 crore as at March 31, 2020).

Outstanding share option account

The balance was 3.43 crores as of March 31, 2022 (it was 2.93 crores as of March 31, 2021).

A Broad reserve
The general reserve at March 31, 2022, was 9.17 crore, the same as the capital redemption reserve from the
previous year.
During the FY2019, the Company repurchased 9,58,900 equity shares for a total of 63.00 crore, or 1.78% of
the total paid-up equity share capital, at an average price of 656.90 rupees per equity share.

Surplus in the profit and loss account statement

After appropriation for dividend on equity shares and dividend tax, the balance in the statement of profit and
loss as of March 31, 2022 was "352.48 crore (" 279.57 crore as at March 31, 2021).

Negative current assets

Current liabilities grew to "16.01 crore" as of March 31, 2022 from "6.20 crore" as of March 31, 2021. Total
non-current liabilities-lease liability increased.
Total current liabilities were 62.69 crore at the end of March 2021 and 60.29 crore at the end of March 2022.
Assets, machinery and equipment, capital projects, and investment properties
In FY2022, the gross block increased as follows:
• Plant and equipment: 28.95 billion rupees (compared to 15.21 billion in FY2021).
• 7.26 crore ($5.77 crore in FY2021) was spent on furniture & fixtures.
• Office supplies cost 3.43 crores ($3.10 billion in FY2021)
• 1.79 crore ($0.88 crore in FY2021) for computers, printers, and scanners
• As of March 31, 2022, there were 2.15 crores worth of capital work for tangible assets in progress
(compared to 8.28 crores at the same time in 2021).

Investing in a colleague
Equinox Labs Private Limited ('Equinox') is a company that the company owns a 30% stake in for a total
purchase price of '20 crore. As of March 31, 2022, the equity investment in Equinox is indicated under
Investment in Associate.

Spending on a subsidiary
As of March 31, 2022, the company estimated that its investment in its wholly owned subsidiary Nueclear
Healthcare Limited was recoverable.

Inventories of current assets

As a proportion of income from operations, inventories were down to 4.3% as of March 31, 2022 from 4.7% as
of March 31, 2021. Reagents, diagnostic tools, consumables, and stock in trade are all included in inventories.

Accounts receivable
As a proportion of operating income, trade receivables were 16.5% as of March 31, 2022, up from 9.3% as of
that date. As of March 31, 2022, trade receivables stood at 92.78 crore, with 81.7 crore (88%) of the total
receivables being government receivables.

Balances in money and banks

As of March 31, 2022, there were 12 crores in cash and bank balances (compared to 7.67 crores in March 31,
2021).

Money Flow Cash flow statement synopsis

Thyrocare generated net cash from operational activities in FY2022 of '105.68 crore ('111.07 crore in FY2021).
This is due to: •• An increase in operating profit before working capital adjustments from FY2021, which was $
175.44 crore, to FY2022, which was $ 245.44 crore.
•• Working capital cash flow decreased by '83.43 crore in FY2022 (down by '20.78 crore in FY2021), mostly
due to a delay in realising payments from government contracts. •• Taxes were paid in the amount of '56.33
crore in FY2022 (up from '43.59 crore in FY2021).
Flows of money from investments
Cash spent for investing purposes in FY2022 was '12.32 crore ('53.09 crore in FY2021).
Annual Cash used for investing activities in FY2022 was primarily attributable to the following: •• Purchase of
Property, Plant and Equipment (Net) of '40.41 crore in FY 2022 ('39.10 crore in FY 2021); •• Repayment of
Loan by Subsidiary of '6.35 crore ('9.90 crore in FY2021); •• Liquidation of Current Investment to the tune of
'18.48 crore (Additional (Net) Current Investment of '30

Flows of money from finance operations

In FY2022, '79.31 crore in dividends were paid out ('52.87 crore, including dividend tax, in FY2021).
EBITDA (earnings before interest, taxes, depreciation, and amortisation) for the Group increased by 37% to
'234.89 crore in FY2022 from '171.26 crore in Fiscal 2021.
The Group's profit after tax and excluding exceptional items (PAT) increased to'176.06 crore in FY2022
from'111.76 crore in Fiscal 2021.
After subtracting liabilities, the Group's total assets increased to'607.66 crore in FY2022 from'545.80 crore in
FY2021.

Cost of Materials Traded or Consumed

In all, the cost of material consumed or traded increased from'163.90 crore in FY2021 to'169.69 crore in
FY2022, with a cost of material consumed or traded to revenue from operations ratio of 28.82% (compared
to'33.14% in FY2021).

Expense for employee benefits in FY2022

In comparison to FY2021, total employee benefits costs rose to 61.13 crore from 58.07 crore. Employee
benefits costs as a share of operating income were 10.38% in FY2022 (up from 11.74% in FY2021).
5 - Apollo Hospitals Enterprice Ltd.
Business Overview
In 1983, Apollo Hospitals became the first corporate hospital in the nation. This innovative company was
founded with the help of Dr. Prathap C. Reddy, who is widely credited with creating contemporary Indian
healthcare.
Since then, Apollo Hospitals has established itself as a premier provider of private healthcare. In Apollo
Hospitals, more than 150 million patients from 140 different nations have placed their trust. The foundation of
Apollo Hospitals' patient-centered culture is TLC (Tender Loving Care), the magic that gives its patients hope.

Medical Services
Hospitals, hospital-based pharmacies, the retail health vertical, projects, and consulting services make up the
healthcare services section of Apollo Hospitals.
Hospitals As of March 31, 2022, we had 9,911 beds available across 71 hospitals in India and abroad. Of the
9,911 beds, 8,538 beds are found in 44 hospitals that are owned by us, 278 beds are found in 11 cradles, 244
beds are found in 11 daycare facilities, and 851 beds are found in 5 hospitals that are managed by us through
operations and management contracts.

Accreditations
The Joint Commission Worldwide, USA, has accredited eight of the group's hospitals for upholding
international healthcare quality standards for patient care and management. The leading accreditation
organisation for patient safety and the delivery of high-quality healthcare is JCI. JCI and NABH certification is
present in the hospitals in Chennai, Bengaluru, New Delhi, Hyderabad, Kolkata, Ahmedabad, and Navi Mumbai
in addition to the Apollo Proton Cancer Center, which just received this accreditation. There are 32 hospitals
in the group that have been "NABH" recognised in total.

Clinical Mastery
The foundation upon which Apollo Hospitals' healthcare activities are built is clinical excellence. The group has
consistently produced the best standards of clinical outcomes across a range of disciplines over the years. In
order to compare its own performance to that of other top institutions, Apollo Hospitals sets internal
benchmarks to meet or beat these institutions' clinical accomplishments in their respective fields.

Continuing Medical Education and Training

All of Apollo Hospitals' staff members are encouraged to take part in ongoing medical education and skill
development. The organisation makes sure that specialists and personnel are knowledgeable about the most
recent medical treatments and techniques in order to improve patient care. Collaborations with some of the
most esteemed institutions in the world have enabled knowledge exchange and the growth of medical
information and literature collections.
Research and academia
India has currently developed into an R&D hub for international firms as a result of its ability to do clinical
research at a comparatively low cost. The leading provider of clinical site solutions in India is Apollo Hospitals,
which has performed over 850 clinical studies. 115 Apollo Hospitals Consultants have received professorships
and associate professorships from the Apollo Hospitals Education and Research Foundation (AHERF). The
Adjunct titles now held by 79 Consultants are Clinical Tutor, Distinguished Clinical Tutor, and Emeritus Clinical
Tutor. 48 seats in 31 specialties across 13 Apollo Hospitals locations have been authorised for the Clinical
Fellowship programme.

Accreditations
The Joint Commission Worldwide, USA, has accredited eight of the group's hospitals for upholding
international healthcare quality standards for patient care and management. The leading accreditation
organisation for patient safety and the delivery of high-quality healthcare is JCI. JCI and NABH certification is
present in the hospitals in Chennai, Bengaluru, New Delhi, Hyderabad, Kolkata, Ahmedabad, and Navi Mumbai
in addition to the Apollo Proton Cancer Center, which just received this accreditation. The organisation has 32
hospitals that are all "NABH" approved.

Areas of Strategic Focus

1. Promoting growth and expanding reach in important regions
Cities like Chennai, Hyderabad, Kolkata, Bengaluru, New Delhi, Ahmedabad, Mumbai, Pune, Bhubaneshwar,
Madurai, and Mysore are just a few where Apollo Hospitals has a significant presence.

2. Giving Centers of Excellence more attention

The organization's national Centers of Excellence (COEs), which concentrate on disciplines including cardiac
sciences, neurosciences, orthopaedics, oncology, transplants, emergency, critical care, and preventive health,
are nurtured and given every opportunity to thrive.

3. Retail strategies to drive growth

The Apollo Hospitals Group has made investments in numerous retail healthcare models since its foundation.
The group's dedication to providing care closer to the consumer is maintained through this investment. Apollo
Hospitals has been able to affect more lives as a result, and it has also made its clients more accessible
throughout the care continuum. The retail health assets are managed by a subsidiary, Apollo Health and
Lifestyle Limited (AHLL). Future growth models will include healthcare delivery models including short-stay
surgeries, boutique deliveries, and widespread access to clinics and diagnostics services since they continue to
meet the changing needs of healthcare consumers.

4. Remaining focused on elective operations and procedures that improve quality of life
While continuing to place a strong emphasis on "Centers of Excellence," Apollo Hospitals has created a
significant presence in this market. To handle elective treatments like knee and hip replacements, cosmetic
surgery, and other related services, the facilities are well-equipped. In order to improve clinical results in
these fields, it is planned to hire more specialised surgeons, build deep sub-specialized practises, and invest in
cutting-edge medical technologies in the future. This will raise the market share and volume of such
treatments.
5. Improving asset use and capital efficiency in older institutions
Apollo Hospitals places a high priority on accelerating time-to-maturity at new sites and stabilising it. At Apollo
Hospitals' COEs, especially at new hospitals, specialised consultants have been hired to provide a superior
specialisation mix.

6. Extending Digital Impact

As the first step toward AI-based predictive health across the disease spectrum, the team's work with
Microsoft to build and implement new AI and machine learning models to forecast patient risk for heart
disease and help doctors with treatment strategies. Tumour Board Experts are easily accessible and
reasonably priced through Apollo Hospitals' online expert opinion service for oncology, which is available
twenty-four hours a day, seven days a week. In order to introduce "Symptom Search," a new feature in its
Search offering, the group worked with Google India.

7. Prevention of Illness
The organisation was the first in the nation to lobby for tax incentives for healthcare costs and to develop the
Master Health Check Program. Noncommunicable Diseases (NCDs), the majority of which are avoidable or
easily detectable, managed, or cured by early-stage screening, continue to afflict the nation.

8. Guaranteed Price Plans

In this strategy, the supplied service's inherent value takes precedence over specific inputs. For a variety of
surgical procedures, assured pricing plans have been created. These programmes provide patients' families
with complete peace of mind.

9. Public-Private Alliances
Today, public-private partnerships encourage private players to make investments and operate their
businesses (PPP). PPP will help to bring in the funding the government needs to provide healthcare and will
also help to build a long-term, sustainable model.

Financials \sRevenues
Healthcare services revenue for FY22 totaled'79,891 million, while overall operating revenue was'146,626
million. Revenue increase at existing hospitals was boosted by case mix and pricing adjustments. In FY22,
Apollo Hospitals' combined pharmacy business grew by 21% year over year to $67,679 million. In FY22, back-
end Pharmacy distribution sales increased 9.9% year over year to $53,610 million. In comparison to 4,118
stores as of March 31, 2021, there were 4,529 locations in the network of Standalone Pharmacies in 2022.
Expenses

Compensation and Benefits

In 2022, salaries and benefits costs were'17,865 million, up from'16,010 million in 2021. This increase was
brought about by our employees' annual raises in pay as well as the effect of more doctors working in our
facilities.
Operational Costs
In comparison to 2021, when the cost of materials was 56,842 million, in 2022 it was 75,735 million, an
increase of 33.24%. In keeping with the expansion in operational revenues, material expenses increased.

Amortization and Depreciation

Depreciation and amortisation costs increased to $6,007 million in 2022 from $5,731 million in 2021.
Restricted replacement capex during the year, some capex moved to Apollo HealthCo Limited as a result of
reorganising pharmaceutical distribution business, and acquisition of controlling stake in Joint Venture
Company (AMSHL) are the main causes of the rise or decrease.

Financial Outlays
In contrast to 2021, when financial expenses totaled $4,492 million, they were $3,786 million in 2022. The
change might be attributed to the year's repayment of various term loans and credit facilities.

Money Set Aside for Income Taxes

In the fiscal year that ended March 31, 2022, the provision for taxes was $4,470 million, up from $847 million
in the fiscal year that ended March 31, 2021.

Liquidity
Both operating cash flows and QIP proceeds from the year's QIP are the main sources of liquidity. The
business is confident that its cash generated internally, cash invested in liquid assets, and approved and
projected debt will be sufficient to pay down existing debt, finance internal expansion, and allocate funds for
capital expenditures.

