investors, including Lavender Rose, belonging to the Warburg Pincus group, and affiliates of Premji Invest, and we maintain
strong corporate governance and internal controls.

We have an established track record of delivering strong financial performance. Between financial year 2019 and financial year
2021, our total revenue from operations grew at a compound annual growth rate (“CAGR”) of 16.21% from 222,727.37 million
to 230,692.69 million, as opposed to the Indian pharmacy retail industry, which grew at a CAGR of 7.3% for the same period,
according to the Technopak Report. For the financial years 2019, 2020 and 2021 and the six months ended September 30, 2021,
our profit after tax and profit after tax margin was 2119.22 million and 0.52%, 217.94 million and 0.06%, %631.11 million and
2.06% and %663.67 million and 3.53%, respectively. Our Adjusted EBITDA grew at a CAGR of 43.98% from 21,304.34 million
in financial year 2019 to 22,703.79 million in financial year 2021, and was 21,662.39 million in the six months ended September
30, 2021. Our Operating EBITDA grew at a CAGR of 63.21% from %657.25 million in financial year 2019 to 21,750.64 million
in financial year 2021, and was 21,078.14 million in the six months ended September 30, 2021. Our Operating ROCE for the
financial years 2020 and 2021 and the six months ended September 30, 2021 was 19.87%, 26.08% and 13.40%, respectively.
For a reconciliation of our profit for the period to Adjusted EBITDA and Operating EBITDA and a calculation of Adjusted
EBITDA Margin % and Operating EBITDA Margin %, see “Financial Information — Other Financial Information” on page
280 and “Certain Conventions, Presentation of Financial, Industry and Market Data and Currency of Presentation” on page
22.

Significant Factors Affecting our Results of Operations
Our results of operations and financial condition are affected by a number of important factors including:
Expansion of our Store Network

A key driver in the growth of our revenue from operations has been the expansion of our store network and the increase in our
number of stores. We employ a cluster-based approach to our store network expansion. As part of our cluster-based expansion
approach, we first achieve a critical threshold of density within the largest cities in a state before expanding our store network
in the surrounding areas within those cities and other adjacent cities. We believe that this approach (i) allows us to create high
brand visibility for customers within our key cities, through focused implementation of marketing and advertising initiatives,
(ii) leads to our achieving a leading market share in our key cities, (iii) allows us to replicate similar success in adjacent under-
served cities and areas, as we develop presence in new clusters, and (iv) increase cost efficiency due to economies of scale
achieved in our supply chain and inventory management.

We have a streamlined and methodical store opening process that is focused on the sustainability and profitability of every new
store that we roll-out. Our stores are generally of small sizes, approximately 550 to 600 square feet, with uniform design, format
and layout, which lend to very short lead times between store location identification, set-up and commencement of operations.

Leveraging our cluster based expansion approach, we have experienced rapid growth in terms of our number of stores and the
number of states and cities in which we operate. The table below sets forth a breakdown of (i) the number of stores and (ii) the
states in which the stores were located, as of the dates indicated.

Number of Stores, as of
March 31, | March31,  March31, | March31, | March31, September

 

 

 

No. State 2010 2015 2019 2020 2021 30, 2021
1. Telangana 181 288 352 365 435 474
Andhra
2. Pradesh 125 152 213 226 263 297
3. Karnataka 166 340 457 485 514 546
4. Tamil Nadu 101 231 348 373 447 475
5. West Bengal 22 105 139 148 183 224
6. Maharashtra 40 65 93 113 166 221
7. Odisha 0 18 51 65 73 89
Total: 635, 1,199 1,653 1,775 2,081 2,326

 

 

The table below sets forth a breakdown of (i) the number of stores and (ii) the cities in which the stores were located, as of the
dates indicated.

Number of Stores, as of
March 31, March31, | March3i,_ March31, | March31, September

 

 

 

No. City 2010 2015 2019 2020 2021 30, 2021
1. Chennai 62 185 246 264 286 304
2. Bangalore 110 244 281 311 330 340
3. Hyderabad 141 234 259 274 299 331
4. Kolkata 22 105 139 148 183 224

Total: 335 768 925 997 1,098 1,199

 

 

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