Zota Health Care LImited — PPTs, 13-02-2025: Investor Presentation

**Financial Highlights:** Zota Health Care reported total revenue of ₹7,212 lakhs for the quarter, marking a 54% year-on-year increase. Gross profit surged 87% YoY to ₹4,029 lakhs, with a gross margin of approximately 55.9%. Davaindia, their retail pharmacy chain, generated ₹4,591 lakhs, reflecting robust growth in sales.

**Strategic Initiatives and Growth Drivers:** The company continues to expand its Davaindia network, adding 195 new stores recently (164 COCO and 31 FOFO). Emphasis remains on self-operated COCO stores, targeting an additional 1,000 openings by FY26, and leveraging its cost-effective generic medicines in a growing market.

**Business Developments:** The acquisition of a 56% stake in Everyday Herbal Group enhances Zota’s product offerings in the OTC segment, further integrating the supply chain while benefiting from government licensing initiatives.

**Market Position and Competitive Advantage:** Zota is capitalizing on the shift towards affordable healthcare, positioning Davaindia as a leader in India's growing generic pharmacy sector. Significant savings (30%-90%) on generic medications compared to branded alternatives solidify its competitive edge.

**Investor Implications:** Strong revenue growth and an expanding store footprint suggest a positive outlook for Zota Health Care, with potential for sustained performance and market leadership in the healthcare sector. Investors should monitor the maturation of new stores and overall customer base expansion.