Amrutanjan Health

This 122 years old company declared steady performance for Q2FY17, no fireworks or sparks. On a 22% (YoY) rise in net sales at Rs.55 crore, driven by good volume growth in OTC business, the company ended the quarter with a net profit of Rs.8 crore, up 14%. Operating costs rose 22% and this saw a 28% jump in advertising and selling expenses. EBITDA rose 22% at Rs.11 crore and margins were status quo at 20%.

Its OTC business, which contributes 93% to topline, showed a 21% rise in revenue and 18% jump in EBIT. Beverages revenue was up 15% and there was a loss at EBIT level. The company is trying to propel itself further through wider geographical spread and aggressive marketing. With its strength in headache balm, Amrutanjan, the company is now trying to cash-in on its Roll-on format and it plans to market this product pretty strongly this fiscal. Its beverage, Fruitnik is doing OK but continues to make losses. The company has undertaken some restructuring of distribution and this has helped shore up the margins. The company’s equity is pretty small at Rs.2.92 crore, it remains debt free and reserves is at Rs.102 crore.