Unjha Formulations Reports Q1 Loss Amid Rising Expenses
Unjha Formulations Limited announced a net loss of Rs. 40.64 lakhs for the first quarter, compared to a profit of Rs. 50.76 lakhs in the same period last year. Total income decreased to Rs. 363.40 lakhs from Rs. 395.43 lakhs year-over-year, while total expenses rose to Rs. 325.81 lakhs from Rs. 272.54 lakhs. The company's Earnings Per Share (EPS) turned negative at Rs. 0.91, down from positive Rs. 1.56 in the previous year's quarter. Despite a 5.01% decrease in material costs and a 24.64% reduction in employee benefits expenses, other expenses increased by 76.79%, contributing to the overall loss.
*this image is generated using AI for illustrative purposes only.
Unjha Formulations Limited announced its financial results for the first quarter, revealing a shift from profit to loss compared to the same period last year. The pharmaceutical company's performance was marked by decreased revenue and increased expenses, resulting in a net loss for the quarter.
Financial Highlights
- Net Loss: Rs. 40.64 lakhs, compared to a profit of Rs. 50.76 lakhs in the same quarter last year
- Total Income: Decreased to Rs. 363.40 lakhs from Rs. 395.43 lakhs year-over-year
- Total Expenses: Rose to Rs. 325.81 lakhs from Rs. 272.54 lakhs in the previous year
- Earnings Per Share (EPS): Negative Rs. 0.91, down from positive Rs. 1.56 in the same quarter last year
Detailed Financial Performance
| Particulars (Rs. in Lakhs) | Current Quarter | Previous Year Quarter | YoY Change |
|---|---|---|---|
| Net sales/income | 361.41 | 395.21 | -8.55% |
| Other Operating Income | 1.99 | 0.22 | 804.55% |
| Total Income | 363.40 | 395.43 | -8.10% |
| Cost of materials consumed | 269.42 | 283.62 | -5.01% |
| Employee benefits expenses | 13.46 | 17.86 | -24.64% |
| Other expenses | 38.47 | 21.76 | 76.79% |
| Total Expenses | 325.81 | 325.54 | 0.08% |
| Profit/(Loss) before tax | (38.99) | 69.89 | -155.79% |
| Net Profit/(Loss) | (40.64) | 50.76 | -180.06% |
Key Observations
Revenue Decline: The company experienced a decrease in total income, with net sales falling by 8.55% year-over-year.
Expense Management: Despite the revenue decline, total expenses remained relatively stable, increasing only marginally by 0.08%. However, there were significant changes in individual expense categories:
- Cost of materials consumed decreased by 5.01%
- Employee benefits expenses reduced by 24.64%
- Other expenses saw a substantial increase of 76.79%
Profitability Impact: The combination of lower revenue and higher other expenses led to a significant swing in profitability, resulting in a net loss for the quarter.
EPS Decline: The earnings per share turned negative, reflecting the company's loss-making position in the current quarter.
The board of directors of Unjha Formulations Limited approved these unaudited financial results at their meeting. The meeting commenced at 12:05 a.m. and concluded at 1:00 p.m.
Investors and stakeholders will be closely watching the company's performance in the coming quarters to see if it can reverse this trend and return to profitability. The management may need to focus on cost optimization and revenue growth strategies to improve the company's financial health.
Historical Stock Returns for Unjha Formulations
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.68% | -3.81% | +5.19% | +3.87% | -17.66% | +233.47% |
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