Shukra Pharmaceuticals (524632) Q4 19/20 earnings summary

Executive summary

• FY20 revenue rose to ₹11.85 crore from ₹5.66 crore, while net profit fell to ₹3.56 lakh from ₹46.20 lakh; directors cited insufficient profit and recommended no dividend.

• Operations covered pharmaceutical manufacturing and trading, laboratory testing, and a subsidiary that had not commenced operations; management expressed optimism about improved revenue and performance in the following year.

Financial highlights

• Revenue from operations was ₹11.85 crore versus ₹5.66 crore in FY19; total expenses were ₹11.79 crore versus ₹4.97 crore.

• Profit before tax was ₹17.08 lakh versus ₹72.44 lakh; net profit was ₹3.56 lakh versus ₹46.20 lakh. FY20 included ₹19,630 of prior-year expenses.

• Depreciation and amortisation expense rose to ₹1.48 crore from ₹96.27 lakh; employee benefits expense increased to ₹4.40 crore from ₹1.96 crore.

• Operating cash flow was ₹1.24 crore versus ₹25.90 lakh in FY19; cash and cash equivalents closed at ₹12.64 lakh versus ₹24.85 lakh.

Outlook and guidance

• Directors expected better performance and increased revenue in the next year; the report cites ongoing efforts to expand marketing and improve operating efficiency.

• Management planned to pursue ISO 9000 certification and described a sophisticated injectable plant and continued improvement as part of its growth ambitions.