Capital Investment
There have been investments made in new clinics, cradles, and dental centres in addition to the ongoing
investments in new hospital facilities. These upgrades will help Apollo Hospitals facilities draw and keep
physicians as well as increase patient traffic. 1,210 million in capital expenditures were incurred for the
pharmacy and 24/7 company during the previous year.
6 - Fortis Healthcare Ltd.
Perspective for the Healthcare Sector
As corporations continue to provide healthcare services to more than 70% of the rural population
and 80% of the urban population in India, private healthcare firms will continue to play a crucial role in the
healthcare sector. Additionally, private healthcare players will keep investing in the expansion of bed capacity,
the introduction of new, high-end medical infrastructure, and the improvement of the nation's overall
healthcare services through the adoption of new technologies; all in an effort to further improve the overall
patient experience. Although it is still in its infancy, home healthcare solutions are predicted to be among
India's fastest-growing markets.
The country's growing older population, an increase in the prevalence of chronic diseases, increased demand
for ongoing, individualised care, and the rise of nuclear family arrangements in urban areas will all contribute
to the expansion. Healthcare services are anticipated to develop thanks to technological advancements like
artificial intelligence (AI), wearables, and other mobile technologies, as well as the Internet of
Things.Development of tools to facilitate emergency care and enhancements to medical infrastructure
through technology-based optimization are two important categories where new opportunities are likely to
emerge for companies in the health technology industry. This entails extending the capabilities of wearable
technology to monitor health issues, creating patient-facing mobile health applications, and integrating
blockchain, AI, and robot technologies more thoroughly. It would also be important to emphasise that
although the growth drivers in the healthcare sector, including those in hospitals and diagnostics, present
appealing opportunities for investments by large corporate houses in India and foreign healthcare and
investment funds, the competitive landscape is also changing in a way that would result in a relatively higher
level of market competition.
In order to improve Statutory Report, many current healthcare players will work hard and innovate in order
to maintain their market share, build their brands, and incorporate digital and technology-driven initiatives.
Business KPIs, clinical results, and patient confidence are discussed and analysed by management.
Consolidation prospects in the sector may also materialise in light of the changing market climate (A). With
regards to Fortis Healthcare Limited As of 31 March 2022, Fortis Healthcare, one of the major providers of
healthcare services in India, had 26 hospitals, 4,300 operating beds, and more than 426 diagnostics centres.
From clinics to quaternary care facilities and a wide range of ancillary services, the organisation provides a
comprehensive spectrum of integrated healthcare services. The 23,000 employees of the Fortis Group, which
also includes SRL Ltd, share the goal of making IHH the most dependable healthcare network in India. In order
to provide top-notch patient care and clinical excellence, we rely on our cooperation with our parent business
IHH Healthcare for strength and synergies.

The Year Gone By

We continued our COVID immunisation push throughout the year as part of our effort to combat the
pandemic. Our staff extended their outreach outside hospital walls to residential communities and businesses
to broaden the scope of the immunisation effort. During FY22, Fortis administered more than 7.1 lakh
vaccination doses. The corporation returned its attention to the strategic initiatives it had established for FY22
once the second COVID wave faded. With the addition of several respected specialists in the fields of cardiac
sciences, oncology, neuro-sciences, gastroenterology, and orthopaedics, we began bolstering the top medical
programmes in important facilities across India. The company made significant investments in cutting-edge
medical technology and infrastructure, such as Cath Labs, Neuro-Surgical Microscopes, Neuro-Navigation
Systems, Endoscopy Systems, and Medical Oxygen Generation Plants. The regions of Delhi/NCR, Maharashtra,
Bengaluru, and Kolkata, where the majority of the company's significant facilities are located, make up the
company's key focus clusters. Even though the pandemic affected our strategy to ramp up beds, we
nonetheless added about 121 net additional beds in FY 21–22.

Business Planning
On the clinical front, we anticipate advancing our current specialisations and establishing new medical
initiatives. By integrating cutting-edge medical infrastructure and recruiting clinical expertise, we are further
enhancing our specialties, including oncology, cardiac sciences, neurology, gastroenterology, orthopaedics,
and pulmonology. Plans to improve emergency response through improved medical infrastructure and
targeted ER staff training are also in the works. We don't waver in our dedication to development and growth.
Through brownfield expansion, we intend to add about 225 beds in FY 22–23, with a considerable ramp up
anticipated in a few institutions. The majority of the new beds will be added to our facilities in our major
geographic clusters, including Bengaluru, Kolkata, Delhi/NCR, and Maharashtra. In our cluster regions, there
are long-term plans to build around 1500 beds over the next 3–5 years. By doing so, we will be able to
strengthen our current presence and take advantage of greater scale efficiencies in terms of both cost and
revenue-generating factors.

DIGITAL REVOLUTION
Fortis persisted in its pursuit of becoming a digital-first company. My Fortis, the first stage of our digital
platform for customer lifecycle management, was successfully launched in May 2021. To give patients a
seamless entrance and exit from the hospital, the new version is fully connected with the hospital information
system. The new platform, which is straightforward, quick, and reliable, gives patients a one-stop location
from which to schedule consultations or health checks, manage bookings for family members, store and
access medical information, conduct tele/video consults, and do much more.
The first phase of the organization's move from its current Oracle ERP to cloud-based Oracle Fusion for
Finance, HR, and Supply Chain Management was successfully accomplished. Based on sophisticated financial
controls, the new ERP introduces functionality for real-time monitoring of financial transactions. Additionally,
it introduces cutting-edge HR practises in learning and development, workforce planning, and talent
acquisition.

(iv) Group for Medical Strategy and Operations (MSOG)

As one of the top authorised private hospital chains in India, our systems-based methodology necessitates
ongoing review and monitoring, promoting more openness and clinical success.

Clinical Governance
Fortis Medical Council (FMC)
The FMC advises the executive on medical concerns as Fortis' top medical body. It is made up of senior,
eminent doctors, the MD & CEO, and senior management personnel.

Group of Fortis COVID experts

To create the Fortis standards, a team of specialists would assess institutional protocols and international best
practises.

Increasing Fortis's emergency services

Any tertiary care hospital must still provide acute care services. Predictably, most patients use emergency
room services when they are in trouble (unlike in ordinary OPDs), seeking prompt and compassionate
attention.

Expert Councils
\Members of the specialist council are subject-matter experts who provide widely accepted, evidence-based
techniques for creating Fortis protocols.

2. Persistence in Striking for Clinical Excellence

Patient safety and high quality
Using a centrally established Clinical Excellence Scorecard, Fortis has been monitoring Quality and Patient
Safety metrics throughout its network hospitals since 2013. (CESC).

Antimicrobial Management (AMS)

The goal of Antimicrobial Stewardship (AMS) is to monitor and enhance patient and physician use of
antibiotics. To successfully treat infections, safeguard patients from hazards brought on by inappropriate
antibiotic usage, and prevent antibiotic resistance, it is essential to improve antibiotic prescription and use.

3. Clinical Results
Fortis has played a key role in advancing evidence-based medicine as a member of the steering group at the
International Consortium for Health Outcomes Monitoring (ICHOM) for developing the Coronary Artery
Disease (CAD) Standard Set.

4. Nursing
A specially designed nursing induction programme guides and supports new nurses on their initial
deployment, preparing them for their new workplace.

5. Medical equipment and facilities

Despite economic difficulties and social unrest, Fortis continues to invest in modernising hospital
infrastructure and technology.

6. Certifications (as of March 2022)

 The majority of Fortis hospitals have NABH accreditation.
 Fortis Hospital, Mulund, was awarded the prestigious JCI accreditation for the year six times straight.

Company's Financial and Operational Performance

Despite the Covid-19 waves having an impact on regular company operations in Q1FY22 and Q4FY22, Fortis'
financial performance dramatically improved throughout Fiscal 2021–22. The second wave of the Covid
pandemic, which began fiscal year 2021–2022, was far worse than the first wave during fiscal year 2020–21.
Between April 21 and mid-May 21, the hospital business saw a quick increase in covid occupancy while non-
covid occupancy fell.
Contrary to the first wave of the pandemic in the previous fiscal, where non-covid occupancy recovery was
gradual, non-covid occupancy had a considerably quicker rebound beginning in mid-May. After experiencing
steady occupancy in Q2FY22 and Q3FY22, the infectious Omicron strain of Covid19 that hit the nation once
more in Q4FY22 had a negative influence on the overall occupancy of the hospital business in the fourth
quarter. Due principally to the significant contribution from Covid revenues countering the impact on non-
covid revenues during the quarter, the diagnostic business experienced a strong and exceptional Q1FY22.
Additionally, the business was reinforced as a consequence of the purchase of the remaining 50% JV
investment in Kerala's DDRC SRL in April 2021. In comparison to the INR 4,030 Crores reported for FY 2020–
21, the company recorded a consolidated revenue from operations of INR 5,718 Crores for the financial year
2021–2022 When compared to the INR 3,124 Crores recorded during the same year, hospital business
revenue was INR 4,264 Crores. In comparison to the previous financial year's gross revenues of INR 1,035
Crores, SRL Limited, the company's diagnostic division, recorded gross revenues of INR 1,605 Crores. The
acquisition of the remaining 50% interest in the DDRC SRL JV as well as a rise in Covid sales were the primary
causes of the diagnostic business's strong revenue growth. When inter-company revenue (inside the group) is
taken into account, SRL Ltd.'s net revenue was INR 1,454 Crores as opposed to INR 906 Crores in FY 2020–21.
The company's consolidated EBITDA totaled INR 1,096 crores, up from INR 451 crores in the prior equivalent
year. In comparison to the 11.2% recorded in FY 2020–21, the company's EBITDA margin in FY 2021–22 was
19.2%. Hospital EBITDA for the fiscal year 2021–22 was INR 672 crores, up from INR 263 crores recorded for
the fiscal year 2020–21. The hospital industry's EBITDA margin increased from 8.4% in FY 2020-21 to 15.8% in
FY 2021-22. The company's diagnostic division generated EBITDA of INR 425 crores, up from INR 200 crores in
the prior equivalent year. For the fiscal year FY 2021–22, the diagnostic business' EBITDA margin was 26.5%
(based on gross revenue), up from 19.3% in FY 2020–21. The combined profit after tax for the fiscal year
2021–2022 was INR 790 Cr, up from a loss of INR 56 Crores the year prior. PAT comprises a one-time gain of
INR 315 Crs., the majority of which results from the revaluation of SRL's previously held equity position in the
SRL-DDRC JV at its fair value following the purchase of the remaining 50% stake in the aforementioned JV in
April 2021. With net debt of INR 549 Crores as of March 31, 2022, compared to INR 849 Crores as of March
31, 2021, the company maintained a solid liquidity position. The company's gross debt decreased from INR
1,271 Crores as of March 31, 2021 to INR 966 Crores as of March 31, 2022. In comparison to FY2020-21, Net
Debt to EBITDA was 0.60x for 2021–2022.

INITIATIVES TO SUPPORT NEW BUSINESSES

A Data Protection Office has been established at Fortis to advance the company data protection agenda and
to build a strong personal data management practise. The 2022 Fortis Healthcare Executive Retreat featured
120 network leaders. The retreat's main focus, "The Shift to Thriving," was to inspire a change into a "state of
flourishing" at the individual, team, and organisational levels and to better understand the attitude and
behaviours that contribute to flourishing. Being a member of a bigger debate allowed for the emergence and
refinement of fresh concepts for inclusion in long-term goals.
7 - Torrent Pharmaceuticals Limited
GLOBAL ECONOMY
As the world enters the third year of the COVID-19 crisis, economic developments have been both
encouraging and troubling, clouded by many risks and considerable uncertainty. The global recovery is set to
decelerate markedly amid continued COVID-19 flare-ups, diminished policy support, lingering supply
bottlenecks and geo-political tensions. While the implications of Russia-Ukraine crises is highly uncertain, in
the near term the crises is likely to create additional upward pressure on inflation and weigh on economic
activity. Russia-Ukraine crises had led to surge in prices of crude oil and other commodities, exerting
additional upward pressure on nearterm inflation. The crises may restrain global economic activity abroad and
disrupt supply chains. The volatility in financial markets, particularly if sustained, could also act to tighten
credit conditions and affect the real economy.
After rebounding to an estimated 5.5 percent in 2021, global growth is expected to decelerate markedly to 4.1
percent in 2022. Global growth is projected to soften further to 3.2 percent in 2023, as pent-up demand
wanes and supportive macro-economic policies continue to be un-wound.

Indian Economy
Advance estimates suggest that the Indian economy is expected to witness real GDP expansion of 9.0 percent
in 2021-22 after contracting in 2020-21. This implies that overall economic activity has recovered past the pre-
pandemic levels. Almost all indicators show that the economic impact of the “second wave” in Q1 was much
smaller than that experienced during the full lockdown phase in 2020-21 even though the health impact was
more severe.
With the vaccination programme having covered the bulk of the population, economic momentum building
back and the likely long-term benefits of supply-side reforms in the pipeline, the Indian economy is in a good
position to witness GDP growth between 7.0-8.0 per cent in 2022-23.

