Ganga Pharmaceuticals (539680) H2 18/19 earnings summary

Executive summary

• FY2018-19 revenue from operations was Rs. 336.26 lakh and profit after tax was Rs. 18.71 lakh, both above FY2017-18 levels.

• The business remained focused on manufacturing and trading Ayurvedic pharmaceuticals and allied products; management’s strategy centers on domestic expansion, product development and distribution.

Financial highlights

• Revenue from operations rose to Rs. 336.26 lakh from Rs. 305.24 lakh; total revenue, including other income, was Rs. 350.65 lakh versus Rs. 319.87 lakh.

• Profit before tax increased to Rs. 25.85 lakh from Rs. 12.66 lakh; profit after tax was Rs. 18.71 lakh versus Rs. 9.40 lakh.

• Total expenses were Rs. 324.80 lakh versus Rs. 307.21 lakh; sales and administrative expenses declined to Rs. 95.69 lakh from Rs. 106.77 lakh.

• Operating cash flow was Rs. 11.33 lakh versus Rs. 23.74 lakh; cash and cash equivalents ended the year at Rs. 23.65 lakh versus Rs. 29.06 lakh.

Outlook and guidance

• Long-term priorities include scaling authentic Ayurveda, improving customer satisfaction, developing products for unmet medical needs and expanding distribution in India.

• Plans include bringing patented products targeting diabetes, inflammation and obesity to market, and using clinical trials to support new formulations.

• Management cited AYUSH cluster development and permission for 100% FDI in the AYUSH sector as supportive industry initiatives.