Johnson Pharmacare (532154) Q4 20/21 earnings summary

Executive summary

• FY2020-21 reported revenue of Rs 7.60m and net profit of Rs 11,742, versus no revenue and a Rs 918,050 loss in FY2019-20; operations remained limited, with management citing no significant business activity.

• The operating outlook hinges on securing working capital and restarting activity; the board cited cost reductions and efforts to identify an opportunity to make operations active.

Financial highlights

• Revenue from operations and total revenue were Rs 7.60m in FY2020-21; other income was nil, compared with nil revenue in FY2019-20.

• Total expenses were Rs 7.584m, including Rs 6.50m of stock purchases, Rs 240,000 of employee benefits and Rs 844,132 of other expenses.

• Profit before tax was Rs 15,868; tax expense was Rs 4,126 and net profit was Rs 11,742, versus a prior-year loss of Rs 918,050.

• Cash and cash equivalents closed at Rs 2.327m, down from Rs 2.788m; operating cash flow was negative Rs 1.084m in FY2020-21.

Outlook and guidance

• Management was seeking an opportunity to restart operations and said future development depends on operational activity commencing.

• Cost-reduction measures had been undertaken to address scarce working capital, with further measures planned as feasible.