ALEMBIC PHARMA 2018-19 Annual Report Analysis

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ALEMBIC PHARMA 2018-19 Annual Report Analysis
Thu, 13 Jun

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 35.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.2% in FY19 as against 20.5% in FY18.
  • Depreciation charges increased by 9.3% and finance costs increased by 441.5% YoY, respectively.
  • Other income grew by 33.4% YoY.
  • Net profit for the year grew by 41.6% YoY.
  • Net profit margins during the year grew from 13.2% in FY18 to 14.8% 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 70 94 33.4%
Total Revenues Rs m 31,378 39,441 25.7%
Gross profit Rs m 6,431 8,736 35.8%
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 4,128 5,844 41.6%
Gross profit margin % 20.5 22.2
Effective tax rate % 22.2 20.9
Net profit margin % 13.2 14.8
* 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 FY19 stood at Rs 15 billion as compared to Rs 11 billion in FY18, thereby witnessing an increase of 32.6%.
  • Long-term debt down at Rs 5 billion as compared to Rs 5 billion during FY18, a fall of 0.1%.
  • Current assets rose 7% and stood at Rs 20 billion, while fixed assets rose 35% and stood at Rs 27 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 48 billion as against Rs 39 billion during FY18, thereby witnessing a growth of 21%.

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 11,235 14,896 32.6
Long-term Debt Rs m 5,000 4,993 -0.1
Total Liabilities Rs m 39,411 47,778 21.2
 
Current assets Rs m 18,247 19,577 7.3
Fixed Assets Rs m 20,035 27,097 35.2
Total Assets Rs m 39,411 47,778 21.2
* 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 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: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for ALEMBIC PHARMA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 31.0, an improvement from the EPS of Rs 21.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 500.2, stands at 15.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 2.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 13.3 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 21.9 31.0
Diluted earnings per share Rs 21.9 31.0
Price to Cash Flow x 17.9 13.3
TTM P/E ratio x 15.9 15.9
Price / Book Value ratio x 4.7 3.7
Market Cap Rs m 94,288 94,288
Dividends per share (Unadj.) Rs 4.0 5.5
* 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 deteriorated and stood at 1.3x during FY19, from 1.6x 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 21.5% during FY19, from 18.6% 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 23.6% during FY19, from 19.7% 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 12.6% during FY19, from 10.6% 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 1.6 1.3
Debtors’ Days Days 61 45
Interest coverage x 160.2 41.7
Debt to equity ratio x 0.2 0.2
Return on assets % 10.6 12.6
Return on equity % 18.6 21.5
Return on capital employed % 19.7 23.6
* 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 490.3 to Rs 500.2, registering a gain of Rs 9.9 or around 2.0%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 12,997.8 (down 0.4%). Over the last one year it has moved down from 13,835.1 to 12,997.8, a loss of 837 points (down 6.1%).

Overall, the S&P BSE SENSEX is up 11.2% over the year.

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

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For the quarter ended December 2019, ALEMBIC PHARMA has posted a net profit of Rs 2 bn (up 33.3% YoY). Sales on the other hand came in at Rs 12 bn (up 18.8% YoY). Read on for a complete analysis of ALEMBIC PHARMA's quarterly results.

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