ALEMBIC 2021-22 Annual Report Analysis

Fri, 2 Sep

ALEMBIC has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

ALEMBIC Income Statement Analysis

• Operating income during the year rose 6.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 33.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.8% in FY22 as against 14.2% in FY21.
• Depreciation charges increased by 23.4% and finance costs increased by 7.5% YoY, respectively.
• Other income grew by 717.0% YoY.
• Net profit for the year grew by 522.7% YoY.
• Net profit margins during the year grew from 18.8% in FY21 to 110.2% in FY22.

ALEMBIC Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	735	782	6.4%
Other income	Rs m	109	892	717.0%
Total Revenues	Rs m	844	1,674	98.3%
Gross profit	Rs m	104	139	33.6%
Depreciation	Rs m	39	49	23.4%
Interest	Rs m	4	4	7.5%
Profit before tax	Rs m	170	979	474.2%
Tax	Rs m	32	117	264.5%
Profit after tax	Rs m	138	862	522.7%
Gross profit margin	%	14.2	17.8
Effective tax rate	%	18.8	11.9
Net profit margin	%	18.8	110.2

Act Before 11:59pm: Last Day to SAVE 80% on Our Midcap Stocks Research

ALEMBIC Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 678 million as compared to Rs 594 million in FY21, thereby witnessing an increase of 14.1%.
• Current assets rose 40% and stood at Rs 1 billion, while fixed assets rose 8% and stood at Rs 25 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 26 billion as against Rs 24 billion during FY21, thereby witnessing a growth of 9%.

ALEMBIC Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	22,970	24,966	8.7
Current Liabilities	Rs m	594	678	14.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	24,090	26,320	9.3
Current assets	Rs m	1,021	1,433	40.4
Fixed Assets	Rs m	23,069	24,886	7.9
Total Assets	Rs m	24,090	26,320	9.3

ALEMBIC Cash Flow Statement Analysis

• ALEMBIC's cash flow from operating activities (CFO) during FY22 stood at Rs -177 million, an improvement of 713.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 188 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -58 million, an improvement of 62% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -47 million from the Rs -524 million net cash flows seen during FY21.

ALEMBIC Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	-22	-177	-
Cash Flow from Investing Activities	Rs m	-349	188	-
Cash Flow from Financing Activities	Rs m	-154	-58	-
Net Cash Flow	Rs m	-524	-47	-

Current Valuations for ALEMBIC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.4, an improvement from the EPS of Rs 0.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 73.6, stands at 21.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 24.1 times.
• The company's price to cash flow (P/CF) ratio stood at 30.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	2.9	3.0
TTM Earnings per share	Rs	0.5	3.4
Diluted earnings per share	Rs	0.5	3.4
Price to Cash Flow	x	148.5	30.4
TTM P/E ratio	x	190.8	21.9
Price / Book Value ratio	x	0.9	1.1
Market Cap	Rs m	19,868	27,643
Dividends per share (Unadj.)	Rs	0.2	1.8

Ratio Analysis for ALEMBIC

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY22, from 1.7x during FY21. 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 252.6x during FY22, from 48.1x during FY21. 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 3.5% during FY22, from 0.6% during FY22. 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 3.9% during FY22, from 0.8% during FY21. 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 3.3% during FY22, from 0.6% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.7	2.1
Debtors’ Days	Days	686	710
Interest coverage	x	48.1	252.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	0.6	3.3
Return on equity	%	0.6	3.5
Return on capital employed	%	0.8	3.9

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 down from Rs 121.6 to Rs 73.6, registering a loss of Rs 48.0 or around 39.5%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 22,833.1 (up 0.1%). Over the last one year it has moved down from 26,719.7 to 22,833.1, a loss of 3,887 points (down 14.5%).

Overall, the S&P BSE SENSEX is up 3.3% over the year.

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

Read: Latest Annual Report Analysis of ALEMBIC