Ganga Pharmaceuticals (539680) H2 15/16 earnings summary

Executive summary

• FY2015-16 revenue from operations was Rs 27,006,617, up 0.22% YoY; PBT rose 43.20% to Rs 701,155 and net profit increased 45.26% to Rs 486,662.

• Operations remained focused on manufacturing and trading pharmaceuticals and allied Ayurvedic products; management said it had no plan to enter a new business.

Financial highlights

• Revenue from operations was Rs 27,006,617 versus Rs 26,947,448; total revenue, including other income, was Rs 28,365,046 versus Rs 28,670,746.

• PBT was Rs 701,155 versus Rs 489,624; profit after tax was Rs 486,662 versus Rs 335,021.

• Total expenses were Rs 27,663,891 versus Rs 28,181,122; cost of materials consumed increased to Rs 14,562,822 from Rs 11,349,681.

• Net cash used in operating activities was Rs 10,540,047; investing activities used Rs 8,279,227, while financing activities generated Rs 18,983,037.

Outlook and guidance

• Strategy centered on scaling the core Ayurveda business, improving customer satisfaction, expanding product distribution and developing patented products targeting diabetes, inflammation and obesity.

• Management cited human clinical trials for some new formulations and planned to concentrate on domestic demand; no new-business expansion was planned.

• Industry initiatives cited included proposed AYUSH clusters, pluralistic healthcare under the National Rural Health Mission and permission for 100% FDI in AYUSH sectors.