Ganga Pharmaceuticals (539680) H2 16/17 earnings summary

Executive summary

• FY17 revenue from operations was ₹301.04 lakh; profit before tax was ₹10.57 lakh and net profit ₹7.42 lakh, versus ₹7.02 lakh and ₹4.87 lakh, respectively, in FY16.

• Operations remained focused on manufacturing and trading Ayurvedic pharmaceuticals and allied products; management highlighted product development, distribution expansion and customer engagement.

Financial highlights

• Audited revenue from operations rose to ₹301.04 lakh from ₹262.87 lakh; total revenue, including other income, was ₹316.73 lakh versus ₹276.45 lakh.

• Profit before tax was ₹10.57 lakh versus ₹7.01 lakh; net profit was ₹7.42 lakh versus ₹4.87 lakh.

• Basic and diluted EPS was ₹0.18 versus ₹0.12; no exceptional or extraordinary items were reported.

• Employee benefit expense increased to ₹33.30 lakh from ₹24.22 lakh, while selling and distribution expense rose to ₹48.78 lakh from ₹33.41 lakh.

Outlook and guidance

• Long-term strategy centers on scaling authentic Ayurveda, customer satisfaction, domestic demand and investment in product distribution networks.

• Product plans include patented formulations targeting diabetes, inflammation and obesity, alongside new products and human clinical trials for some formulations.

• Management cited AYUSH cluster development, government promotion of pluralistic healthcare and 100% FDI permission in the AYUSH sector as supportive industry initiatives.