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Zenith Drugs Limited Clarifies Financials and Segment Reporting for H1 FY24
Team Finance Saathi
06/Jan/2025
What's covered under the article:
- Clarification regarding the company’s single primary business segment and non-application of AS 17.
- Submission of machine-readable and legible copies of financial results for September 2024.
- Financial performance details and unaudited statements for the half-year ending September 2024.
Zenith Drugs Limited, formerly known as Zenith Drugs Private Limited, is a significant player in the pharmaceutical industry with a focus on health and well-being. The company, based in Indore, Madhya Pradesh, has recently addressed the National Stock Exchange of India (NSE) regarding some clarifications on its unaudited financial results for the half-year ended September 30, 2024.
In response to the NSE's inquiry, Zenith Drugs Limited clarified that the company operates within a single primary business segment, and therefore, the disclosure requirements as per AS 17 (Segment Reporting) are not applicable. This was confirmed while preparing the company’s financial results in the XBRL format. The company also submitted the machine-readable and legible copies of the financial results for the aforementioned period.
The financial statements reflect the company’s unaudited balance sheet, profit & loss statement, and cash flow statement as of September 30, 2024. The unaudited results show a modest profit before tax (PBT) of INR 571.87 lakhs for the half-year ending September 30, 2024, indicating steady operational progress despite market challenges.
In the balance sheet, the total assets as of September 30, 2024, were reported at INR 14,362.83 lakhs, compared to INR 13,417.16 lakhs at the end of March 2024. The company’s shareholder’s funds increased from INR 4,506.98 lakhs in March 2024 to INR 5,078.85 lakhs in September 2024, reflecting robust financial health.
The profit and loss statement for the half-year shows that revenue from operations for the period was INR 6,769.48 lakhs, slightly lower than the corresponding period in the previous year. Cost of materials consumed remains the primary expenditure category at INR 4,685.87 lakhs, reflecting ongoing production activities.
The cash flow statement highlights a negative cash flow from operating activities of INR (792.82) lakhs, primarily driven by working capital adjustments. However, the financing activities contributed a positive cash flow of INR 1,436.91 lakhs, stemming from an increase in term loans and working capital management.
In closing, Zenith Drugs Limited remains committed to maintaining transparent financial reporting and compliance with all applicable regulations. The company has reiterated its dedication to improving operations and optimizing financial performance in the upcoming quarters.