ALEMBIC PHARMA 2017-18 Annual Report Analysis

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ALEMBIC PHARMA 2017-18 Annual Report Analysis
Fri, 21 Dec

ALEMBIC PHARMA has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

ALEMBIC PHARMA Income Statement Analysis

  • Operating income during the year fell 0.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 4.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.5% in FY18 as against 19.6% in FY17.
  • Depreciation charges increased by 27.1% and finance costs decreased by 35.0% YoY, respectively.
  • Other income grew by 248.0% YoY.
  • Net profit for the year grew by 2.4% YoY.
  • Net profit margins during the year grew from 12.9% in FY17 to 13.2% in FY18.

ALEMBIC PHARMA Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 31,346 31,308 -0.1%
Other income Rs m 20 70 248.0%
Total Revenues Rs m 31,366 31,378 0.0%
Gross profit Rs m 6,153 6,431 4.5%
Depreciation Rs m 830 1,055 27.1%
Interest Rs m 52 34 -35.0%
Profit before tax Rs m 5,291 5,413 2.3%
Tax Rs m 1,222 1,204 -1.5%
Profit after tax Rs m 4,031 4,128 2.4%
Gross profit margin % 19.6 20.5
Effective tax rate % 23.1 22.2
Net profit margin % 12.9 13.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ALEMBIC PHARMA Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 11 billion as compared to Rs 7 billion in FY17, thereby witnessing an increase of 62.2%.
  • Long-term debt stood at Rs 5 billion as compared to Rs 0 million during FY17, a fall of 0.0%.
  • Current assets rose 33% and stood at Rs 18 billion, while fixed assets rose 68% and stood at Rs 20 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 39 billion as against Rs 27 billion during FY17, thereby witnessing a growth of 47%.

ALEMBIC PHARMA Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 19,023 22,201 16.7
 
Current Liabilities Rs m 6,927 11,235 62.2
Long-term Debt Rs m 0 5,000 0.0
Total Liabilities Rs m 26,893 39,411 46.5
 
Current assets Rs m 13,725 18,247 33.0
Fixed Assets Rs m 11,957 20,035 67.6
Total Assets Rs m 26,893 39,411 46.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ALEMBIC PHARMA Cash Flow Statement Analysis

  • ALEMBIC PHARMA's cash flow from operating activities (CFO) during FY18 stood at Rs 3 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -9 billion, an improvement of 82.0% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 5 billion, an improvement of 490% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -693 million from the Rs -3 billion net cash flows seen during FY17.

ALEMBIC PHARMA Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 3,286 3,124 -4.9%
Cash Flow from Investing Activities Rs m -4,859 -8,844 -
Cash Flow from Financing Activities Rs m -1,289 5,026 -
Net Cash Flow Rs m -2,862 -693 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for ALEMBIC PHARMA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.9, an improvement from the EPS of Rs 21.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 594.0, stands at 21.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.7 times, while the price to sales ratio stands at 3.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 21.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 166.3 166.1
TTM Earnings per share Rs 21.4 21.9
Diluted earnings per share Rs 21.4 21.9
Price to Cash Flow x 22.9 21.3
TTM P/E ratio x 21.4 21.4
Price / Book Value ratio x 6.1 4.7
Market Cap Rs m 111,981 111,981
Dividends per share (Unadj.) Rs 4.0 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for ALEMBIC PHARMA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.6x during FY18, from 2.0x during FY17. 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 160.2x during FY18, from 102.2x during FY17. 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 18.6% during FY18, from 21.2% during FY18. 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 19.7% during FY18, from 27.9% during FY17. 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 10.6% during FY18, from 15.2% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 2.0 1.6
Debtors’ Days Days 39 61
Interest coverage x 102.2 160.2
Debt to equity ratio x 0.0 0.2
Return on assets % 15.2 10.6
Return on equity % 21.2 18.6
Return on capital employed % 27.9 19.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

ALEMBIC PHARMA Share Price Performance

Over the last one year, ALEMBIC PHARMA share price has moved up from Rs 525.5 to Rs 594.0, registering a gain of Rs 68.5 or around 13.0%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 13,955.8 (up 0.4%). Over the last one year it has moved down from 14,407.3 to 13,955.8, a loss of 451 points (down 3.1%).

Overall, the S&P BSE SENSEX is up 7.8% over the year.

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

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ALEMBIC PHARMA Announces Quarterly Results (2QFY20); Net Profit Up 25.2% (Quarterly Result Update)

Nov 1, 2019 | Updated on Nov 1, 2019

For the quarter ended September 2019, ALEMBIC PHARMA has posted a net profit of Rs 3 bn (up 25.2% YoY). Sales on the other hand came in at Rs 12 bn (up 10.1% YoY). Read on for a complete analysis of ALEMBIC PHARMA's quarterly results.

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Aug 21, 2019 | Updated on Aug 21, 2019

For the quarter ended June 2019, ALEMBIC PHARMA has posted a net profit of Rs 1 bn (up 36.4% YoY). Sales on the other hand came in at Rs 9 bn (up 10.0% YoY). Read on for a complete analysis of ALEMBIC PHARMA's quarterly results.

ALEMBIC PHARMA 2018-19 Annual Report Analysis (Annual Result Update)

Jun 13, 2019 | Updated on Jun 13, 2019

Here's an analysis of the annual report of ALEMBIC PHARMA for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of ALEMBIC PHARMA. Also includes updates on the valuation of ALEMBIC PHARMA.

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