ALEMBIC 2022-23 Annual Report Analysis

Mon, 17 Jul

ALEMBIC has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

ALEMBIC Income Statement Analysis

• Operating income during the year rose 62.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 113.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.4% in FY23 as against 17.8% in FY22.
• Depreciation charges increased by 38.2% and finance costs increased by 19.5% YoY, respectively.
• Other income declined by 27.9% YoY.
• Net profit for the year declined by 6.5% YoY.
• Net profit margins during the year declined from 110.2% in FY22 to 63.4% in FY23.

ALEMBIC Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	782	1,272	62.7%
Other income	Rs m	892	643	-27.9%
Total Revenues	Rs m	1,674	1,915	14.4%
Gross profit	Rs m	139	297	113.4%
Depreciation	Rs m	49	67	38.2%
Interest	Rs m	4	5	19.5%
Profit before tax	Rs m	979	868	-11.3%
Tax	Rs m	117	62	-47.0%
Profit after tax	Rs m	862	806	-6.5%
Gross profit margin	%	17.8	23.4
Effective tax rate	%	11.9	7.1
Net profit margin	%	110.2	63.4

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ALEMBIC Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 838 million as compared to Rs 678 million in FY22, thereby witnessing an increase of 23.7%.
• Current assets rose 20% and stood at Rs 2 billion, while fixed assets fell 18% and stood at Rs 20 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 22 billion as against Rs 26 billion during FY22, thereby witnessing a fall of 16%.

ALEMBIC Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	24,966	20,780	-16.8
Current Liabilities	Rs m	678	838	23.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	26,320	22,046	-16.2
Current assets	Rs m	1,433	1,721	20.1
Fixed Assets	Rs m	24,886	20,324	-18.3
Total Assets	Rs m	26,320	22,046	-16.2

ALEMBIC Cash Flow Statement Analysis

• ALEMBIC's cash flow from operating activities (CFO) during FY23 stood at Rs 389 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 73 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -464 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -2 million from the Rs -47 million net cash flows seen during FY22.

ALEMBIC Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-177	389	-
Cash Flow from Investing Activities	Rs m	188	73	-61.3%
Cash Flow from Financing Activities	Rs m	-58	-464	-
Net Cash Flow	Rs m	-47	-2	-

Current Valuations for ALEMBIC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.1, an decline from the EPS of Rs 3.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 77.7, stands at 24.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 15.7 times.
• The company's price to cash flow (P/CF) ratio stood at 21.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	3.0	5.0
TTM Earnings per share	Rs	3.4	3.1
Diluted earnings per share	Rs	3.4	3.1
Price to Cash Flow	x	20.4	21.0
TTM P/E ratio	x	21.6	24.7
Price / Book Value ratio	x	1.1	0.9
Market Cap	Rs m	27,643	18,298
Dividends per share (Unadj.)	Rs	1.8	2.2

Ratio Analysis for ALEMBIC

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.1x during FY23, from 2.1x during FY22. 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 187.7x during FY23, from 252.6x during FY22. 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 3.9% during FY23, from 3.5% during FY23. 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 4.2% during FY23, from 3.9% during FY22. 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 3.7% during FY23, from 3.3% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	2.1	2.1
Debtors’ Days	Days	710	673
Interest coverage	x	252.6	187.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.3	3.7
Return on equity	%	3.5	3.9
Return on capital employed	%	3.9	4.2

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 72.9 to Rs 77.7, registering a gain of Rs 4.9 or around 6.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 26,443.1 (up 0.8%). Over the last one year it has moved up from 22,591.9 to 26,443.1, a gain of 3,851 points (up 17.0%).

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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