Global Pharma Market

The COVID-19 pandemic has been the most impactful global public health crisis in decades, and yet it has
illustrated the resilience of global health systems as they have readily adapted to peaks in demand. In
developed countries, the adoption of new treatments, offset by patent lifecycles and competition from
generics and biosimilars, are expected to continue as the main factors influencing medicine spending and
growth.
The global medicine market using invoice price levels is expected to grow at 3-6% CAGR through 2026,
reaching about $1.8 trillion in total market size in 2026, including spending on COVID-19 vaccines. Growth in
global medicine spending will be slowed by losses of exclusivity, resulting in brand losses of $188 billion,
mostly offset by spending on newly launched products. The impact of exclusivity losses will increase to $188
billion over the next five years mostly due to the availability of biosimilars.

• The outlook for global medicine spending has shifted considerably in the years 2020 to 2022, but afterwards
is expected to be similar to the pre-COVID outlook, excluding the spending for COVID-19 vaccines.
• As a result of lower spending in the near-term, spending is expected to be $175 billion lower over seven
years to 2026 than it would have been without the pandemic, excluding the incremental spending on vaccines
and therapeutics for COVID-19.
• The most important drivers of lower spending will be those, often asymptomatic conditions which have had
patient engagement disrupted and fail to make up the backlog of previously expected usage and spending.
• A rapid first wave of vaccinations, reaching 70% of the world by the end of 2022, was possible with current
manufacturing capacity, but is ultimately expected about a year later near the end of 2023.

Growth Drivers:
Longer Life Expectancy: With declining fertility and increased longevity, the relative size of older age groups is
increasing.
Changing Lifestyle: In today’s world, sedentary lifestyle, changing dietary habits, hectic and stressful life, less
sleep and certain environmental factors causes higher incidence of chronic diseases.
Improving Purchasing Power: The middle-class population & per capital income continues to expand, driving
demand for healthcare solutions, more particularly in emerging markets.
Health Insurance & Infrastructure: Penetration of health insurance (both public and private) is expected to
surge with the government sponsored initiatives and programs, making healthcare more affordable.

Accelerating Growth with Sustainability

At Torrent, ESG has always been an integral part of decision-making and way of doing business. We, at
Torrent, have always been conscious about impact of decision making on sustainability. Our timeless core
values ensures our longevity. We firmly believe that ESG performance can render a competitive advantage
and is relevant to how successful a company will be in the future. Sustainability, as a value, was conceived at
the very inception of our journey & shall always be an imperative aspect in every space, we currently are and
believe to foray.

Regulatory
The COVID-19 pandemic is the “defining global health crisis of our time”. It came as an unfortunate reminder
of the importance of global health to the social, political and economic future of Humanity. Investing in public
health and supporting strong and resilient health systems is an important as ever. But it requires a
coordinated, focused approach. The COVID 19 has led to implementation of expedited pathways and risk
based approaches that may lead to transformation of drug development in future.

Mergers & Acquisitions (M&A)

COVID-19 negatively impacted the degree of M&A in 2020, with a slight rebound in 2021—but overall activity
remained subdued. There were fewer, smaller deals, and we saw companies shifting their portfolio toward
rare diseases through their smaller-scale M&A activity. There is likely to be continued focus on bolt-on
acquisitions aimed at bulking up R&D pipelines. When smaller bolt-on acquisitions dominate, the number of
deals may be high, and deal-making activity is expected to pick up this year. As smaller biotechnology firms
and larger pharmaceutical companies position themselves for opportunities to acquire assets, it is expected
that coming years may see many more types of collaborative relationships maximizing new technologies.
Performance Snapshot
Torrent is one of the front-runners in the Indian pharmaceuticals industry having presence in Domestic as well
as International markets. The Company has subsidiaries across the globe as under. The Company also has
major commercial presence in countries mainly covering South East Asia, Africa and the Middle East. During
the year 2021-22, the Company reported revenues of ` 8,508 crores, growth of 6% compared with ` 8,005
crores in the previous financial year.

Torrent’s Core Competencies

Torrent’s four major pharma markets are India, US, Germany and Brazil. The Company’s strategic priorities in
India and Brazil continue to focus on strengthening specialties, field force productivity and brand building.
These markets remain a key priority for the Company and offer higher visibility and sustainability to the
business. In the US and Germany, the Company continues to focus on its new product pipeline by developing
diversified and moving towards complex products.

Research and Development

The Company is currently developing several in-house New Chemical Entities (NCE) in the areas of metabolic,
cardiovascular, gastrointestinal, dermatological disorders. The Company has cumulatively filed 827 patent
applications for NCEs from these and earlier projects in all major markets of which, 504 patents have been
granted / accepted so far.

NDDS & Pipeline Augmentation

Novel Drug Delivery Systems (NDDS) have emerged from application of new technology platforms to design
products with an aim to reposition existing drugs, if required through an alternate route of administration.
The aim is to improve their performance with respect to efficacy, safety and patient compliance through
enhanced bio-availability, reducing the dose, frequency and onset and duration of action.

Threats, Risks and Concerns

Drug Price Control:
Currently 380 drugs and 899 formulations are covered under National List of Essential Medicines [NLEM]. It is
likely that the government may bring more such drugs and formulations under price control or change the
mechanism of calculating the ceiling price of the drugs which are under the ambit of Drug Price Control Order
2015 [DPCO 2015], which in turn will have impact on the margins of the Company. The Company manages its
product portfolio so as to minimize the product weightage of drugs under price control.
New Product Risk: New product development and launch involves substantial expenditure, which may not be
recovered due to several factors, including development uncertainties, increased competition, regulatory
delays, lower than anticipated price realizations, delay in market launch and marketing failure.

Future Acquisition Proposals

The Company continuously looks for opportunities in order to expand its product line either through
complimentary or strategic acquisitions of other companies, asset acquisition, licensing agreements or any
other arrangement. Any such acquisitions, may involve significant challenges in terms of integration with
existing operations, which may lead to requiring considerable amount of time, resources and effort. This may
lead to temporary disruption of ongoing business, affect relations with the employees and customers with
whom the Company has been dealing.

Manufacturing & Supplying Risk

The Company purchases Active Pharmaceutical Ingredient (API) and other materials that it uses in its
manufacturing operations from foreign and domestic suppliers. Although the Company has a policy to actively
develop alternate supply sources for key products subject to economic justification, there would be certain
cases where the Company has listed only one supplier in its application with regulatory agencies.

New Capital Investments

The Company continuously adds capacity to meet the increasing demand of pharma products from various
markets. The Company faces risks arising out of delay in implementation, cost overrun and inappropriate
implementation. The capacities are built in anticipation of demand and the Company runs the risk of under-
utilization of capacities resulting in high manufacturing cost. The risks are sought to be mitigated by forming
appropriate project management team and corporate management oversight

Overseas Markets
The development of the business in overseas markets is a critical factor in determining future ability to sustain
or increase global product revenues. This poses various challenges including volatile economic conditions, IP
issues, developed market compliance standards, inadvertent breaches of local / international law and
interventions by national governments or regulators restricting access to market and / or introducing adverse
price controls. However, the Company carefully monitors the business scenarios of these markets, prepares
the business plan and undertakes various researches to reduce the risk at the minimal level

Currency Fluctuation Risks

Currency risks mainly arise out of overseas operations and financing activities. Exchange rate fluctuations
could significantly impact earnings and net equity because of invoicing in foreign currencies, expenditure in
foreign currencies, foreign currency borrowings and translation of financial statements of overseas
subsidiaries into Indian rupees. The Company has a defined foreign exchange risk management framework to
manage these risks excluding translation risks.

Human Resources
The total employee strength of the Company at the end of financial year 2021-22 was 13,923 against 13,498
at the end of financial year 2020-21, an increase of 425 employees.

Internal Control System

The Company has a robust system of internal controls comprising authority levels and powers, supervision,
checks and balances, policies and procedures. The system is reviewed and updated on an on-going basis. The
Company continuously upgrades its internal control systems by measures, such as strengthening of IT
infrastructure and use of external management assurance services. The Company has in place a well-defined
internal audit system whereby the internal audit is performed across locations of the Company and the results
of the audit findings are reviewed by the audit Committee.

Working Capital and Liquidity

The trade working capital i.e. net working capital investment excluding current investments, cash and cash
equivalents, bank balances other than cash and cash equivalents, loan given to employees, short term
borrowings, current maturity of long term debt, derivative financial instruments and accruals for health
insurance contracts (in Germany) reduced by ` 39 crores from ` 2,903 crores at the end of financial year 2020-
21 to ` 2,864 crores at the end of financial year 2021-22. The number of days of net trade working capital has
reduced from 134 days in 2020-21 to 124 days in 2021-22. Cash and cash equivalents including current
investments was at ` 398 crores during the financial year 2021-22 compared to ` 573 crores at the end of
financial year 2020-21.
8 Granules India Limited
Company Overview
Granules India Limited is one of the largest pharmaceutical companies in India. It has been making high-
quality pharmaceutical products for more than 30 years.
We make Active Pharmaceutical Ingredients (API), Pharmaceutical Formulation Intermediates (PFI), and
Finished Doses (FD), which we sell in North America, Europe, India, and Latin America, which are all important
markets. We offer high-quality, affordable medicines to people all over the world. This is made possible by
vertical integration, scale, manufacturing excellence, focused execution, and cost leadership through
continuous innovation.
Granules has seven manufacturing facilities; six are in India while the seventh is through a joint-venture with
Hubei Bio case in Wuhan, China. The company also has two research centres, at Hyderabad and Pune. The
Gagillapur facility is located near Hyderabad and has a Finished Dosage block, a PFI block and a research &
development facility.
Granules commissioned the world's single largest PFI plant in Gagillapur in August 2003 with a batch size of 6
MT and an annual capacity of 7,200 MT per annum. The plant received its US FDA approval within six months
of commissioning.
Granules are focusing on making technologies that are different from each other so that they can make
complicated formulations. During the year, we spent Rs.240 Crore to finish building a new finished dosage
block for making MUPS (Multi-unit pellet system) products. MUPS has become one of our factories that makes
specialised goods. Several of our products have already been approved, and we are working on getting the
rest of them soon. Once commercial operations start, we will be one of the biggest suppliers of MUPS capacity
in the world for a set of approved molecules that will be put on the market in the US and Europe.
They are looking for ways to offer customers in the oncology field products, processes, and services that go
with them by validation batches last year, and technology transfer is happening for a number of products. As
soon as we get regulatory approvals this year, we plan to sell products from the oncology block.

Financial Performance
Consolidated Financial Summary
On a consolidated basis, revenue from operations was Rs. 3,76,492.10 lakhs in FY 2021-22, compared to Rs.
3,23,754.28 lakhs in FY 2020-21, and the net profit after taxes was Rs. 41,275.81 lakhs in FY 2021-22,
compared to Rs. 54,945.90 lakhs in FY 2020-21.

Standalone Financial Summary

The revenue from operations was Rs. 3,23,843.66 lakhs in FY 2021-22, compared to Rs. 3,13,498.24 lakhs in
FY 2020-21, and the net profit after taxes was Rs. 38,651.48 lakhs in FY 2021-22, compared to Rs. 55,278.31
lakhs in FY 2020-21. Please look at the Management Discussion and Analysis report for more information. A
change in the product mix was the biggest reason for growth in FY 2021-22. On its own, the Finished Dosages
(FD) business brought in the most money for the company at 45%, followed by Pharmaceutical Finished
Intermediates (PFI) at 25% and Active Pharmaceutical Ingredients (API) at 30%. For the FY 2020-21, the
percentages for FD, PFI, and API were 50%, 20%, and 30%, respectively. We sent eight ANDAs to the US FDA,
four dossiers to the European region, and two ANDSs to Canada. We have also filed six US DMFs, four CEPs
(Certificates of Suitability) with EDQM, and five EDMFs. These will be used to build revenue from API business
in the future. The company's leaders think that it will keep getting better by doing more research and putting
out new products. The Company's strength and main area of focus has always been vertical integration. It will
keep focusing on its core business and making it stronger by using backward integration strategies, improving
operational efficiencies, and continuous supply chain management to increase its market presence and
increase its market share. Non-core businesses will also get the same amount of attention, and the company
will try to add new products, be the cost leader, and, most importantly, give all customers services that are
reliable and consistent. The company will keep working toward its goal of turning more of its business into the
finished dosage business. With this goal in mind, the company will continue to grow as an integrated
pharmaceutical company in a responsible and sustainable way.

KEY FINANCIAL RATIOS

Particulars FY 22
Inventory turnover Ratio 6.15
Return on Equity 16.6%
Debtors Equity Ratio 0.41
Return on capital employed 20%
Current ratio 1.53
Net profit margin (%) 11.7%
Return on Equity
Profit after tax ("PAT") for the year is lower due to the non-availability of Para Amino Phenol (PAP) and
increase in prices of Key starting raw materials (KRM) and solvents and logistic cost in the current year. All
these could not be recovered fully from customers.

Return on Capital employed

Earnings before Interest and Tax for the year is lower due to the non-availability of Para Amino Phenol (PAP)
and increase in prices of Key starting raw materials (KRM) and solvents and logistic cost in the current year. All
these could not be recovered fully from customers.

