Albert David Management Discussions


Russia – Ukraine war increased the uncertainty and global unrest. It demolished the growth prospects after the two years disruption caused by COVID & increased inflation too. The abnormal increment in the inflation encouraged central banks to keep on increasing the policy rates, it was like double edged sword where the inflation & ex-policy rate were inversely proportionate to the growth. On real terms the current situation is most like a recession where capital expenditure & growth was its lowest unless policy rate are seen moving southward.

Indian Economy

The GDP of India which was expected to register double digit growth during FY 2023, grew at around 6-6.5%. Although a business-friendly atmosphere and supportive policies by the Indian Government are available for all sectors, higher cost of funds, lower disposable income & slowdown in developed countries has reduced the GDP growth rate to the range of 6-6.5% on an average. Nevertheless, India has entered into the club of top 5 economies in the world and also it is the largest growing economy. Infiation now seems to be under control; therefore, we may not see further increases in policy rates.


The details of the financial performance of the company are appearing in the Balance Sheet and the Statement of Profit & Loss along with notes to financial statements forming part of the Annual Report. Salient features of financial performance during the Financial Year 2022-2023 vis-?-vis Financial Year 2021-2022 are under noted:

(Rs. in Lakhs)

Financial parameters

2022-23 2021-22
Revenue from Operations 34,156.44 31,351.14
Other Income 1,539.64 1,584.14

Earnings before interest, tax, depreciation & amortization

5,973.97 5,663.56
Gross Profit (EBDTA) 5,928.38 5,610.33

Profit before exceptional item & tax

5,073.54 4,729.76
Exceptional Item - -
Profit after tax 3,617.49 3,525.83

The company always keeps track of the latest development in the field of technology and remains in continuous touch with foreign manufacturers/machine suppliers for latest development in the pharmaceutical industry. Efforts are being made to adopt latest technology to upgrade its units for effective cost control to meet market demand. The Company had introduced two products ‘Evacure and ‘C3H in the market during the last year, and during the year under review, the Company is in the process of introducing one new product called ‘Evaston.


The pharmaceutical industry has grown tremendously in recent years, and the outlook for 2023 remains positive. The industry is expected to be worth more than $1 trillion by the following year. This is due in part to the thousands of compounds that are currently in the final stages of clinical development, as well as hundreds of new products that are expected to be approved in 2023 and beyond. This concentration of pharmaceutical products is unusual and hasnt been seen in over a decade.

According to a recent EY FICCI report, the Indian pharmaceutical market is expected to reach $130 billion in value by the end of 2030, as there has been a growing concensus on providing new innovative therapies to patients. Meanwhile, the global market for pharmaceutical products is expected to exceed $1 trillion by 2023. The advancement of advanced biologics, cell therapies, and gene therapies has the potential to change peoples lives. India is working to develop a policy framework that includes intellectual property and technology commercialization, government procurement, scientific research, education, and skill development, as well as ease of doing business, regulatory legislation, and tax and financial incentives. These regulatory changes will allow for additional private-sector investment in pharmaceutical R&D.

There are over 3000 pharma companies in the domestic pharma manufacturing industry with strong network of manufacturing facilities with heterogeneous mix of large, medium and small players, both organized and unorganized,under domestic or multinational brand name. The industry is highly fragmented with nearly 15,000 small manufacturing units mostly in the unorganized sector and 300-400 units in the medium-large organized sector with the organized players dominating the formulations market. Branded Generic drugs account for ˜70%+ market share forming largest segment of Indian pharmaceutical industry and is set to grow as exports to US rise as on account of continuing patent expiries.


India is making an effort to build a policy framework that incorporates intellectual property and technology commercialisation, government procurement, scientific research, education and skill development, as well as ease of doing business, regulatory legislation, and tax and financial incentives, adding that these regulatory adjustments will open the door for further private sector investment in pharmaceutical R&D. While leading pharmaceutical contract manufacturers in India are focusing on ensuring innovative products, to meet sustainability objectives, several manufacturers are implementing innovative and environmental-friendly packaging techniques.

Various factors that will contribute to the pharma market growth in India are Govt. initiatives such as Pradhan Mantri Bhartiya Jan Aushadhi Pariyojana and Ayushman Bharat Yojana under National Health Protection Scheme (NHPS). One of the most notable measures taken so far was the introduction of the PLI Scheme in a bid to promote local manufacturing of APIs, Key Starting Materials (KSMs), and Drug Intermediaries in India.

