ALKEM LABORATORIES 2020-21 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

ALKEM LABORATORIES 2020-21 Annual Report Analysis
Mon, 9 Aug

ALKEM LABORATORIES has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

ALKEM LABORATORIES Income Statement Analysis

  • Operating income during the year rose 6.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 31.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.9% in FY21 as against 17.7% in FY20.
  • Depreciation charges increased by 8.6% and finance costs decreased by 9.4% YoY, respectively.
  • Other income grew by 123.8% YoY.
  • Net profit for the year grew by 40.8% YoY.
  • Net profit margins during the year grew from 13.6% in FY20 to 17.8% in FY21.

ALKEM LABORATORIES Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 83,444 88,650 6.2%
Other income Rs m 1,042 2,332 123.8%
Total Revenues Rs m 84,486 90,982 7.7%
Gross profit Rs m 14,734 19,424 31.8%
Depreciation Rs m 2,528 2,746 8.6%
Interest Rs m 651 589 -9.4%
Profit before tax Rs m 12,598 18,421 46.2%
Tax Rs m 1,105 2,243 103.1%
Profit after tax Rs m 11,493 16,178 40.8%
Gross profit margin % 17.7 21.9
Effective tax rate % 8.8 12.2
Net profit margin % 13.6 17.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



FREE REPLAY: Catch the Details of Potential Crorepati-Making Stocks Right Now...

ALKEM LABORATORIES Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 36 billion as compared to Rs 32 billion in FY20, thereby witnessing an increase of 11.1%.
  • Long-term debt down at Rs 343 million as compared to Rs 739 million during FY20, a fall of 53.7%.
  • Current assets rose 26% and stood at Rs 69 billion, while fixed assets fell 1% and stood at Rs 35 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 104 billion as against Rs 90 billion during FY20, thereby witnessing a growth of 16%.

ALKEM LABORATORIES Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 61,593 73,756 19.7
 
Current Liabilities Rs m 32,446 36,041 11.1
Long-term Debt Rs m 739 343 -53.7
Total Liabilities Rs m 90,130 104,114 15.5
 
Current assets Rs m 55,057 69,288 25.8
Fixed Assets Rs m 35,073 34,825 -0.7
Total Assets Rs m 90,130 104,114 15.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ALKEM LABORATORIES Cash Flow Statement Analysis

  • ALKEM LABORATORIES's cash flow from operating activities (CFO) during FY21 stood at Rs 13 billion, an improvement of 116.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -10 billion, an improvement of 34.7% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -3 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -17 million from the Rs -731 million net cash flows seen during FY20.

ALKEM LABORATORIES Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m 5,851 12,649 116.2%
Cash Flow from Investing Activities Rs m -7,414 -9,985 -
Cash Flow from Financing Activities Rs m 792 -2,718 -
Net Cash Flow Rs m -731 -17 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ALKEM LABORATORIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 135.3, an improvement from the EPS of Rs 96.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 3,509.0, stands at 25.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.4 times, while the price to sales ratio stands at 3.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 22.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 697.9 741.4
TTM Earnings per share Rs 96.1 135.3
Diluted earnings per share Rs 96.1 135.3
Price to Cash Flow x 29.9 22.2
TTM P/E ratio x 25.1 25.1
Price / Book Value ratio x 4.3 4.4
Market Cap Rs m 419,554 419,554
Dividends per share (Unadj.) Rs 25.0 30.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ALKEM LABORATORIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.9x during FY21, from 1.7x during FY20. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 32.3x during FY21, from 20.4x during FY20. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company improved and stood at 21.9% during FY21, from 18.7% during FY21. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 25.7% during FY21, from 21.3% during FY20. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company improved and stood at 16.1% during FY21, from 13.5% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 1.7 1.9
Debtors’ Days Days 72 66
Interest coverage x 20.4 32.3
Debt to equity ratio x 0.0 0.0
Return on assets % 13.5 16.1
Return on equity % 18.7 21.9
Return on capital employed % 21.3 25.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how ALKEM LABORATORIES has performed over the last 5 years, please visit here.

ALKEM LABORATORIES Share Price Performance

Over the last one year, ALKEM LABORATORIES share price has moved up from Rs 2,980.3 to Rs 3,509.0, registering a gain of Rs 528.7 or around 17.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 26,357.8 (down 0.0%). Over the last one year it has moved up from 18,760.8 to 26,357.8, a gain of 7,597 points (up 40.5%).

Overall, the S&P BSE SENSEX is up 44.4% over the year.

(To know more, check out historical annual results for ALKEM LABORATORIES and quarterly results for ALKEM LABORATORIES)

Equitymaster requests your view! Post a comment on "ALKEM LABORATORIES 2020-21 Annual Report Analysis". Click here!

  

Related Views on News

ALKEM LABORATORIES Announces Quarterly Results (1QFY22); Net Profit Up 13.5% (Quarterly Result Update)

Aug 9, 2021 | Updated on Aug 9, 2021

For the quarter ended June 2021, ALKEM LABORATORIES has posted a net profit of Rs 5 bn (up 13.5% YoY). Sales on the other hand came in at Rs 27 bn (up 37.1% YoY). Read on for a complete analysis of ALKEM LABORATORIES's quarterly results.

ALKEM LABORATORIES Announces Quarterly Results (4QFY21); Net Profit Up 30.1% (Quarterly Result Update)

Jul 8, 2021 | Updated on Jul 8, 2021

For the quarter ended March 2021, ALKEM LABORATORIES has posted a net profit of Rs 2 bn (up 30.1% YoY). Sales on the other hand came in at Rs 22 bn (up 7.0% YoY). Read on for a complete analysis of ALKEM LABORATORIES's quarterly results.

More Views on News

Most Popular

India's Best Semiconductor Stocks(Views On News)

Jan 7, 2022

Modern wars are fought with semiconductors. India's best semiconductor stocks have big tailwinds from defence and manufacturing.

10 Indian Companies with the Fastest Growth in Dividend Payouts...(Views On News)

Jan 10, 2022

These companies have been consistently paying higher dividends for several years.

Tata Steel vs SAIL: Which Stock is Better?(Views On News)

Jan 13, 2022

With government initiatives set to boost the steel sector, find out who has a better chance of coming out on top.

Watch Out for these 4 Indian Companies Betting Big on EV Supply Chain(Views On News)

Jan 11, 2022

The upside in supply chain players could be huge but a delay in the transition to EVs, or any policy related hiccups could end the momentum.

Tech Mahindra's CTC Acquisition: Too Expensive?(Views On News)

Jan 18, 2022

Tech Mahindra's acquisition of European IT-company fails to excite investors.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

TRACK ALKEM LABORATORIES

  • Track your investment in ALKEM LABORATORIES with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON ALKEM LABORATORIES

ALKEM LABORATORIES - ADCOCK INGRAM COMPARISON

COMPARE ALKEM LABORATORIES WITH

MARKET STATS