EBITDA (%)
EBITDA (%) for the year is lower due to the non-availability of Para Amino Phenol (PAP) and increase in prices
of Key starting raw materials (KRM) and solvents and logistic cost in the current year. All these could not be
recovered fully from customers.

Net Profit & Net Profit Margin

PAT for the year is lower due to the non-availability of Para Amino Phenol (PAP) and increase in prices of Key
starting raw materials (KRM) and solvents and logistic cost in the current year. All these could not be
recovered fully from customers.
Return on Net worth
Return on Net worth (%) for the year is lower due to the non-availability of Para Amino Phenol (PAP) and
increase in prices of Key starting raw materials (KRM) and solvents and logistic cost in the current year. All
these could not be recovered fully from customers.

HIGHLIGHTS OF THE YEAR

EXISTING BUSINESS
The existing core business remained our focal point, while we constantly expanded our product portfolio and
global presence with focus on high volume products built on maximizing process efficiencies and vertical
integration.

US GENERICS
Since they started selling and marketing in the US in 2019, we've put 24 generic products on the market with
the GPI label. The US Generics business grew a lot because of how they chose, developed, and made their
products. Our product line has been changing all the time, from large quantities of immediate release (IR)
products to more complicated products with extended or delayed release (ER/DR). During FY22, we had the
most growth in generic prescriptions in the US market, with 17.8% growth.

EMERGING BUSINESS
Our "Emerging business" product selection process is based on finding and developing high-entry-barrier
products with different levels of complexity at the API and/or formulations development stages. With our
state-of-the-art facility in Visakhapatnam, we made APIs that cover a wide range of therapeutic categories and
grew our business to include High Potent APIs (HPAPI). We also work with customers from all over the world
to develop and make products that meet their High Potent Formulation needs. We sent the U.S. FDA 64
ANDAs for finished dosage forms. 50 of them were approved, and 14 are still being looked at. We kept using
our ANDA filings to get into other markets outside of the US. We sent out six dossiers in Europe and five
dossiers in Canada. The USFDA gave us permission to use six ANDAs. The approvals on time show how good
our ANDA filings are. Also, the approval of the dossiers that were sent in from other countries moved forward.
One dossier in the EU and two dossiers in Canada were given the green light. We want to keep making
products with different levels of complexity in each dosage form, such as immediate release, extended
release, delayed release, MUPS, and oral suspensions. We set out on a journey to build our intellectual
property assets. We now have 8 granted patents and 13 pending patent applications in several countries. In
FY22, we put in for two patents in India. Most of these patent applications were for new ways to make
intermediates and/or APIs, as well as their purification and pharmaceutical compositions.
9 Alkem Laboratories Ltd.
Company Overview
Alkem is a well-known brand in India in the areas of anti-infective, gastrointestinal, pain management, and
vitamins, minerals, and nutrients for acute therapy. The company is also getting bigger and its presence in the
areas of neuro/CNS, cardiovascular, anti-diabetes, and dermatology for long-term therapy. Some of the top 50
pharmaceutical brands in India, like Clavam, Pan, Pan-D, and Taxim-O, are among the products that the
company sells. The Company has been number one in the anti-infective segment for more than a decade.
Alkem is also one of the top companies in the generic trade segment in India.
During its almost 50-year journey in the Indian Alkem Laboratories, which will be called "Alkem" or "the
Company" from now on, has become one of India's largest generic pharmaceutical companies with operations
around the world. The company does business in more than 40 countries around the world, but the US is its
most important market outside of its home country. In the last 20 years, the Company has always been one of
the top 10 pharmaceutical companies in the United States. It works all along the value chain, developing,
making, and selling pharmaceutical and nutraceutical products all over the world.
The company has a large distribution network in India and other countries, a well-balanced portfolio with
more than 800 brands, and a management team with a lot of experience. It has 19 modern factories, 17 of
which are in India and 2 in the United States. Regulatory agencies like the US FDA, WHO, MHRA (UK), TGA
(Australia), ANVISA (Brazil), and MCC regularly inspect and approve all of these facilities (South Africa).
The company also has six world-class R&D centres with cutting-edge technology and more than 500 scientists
working there. It has also filed more than 160 ANDAs with the US Food and Drug Administration and more
than 1,100 product registrations in different international markets. Through its subsidiary Enzene Biosciences,
the company has also put in a lot of money into biotechnology.

Financial Performance
OVERVIEW OF FINANCIAL PERFORMANCE
During the fiscal year that ended on March 31, 2022, the company made a total of'90,297.0 million, including
other income, compared to Rs.74,096.9 million in the previous year 22% more than it did the year before.
During the financial year 2021-22, the Company's export turnover was RS. 19,594.3 million, which was 2.9%
higher than the previous year's'19,039.0 million.
During the financial year that ended on March 31, 2022, the company and its subsidiaries made a total of
Rs.107,968,4 million in revenue, which includes other income. This is a 19% increase from the previous year,
when they made Rs.90,982,2 million.
During the financial year that ended on March 31, 2022, the Standalone Profit before interest, depreciation,
and taxes went down by 5% to Rs.20,102.5 million from'21,261.6 million the year before. On the other hand,
the Consolidated Profit before interest, depreciation, and taxes went up by 1% to'22,006.1 million
from'21,756.0 million the year before. Because of this, Standalone Profit before tax went down by 7% from
the previous year to Rs.17,533.7 million, and Consolidated Profit before tax went up by 0.1% from the
previous year to Rs.18,442.8 million.
For the financial year that ended on March 31, 2022, the Standalone Net Profit after taxes went down by 9%
to Rs.15,412.5 million, while the Consolidated Net Profit after taxes went up by 4% to Rs.16,456.2 million.

KEY FINANCIAL RATIOS

Particulars FY 22
Inventory turnover Ratio 2.04
Return on Equity 18.8%
Debtors Equity Ratio 0.3
Return on capital employed 18.3%
Current ratio 1.66
Net profit margin (%) 17.7%
Revenue from Operations
The growth of domestic business was 29.3%, which was helped in part by the effects of COVID-19. The US
business dropped by 5.6% year over year because of strong price pressure. Other International Markets had
strong growth of 34.8%, led by Australia and Chile, which are important markets.

Gross Profit & Gross Profit Margin

Gross margin was almost the same as last year's, even though the revenue mix was better. This was because
higher raw material costs and price erosion in the US made up for the better revenue mix.

EBITDA and PBT

EBITDA and PBT margins went down from the previous year, mostly because marketing costs went back to
normal after COVID-19 restrictions, freight costs went up, travel costs went up, power and fuel costs went up,
and more people were hired. In FY 2021-22, there was also a "exceptional cost" of $150 million for the fair
value of investments.

Profit after tax (PAT)

Profit after tax (PAT) growth of 3.8% was mostly due to healthy growth in sales, which was partially offset by a
drop in EBITDA margin.

Debtors Turnover
The company optimised its receivable days, which led to a faster turnover of debtors than the year before.

Inventory Turnover
The company increased its stock in some of its most important markets in a planned way to deal with supply
problems, unexpected COVID-19-led demand, and the business's need for growth.

Debt to Equity Ratio

The company's EBITDA margin went down from one year to the next because of higher marketing costs,
higher freight costs, higher power and fuel costs, and higher travel costs because the company needed more
working capital, it had to borrow more money. This made Net Debt/Total Equity go up and Current ratio go
down.
HIGHLIGHTS OF THE YEAR
UNITED STATES PHARMACEUTICAL MARKET
The US is the biggest market for pharmaceuticals in the world. About 40% of all money spent on
pharmaceuticals in the world goes to the US.
From 2022 to 2026, pharmaceutical spending in the US is expected to grow at a compound annual growth rate
(CAGR) of 2.5–5.5%, bringing it to about US$700 billion by 2026. In 2022 and 2023, vaccinations will be the
main cause of short-term growth, while the launch of new molecules, more use of specialty drugs, the use of
newer treatments, and an ageing population are expected to cause growth in the middle and long-term.
But the industry also faces problems like regulatory hurdles, rising costs for research and development (R&D),
and competition from generic drugs and biosimilars.
Indian pharmaceutical companies are important parts of the largest pharmaceutical market in the world.
Indian companies meet about 40% of the volume demand for generic drugs in the country. Between 2010 and
2019, the US FDA gave 2,046 ANDA approvals to Indian companies. This is 35% of the total 5,768 ANDA
approvals. Source: EY report – Indian Pharmaceutical Industry 2021: future is now. Also, India has the most
factories outside the US that are approved by the US Food and Drug Administration (FDA). In the next 5 years,
141 billion dollars' worth of brand-name drugs are expected to lose their patents. This is a good opportunity
for generic and biosimilar players in the short to medium term. But because there is more competition, ANDA
approvals happen faster, and distributors in the US are merging, there is a lot more price pressure on generic
pharmaceutical companies. In this market where prices are going down, it's getting harder to keep selling the
same products. So, generic companies are putting more money into research and development to come up
with complex drugs and biosimilars, which are likely to have less competition.

INDIAN PHARMACEUTICAL MARKET (IPM)

COVID-19 has made it clear how important a strong healthcare system is, and how not having one can put the
economy and society of the whole country at risk. We need to quickly build a strong infrastructure for health
care and make it available to everyone. Indian Pharmaceutical Market has grown by more than 10 times in the
last 20 years. In 2000, it was worth only US$4.2 billion, but by 2020, it will be worth about US$42 billion. It is
also expected to grow at a CAGR of 12% until 2030, when it will be worth US$130 billion. Almost the same
amount of the IPM is spent on domestic consumption and on exports. Over the next ten years, people are
expected to spend 10–11% more money on their own needs.
This will be mostly caused by positive demographic trends and rising household incomes. As the middle class
grows, more people will be able to afford and choose high-quality drugs.
The market is growing because more people want better and newer treatments, more people are getting
insurance, and changes in lifestyle and eating habits are causing more people to get chronic diseases. Helping
the IPM grow over the next ten years will also be the government's efforts to improve healthcare
infrastructure in the country through increased budget allocations and incentives for healthcare companies to
invest in more capacity through PLI schemes to promote self-sufficiency (Atmanirbhar).
STRONG GROWTH IN BIOLOGIC AND BIOSIMILAR DRUGS
How much money the world spends on biotech drugs (biologic and biosimilar) according to an analysis by the
IQVIA Institute, is expected to grow at a CAGR of 9–12% and reach US$620 billion by 2026. This is more than
one-third of all money spent on medicines around the world.
Biologic drugs are becoming more popular quickly because they work better than other types of drugs.
Oncology and immunology, which are the top two global therapy areas, are expected to have strong growth in
the biotech sector. This growth will be driven by a big rise in new treatments and medicine use.
Also, neurology is likely to see a lot of new therapies, such as new treatments for migraines and possible
treatments for Alzheimer's and Parkinson's diseases. Biologic drugs like Humira, Rituxan, Enbrel, Herceptin,
Avastin, and Remicade are some of the most popular medicines in the world right now. Many of the big
biologic drugs will lose their patent exclusivity in the next 5 years. This gives biosimilar players a big chance to
make money. Some of the most expensive biologic molecules will face competition from biosimilars in the
next five years, which will end in 2026. This could lead to savings of more than $200 billion. These savings
could make it easier for more people around the world to get biosimilar drugs as the cost of treatment goes
down. Biosimilars have made good progress in regulated markets like the US and EU. More than 20 biosimilars
have been approved in the US, and more than 100 biosimilars are in development there. In the European
Union (EU), too, more than 50 biosimilars have been approved and are being used to treat a wide range of
cancers, autoimmune diseases, diabetes, and fertility problems.
10 Biocon Ltd.
Biocon's Strategy
In order to provide size, speed, and quality that permitted affordable access to complicated medicines for
chronic disorders like diabetes, cancer, and autoimmune diseases, Biocon has exploited India's value
advantage of scientific expertise and cost-competitive manufacturing during the previous four decades. Our
business practises have been guided by the company mission. Biocon is always developing new strategies that
enhance patient outcomes and offer distinctive, top-notch, and reasonably priced healthcare options to
communities all over the world.

Review of Business FY22 Highlights

By generating revenues of '83,966 million or '$1.1 billion in FY22, Biocon reached the billion-dollar milestone,
recording a 14% year-over-year gain, powered by a high rise of 24% by Biosimilars and 20% by Research
Services over FY21.
In 2021, Biocon became the first business in the United States to be given an interchangeability designation
for their biosimilar (insulin glargine). This was a significant step toward universal access to inexpensive
healthcare.
Biocon established two strategic alliances this year in an effort to provide patients comprehensive healthcare
solutions. Through a strategic agreement between Biocon Biologics and Serum Institute Life Sciences (SILS),
which will give Biocon 15 years of committed access to 100 million annual doses of vaccines, Biocon moved
into adjacencies such as vaccines given the effect of infectious illnesses on human life.
The Generics business introduced five new formulation products in the United States, including Everolimus
10mg tablet, our first day-one U.S. introduction of a vertically integrated formulation.
Contract extensions with important clients including Bristol-Myers Squibb and Amgen Inc. allowed Syngene's
Research Services division to continue meeting client needs.
Listed among the "Top 10 India's Best Workplaces in Diversity, Equity and Inclusion, 2021" and acknowledged
by Great Place to Work as a "Certified Workplace with Inclusive Practices"
Listed among the "Top 5 Most Innovative Practices—Women Leadership Development" and the "Most
Inclusive Companies Index List" in 2021, Avatar's Top 100 "Best Companies for Working Mothers" list, the 100
"Best Hall of Fame," and the Dow Jones Sustainability Index for Emerging Markets.

