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ALEMBIC 2020-21 Annual Report Analysis
Wed, 31 Mar

ALEMBIC 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.

ALEMBIC Income Statement Analysis

  • Operating income during the year fell 0.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 232.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.2% in FY21 as against 4.2% in FY20.
  • Depreciation charges increased by 22.1% and finance costs increased by 25.7% YoY, respectively.
  • Other income declined by 88.3% YoY.
  • Net profit for the year declined by 85.1% YoY.
  • Net profit margins during the year declined from 125.8% in FY20 to 18.8% in FY21.

ALEMBIC Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 739 735 -0.6%
Other income Rs m 935 109 -88.3%
Total Revenues Rs m 1,675 844 -49.6%
Gross profit Rs m 31 104 232.1%
Depreciation Rs m 32 39 22.1%
Interest Rs m 3 4 25.7%
Profit before tax Rs m 932 170 -81.7%
Tax Rs m 1 32 2,342.7%
Profit after tax Rs m 930 138 -85.1%
Gross profit margin % 4.2 14.2
Effective tax rate % 0.1 18.8
Net profit margin % 125.8 18.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

ALEMBIC Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 594 million as compared to Rs 458 million in FY20, thereby witnessing an increase of 29.7%.
  • Current assets fell 37% and stood at Rs 1 billion, while fixed assets rose 76% and stood at Rs 23 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 24 billion as against Rs 15 billion during FY20, thereby witnessing a growth of 64%.

ALEMBIC Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 14,180 22,970 62.0
 
Current Liabilities Rs m 458 594 29.7
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 14,707 24,090 63.8
 
Current assets Rs m 1,628 1,021 -37.3
Fixed Assets Rs m 13,079 23,069 76.4
Total Assets Rs m 14,707 24,090 63.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ALEMBIC Cash Flow Statement Analysis

  • ALEMBIC's cash flow from operating activities (CFO) during FY21 stood at Rs -22 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -347 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -154 million on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -523 million from the Rs 569 million net cash flows seen during FY20.

ALEMBIC 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 65 -22 -
Cash Flow from Investing Activities Rs m 567 -347 -
Cash Flow from Financing Activities Rs m -64 -154 -
Net Cash Flow Rs m 569 -523 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ALEMBIC

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.5, an decline from the EPS of Rs 3.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 102.9, stands at 190.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 35.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 111.7 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 2.9 2.9
TTM Earnings per share Rs 3.6 0.5
Diluted earnings per share Rs 3.6 0.5
Price to Cash Flow x 9.5 111.7
TTM P/E ratio x 9.9 190.8
Price / Book Value ratio x 0.8 0.9
Market Cap Rs m 11,523 19,868
Dividends per share (Unadj.) Rs 0.6 0.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ALEMBIC

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY21, from 3.6x 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 deteriorated and stood at 48.1x during FY21, from 324.5x 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 declined and down at 0.6% during FY21, from 6.6% 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 declined and down at 0.8% during FY21, from 6.6% 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 declined and down at 0.6% during FY21, from 6.3% 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 3.6 1.7
Debtors’ Days Days 444 686
Interest coverage x 324.5 48.1
Debt to equity ratio x 0.0 0.0
Return on assets % 6.3 0.6
Return on equity % 6.6 0.6
Return on capital employed % 6.6 0.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

ALEMBIC Share Price Performance

Over the last one year, ALEMBIC share price has moved up from Rs 35.7 to Rs 102.9, registering a gain of Rs 67.2 or around 188.1%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,328.2 (up 0.4%). Over the last one year it has moved up from 12,148.6 to 21,328.2, a gain of 9,180 points (up 75.6%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Annual Report FAQs

What is the current share price of ALEMBIC?

ALEMBIC currently trades at Rs 83.7 per share. You can check out the latest share price performance of ALEMBIC here...

What was the revenue of ALEMBIC in FY21? How does it compare to earlier years?

The revenues of ALEMBIC stood at Rs 844 m in FY21, which was down -49.6% compared to Rs 1,675 m reported in FY20.

ALEMBIC's revenue has fallen from Rs 1,723 m in FY17 to Rs 844 m in FY21.

Over the past 5 years, the revenue of ALEMBIC has grown at a CAGR of -16.3%.

What was the net profit of ALEMBIC in FY21? How does it compare to earlier years?

The net profit of ALEMBIC stood at Rs 138 m in FY21, which was down -85.1% compared to Rs 930 m reported in FY20.

This compares to a net profit of Rs 411 m in FY19 and a net profit of Rs 418 m in FY18.

Over the past 5 years, ALEMBIC net profit has grown at a CAGR of -15.8%.

What does the cash flow statement of ALEMBIC reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of ALEMBIC reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs -22 m as compared to Rs 65 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -347 m as compared to Rs 567 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -154 m as compared to Rs -64 m in FY20.

Here's the cash flow statement of ALEMBIC for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations51623621565-22
From Investments-467-224717567-347
From Financial Activity-50-27-920-64-154
Net Cashflow0-1512569-523

What does the Key Ratio analysis of ALEMBIC reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of ALEMBIC reveals:

  • Operating profit margins witnessed a fall and down at 14.2% in FY21 as against 4.2% in FY20.
  • Net profit margins declined from 125.8% in FY20 to 18.8% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.0 in FY20.

Here's the ratio/financial analysis of ALEMBIC for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)0.69.014.64.214.2
Net Profit Margin (%)19.533.833.2125.818.8
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of ALEMBIC

 

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