Albert David Ltd Management Discussions.


The details of the financial performance of the company are appearing in the Balance Sheet, Statement of Profit & Loss along with other notes of financial statements. Salient features are highlighted below :

(Rs. in Lakhs)
Continuing Operations 2018-19 2017-18
Revenue from Operations 31689.10 28899.33
Other Income 678.54 890.83
Earning before interest, depreciation, tax & amortization 3644.66 3063.37
Gross Profit 3582.92 2977.49
Profit before exceptional item & tax 2885.12 2154.39
Exceptional Item
Profit after tax from Continuing Operations 1772.43 1348.22
Discontinued Operations
Profit/(Loss) after tax from Discontinued Operations 891.56 (364.14)


The Indian Pharmaceutical Sector is a heterogeneous mixture of both organized and unorganized entities. They range from large to medium and small units under multinational or domestic banner. Dealing on drugs constitutes two major inter-linked segments viz. bulk drugs and formulations. The domestic formulation market can be further classified into retail and institutional drug market. Formulation market in India, as elsewhere in the world, is dominated by large companies. There has been a rapid growth in production of bulk drugs and currently India is the third largest drug producer after China and Italy.

The Indian pharmaceutical industry is expected to expand at a CAGR of 22.40 per cent between 2015-2020 to reach USD 55 billion. Indias pharmaceutical exports stood at USD 17.27 billion in the financial year 2018 and have reached USD 15.52 billion in financial year 2019 (upto January, 2019). Pharmaceutical exports include bulk drugs intermediates, drug formulations, biological, surgical and herbal products.

Indias domestic pharmaceutical turnover reached Rs.1,29,015 Cr. (USD 18.12 billion) in 2018 from Rs.1,16,389 Cr. (USD 17.87 billion) in 2017.


The growth in domestic market will be boosted by rise in consumers spending, growing medical awareness, rapid urbanization and improvement in lifestyle pattern. Considering increasing healthcare insurance read with vertical shift in demand curve of drugs for treatment of cardiovascular, anti-diabetic, anti-depressants and anti-cancers, the outlook of Indian Pharmaceutical Industry seems positive.


The "Pharma Vision 2020" by the Governments department of pharmaceuticals aims at making India a major hub for end to end drug discovery. The sector has received cumulative FDI worth USD 15.93 billion between April, 2000 and December, 2018. Under Budget 2019-2020, allocation to the Ministry of Health and Family Welfare increased by 13.1 percent to Rs.61,398 Cr. and the Indian Pharmaceutical Sector is expected to register better growth in the near future on account of growing domestic as well as export demand and continued growth in sale of generic products.

Indian Pharmaceutical Industry remains highly fragmented and highly competitive with about 300 large manufacturing units and about 18000 small units spread across the length and breadth of the country. The Indian pharma Companies are affected by price regulation by the NPPA (National Pharmaceutical Pricing Authority) which decides the various pricing parameters, sets prices of different drugs which often contribute to lower profitability for the companies.


The Indian pharmaceutical industry faces plethora of Laws right from manufacture of drugs to marketing process. Further strengthening in applicable regulations may adversely impact the operations and business growth. Price control by National Pharmaceutical Pricing Authority and strict compliances under various other regulations including occasional ban on certain products from time to time by the Indian Government are areas of concern.


The Company has set up internal control procedures commensurate with its size and nature of the business. These control mechanisms ensure optimum use and protection of the resources and compliances with the policies, procedure and statues. The internal control system provides for all defined policies, guidelines and authorizations and approval procedures. Its functioning are subject to test the adequacy and effectiveness of the internal control laid down by management and to suggest improvement.


The company believes that the quality of its employees is the key to its success in the long run. As such the company is committed to provide necessary human resource development and training opportunities to equip them with skills enabling them to prevail technological advancements. Industrial relations during the year continued to be cordial and the company is committed to maintain good industrial relations through effective communication, meetings and negotiation.

The total strength of the employees of the company as on 31st March, 2019 stood at 1503.


Performance of the Company is not segmentable in business or geographical terms for reason referred to in Note No. 3.17 and 65 to the financial statement.

During the year under review, your Company achieved Net Sales of Rs.31,270.41 Lakhs and recorded a Gross Profit of Rs.3,582.92 Lakhs compared to previous years Net Sales of Rs.28,710.87 Lakhs and Gross Profit of Rs.2,977.49 Lakhs.


None of the key financial ratios underwent material change (i.e. 25% or above) during the year vis--vis previous year. Return on Networth for the financial year 2018-19 is 9.80% vis--vis. 6.47% for the previous year and the change is attributable to increase in sales during the year over the previous year. Calculation of return on net worth for FY 2018-19 excludes Rs.934.76 lakhs (net of tax) towards profit from disposal of assets of discontinued operations.


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 development, risk inherent to the Company and other factors.

For and on behalf of the
Board of Directors
A.K. Kothari
Place : Kolkata Executive Chairman
Date : 29th May, 2019 DIN : 00051900