Biocon engages in four different industry sectors:

Generic medications and novel biologics
Research Services c. Biosimilars (under Biocon Biologics Limited) d. (Under Syngene International Limited)
Generics
A growing range of finished doses and Active Pharmaceutical Ingredients (APIs) make up our generics
business. We are currently one of the biggest producers of immunosuppressant and statin APIs worldwide. In
2013, we entered the generic formulation market with a plan to forward integrate our own APIs. In India, the
company operates five API manufacturing plants in Bengaluru, Hyderabad, and Visakhapatnam.
Active Pharmaceutical Ingredients (API) The market for APIs is expected to reach $ 2725 billion by 2026,
growing at a CAGR of 6.4%. This rise will be fueled by an ageing population, rising chronic illness prevalence,
rising R&D activities, as well as the increasing importance of generic drugs and the adoption of biosimilars,
mostly as a result of patent expirations. The largest number of manufacturing plants are in China and India.

Generic API Industry:

Our API business consists of a well-balanced portfolio of 40+ APIs, including some specialty and niche
compounds for hospitals and institutional channels as well as APIs focused on oncology, immunosuppressants,
anti-diabetics, and cardiovascular medicine.
Generic Pharmaceuticals

Market for generic medications worldwide:

The prevalence of chronic diseases, rising population, upcoming patent expirations, and initiatives from
governments and international regulatory bodies to promote the use of affordable generics as an effective
substitute for branded medications are expected to drive the global generics drug market to grow at a CAGR
of 10% to $ 786 billion6 by 2030, partially offsetting price erosion.

Business of Biocon Generic Formulations

Our product line, which includes injectables such vials, Pre-Filled Syringes (PFS), and auto-injectors as well as
various dosage forms, is concentrated on therapeutic areas like cardiology, oncology, immunology, and auto-
immune indications, among others.

Generics - Financial Results for FY22

Revenues from the Generics division, which were $23,409 million in FY22 vs $23,627 million in FY21, made up
29% of the total group's consolidated revenues. The segment experienced a recovery in the second half of the
fiscal year, which was fueled by new product launches in the United States, particularly Everolimus, an
increase in our API business, and a return to normalcy for supply issues that had negatively impacted the
segment's performance in the first half of the fiscal year.
With a focus on diabetes, oncology, and immunology, Novel Biologics' company continues to address unmet
patient needs. Itolizumab, the main compound, is the first unique humanised anti-CD6 monoclonal antibody
in the world that targets the CD6-ALCAM pathway specifically. After Nimotuzumab, the medication is Biocon's
second global "lab to market" innovative biologic.
Bicara Therapeutics, a Boston-based partner that is creating first-in-class biologic therapeutics that combine
the effectiveness of immunotherapy with the precision of targeted therapy, is a clinical-stage biotechnology
firm.

Innovative biologics - FY22 Highlights

In March 2022, our collaborator Equillium, Inc. began a Phase III clinical trial of itolizumab in patients with
aGVHD. Itolizumab was given an orphan medical product designation by the European Medicines Agency's
Committee for Orphan Medicinal Products in July 2021 to treat both acute and chronic GVHD.
In order to assist the clinical development of BCA101 and its pipeline, Bicara has obtained outside investment.
Due to the further diluting of Biocon's stake in Bicara, the current fiscal year's profit increased.

Biosimilars (Biocon Biologics Limited) (Biocon Biologics Limited)

Through its subsidiary Biocon Biologics Limited, Biocon runs its biosimilar business (BBL). At our R&D facilities
in Bengaluru and Chennai, we are working to create high-quality, cost-effective biosimilars that can increase
patient access to cutting-edge therapies globally (India).

Biosimilars: A promising market

The biosimilar sector has expanded tremendously worldwide during the past ten years. There will be
numerous new opportunities for the biosimilar business over the course of the next five years when biologic
brands with revenues of more than $70 billion lose exclusivity, representing a huge increase from $25 billion
over the previous five years8. This may potentially save healthcare systems throughout the world $215 billion
in total, according to IQVIA.

Beginning of the biosimilars business at Biocon

Due to Biocon's early introduction into the biosimilar market more than 20 years ago, we have been able to
dominate the biosimilars sector. Because of the knowledge we gained and the early success of our first wave
of molecules, we were able to move up the value chain and get a larger share of the commercial rights and a
larger share of the risk-reward distribution of costs and earnings.

FY22 Biosimilars Financial Results:

The biosimilars industry has maintained high growth and long-term profitability. Revenues for Biocon Biologics
increased by 24% over the previous year to $34.643 billion, accounting for 42% of total operating revenue.
Core EBITDA margin, which is EBITDA less foreign exchange, licencing, mark-to-market losses on investments,
and R&D costs, was 39% in FY21 compared to 36% in FY22. An expanded revenue base was responsible for the
better margins. In FY22, the company generated EBITDA margins of 29%.

Research Support (Syngene)

New drug development and discovery is a time-consuming, difficult, and expensive process. A increasing
number of innovative businesses, or "sponsors," are outsourcing a significant portion of the pharmaceutical
value chain in an effort to increase productivity and efficiency throughout the various stages of the drug
development process.
Scientific services for both small and large molecules are offered by Syngene, a firm that offers integrated
research, development, and production services. In the CRO category, Syngene offers end-to-end services,
while in the CDMO segment, its service offerings are expanding. As a result, Syngene's business is a
conglomeration of several firms.

Services for Research (Syngene) in FY22 Financial Results:

A robust increase of 19% over FY21, Syngene's revenues of '26,042 million represented a respectable 32% of
Biocon's overall revenues. We improved our technical capabilities in the small molecule discovery and
production sector, which helped us win repeat business and increase client confidence in our ability to scale
up manufacture for clinical supply.

Operational Effectiveness Tangible and intangible assets of Biocon

Both tangible and intangible assets increased by 17%; the facility for Biosimilars in India and Malaysia was a
major contributor to this growth.

Investment in a joint venture and colleagues

Additionally, during FY22, Bicara received additional funds from outside parties, which caused our interest in
the affiliate to be diluted. In order to account for stake dilution, we recorded "299 million" in Other Income.
Bicara lost $2,564 million for the fiscal year that concluded on March 31, 2022, and is currently in the R&D
phase.
We recorded our portion of the $2,107 million loss, which caused associate investments to decline. The '80
million mentioned above, as of March 31, 2022, is an investment in the joint venture Neo Biocon FZ LLC.

Intangible financial assets

The fair value of the investment in Equillium was reduced by $658 million, and the investment in deposits was
reclassified, somewhat offsetting the fall in this component.

Extra equity
Due to profit accumulation, the Company's overall other equity increased by 11% in FY22.

ancillary interests
Due to the accumulation of gains from the current year, the profit attributable to minority shareholders
increased by 18% in FY22.

Borrowings (including non-current and current) (includes non-current and current)

At March 31, 2022, total borrowings were 49,040 million Other. Explicit financial obligations
Other non-current financial obligations mostly consist of a gross liability of $15,033 million on written put
options that allow investors in our subsidiary, Biocon Biologics Limited, to sell their shares over time.

Other non-current liabilities and provisions

Deferred revenue, deferred tax liability, and provisions for gratuities and compensated absences are the main
types of provisions and other non-current liabilities.

Liabilities and assets held for sale

Biocon chose to launch its generic formulation products, which are being developed for the US, EU, and
international markets, in the UAE through its wholly owned subsidiary during the year that concluded on
March 31, 2022.

Working money (current assets less current liabilities)

Working capital increased by 34% as of March 31st 2022 compared to FY21, with inventory rising mostly as a
result of new product releases, trade receivables rising as a result of stronger sales, and short-term borrowing
falling.

Revenue
On a consolidated basis, overall revenue increased during the reviewed year from 73,976 million to 83,967
million, a 14% increase. Our biosimilar sales reached $34.643 million, a 24% increase from the previous year.
In comparison to FY21, when Generics revenues were $23,627 million, they were $23,409 million in FY22. To
'26,042 million, research services saw a 19% increase.

other revenue
We recorded $299 million in Other Income for associate stake dilution during FY22.
Due to corporate expansion, a rise in workforce, and costs associated with stock compensation, staff cost
expenses grew by 9% in FY22.

expenditures for research and development

For FY22, net R&D spending increased by 8% to $5,950 million. Net R&D expenditures were 11% of revenue
(11% in FY21) without Syngene. We capitalized'1,155 million, bringing the total gross R&D expenditure for the
year to'7,105 million, up from'6,270 million in FY21 Interest and Finance costs
The primary component of the FY22 financing expense of $676 million ($577 million in FY21) is interest on
borrowings for the businesses of biosimilars and research services.

Amortization and Depreciation

Depreciation and amortisation grew by 14% to $8,142 million during this fiscal year from $7,151 million in
FY21 Tax costs
Prior to the extraordinary item, the effective tax rate (ETR) was 22% (20% in FY21). Since FY21 includes a
credit for reversing a tax provision for prior years, ETR is up 2%.

Risk Administration
At Biocon, a framework for risk management has been put in place to guarantee prompt detection, analysis,
and assessment of risks and their potential repercussions, as well as the development and efficient execution
of specific mitigation plans.
11 Abbott India Ltd.
Abbott is committed to realising the potential of people in all contexts, at all ages, and in all facets of life. We
think the secret to fulfilling that promise is good health. We can accomplish anything when we're in good
health. We shall always strive to support people in achieving their optimal health at every stage of their lives.
This is how we live out that belief every single day.

OUR GUARANTEE
We support those we work with in living healthy lives by being here for them. Abbott has been doing things
this way for more than a century—passionately and carefully transforming science into benefits to health that
endure.
From newborns to elderly persons, from nutrition and diagnostics to medical care and pharmacological
therapy, our goods cover every aspect of life.
Our job is centred on caring, and caring defines our obligation to the people we serve.
• We value our diversity—that of our products, technologies, markets, and people—and think that diverse
perspectives combined with shared goals inspire new ideas and better ways of addressing shifting health
needs. • We advance cutting-edge science and technologies that have the potential to significantly improve
health and the practise of health care.
• Because our work has a direct impact on the lives of people, we place a strong emphasis on delivering great
performance—a trait shared by Abbott employees globally.
• By committing to the highest standards of quality, excellence in interpersonal interactions, and conduct
marked by honesty, fairness, and integrity, we work to gain the trust of those we serve.
• We maintain success—for both our firm and the clients we serve—by adhering to the fundamental
principles upon which our organisation was established more than a century ago: creative care and a
commitment to make a significant difference in everything we do.

REVIEW OF ACTIVITIES
The Company has regularly outpaced the market* in recent years by focusing on offering reliable, scientific
products that are supported by knowledgeable clinical advice.
The Company's standing has improved as a result of consistent scientific engagement with physicians,
expanding geographic penetration, great consumer insights, innovative medicines, and an all-encompassing
pill plus service approach.

