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ALEMBIC PHARMA 2018-19 Annual Report Analysis
Sun, 31 Mar

ALEMBIC PHARMA has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

ALEMBIC PHARMA Income Statement Analysis

  • Operating income during the year rose 25.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 39.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.8% in FY19 as against 19.7% in FY18.
  • Depreciation charges increased by 9.3% and finance costs increased by 441.5% YoY, respectively.
  • Other income declined by 22.2% YoY.
  • Net profit for the year grew by 40.8% YoY.
  • Net profit margins during the year grew from 13.4% in FY18 to 15.1% in FY19.

ALEMBIC PHARMA Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 31,308 39,347 25.7%
Other income Rs m 349 271 -22.2%
Total Revenues Rs m 31,657 39,618 25.1%
Gross profit Rs m 6,153 8,558 39.1%
Depreciation Rs m 1,055 1,152 9.3%
Interest Rs m 34 184 441.5%
Profit before tax Rs m 5,413 7,493 38.4%
Tax Rs m 1,204 1,568 30.2%
Profit after tax Rs m 4,209 5,926 40.8%
Gross profit margin % 19.7 21.8
Effective tax rate % 22.2 20.9
Net profit margin % 13.4 15.1
* 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 PHARMA Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 17 billion as compared to Rs 13 billion in FY18, thereby witnessing an increase of 31.3%.
  • Long-term debt down at Rs 5 billion as compared to Rs 5 billion during FY18, a fall of 0.1%.
  • Current assets rose 9% and stood at Rs 21 billion, while fixed assets rose 33% and stood at Rs 28 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 50 billion as against Rs 41 billion during FY18, thereby witnessing a growth of 22%.

ALEMBIC PHARMA Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 22,201 27,188 22.5
 
Current Liabilities Rs m 12,672 16,637 31.3
Long-term Debt Rs m 5,000 4,993 -0.1
Total Liabilities Rs m 40,638 49,518 21.8
 
Current assets Rs m 19,475 21,317 9.5
Fixed Assets Rs m 21,163 28,200 33.3
Total Assets Rs m 40,638 49,518 21.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ALEMBIC PHARMA Cash Flow Statement Analysis

  • ALEMBIC PHARMA's cash flow from operating activities (CFO) during FY19 stood at Rs 8 billion, an improvement of 159.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -8 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 590 million on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 1 billion from the Rs -693 million net cash flows seen during FY18.

ALEMBIC PHARMA Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 3,124 8,120 159.9%
Cash Flow from Investing Activities Rs m -8,844 -7,556 -
Cash Flow from Financing Activities Rs m 5,026 590 -88.3%
Net Cash Flow Rs m -693 1,153 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ALEMBIC PHARMA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 31.4, an improvement from the EPS of Rs 22.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 530.6, stands at 17.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 2.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 14.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 166.1 208.7
TTM Earnings per share Rs 22.3 31.4
Diluted earnings per share Rs 21.4 30.1
Price to Cash Flow x 20.5 14.3
TTM P/E ratio x 25.7 17.6
Price / Book Value ratio x 4.7 3.7
Market Cap Rs m 105,079 101,459
Dividends per share (Unadj.) Rs 4.0 5.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ALEMBIC PHARMA

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY19, from 1.5x during FY18. 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 41.7x during FY19, from 160.2x during FY18. 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 21.8% during FY19, from 19.0% during FY19. 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 23.9% during FY19, from 20.0% during FY18. 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 12.3% during FY19, from 10.4% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 1.5 1.3
Debtors’ Days Days 6 5
Interest coverage x 160.2 41.7
Debt to equity ratio x 0.2 0.2
Return on assets % 10.4 12.3
Return on equity % 19.0 21.8
Return on capital employed % 20.0 23.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 down from Rs 549.8 to Rs 530.6, registering a loss of Rs 19.3 or around 3.5%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 14,407.9 (up 1.4%). Over the last one year it has moved up from 13,157.6 to 14,407.9, a gain of 1,250 points (up 9.5%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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

Annual Report FAQs

What is the current share price of ALEMBIC PHARMA?

ALEMBIC PHARMA currently trades at Rs 982.4 per share. You can check out the latest share price performance of ALEMBIC PHARMA here...

What was the revenue of ALEMBIC PHARMA in FY19? How does it compare to earlier years?

The revenues of ALEMBIC PHARMA stood at Rs 39,618 m in FY19, which was up 25.1% compared to Rs 31,657 m reported in FY18.

ALEMBIC PHARMA's revenue has grown from Rs 31,748 m in FY16 to Rs 39,618 m in FY19.

Over the past 4 years, the revenue of ALEMBIC PHARMA has grown at a CAGR of 7.7%.

What was the net profit of ALEMBIC PHARMA in FY19? How does it compare to earlier years?

The net profit of ALEMBIC PHARMA stood at Rs 5,926 m in FY19, which was up 40.8% compared to Rs 4,209 m reported in FY18.

This compares to a net profit of Rs 4,069 m in FY17 and a net profit of Rs 7,202 m in FY16.

Over the past 4 years, ALEMBIC PHARMA net profit has grown at a CAGR of -6.3%.

What does the cash flow statement of ALEMBIC PHARMA 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 PHARMA reveals:

  • Cash flow from operations increased in FY19 and stood at Rs 8,120 m as compared to Rs 3,124 m in FY18.
  • Cash flow from investments increased in FY19 and stood at Rs -7,556 m as compared to Rs -8,844 m in FY18.
  • Cash flow from financial activity decreased in FY19 and stood at Rs 590 m as compared to Rs 5,026 m in FY18.

Here's the cash flow statement of ALEMBIC PHARMA for the past 4 years.

(Rs m)FY16FY17FY18FY19
From Operations9,4773,2863,1248,120
From Investments-3,068-4,859-8,844-7,556
From Financial Activity-2,243-1,2895,026590
Net Cashflow4,166-2,862-6931,153

What does the Key Ratio analysis of ALEMBIC PHARMA 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 PHARMA reveals:

  • Operating profit margins witnessed a fall and down at 21.8% in FY19 as against 19.7% in FY18.
  • Net profit margins grew from 13.4% in FY18 to 15.1% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.2 as compared to 0.2 in FY18.

Here's the ratio/financial analysis of ALEMBIC PHARMA for the past 4 years.

 FY16FY17FY18FY19
Operating Profit Margin (%)31.719.619.721.8
Net Profit Margin (%)22.713.013.415.1
Debt to Equity Ratio (x)0.00.00.20.2

Read: Latest Annual Report Analysis of ALEMBIC PHARMA

 

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