Vaishali Pharma (VAISHALI) Q4 20/21 earnings summary

Executive summary

• FY21 revenue declined amid COVID-related disruption, while net profit rose to Rs. 10.46 million from Rs. 0.33 million; the final quarter was comparatively stronger than the first three quarters in turnover.

• Business spans APIs, formulations, surgical, veterinary, herbal and nutraceutical products, with domestic sales and exports across Asia, Africa, CIS and Latin America.

Financial highlights

• Revenue from operations was Rs. 537.74 million vs Rs. 600.86 million YoY; other income was Rs. 18.09 million vs Rs. 21.73 million.

• Total income was Rs. 555.83 million vs Rs. 622.58 million; profit before tax was Rs. 14.05 million vs Rs. 0.79 million.

• Net income was Rs. 10.46 million vs Rs. 0.33 million; total comprehensive income was Rs. 10.37 million vs Rs. 0.20 million.

• Bad debts and other receivables written off totaled Rs. 18.21 million, compared with Rs. 41.67 million in FY20; the write-off materially affected reported ratios.

• Operating cash flow was Rs. 20.11 million vs Rs. 32.19 million; cash and cash equivalents ended FY21 at Rs. 3.13 million.

Outlook and guidance

• Focus remains on executing major orders, securing repeat business and reducing product costs to improve margins and profitability in coming years.

• Plans include introducing new molecules domestically in 2021 and registering additional products internationally; nutraceuticals are identified as a growth opportunity.

• More than 200 product registrations were approved across 30+ countries, with remaining applications in process to support export expansion.