Shree Ganesh Remedies Q3 PAT rises to Rs4.20cr on better operating efficiency

20 Jan 2022 , 11:15 AM

Shree Ganesh Remedies Limited (SGRL) delivered a strong and robust financial performance in the third quarter ending December 31, 2021. The Company recorded a powerful quarter with revenue from operations amounting to Rs21.12cr in Q3FY22 as compared to Rs13.26cr in the corresponding quarter last year, observing exponential growth of 59.3%.

The Company also recorded healthy operational performance driven by process optimization and higher utilization levels across plants. As the world has continued to face the adversity of the global pandemic affecting infrastructure around the logistics and supply chain sectors, the company said in a filing on Wednesday that it has kept up with the demand environment to support the momentum.

Profit after tax (PAT) stood at Rs4.20cr during the quarter compared to Rs2.77cr in Q3FY21. PAT development was facilitated by better-operating efficiency and strategic product placement across the portfolio. Earnings per share for the quarter stood at Rs3.50 per share compared to Rs2.31 per share in Q3FY21.

Update on new project

The company has started the modernization of its manufacturing facility to meet the Good Manufacturing Practice (GMP). This all-new Production block (“Plant 01”) is being developed at the existing manufacturing facility of Unit-1, to move further in value chain. The modernisation process, which includes erection and commissioning of Plant 01 is likely to get completed in Q1FY23.

It will start construction of the phase-wise greenfield project at Dahej site in Q1 FY23.

The Company has lease rights over 40,445 sq. mtr. of GIDC land and the first phase would be built over 8000 sq. mtr. This facility would help the company to address the demand of growing product portfolio in specialty chemicals and human health sector.

“The company has seen outstanding and resilient performance in Q3FY22 owing to its operational efficiencies. Despite the global supply chain constraints, your Company has been able to strategically procure raw materials and have been able to supply the finished goods as per the customer’s requirement. In these times of uncertainty, a well-diversified product and client portfolio has helped us in acceleration of growth.

With the wide range of products across different chemistry and end-use in Human API Intermediates, Specialty Chemicals, Veterinary API Intermediates, Agrochemicals, Polymer Industry, and Flavor & Fragrances chemicals; over the years your company has framed an advantage over the cyclical demand of the products in the industry,” company’s management said in its speech.

At around 11.15 am, the company stock was trading at Rs332.90 per piece up Rs0.85  or 0.26% on the BSE.