OPORTUNITIES AND DIFFICULTIES

E-pharmacy and pharmacy chains are two factors that have an impact on the industry and company.
Along with traditional brick-and-mortar merchants, new-age channels are becoming more and more
important and have become another point of access for consumers.
The Ayushman Bharat
Ayushman Bharat, the health insurance programme of the central government, is anticipated to increase
public health insurance coverage. The programme covers 107.4 million impoverished and vulnerable families,
or roughly 500 million individuals, or 40% of India's population, and provides hospital care valued at $5,000
per family per year. Private medical practises as well as the retail pharmacy market will gain from this.
GST
GST rates may be rationalised, according to the Indian government. The bulk of medications currently fall
under the 12% group. Drugs may have an impact on the industry if their classification is raised and if it is not
done rationally.
Regulations for OTC drugs
India's OTC market has been expanding at a healthy rate thanks to patients' increasing access to knowledge
and desire to self-medicate.
Standard Operating Procedures for Pharmaceutical Marketing (UCPMP)
All businesses would be required to adhere to ethical marketing principles under a mandated code. Because
the Company has effective compliance procedures in place, it would be well-positioned if UCPMP were strictly
enforced.
NMC Guidelines
Draft Registered Medical Practitioner (Professional Conduct) Regulations, 2022, published by the National
Medical Council, propose a number of limitations on RMP interactions with the pharmaceutical industry as
well as adjustments to prescription guidelines.
Digital Engagement
Field force activities was significantly disrupted by the epidemic, which led businesses to use digital tools to
interact with healthcare professionals (HCPs)

Commercial Performance
The Company only conducts operations in the "Pharmaceuticals" reportable business category. The company
offers goods and services in a number of therapeutic fields, including women's health, gastroenterology,
metabolics, central nervous system, multi-specialty, vaccines, consumer health, etc.
Below are some performance highlights for the year under evaluation in regard to the therapeutic areas
mentioned above:
Women's Health: The major brand Duphaston helped the Women's Health portfolio grow by 23.3% over the
course of the year (miscarriage and IVF). Riligol (postpartum haemorrhage), Preservgest (pregnancy
maintenance), and Femoston 2/10 (postmenopausal symptoms) were three new products introduced during
the year. In the coming years, we will continue to develop Femoston in the management of menopause, and
shaping the menopause therapy landscape in India will be one of our top priorities.
Gastroenterology: The Company's primary growth engine, the Gastroenterology portfolio, demonstrated
strong growth of 26.9%. Strong growth of top brands in this market, including Cremaffin Plus (constipation),
Duphalac (cholestatic chronic liver disease), and Udiliv (cholestatic chronic liver disease), was fueled by
increased geographic presence, distinctive medico marketing programmes, and targeted micro market
interventions.
Metabolic: Thyronorm was the key driver of the portfolio's 9.4% growth (hypothyroidism). Thyronorm is still
the industry leader* and is expanding more quickly than the benchmark market. Central Nervous System
(CNS): Vertin was the key driver of the 12.8% rise in the CNS segment (vertigo). Due to its market-shaping
initiatives, such as the first of its type Vertigo Care in the differential diagnosis area of patient care, Vertin
continues to outperform the anti-vertigo market*.
Multi-Specialty: The company provides products for pre-term labour, pain management, Vitamin D, and
sleeplessness under the Multi-Specialty category. Despite the uncertain circumstances, this business grew by
a solid 39.5%, regularly above the market.
Vaccines: The three main vaccine brands in the portfolio are Rotasure, Typhoshield, and Influvac (for
influenza) (rotavirus diarrhea). In keeping with our portfolio-building approach, we introduced the Hepatitis-A
vaccination Havshield throughout the year.
Consumer Health: This portfolio saw growth of 8.0% for the entire year. Throughout the year, we greatly
strengthened our consumerization initiatives. With Digene, Cremaffin, and Brufen Power as core brands, the
Consumer Health portfolio currently comprises product options across antacids, laxatives, and topical
analgesics.

Financial Results
Operating income: Operating income for the fiscal year ending March 31, 2022, was 4,919.27 crores, up
14.1% from the previous year's figure of 4,310.02 crores.
For the fiscal year that concluded on March 31, 2022, profit before taxes increased by 16.6% to Rs. 1,079.73
crores.
Other Income: The total for other income was 77.21 crores, primarily made up of interest on bank fixed
deposits. In order to protect the principal and preserve liquidity, the Company keeps investing in fixed
deposits with banks that have strong credit ratings. The decrease in interest rates caused a 4.7% decrease in
bank deposit income. As of March 31, 2022, the Company's investment portfolio was worth $2,669.83 Crores.
Material Cost: As a result of inflation, Material Cost increased, but was offset by better sales price realisation.
As a result, the Material Cost as a percentage of Sales decreased from 56.3% in the financial year 2020–21 to
54.8% in the present year.
Cost of Employees: The company hired 3,597 more people. Merit increases and more generous sales
incentives for the field staff are the main causes of the 17.6% increase in employee costs over the previous
year. The employee cost as a proportion of sales has increased from 11.6% in the financial year 2020–21 to
12.0% in the current year.
Other Expenses: Over the previous year, Other Expenses, which include Depreciation and Finance Cost,
increased by 17.0%. The percentage of sales grew slightly to 14.0% from 13.7% for the fiscal year 2020–21,
primarily due to higher marketing spending to support volume growth.
12 Narayana Hrudayalaya Ltd.
Company Overview
Narayana Hrudayalaya Limited was incorporated on 19 July 2000 under the Companies Act, 1956. The
Company headquartered in Bengaluru is primarily engaged in the business of rendering medical and
healthcare services. The Company was rebranded as ‘Narayana Health’ in 2013. It has a network of
multispecialty and super speciality hospitals spread across multiple locations. The Company owns and
operates certain hospitals and also enters into management agreements with hospitals under which the
Company acquires the operating control of the hospitals.
Narayana Health has its headquarters in Bengaluru, India. It runs a network of hospitals all over the country,
with a strong presence in the southern state of Karnataka and eastern India, as well as a growing presence in
northern, western, and central India. Our first building was in Bengaluru, and it had about 225 beds. Since
then, we've added 21 hospitals, plus one in the Cayman Islands, 19 primary care centres, and a hospital for
international patients in the Cayman Islands. Through a mix of greenfield projects and acquisitions, the group
now has more than 5,859 operational beds. We think that the "Narayana Health" brand is strongly linked to
our mission to provide high-quality, affordable healthcare services to more people by using economies of
scale, skilled doctors, and an effective business model.Our centres offer advanced levels of care in over 30
specialties, such as Cardiology and Cardiac Surgery, Cancer Care, Neurology and Neurosurgery, Orthopaedics,
Nephrology and Urology, and Gastroenterology.

Financial Performance
Operating Income
NH India
The company's operating income went from Rs. 20,706 million in 2020-21 to Rs. 29,655 million in 2021-22.
This was due to the recovery of business related to subsidising the pandemic and the removal of travel
restrictions on both the domestic and international level. Even with the second and third wave, the flagship
units in Bengaluru and Kolkata did more business than they did before COVID. Also, our new units show that
they have a lot of traction momentum.

HCCI
From 2020-21 to 2021-22, the facility's operating income went from US$ 68.6 million to US$ 91.9 million. This
33.9% increase is due to a strong rise in the number of patients coming to the facility, which is getting a lot of
attention from nearby islands. This has led to more business growth. Also, wealthy people from the area who
used to go to the US for treatment came to our facility because the US government still puts restrictions on
travel. Even after the pandemic was over, the number of wealthy patients continued to rise.

Cost of Material Consumed:

NH India
The cost of the materials used (such as buying medical supplies,
drugs and changes in inventories of medical consumables) went from H 5,920 Million last year to H 8,019
Million in 2021–22, when the fiscal year started, because business was doing much better.
The amount spent as a percentage of income went down from 28.6% last year to 27.0% this year. Higher
contribution from high-yield businesses like international medical tourism, growth in OP, and less use of
consumables like surgical gloves, PPE kits, and other protective gear have all led to a drop in consumption. OP
growth and less use of consumables like surgical gloves, PPE kits, and other protective gear have also
contributed to this drop.

HCCI
The cost of materials used (purchases of medical consumables, drugs, and surgical equipment, and changes in
inventories of medical consumables, drugs, and surgical equipment) went up from US$ 11.4 million last year
to US$ 15.9 million in 2021-22, and consumption as a percentage of revenues went up from 16.5% in FY2020-
21 to 17.4% in 2021-22.

KEY FINANCIAL RATIOS

Particulars FY 22
Inventory turnover Ratio 23.15
Return on Equity 11.54%
Debtors Equity Ratio 0.31
Return on capital employed 19.59%
Current ratio 0.78
Net profit margin (%) 5.54 %
Explanation for variances
1. the current ratio is higher because the bank balance at the end of the year was higher than in the previous
year.
2. The debt service coverage ratio went up because EBIT went up compared to last year.
3. The ratio of return on equity went up because PAT went up compared to the previous year.
4. Compared to the year before, purchases went up, which made the inventory turnover rate go up.
5. The trade receivables turnover ratio is lower now than it was last year because the average trade
receivables are higher than they were last year.
6. The trade payables turnover ratio is lower than it was last year because the average trade payables and
purchases have gone up.
7. The Net Capital Turnover Ratio, the Net Profit Ratio, and the Return on Capital Employed Ratio have all
gone up since last year because Revenue, Net Profit, and EBIT numbers have all gone up.

HIGHLIGHTS OF THE YEAR

FREE COVID VACCINATION DRIVE
During the year under review, the Company's CSR activities focused on treating COVID and working to stop
pandemics. The company is committed to fighting the COVID-19 pandemic. To do this, in addition to the
normal steps it takes as a hospital operator to fight the pandemic, the company started free vaccination drives
for the poor and worked with local non-governmental organisations (NGOs) to vaccinate people in semi-urban
areas, slums, and other marginalised areas. The company made sure to get permission from the government
before getting a lot of people together and giving vaccinations to people in underprivileged areas. About 6700
low-income people were vaccinated against COVID for free by the company.

COVID AWARENESS SESSIONS

As the pandemic brought a lot of new social, financial, and personal problems, the company held awareness
sessions online and through zoom links to help people understand what was going on. The sessions helped
people relax and gave them advice on what to do and what not to do during the pandemic. With the help of
NGOs, Gram panchayats, and local semi-urban governing bodies, these sessions were held. About 6,830
people took part in the sessions to raise awareness.

COMMUNITY RADIO
The Narayana Hrudayalaya Foundation's community radio is a knowledge partner with your company. The
bigger goal of our community radio station is to be a place where people can talk to each other and come to
an agreement about things. This will help the communities around us share the same ideas and goals. The
name of the community radio station was "Namma Nadi," and it focused on health, education, the
environment, culture, and civic issues in Health City's primary and secondary zones. Namma Nadi showed a
variety of programmes in which people from many different groups of interest took part.
Community radio programmes that use internet radio software are a great way to get reliable health
information to people in the area, and this was clear during COVID-19. Several programmes were made and
aired that talked about COVID-19 symptoms, safety precautions, helplines, nutrition, pregnant women and
COVID, and tips for people with long-term illnesses.

UDAAN
The Udaan scholarship programme began in December 2014 in the Indian state of Karnataka. Its goal was to
help rural students from poor families realise their potential and give them a chance to get a medical
education. Students in our Udaan programme can be inspired to use their medical training to improve health
care in their villages and small towns by using what they've learned in our programme. It is hoped that these
students will be able to realise their dreams of becoming good doctors, that they will have a multiplier effect
on other students, and that they will provide ethical health care for the community as a whole.
The programme has a very careful selection process to find the best and most deserving students who are
interested in taking science after class 10 and becoming doctors. Before a student joins our programme, their
social and economic background is checked.The company plans to keep doing this programme, and 43
students were helped this year through the Udaan Program.
Financial Analysis :-
The process of analysing firms, programmes, expenditures, and other activities related to finance in order to
determine how effective they are and whether or not they are acceptable is known as financial analysis.
Financial analysis is often done to establish whether or not a company is sufficiently stable, solvent, liquid, or
competitive to support a monetary investment. This may be accomplished by determining whether or not the
company has adequate cash on hand.
The evaluation of economic tendencies, the formulation of monetary policies, the formulation of long-term
plans for company activity, and the identification of investment projects or businesses are all accomplished
through the application of financial analysis. The analysis of the data and the financial statistics allow for this
to be accomplished. An essential part of a financial analyst's job is to analyse a company's three key financial
statements: the income statement, the balance sheet, and the statement of cash flow.

Ratio :-
1. Liquidity Ratio
This ratio determines a company's capacity to meet its obligations on the timely payment of its debt.
The capacity of a corporation to fulfil its short-term obligations and maintain its cash flow may be
determined, in part, by using this ratio. It takes into account ratios such as:

i) Current Ratio :- A liquidity ratio that evaluates a company's capacity to pay short-term debts or
those that are due within the next year is called the current ratio. It explains to investors and
analysts how a business may get the most out of the current assets that are listed on its balance
sheet in order to pay off its current debt and any other payables.

Current Assets
Current Libalities

ii) Acid test Ratio :- The acid-test ratio, which is also known as the quick ratio, analyses the data
from a company's balance sheet to determine whether or not the company has enough short-term
assets to cover its short-term obligations. The acid-test approach does not take into account assets
like as inventories, which could be difficult to dispose in a short amount of time. As a result, the
acid test ratio is a statistic that is considered to be more cautious.
Quick Assets
Current Libalities

iii) Absolute Ratio :- This ratio determines the total amount of liquid assets that are held by the
firm. This ratio takes into account just the company's cash and marketable securities at the time of
calculation. The sole measure of short-term liquidity that this ratio takes into account is cash,
marketable securities, and current investments.

Cash∧Cash Equivalents
Current Libalities
 2. Activity Ratio
This ratio determines how efficiently a corporation generates money from its assets by calculating the asset
turnover rate. It also refers to the amount of time it takes for a corporation to turn inventory into cash, often
known as making sales, or the amount of time it takes to collect cash from a client. These ratios are also
employed by the firm, in addition to the company's investors and creditors, in order to look at the operations
of the company and compare them to the profitability of the company. It takes into account ratios such as:

i) Debtor turnover Ratio:- The ratio of accounts receivable to total debt is often referred to as
the debtors turnover ratio. This is the number of times that an average amount of debt has been
turned into cash over the course of one year. This metric, which may also be referred to as the
efficiency ratio, assesses the capacity of the business to bring in income. In addition to this, it
assists in interpreting the efficiency with which a corporation uses its assets in the most effective
manner possible.

Credit Sales
Average Debtors

ii) Inventory Turnover Ratio:- The ratio of a company's cost of goods sold (COGS) to the number
of times its inventory was sold is known as the inventory turnover ratio. This ratio is used to
analyse a company's financial performance. The rate at which a corporation replenishes its stock in
relation to the amount of money it makes from sales is referred to as inventory turnover. In most
cases, a better outcome may be expected when the ratio is higher.