Till now, a few pharmaceutical companies are being supported under the scheme. The scheme for Strengthening the Pharmaceuticals Industry (SPI), which focuses specifically on MSMEs and pharma clusters in the country, with the aim of providing the necessary support needed for them to boost their productivity, capacity, and quality, is expected to give further fillip to the industry. The Government has a role in boosting research and manufacturing capacities, as well as expanding the PLI scheme so that more local manufacturers can access incentives and support needed to play in the API sector. Additionally, the Centers recent decision to make the QR code mandatory on the packaging label of the top 300 drug formulations is a much-needed and well-thought-out step by the Government. It will likely curb the sale of spurious and counterfeit drugs in India.


India is the largest provider of generic drugs globally and is known for its affordable vaccines and generic medications. The Indian Pharmaceutical industry is currently ranked third in pharmaceutical production by volume after evolving over time into a thriving industry growing at a CAGR of 9.43% over since the past nine years. Generic drugs, over-the-counter medications, bulk drugs, vaccines, contract research & manufacturing, biosimilars, and biologics are some of the major segments of the Indian pharma industry. India has the most number of pharmaceutical manufacturing facilities that are in compliance with the US Food and Drug Administration (USFDA) and has 500 API producers that make up around 8% of the worldwide API market.

India is the third largest pharmaceutical market in the world by volume, but, the industry has been impacted by several challenges like the patent client, significant price erosion, consolidation at the distributors level, increasing competition and increased regulatory scrutiny in global markets.


Risks in the pharma industry due to supply chain disruptions, result in businessmen losing opportunities and hampering the industrys growth. This is now the era of exporting Indian pharmaceutical products in international markets, and every country is facing issues due to forums and their correspondences. It is becoming increasingly difficult to develop a large molecule due to supply chain interruptions for manufacturers.

The Indian pharmaceutical industry faces multitude of laws right from manufacture of drugs to marketing thereof. Further strengthening of applicable regulations and occasional ban on certain products/FDCs remain areas of concern, apart from general business risks and uncertainties from broader socio-economic parameters. Further, the unpredictability of national/global pandemics, may generate macro or micro impacts on market dynamics, unpredictable as the pandemic itself.


The Company has implemented an Internal control framework to ensure all assets are safeguarded and protected against loss from unauthorized use or disposition and transactions are authorized, recorded and reported correctly. The framework includes internal controls over financial reporting, which ensures the integrity of financial statements of the Company and eliminates the possibility of fraud. The Companys internal control system & procedure is commensurate with its size and nature of the business. These control mechanisms ensure optimum use and protection of the resources and compliance with the policies, procedures and statues. Reputed firms of Chartered Accountants carry out audits throughout the year and Internal Audit Reports and action taken reports are periodically reviewed by the Audit Committee of the Board of Directors. During FY23, the Audit Committee was satisfied with the adequacy of the Internal Control systems and procedures of the Company.


At ‘Albert David, "Adds life to life" is a simple yet profound theme that defines our efforts and reflects our mindset, aspiration and vision. The Company believes that the quality of its employees is the key to organizational success, and thus, is committed to extending necessary development and training opportunities for the enhancement of faculties and skill sets.

The Company is committed to maintaining good industrial relations through effective communication, meetings and negotiations with unionized factory staff, field forces, as well as non-unionized employees, keeping the overall interest of the organization as paramount. The Company is also committed to ensuring expected discipline and protocol in its operations.

The total employee strength of the Company as on 31st March, 2023 stood at 1271.


The Company operates in a single segment and hence cannot be segregated in terms of business verticals or geographical presence, in terms of Note No. 3 & 61 to the financial statements.

During the year under review, your Company achieved Net Sales and Gross Profit of Rs.341.56 Cr. & Rs.59.28 Cr. against Rs.313.51 Cr. & Rs.56.10 Cr., respectively, during the previous year.



2022-23 2021-22 Change (%)
Debt-Equity Ratio (in times) 0.01 0.01 -5.46
Current Ratio (in times) 3.07 2.36 29.91*
Interest Coverage Ratio (in times) 36.22 34.18 05.99
Inventory Turnover Ratio (in times) 18.27 17.81 02.59
Debtors Turnover Ratio (in times) 12.29 14.04 -12.49
Operating Profit Margin (%) 06.08 6.19 -1.78
Net Profit Margin (%) 10.64 11.29 -0.65
Return on Net Worth (%) 16.22 16.86 -0.64

* Increase is due to increase in current investment and deposit with NBFC.


The Management Discussion and Analysis Report may contain certain statements that might be considered forward looking. These statements are subject to certain risks and uncertainties. Actual results may differ materially from those expressed in the statement with crystallization of unforeseen predicaments in the sphere of Government policies, local, political and economic developments, risks inherent to the Company and other factors.

A. K. Kothari
Dated : 19th May, 2023 Executive Chairman
Place : Kolkata (DIN: 00051900)