Gujarat Terce Laboratories Limited , a pharmaceutical company, has released its financial results for the first quarter, revealing a narrowed loss and a decline in revenue. The company also announced significant changes to its board committees.

Financial Performance

Gujarat Terce Laboratories reported a net loss of Rs 4.35 lakhs for the quarter, an improvement from the Rs 7.76 lakhs loss recorded in the same period last year. However, the company's revenue from operations saw a decline, dropping to Rs 1,085.36 lakhs from Rs 1,188.88 lakhs year-over-year.

The company's financial results, as per the unaudited standalone financial statement, show:

The earnings per share (EPS) for the quarter stood at -Rs 0.06, compared to -Rs 0.10 in the corresponding quarter of the previous year.

Board Committee Reconstitution

The Board of Directors approved the reconstitution of three key committees:

1. Audit Committee:

   • Chairperson: Ms. Avani V. Patel
   • Members: Mr. Surendrakumar P. Sharma, Mr. Viplav S. Khamar, Ms. Chhayaben Shah, and Mr. Aalap N. Prajapati

2. Nomination and Remuneration Committee (NRC):

   • Chairperson: Mr. Surendrakumar P. Sharma
   • Members: Ms. Avani V. Patel, Mr. Viplav S. Khamar, and Ms. Chhayaben Shah

3. Stakeholders' Relationship Committee (SRC):

   • Chairperson: Mr. Viplav S. Khamar
   • Members: Ms. Chhayaben Shah, Mr. Aalap N. Prajapati, and Mr. Natwarbhai P. Prajapati

These changes in committee compositions aim to ensure compliance with the provisions of the Companies Act, 2013 and SEBI (LODR) Regulations, 2015.

Auditor's Review

The statutory auditors, M.A. Shah & Co., provided an unmodified opinion on the quarterly results. Their limited review report stated that nothing has come to their attention that causes them to believe that the financial results do not present a true and fair view in accordance with applicable accounting standards and other recognized accounting practices and policies.

The Board meeting to approve these results and changes commenced at 4:00 p.m. and concluded at 5:30 p.m. on August 11, 2025.

Gujarat Terce Laboratories continues to operate in the pharmaceutical segment, and these results reflect its performance in a challenging market environment. The company's efforts to streamline its governance structure through committee reconstitutions may be seen as a step towards enhancing its operational efficiency and corporate governance practices.

Gujarat Terce Laboratories Limited , a prominent player in the pharmaceutical sector, has reported mixed financial results for the fiscal year. While the company achieved revenue growth, it faced a significant net loss due to the settlement of long-standing tax disputes.

Revenue Growth and Operational Performance

The company reported a total revenue of ₹50.20 crore, marking a 3.93% increase from ₹48.30 crore in the previous year. This growth was primarily driven by a 4.58% rise in sales, which reached ₹50.20 crore compared to ₹48.00 crore in the previous fiscal year.

Gujarat Terce Laboratories demonstrated improved operational efficiency, with its EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) surging to ₹3.89 crore, a substantial 143.12% increase from ₹1.60 crore in the previous year. The EBITDA margin expanded significantly from 3.31% to 7.75%, reflecting enhanced profitability at the operational level.

Tax Settlement Impact on Profitability

Despite the positive operational performance, the company reported a net loss of ₹0.98 crore, compared to a profit of ₹0.24 crore in the previous year. This loss was primarily attributed to a one-time provision of ₹3.42 crore for settling tax disputes under the Direct Tax Vivaad se Vishwas scheme for assessment years 2010-14.

The company's decision to settle these long-standing tax disputes is expected to remove uncertainties and provide a cleaner financial slate for future growth.

Financial Position and Debt Reduction

As of the latest reporting date, Gujarat Terce Laboratories reported total assets of ₹22.80 crore, a slight decrease from ₹23.30 crore in the previous year. The company's balance sheet showed improvements in liquidity management:

1. Current assets increased to ₹12.00 crore from ₹11.20 crore.
2. Current liabilities rose marginally to ₹12.60 crore from ₹12.10 crore.
3. The company significantly reduced its reliance on debt, with the debt-to-equity ratio improving from 0.54 to 0.15.

Operational Highlights

Gujarat Terce Laboratories made notable progress in several operational areas:

1. The company achieved zero borrowing in Q4 through internal accruals, demonstrating improved cash flow management.
2. Inventory turnover ratio improved to 13.10 from 11.40, indicating more efficient inventory management.
3. Trade receivables turnover ratio increased to 9.35 from 7.03, suggesting better collection practices.

Future Outlook

Despite the current year's net loss, Gujarat Terce Laboratories' improved operational metrics and debt reduction efforts position it for potential growth. The company continues to focus on its core strengths in the pharmaceutical sector, with over 125 products across 64 brands, primarily in the branded generics segment.

The 40th Annual General Meeting of the company is scheduled for August 21, 2025, where shareholders will have the opportunity to discuss the company's performance and future strategies.

As Gujarat Terce Laboratories moves forward, investors and stakeholders will be watching closely to see how the company leverages its improved operational efficiency and cleaner financial position to drive growth in the coming years.