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Amrutanjan Health Care: Raw Material Cost Dents profitability - Views on News from Equitymaster
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  • May 24, 2017 - Amrutanjan Health Care: Raw Material Cost Dents profitability

Amrutanjan Health Care: Raw Material Cost Dents profitability
May 24, 2017

Amrutanjan Health Care has announced the fourth quarter results financial year 2016-2017 (4QFY17). While the topline increased by 22.9% YoY, the bottomline declined by 33.1% YoY.

Performance summary
  • Net sales increased by 22.9%% YoY during the quarter. The OTC segment grew by 16.4% YoY. Beverage Segment grew by 52% YoY. Similarly, APMC segment grew by 151% YoY.
  • Operating profits declined by 35.2% YoY. EBITDA Margin stood at 8.1% in 4QFY17. EBITDA Margins saw a reduction of about 730 bps. This is primarily on the back of an increase in raw material prices such as Nilgiri ka tel and Pudhina ka phool. Also, a sharp rise in packing material cost impacted the operating margin.
  • Net profit for the quarter declined by 33.1% YoY. This is primarily on the back of decline in operating profit. Similarly, the company paid higher tax as % of PBT (60% in 4QFY17 vs 50% in 4QFY16)
  • The company declared a final Dividend of Rs 1.65 per equity share for FY17 in addition to interim dividends of Rs. 2.20 per share. The total dividend for FY17 is Rs 3.85 per share. With this, the company paid ~27% of net profit as dividend for FY17.

    Standalone Financial performance snapshot
    (Rs m) 4QFY16 4QFY17 Change FY16 FY17 Change
    Net sales 567 697 22.9% 1,867 2,240 19.9%
    Expenditure 479 640 33.5% 1,561 1,950 24.9%
    Operating profit (EBDITA) 87 57 -35.2% 307 290 -5.4%
    Operating profit margin (%) 15.4% 8.1%   16.4% 13.0%  
    Other income 15 24 60.5% 57 48 -14.9%
    Interest 0 0 100.0% 3 4 36.9%
    Depreciation 7 5 -32.8% 33 29 -14.3%
    Exceptional items   3   0 27  
    Profit before tax 95 79 -17.0% 327 332 1.7%
    Tax 48 48 -1.2% 121 121 -0.1%
    Effective tax rate 50.6% 60.2%   37.0% 36.4%  
    Profit after tax/(loss) 47 31 -33.1% 206 211 2.8%
    Net profit margin (%) 8.3% 4.5%   11.0% 9.4%  
    No. of shares (m)         15  
    Fully diluted EPS (Rs)*         14.47  
    P/E (x)*         48.9  

    *Based on trailing 12-months earnings

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