Deurali Janta Pharmaceuticals Posts Rs 2.35 Billion Profit, Financial Strength Improves

Deurali Janta Pharmaceuticals Pvt Ltd, a long-established player in Nepal’s pharmaceutical manufacturing sector, has recorded a profit of Rs 2.35 billion in the fiscal year 2081/82, reflecting steady growth in its business performance.

According to a report published by credit rating agency ICRA Nepal, the company’s profitability has shown a consistent upward trend in recent years. In fiscal year 2080/81, the company had earned a profit of Rs 2.02 billion, while in 2079/80 it posted earnings of Rs 1.86 billion. Earlier, in fiscal year 2078/79, the company’s income stood at around Rs 1.70 billion. The data highlights a sustained improvement in operational scale and earnings capacity.

Established in 1991, Deurali Janta Pharmaceuticals has built a strong presence in the domestic market by producing more than 250 types of general and specialized medicines. Its product range covers major therapeutic areas including cardiovascular diseases, diabetes, gynecology and child health, liver-related ailments, and dermatological conditions. The wide therapeutic coverage has helped the company diversify revenue sources and reduce dependence on a single product segment.

In terms of ownership, the company is primarily controlled by its Executive Director and Chairman Hari Bhakta Sharma, who holds around 71 percent of the total shares. The remaining shares are owned by members of his family and close associates, indicating a closely held ownership structure.

The ICRA Nepal report notes that as of mid-July 2025, the company maintains a low gearing ratio of 0.3 times, while the ratio of total external liabilities to tangible net worth stands at 0.7 times. These indicators point to limited reliance on external borrowing and a relatively strong balance sheet. Coverage indicators are also described as comfortable, suggesting the company has sufficient earnings to meet its financial obligations.

The company’s financial position is further supported by strong internal accruals generated over the years. A conservative dividend policy has enabled Deurali Janta Pharmaceuticals to retain profits, ensuring regular cash flows and strengthening its capital base. This approach has helped the company fund growth opportunities and routine capital expenditure without significantly increasing debt.

ICRA Nepal has also highlighted the firm’s adequate liquidity position, sufficient drawing power headroom, and a well-established supply chain network involving more than 200 distributors across the country. These factors are expected to contribute positively to revenue stability and future growth, reinforcing the company’s overall credit profile and long-term sustainability.