Food and pharma business of TTK Healthcare improves in June 2020
As the first quarter (April to June) of FY21 has come to an end, TTK Healthcare Limited has informed about the impact of COVID-19 pandemic on its business operations during the June quarter.
All its manufacturing factories related to pharma, medical devices, protective devices and foods were functioning within the limited manpower as per the guidelines of the government.
On a month-on-month basis, the improvement in sales was witnessed by the company. In June 2020, it generated 80 per cent of its planned average monthly sales, which was 60 per cent in May and as low as 45 per cent in April 2020.
Some of its product lines including pharmaceuticals, Woodward’s Gripe Water, foods, etc. were categorised as essential supplies and hence, a good improvement in their performance was seen. However, other categories like EVA Cosmetics, medical devices, condoms, etc. delivered slow growth, which is likely to impact on the company’s overall profitability in Q1FY21.
In June 2020, under its pharmaceuticals, animal welfare products and Woodward’s Gripe water segment, the company was able to achieve 80-85 per cent of its regular sales volume. However, other categories such as EVA Cosmetics could generate only 40-45 per cent of normal sales. Its heart valve and orthopaedic implants segment recorded 40 per cent of its regular sales. The foods’ business was the most normal in comparison to others as it could generate 100 per cent normal sales in June 2020.
In regard to the supply chain issue, the company stated that there has been a vast improvement, both in the inward and outward supply chain operations and it does not anticipate any major issue going forward. It expects that the demand for its products would gradually improve and its original level of operations would stabilise in the upcoming months.
The overall low business activity during the June quarter would impact its performance and profitability not only in Q1Y21 but also for the year FY21.
On Friday, the stock of TTK Healthcare Ltd opened 2.2 per cent higher at Rs 445.20 from its previous close of Rs 435.70 on BSE.