NGL FINE CHEM FY18 Annual Report Notes.
Company did not reveal much in the Annual Report 2018, though first time it talked about the quantity of animal and human API. Much more information was covered in Management Q&A here.
- During the year under review your company achieved a sale of Rs. 11,567.81 lakhs (previous year Rs. 10,647.53 lakhs) resulting in an increase of 8.64% over the previous year. The profit before tax is at Rs. 1780.28 lakhs (previous year Rs. 2281.40 lakhs) resulting in a decrease of 21.96%. Profit has decreased to Rs 1263 lakhs which is an decrease of 14.7% over the previous year.
- The company’s expansion project in Tarapur has been completed and trial runs have been undertaken successfully. Capacity ramp up are expected in Q2 of the current financial year. We expect to have double digit growth in sales from the new capacity roll out. (As per AR2017 it was expected to be operational by Q3FY18).
- Our focus is not the developed markets of America, Europe and Japan but the developing markets in rest of the world. While these are price sensitive, the opportunity exists to enlarge market presence and deepen the reach. We plan to extend our reach in these markets and improve our performance by being one of the most cost competitive producers.
- The company now manufactures 18 APIs in the veterinary range and 3 APIs for human health. These products belong to different therapeutic categories such as anthelmintics, endo paraciticides, ecto paraciticides, growth nutrients, etc in the veterinary range and angina, anti malarial and anti diarrheal in the human range. We expect to have continued growth with better market penetration.
- Excellent Cash Flow numbers. Cash flow from Operating activities increased from Rs. 10 cr in FY17 to Rs. 23 cr. (excluding Non Current Liabilities & Non Current Assets). Company has used the cash to fund Capex without substantially increasing debt.
- Total addition to the Gross Block during the year was Rs. 36 cr. Additions during the year and capital work in progress includes Rs. 69,24,515 (previous year Rs 18,51,023) being borrowing cost capitalized. In Plant and Machinery addition of Rs. 29 cr during the year over opening gross block of Rs. 15 cr, that’s a very substantial amount even after removing the borrowing cost capitalised amount
- Cash and Investments of Rs. 10.2 cr and Debt of Rs. 23 cr. Net Debt of Rs. 13 cr.
- Foreign Exchange Earned Rs. 8696.78 lakhs and Foreign Exchange Used Rs. 986.35 lakhs.
- Sale from Allopathic Medicines: 86.47% and Chemicals Used in Pharmaceuticals: 13.53%.