Cost of Goods Sold

Average Inventory

iii) Creditor Turnover Ratio :- A liquidity ratio that evaluates the average number of times a firm
pays its creditors over the course of an accounting period is referred to as the creditors turnover
ratio. This ratio is also known as the accounts payable turnover ratio. The ratio is a measure of
short-term liquidity, and a more advantageous situation would be achieved by having a larger
payable turnover ratio.

Credit Purchses
Average Creditor

iv) Assets Turnover Ratio :- The asset turnover ratio is a metric that determines how well a firm
puts its assets to work in order to generate revenue. The asset turnover ratio may be calculated by
taking a company's net sales and dividing that number by the total or average value of its assets. A
firm that has a higher asset turnover ratio than its competitors does a better job of operating
effectively than those competitors that have a lower ratio.

Sales
Average Assets
 3. Solvency Ratio
This metric determines whether or not your company is able to meet its short-term and long-term financial
obligations to its creditors. The presence of a balanced ratio is indicative of a more financially stable and
creditworthy organisation over the long run. It takes into account ratios such as:

i) Debt to Equity Ratio :- The ratio of total debt and financial obligations to total shareholders'
equity is one type of solvency ratio. This ratio is calculated by weighing the total debt and financial
liabilities against the total shareholders' equity. When calculating the debt-to-equity ratio, entire
equity is used as the denominator rather than total assets, as is the case with the debt-to-assets
ratio. This ratio illustrates the degree to which a company's capital structure is weighted toward
either debt or equity financing.

LongTerm Debts
Net Worth

ii) Debt to Total Capital Employed Ratio :- The ratio of long-term debt to the sum of all
external and internal funds (also known as capital employed or net assets) is referred to as the
debt to capital employed ratio. This ratio indicates the percentage of capital employed that is
comprised of long-term debt. A low ratio offers lenders a sense of safety, whereas a high ratio
assists management in making transactions involving equity.

Long Term Debts

Capital Employed

iii) Interest Coverage Ratio :- The Interest Coverage Ratio (ICR) is a financial ratio that is used to
measure how effectively a firm is able to pay the interest on its existing obligations. This ratio is
also known as the interest coverage ratio. It is usual practise for lenders, creditors, and investors to
utilise the ICR when trying to ascertain how risky it is to provide funds to a certain firm.

Earning Before Interest ∧Tax

Interest

4. Profitability Ratio
The ability of your company to produce or create income as compared to its costs is what is measured by this
ratio. You will be able to calculate the appropriate rate of return with the assistance of this ratio. It contains
proportions such as:

i) In relation to sale
(1) Gross profit Ratio :- The gross profit ratio is a ratio or measure that may be used to assist
determine how efficient and effective a firm is. It is determined by taking a company's total net
sales and dividing that number by the company's gross profit. In addition, the GP ratio may also
be calculated in a percentage company by multiplying the result from the previous step by 100
to get the GP ratio.
 Gross Profit
×100
Sales

(2) Operating Profit Ratio :- The Operating Profit Ratio is a profitability measure that indicates
the proportion of a company's total profit that is generated from its operations before any
deductions are made for things like taxes and interest. The formula for determining it is to take
the operational profit, divide it by the total revenue, and then represent the result as a
percentage.

Operating Profit
×100
Sales

(3) Net profit Ratio :- The ratio of a company's total revenue to its net profit is known as the net
profit margin, and it is used in finance to determine the proportion of profit that a business
generates relative to its overall revenue. It determines how much of a net profit an
organisation generates for each new dollar of revenue it brings in.

Net Profit
× 100
Sales
ii) Return on Investment
Return on Investment is a method of calculating the amount of profit gained in relation to the amount of
money invested. It is a comprehensive metric for determining the profitability of investments. It takes into
account ratios such as:

(1) Return on Equity :- Return on Equity (ROE) is a measure of a company's yearly return that is
stated as a percentage and is calculated by dividing a company's annual return by the value of
its total shareholders' equity. Alternately, ROE may be calculated by dividing the dividend
growth rate of the company by its profits retention rate. This is another method (1 – dividend
payout ratio).

Net Profit
Net Worth

(2) Return on Capital Employed :- Return on capital employed, often known as ROCE, is a
financial statistic that may be utilised to determine a business's level of profitability in addition
to the effectiveness of its use of capital. In other words, utilising this ratio can assist in gaining a
better understanding of how effectively a firm is making profits from the utilisation of its capital
resources. ROCE is one of numerous profitability measures that financial managers,
stakeholders, and potential investors may use while doing an analysis of a firm in order to
choose whether or not to invest in it.

Net Profit
Capital Employed
(3) Price to Earning :- The link between the price of a company's stock and its earnings per
share is expressed using the Price Earnings Ratio, also known as the P/E Ratio (EPS). Investors
can have a better understanding of the worth of the firm via the utilisation of this common
ratio. The price-to-earnings ratio, often known as the P/E ratio, indicates the expectations of
the market and represents the price that must be paid for each unit of current profits (or future
earnings, as the case may be).

Market Price per Share

Earning per Share

(4) Price to Book Value :- The Price to Book Ratio is a financial valuation tool that compares the
current market value of a business to its book value in order to determine how the two values
compare to one another. The current stock price multiplied by the number of outstanding
shares gives the market value. The amount of money that would be left over after a
corporation paid off all of its debts and liquidated all of its assets is what is referred to as the
book value.

Market Price per Share

Book Value
Ratios
1 - Dr. Lal PathLabs Ltd.
Ratio Formula Company’s
Performance
Current Ratio Current Assets 1.8 Times
Current Libalities

Acid Test Quick Assets 1.6 Times

Ratio Current Libalities
Absolute Cash∧Cash Equivalents 0.7 Times
Ratio Current Libalities

Debtor Credit Sales 27.44 Times

Turnover ratio Average Debtors

Average Days∈a Year 13.03 Days

Recivable Debtor Turnover Ratio
Period
Inventory Cost of Goods Sold 19.20 Times
Turnover Average Inventory
Ratio
Average Days∈a Year 19.01 Days
Holding Inventory Turnover Ratio
Period
Cerditor Credit Purchses 3.51 Times
Turnover Average Creditor
Ratio
Average Days∈a Year 104 Days
Payable Creditor Turnover Ratio
Period
Asset Sales 1.04 Times
turnover ratio Average Assets
Debt to equity LongTerm Debts 0.19 Times
ratio Net Worth
Debt to Total Long Term Debts 0.16 Times
Capital Capital Employed
Employed
ratio
Interest Earning Before Interest ∧Tax 15.07 Times
coverage ratio Interest
Gross profir Gross Profit 55.94%
×100
Ratio Sales
Operating Operating Profit 21.78%
×100
Profit Ratio Sales
Net profit Net Profit 16.78%
× 100
ratio Sales
Return on Net Profit 22.69%
× 100
Equity Net Worth
Return on Net Profit 18.90%
× 100
capital Capital Employed
Employeed
Price to Market Price per Share 62.52 Times
earning Earning per Share
Price to Book Market Price per Share 14.07 Times
value Book Value per Share
2 - Divi’s Laboratories Ltd.
Ratio Formula Company’s
Performance

Current Current Assets 6.98 Times

Ratio Current Libalities

Acid Test Quick Assets 4.62 Times

Ratio Current Libalities

Absolute Cash∧Cash Equivalents 1.01 Times

Ratio Current Libalities

Debtor Credit Sales 4.37 Times

Turnover Average Debtors
ratio
Average Days∈a Year 83.52 Days
Recivable Debtor Turnover Ratio
Period
Inventory Cost of Goods Sold 1.27 Times
Turnover Average Inventory
Ratio
Average Days∈a Year 287.40 Days
Holding Inventory Turnover Ratio
Period
Cerditor Credit Purchses 4.54 Times
Turnover Average Creditor
Ratio
Average Days∈a Year 80.40 Days
Payable Creditor Turnover Ratio
Period
Asset Sales 0.74 Times
turnover Average Assets
ratio
Debt to LongTerm Debts 0.00 Times
equity ratio Net Worth

Debt to Total Long Term Debts 0.00 Times

Capital Capital Employed
Employed
ratio
Interest Earning Before Interest ∧Tax 13,947.02
coverage Interest
Times
ratio
Gross profir Gross Profit 64.7%
×100
Ratio Sales

Operating Operating Profit 39.9%

×100
Profit Ratio Sales

Net profit Net Profit 33.0%

× 100
ratio Sales

Return on Net Profit 25.24%

× 100
Equity Net Worth

Return on Net Profit 24.30%

× 100
capital Capital Employed
Employeed
Price to Market Price per Share 33.58 Times
earning Earning per Share

Price to Market Price per Share 7.99 Times

Book value Book Value
3 - Max Healthcare Institute Ltd.
Ratio Formula Company’s
Performance
Current Ratio Current Assets 1.3 Times
Current Libalities

Acid Test Quick Assets 1.2 Times

Ratio Current Libalities
Absolute Cash∧Cash Equivalents 0.41 Times
Ratio Current Libalities

Debtor Credit Sales 9.86 Times

Turnover ratio Average Debtors

Average Days∈a Year 37.01 Days

Recivable Debtor Turnover Ratio
Period
Inventory Cost of Goods Sold 30.36 Times
Turnover Average Inventory
Ratio
Average Days∈a Year 12.02 Days
Holding Inventory Turnover Ratio
Period
Cerditor Credit Purchses 2.09 Times
Turnover Average Creditor
Ratio
Average Days∈a Year 174.64 Days
Payable Creditor Turnover Ratio
Period
Asset Sales 0.44 Times
turnover ratio Average Assets
Debt to equity LongTerm Debts 12.7 Times
ratio Net Worth
Debt to Total Long Term Debts 11.1 Times
Capital Capital Employed
Employed
ratio
Interest Earning Before Interest ∧Tax 8.4 Times
coverage ratio Interest

Gross profir Gross Profit 55.5%

×100
Ratio Sales
Operating Operating Profit 20.3%
×100
Profit Ratio Sales
Net profit Net Profit 15.4%
× 100
ratio Sales
Return on Net Profit 9.63%
× 100
Equity Net Worth
Return on Net Profit 7.17%
× 100
capital Capital Employed
Employeed
Price to Market Price per Share 74.08 Times
earning Earning per Share
Price to Book Market Price per Share 6.5 Times
value Book Value
4 - Thyrocare Technologies Ltd.
Ratio Formula Company’s
Performance
Current Ratio Current Assets 4.2 Times
Current Libalities

Acid Test Quick Assets 3.6 Times

Ratio Current Libalities
Absolute Cash∧Cash Equivalents 0.21 Times
Ratio Current Libalities

Debtor Credit Sales 8.5 Times

Turnover ratio Average Debtors

Average Days∈a Year 42.94 Days

Recivable Debtor Turnover Ratio
Period
Inventory Cost of Goods Sold 8.1 Times
Turnover Average Inventory
Ratio
Average Days∈a Year 45.06 Days
Holding Inventory Turnover Ratio
Period
Cerditor Credit Purchses 0.207 Times
Turnover Average Creditor
Ratio
Average Days∈a Year 1763 Days
Payable Creditor Turnover Ratio
Period
Asset Sales 1.02 Times
turnover ratio Average Assets
Debt to equity LongTerm Debts 0.3 Times
ratio Net Worth
Debt to Total Long Term Debts 0.28 Times
Capital Capital Employed
Employed
ratio
Interest Earning Before Interest ∧Tax 84.8 Times
coverage ratio Interest

Gross profir Gross Profit 58.9%

×100
Ratio Sales
Operating Operating Profit 34.1%
×100
Profit Ratio Sales
Net profit Net Profit 29.9%
× 100
ratio Sales
Return on Net Profit 33.45%
× 100
Equity Net Worth
Return on Net Profit 32.42%
× 100
capital Capital Employed
Employeed
Price to Market Price per Share 20.13 Times
earning Earning per Share
Price to Book Market Price per Share 6.51 Times
value Book Value
5 - Apollo Hospitals Enterprice Ltd.
Ratio Formula Company’s
Performance
Current Ratio Current Assets 1.7 Times
Current Libalities

Acid Test Quick Assets 1.3 Times

Ratio Current Libalities
Absolute Cash∧Cash Equivalents 0.24 Times
Ratio Current Libalities

Debtor Credit Sales 8.8 Times

Turnover ratio Average Debtors

Average Days∈a Year 41.47 Days

Recivable Debtor Turnover Ratio
Period
Inventory Cost of Goods Sold 28 Times
Turnover Average Inventory
Ratio
Average Days∈a Year 13.03 Days
Holding Inventory Turnover Ratio
Period
Cerditor Credit Purchses 3.55 Times
Turnover Average Creditor
Ratio
Average Days∈a Year 102.81 Days
Payable Creditor Turnover Ratio
Period
Asset Sales 1.19 Times
turnover ratio Average Assets
Debt to equity LongTerm Debts 0.63 Times
ratio Net Worth
Debt to Total Long Term Debts 0.37 Times
Capital Capital Employed
Employed
ratio
Interest Earning Before Interest ∧Tax 4.8 Times
coverage ratio Interest

