Shukra Pharmaceuticals (524632) Q4 15/16 earnings summary

Executive summary

• FY16 gross sales/income rose to ₹48.54m from ₹26.57m; net profit was ₹1.19m versus ₹1.31m, with EPS of ₹0.76 versus ₹0.84.

• Operations remained focused on pharmaceutical manufacturing and trading; management described the business as undergoing restructuring and working to improve turnover.

Financial highlights

• Revenue from operations, net of excise and discounts, was ₹48.25m versus ₹25.76m; total revenue was ₹50.17m versus ₹36.91m.

• Profit before tax before exceptional items was ₹9.22m versus ₹2.67m; a ₹5.65m write-off of receivables and deposits preceded reported PAT of ₹1.19m.

• Other income was ₹1.91m versus ₹11.15m; it included write-backs of tax/excise interest and liabilities considered no longer payable.

• Depreciation was ₹4.48m versus ₹6.00m; finance costs were ₹13,708 versus ₹13,142.

Outlook and guidance

• Management cited restructuring and efforts to improve turnover; it planned to pursue ISO 9000 certification and described a new injectable plant and continuous improvement as growth initiatives.

• The borrowing proposal cited funding needs of up to ₹100 crore for operations and business expansion; this was put to shareholders for approval.