On a consolidated basis, Nureca's net profit surged 63.44% to Rs 3.89 crore on 3.39% fall in revenue from operations to Rs 31.84 crore in Q4 March 2021 over Q4 March 2020.
Profit before tax soared 61.18% to Rs 5.19 crore in Q4 FY21 as against Rs 3.22 crore in Q4 FY20. EBITDA grew 52.1% to Rs 5.65 crore in Q4 FY21 over Q4 FY20. EBITDA margin improved to 17.1% during the quarter compared with 11.2% during the corresponding quarter last year.
As per a government policy, some of Nureca's key products came under drug license while sales remained impacted until license were obtained, leading to dip in Q4 FY21 revenue. The company witnessed higher employee cost on the back of new recruitment in H2 FY21 and yearly performance appraisal. Nureca incurred higher advertisement cost in H2 FY21 as a result of advertisements during festive season. The EBITDA margin expansion was a result of operating leverage kicking in and because of COVID-19 with fewer discounts offered in H1 leading to higher margins. The company possess a strong balance sheet with cash and cash equivalents of Rs 127 crore.
Commenting on the Q4 performance, Aryan Goyal, the founder and chief executive officer (CEO) of Nureca, said: "COVID-19 epidemic has increased consumer awareness and adoption of monitoring devices. We have witnessed, that the consumer focus has shifted from curative to preventive healthcare. The healthcare penetration in India remains relatively low compared to many other countries. India is poised to be a large and rapidly growing market for home healthcare and wellness products. We are striving to be the preferred partner for Indian consumers in their wellness and healthcare prevention journey through digitization and innovation. In the last year, we have also witnessed acceleration in consumers demand shifting from offline channels to online channel. This trend is very positive for us as our brands enjoy higher credibility and pull on all the digital channels. We adhere to high corporate governance standards with majority board with independent directors, BSR (KPMG) as our auditor and SAP ERP implemented. These factors will drive the sustainable growth of Nureca."
During the financial year, Nureca's consolidated net profit galloped 625.66% to Rs 46.37 crore on 114.69% increase in revenue from operations to Rs 213.45 crore in FY 2021 over FY 2020.
The board has recommend a final dividend of Rs 2 per equity share for the FY 2020-2021.
Meanwhile, the board has appointed Nishant Garg as the chief financial officer (CFO) of Nureca. Garg will be replacing Sakshi Mittal, who resigned from the post on 15 June 2021.
Nureca is a B2C company engaged in the business of home healthcare and wellness products. The company has a diversified product portfolio, which primarily caters to home healthcare sector. The company has most of the product lines supporting home health market in India, making it a one-stop solution provider. The company enables its customers with tools to help them monitor chronic ailments and other diseases, to improve their lifestyle.
Shares of Nureca entered the stock exchanges on 25 February 2021. The stock was listed at Rs 634.95, a premium of 58.7% to the initial public offer (IPO) price of Rs 400 a share. The IPO was open between 15 February and 17 February 2021. It was subscribed 39.93 times. The price band for the IPO was set at Rs 396-400 per share.
Shares of Nureca declined 3.79% to Rs 1,488.05 on BSE. The scrip hovered in the range of Rs 1,469.30 to Rs 1,509.95 so far.
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