Gross profir Gross Profit 35.0%

×100
Ratio Sales
Operating Operating Profit 10.8%
×100
Profit Ratio Sales
Net profit Net Profit 7.2%
× 100
ratio Sales
Return on Net Profit 18.85%
× 100
Equity Net Worth
Return on Net Profit 11.14%
× 100
capital Capital Employed
Employeed
Price to Market Price per Share 59.38 Times
earning Earning per Share
Price to Book Market Price per Share 10.54 Times
value Book Value
6 - Fortis Healthcare Ltd.
Ratio Formula Company’s
Performance
Current Current Assets 0.9 Times
Ratio Current Libalities

Acid Test Quick Assets 0.7 Times

Ratio Current Libalities

Absolute Cash∧Cash Equivalents 0.11 Times

Ratio Current Libalities

Debtor Credit Sales 11.8 Times

Turnover Average Debtors
ratio
Average Days∈a Year 31 Days
Recivable Debtor Turnover Ratio
Period
Inventory Cost of Goods Sold 25.0 Times
Turnover Average Inventory
Ratio
Average Days∈a Year 14.6 Days
Holding Inventory Turnover Ratio
Period
Cerditor Credit Purchses 2.32 Times
Turnover Average Creditor
Ratio
Average Days∈a Year 157.32 Days
Payable Creditor Turnover Ratio
Period
Asset Sales 0.49 Times
turnover Average Assets
ratio
Debt to LongTerm Debts 0.147 Times
equity ratio Net Worth

Debt to Long Term Debts 0.125 Times

Total Capital Employed
Capital
Employed
ratio
Interest Earning Before Interest ∧Tax 6.4 Times
coverage Interest
ratio
Gross profir Gross Profit 56.4%
×100
Ratio Sales

Operating Operating Profit 13.3%

×100
Profit Ratio Sales

Net profit Net Profit 9.7%

× 100
ratio Sales

Return on Net Profit 11.27%

× 100
Equity Net Worth

Return on Net Profit 7.44%

× 100
capital Capital Employed
Employeed
Price to Market Price per Share 38.38 Times
earning Earning per Share

Price to Market Price per Share 3.38 Times

Book value Book Value
7 - Torrent Pharmaceuticals Ltd.
Ratio Formula Company’s
Performance
Current Current Assets 1.2 Times
Ratio Current Libalities

Acid Test Quick Assets 0.6 Times

Ratio Current Libalities

Absolute Cash∧Cash Equivalents 0.09 Times

Ratio Current Libalities

Debtor Credit Sales 5.4 Times

Turnover Average Debtors
ratio
Average Days∈a Year 67.59 Days
Recivable Debtor Turnover Ratio
Period
Inventory Cost of Goods Sold 0.9 Times
Turnover Average Inventory
Ratio
Average Days∈a Year 405.55 Days
Holding Inventory Turnover Ratio
Period
Cerditor Credit Purchses 0.44 Times
Turnover Average Creditor
Ratio
Average Days∈a Year 829.54 Days
Payable Creditor Turnover Ratio
Period
Asset Sales 0.62 Times
turnover Average Assets
ratio
Debt to LongTerm Debts 36.3 Times
equity ratio Net Worth

Debt to Long Term Debts 0.31 Times

Total Capital Employed
Capital
Employed
ratio
Interest Earning Before Interest ∧Tax 7.0 Times
coverage Interest
ratio
Gross profir Gross Profit 71.3%
×100
Ratio Sales

Operating Operating Profit 20.8%

×100
Profit Ratio Sales

Net profit Net Profit 9.1%

× 100
ratio Sales

Return on Net Profit 13.05%

× 100
Equity Net Worth

Return on Net Profit 8.94%

× 100
capital Capital Employed
Employeed
Price to Market Price per Share 36.32 Times
earning Earning per Share

Price to Market Price per Share 9.27 Times

Book value Book Value
8 - Granules India ltd.
Ratio Formula Company’s
Performance
Current Current Assets 1.5 Times
Ratio Current Libalities

Acid Test Quick Assets 0.8 Times

Ratio Current Libalities

Absolute Cash∧Cash Equivalents 0.11 Times

Ratio Current Libalities

Debtor Credit Sales 4.5 Times

Turnover Average Debtors
ratio
Average Days∈a Year 81.11 Days
Recivable Debtor Turnover Ratio
Period
Inventory Cost of Goods Sold 2.2 Times
Turnover Average Inventory
Ratio
Average Days∈a Year 165.90 Days
Holding Inventory Turnover Ratio
Period
Cerditor Credit Purchses 3.52 Times
Turnover Average Creditor
Ratio
Average Days∈a Year 103.69 Days
Payable Creditor Turnover Ratio
Period
Asset Sales 0.91 Times
turnover Average Assets
ratio
Debt to LongTerm Debts 9.4 Times
equity ratio Net Worth

Debt to Long Term Debts 0.66 Times

Total Capital Employed
Capital
Employed
ratio
Interest Earning Before Interest ∧Tax 49.1 Times
coverage Interest
ratio
Gross profir Gross Profit 47.7%
×100
Ratio Sales

Operating Operating Profit 15.4%

×100
Profit Ratio Sales

Net profit Net Profit 11.0%

× 100
ratio Sales

Return on Net Profit 15.95%

× 100
Equity Net Worth

Return on Net Profit 14.37%

× 100
capital Capital Employed
Employeed
Price to Market Price per Share 22.18 Times
earning Earning per Share

Price to Market Price per Share 3.44 Times

Book value Book Value
9 - Alkem Laboratories Ltd.
Ratio Formula Company’s
Performance
Current Current Assets 1.8 Times
Ratio Current Libalities

Acid Test Quick Assets 0.7 Times

Ratio Current Libalities

Absolute Cash∧Cash Equivalents 0.04 Times

Ratio Current Libalities

Debtor Credit Sales 6.1 Times

Turnover Average Debtors
ratio
Average Days∈a Year 59.83 Days
Recivable Debtor Turnover Ratio
Period
Inventory Cost of Goods Sold 1.6 Times
Turnover Average Inventory
Ratio
Average Days∈a Year 228.12 Days
Holding Inventory Turnover Ratio
Period
Cerditor Credit Purchses 1.32 Times
Turnover Average Creditor
Ratio
Average Days∈a Year 276.51 Days
Payable Creditor Turnover Ratio
Period
Asset Sales 0.83 Times
turnover Average Assets
ratio
Debt to LongTerm Debts 0.00 Times
equity ratio Net Worth

Debt to Long Term Debts 0.00 Times

Total Capital Employed
Capital
Employed
ratio
Interest Earning Before Interest ∧Tax 56.4 Times
coverage Interest
ratio
Gross profir Gross Profit 59.7%
×100
Ratio Sales

Operating Operating Profit 16.4%

×100
Profit Ratio Sales

Net profit Net Profit 15.5%

× 100
ratio Sales

Return on Net Profit 19%

× 100
Equity Net Worth

Return on Net Profit 18.13%

× 100
capital Capital Employed
Employeed
Price to Market Price per Share 23.64 Times
earning Earning per Share

Price to Market Price per Share 4.43 Times

Book value Book Value
10 - Biocon Ltd.
Ratio Formula Company’s
Performance
Current Current Assets 2.2 Times
Ratio Current Libalities

Acid Test Quick Assets 1.4 Times

Ratio Current Libalities

Absolute Cash∧Cash Equivalents 0.17 Times

Ratio Current Libalities

Debtor Credit Sales 4.6 Times

Turnover Average Debtors
ratio
Average Days∈a Year 79.34 Days
Recivable Debtor Turnover Ratio
Period
Inventory Cost of Goods Sold 1.3 Times
Turnover Average Inventory
Ratio
Average Days∈a Year 280.76 Days
Holding Inventory Turnover Ratio
Period
Cerditor Credit Purchses 0.10 Times
Turnover Average Creditor
Ratio
Average Days∈a Year 3650 Days
Payable Creditor Turnover Ratio
Period
Asset Sales 0.42 Times
turnover Average Assets
ratio
Debt to LongTerm Debts 0.44 Times
equity ratio Net Worth

Debt to Long Term Debts 0.28 Times

Total Capital Employed
Capital
Employed
ratio
Interest Earning Before Interest ∧Tax 17.1 Times
coverage Interest
ratio
Gross profir Gross Profit 66.8%
×100
Ratio Sales

Operating Operating Profit 14.2%

×100
Profit Ratio Sales

Net profit Net Profit 7.9%

× 100
ratio Sales

Return on Net Profit 8.14%

× 100
Equity Net Worth

Return on Net Profit 4.65%

× 100
capital Capital Employed
Employeed
Price to Market Price per Share 51.08 Times
earning Earning per Share

Price to Market Price per Share 3.95 Times

Book value Book Value
11 - Abbott India Ltd.
Ratio Formula Company’s
Performance
Current Current Assets 3.5 Times
Ratio Current Libalities

Acid Test Quick Assets 2.6 Times

Ratio Current Libalities
Absolute Cash∧Cash Equivalents 0.11 Times
Ratio Current Libalities

Debtor Credit Sales 18.3 Times

Turnover Average Debtors
ratio
Average Days∈a Year 20 Days
Recivable Debtor Turnover Ratio
Period
Inventory Cost of Goods Sold 3.8 Times
Turnover Average Inventory
Ratio
Average Days∈a Year 96.05 Days
Holding Inventory Turnover Ratio
Period
Cerditor Credit Purchses 2.64 Times
Turnover Average Creditor
Ratio
Average Days∈a Year 138.25 Days
Payable Creditor Turnover Ratio
Period
Asset Sales 1.21 Times
turnover Average Assets
ratio
Debt to LongTerm Debts 0.039 Times
equity ratio Net Worth

Debt to Long Term Debts 0.037 Times

Total Capital Employed
Capital
Employed
ratio
Interest Earning Before Interest ∧Tax 66.5 Times
coverage Interest
ratio
Gross profir Gross Profit 45.8%
×100
Ratio Sales

Operating Operating Profit 20.9%

×100
Profit Ratio Sales

Net profit Net Profit 16.2%

× 100
ratio Sales

Return on Net Profit 28.32%

× 100
Equity Net Worth

Return on Net Profit 26.43%

× 100
capital Capital Employed
Employeed
Price to Market Price per Share 51.21 Times
earning Earning per Share

Price to Market Price per Share 13.72 Times

Book value Book Value
12 - Narayana Hrudayalaya Ltd.
5
Ratio Formula Company’s
Performance
Current Current Assets 1.2 Times
Ratio Current Libalities

Acid Test Quick Assets 1.0 Times

Ratio Current Libalities

Absolute Cash∧Cash Equivalents 0.20 Times

Ratio Current Libalities

Debtor Credit Sales 9.4 Times

Turnover Average Debtors
ratio
Average Days∈a Year 38.82 Days
Recivable Debtor Turnover Ratio
Period
Inventory Cost of Goods Sold 46.4 Times
Turnover Average Inventory
Ratio
Average Days∈a Year 7.86 Days
Holding Inventory Turnover Ratio
Period
Cerditor Credit Purchses 2.14 Times
Turnover Average Creditor
Ratio
Average Days∈a Year 170.56 Days
Payable Creditor Turnover Ratio
Period
Asset Sales 1.25 Times
turnover Average Assets
ratio
Debt to LongTerm Debts 38.3 Times
equity ratio Net Worth

Debt to Long Term Debts 0.24 Times

Total Capital Employed
Capital
Employed
ratio
Interest Earning Before Interest ∧Tax 7.4 Times
Interest
coverage
ratio
Gross Gross Profit 32.9%
×100
profir Ratio Sales

Operating Operating Profit 13.2%

×100
Profit Ratio Sales

Net profit Net Profit 9.2%

× 100
ratio Sales

Return on Net Profit 22.97%

× 100
Equity Net Worth

Return on Net Profit 14.55%

× 100
capital Capital Employed
Employeed
Price to Market Price per Share 43.86 Times
earning Earning per Share

Price to Market Price per Share 9.46 Times

Book value Book Value
 5

Summary table of all company

Conclusion
Private healthcare players will continue to play a critical role in the healthcare industry as they
continue to provide healthcare services to more than 70% rural population and 80% urban
population in India. In addition, private healthcare players will continue to invest towards
addition of new bed capacity, bringing in new high end medical infrastructure and uplifting the
overall healthcare services in the country by adopting new technologies; all to further
strengthen overall patient experience. Home healthcare solutions is one of the fastest growing
segments in India, though it is currently at a relatively nascent stage. The growth would be
driven by the rising elderly population in the country, increase in the incidence of chronic
diseases, enhanced demand for constant personalised care as well as the emergence of
nuclear family structures in urban areas. It would also be pertinent to highlight that while the
growth drivers in the healthcare space, both in hospitals and diagnostics are offering attractive
opportunities for investments by large corporate houses in India and overseas healthcare and
investment funds; the competitive landscape is also evolving in a manner where there would
be a relatively higher level of market competition. This would see many existing healthcare
players make efforts and innovate to protect market share, increase brand awareness, and
adopt digital and technology led initiatives in order to improve