Lincoln Pharmaceuticals Ltd reports Standalone Net Profit of Rs. 15.01 crore in Q1FY23

Ahmedabad: Lincoln Pharmaceuticals Limited, one of India's leading healthcare companies has reported net profit of Rs. 15.01 crore for Q1FY23 as against net profit of Rs. 11.10 crore in Q4FY22, growth of 35.2% Q-o-Q. Total income for the quarter ended June 2022 was reported at Rs. 129.97 crores, a higher 24.4% Q-o-Q over total income of Rs.104.43 crore in Q4FY22. EBITDA for Q1FY23 was reported at Rs. 23.41 crores as compared to EBITDA of Rs. 19.32 crores in Q4FY22 - a growth of 21.14% Q-o-Q. EPS for Q1FY23 was at Rs. 7.49 per share. Exports in Q1FY23 was reported at Rs. 66.08 crores.

Commenting on the results and performance, Mr. Mahendra Patel, Managing Director, Lincoln Pharmaceuticals Limited, said, "FY23 is going to be the growth year for the company. Commercial production from the Mehsana facility for the expansion of Cephalosporin products and exports to EU & Australian markets are expected to commence in the current financial year. Company is growing from strength to strength, delivering robust operational and financial performance, maintaining a healthy growth in revenue, margins and profitability. Company will continue to grow with maintaining its net debt status in future also. We expect the growth momentum to continue while maintaining our 'Net Debt Free' status in the coming years."

During FY22, the company launched 14 products in the domestic market and filled 110 dossiers in the export market. In FY23, company will look to consolidate its position in the lifestyle and chronic segments.

In September 2021, company acquired a plant in Mehsana, Gujarat to launch Cephalosporin products. Company has invested Rs. 30 crore in the cephalosporin plant - including acquisition and subsequent capacity expansion using internal sources of funds. The plant is expected to start commercial production in current fiscal and expected to contribute sales of around Rs. 150 crore in the next 3 years. The plant will cater to all the Cephalosporin products i.e. Tablet, Capsule, Dry syrup and Injectable.

Export business of the company has shown strong growth over the years. It currently exports to 60 plus countries including East & West Africa, Central & Latin America and Southeast Asia. TGA - Australia and EU GMP approvals will strengthen the company's presence and expand its network to 90-plus countries.

Company has reported a robust financial and operational performance during the last decade (FY12 to FY22) maintaining strong CAGR 30% in Net profits, 20% in EBITDA and 10% in Revenue.The liquidity position of the company is on a strong foundation, supported by healthy cash accruals, free cash/liquid investments, no term debt and healthy return ratios.

Financial Overview - Lincoln Pharmaceuticals FY 12 to FY22   Year Revenue EBITDA Net Profit EPS ROCE FY 22 472.1 105.5 69.4 34.6 21.9% FY 12 175.5 16.9 5.1 3.1 10% 10 Yrs CAGR 10.4% 20.1% 30.0% 27.1% 1190 bps   In (Rs Cr)

CRISIL Ratings has upgraded its ratings on the bank facilities of Lincoln Pharmaceuticals Ltd to ‘CRISIL A/Stable/CRISIL A1’ from CRISIL A-/Positive/CRISIL A2+. CRISIL report further states that, "Over the medium term, the group is expected to maintain its growth trajectory and healthy margin. This shall be supported by addition of Cephalosporin which has potential to add around 30% to the topline over the next three fiscals. Further, the group’s European market foray shall provide additional fillip to the business profile. Rating agency ICRA too has reaffirmed the company’s long-term and short-term bank facilities to A and A1 respectively.

Lincoln Pharma has a state-of-the-art manufacturing facility unit at Khatraj in Ahmedabad, Gujarat, complying with stringent international quality and compliance norms and certified by EUGMP, WHO-GMP, TGA - Australia, and ISO-9001: 2015. The company has developed 600 plus formulations in 15 therapeutic areas and has a strong product/brand portfolio in anti-infective, respiratory system, gynecology, cardio & CNS, anti-bacterial, anti-diabetic, and anti-malaria among others.To complement the company’s strong presence in the acute segment, the company is also building a portfolio in lifestyle and chronic segments especially dermatology, gastro and pain management. The company has filed 25 plus patent applications and is awarded seven patents. The company has a strong presence in the domestic market nationally with a dedicated field force of over 600 personnel who cater to more than 30,000 doctors, chemists across the country.

About Lincoln Pharmaceuticals Ltd https://www.lincolnpharma.com/

Providing Affordable and Innovative medicines for healthier lives.

Lincoln Pharmaceuticals Limited is one of the leading healthcare companies in Gujarat, India. Established in the year 1979, the company develops and manufactures affordable and innovative medicines for healthier lives. The company has developed 600 plus formulations in 15 therapeutic areas and has a strong product/brand portfolio in anti-infective, respiratory system, gynecology, cardio & CNS, anti-bacterial, anti-diabetic, and anti-malaria among others. The company has a strong presence in the Domestic market with good strength of own field force and also exports to more than 60 Countries.

The company has developed many new drug delivery dosage forms over years and has a track record of launching many first-of-its-kind innovative products. The company works with a vision for nurturing innovations and bringing them to Indian patients at an affordable cost to create “Healthcare for All”.

Lincoln Pharma has a state-of-the-art manufacturing facility unit at Khatraj in Ahmedabad, Gujarat, complying with stringent international quality and compliance norms and certified by WHO-GMP and ISO-9001: 2015. Recently company has also received European Union (EU) GMP certification for its manufacturing facility which will allow it to market its products in all the 27 member countries of EU and also give access to European Economic Area (EEA) countries. Company is engaged in manufacturing of pharma formulations like Tablets, Capsules, Injectables, Syrups, Ointments, etc.

The company's key strength is embedded in its cutting-edge research and development capabilities. The company has a strong R&D team including 30 plus scientists. It has filled 25 plus patent applications and is awarded seven patents. The R&D center of the company is recognised by the Department of Scientific and Technology, Government of India and furnished with state-of-the-art devices and equipment for internal physical, chemical, and microbiological analysis of all products.

The company has a strong presence in the domestic market nationally with a dedicated field force of over 600 personnel who cater to more than 30,000 doctors, and chemists across the country. The company has a wide national distribution network through 21+ Super Stockist and over 50,000 retailers in 26 states across India.

Going green, the company has also set up a new Solar Plant of 1 MW on factory’s rooftop in addition to two windmills. This way we are producing renewable energy to our consumption nearly 65% resulting in significant saving in the electricity cost and helped the company to become a self-sustainable and environment-friendly organization.

For further information please contact:

Gopal Modi / Rupesh Panchal Darshit A. Shah (CFO)

ColdCoco Consultancy, Ahmedabad Lincoln Pharmaceuticals Limited, Ahmedabad

9099030184 / 9925023103 +91-79-4107-8048

[email protected] [email protected]

[email protected]