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ALEMBIC PHARMA 2020-21 Annual Report Analysis
Wed, 31 Mar

ALEMBIC PHARMA has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

ALEMBIC PHARMA Income Statement Analysis

  • Operating income during the year rose 17.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 26.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 27.4% in FY21 as against 25.4% in FY20.
  • Depreciation charges increased by 16.6% and finance costs decreased by 41.0% YoY, respectively.
  • Other income grew by 530.3% YoY.
  • Net profit for the year grew by 39.2% YoY.
  • Net profit margins during the year grew from 17.4% in FY20 to 20.7% in FY21.

ALEMBIC PHARMA Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 46,058 53,931 17.1%
Other income Rs m 139 875 530.3%
Total Revenues Rs m 46,196 54,806 18.6%
Gross profit Rs m 11,704 14,801 26.5%
Depreciation Rs m 1,573 1,835 16.6%
Interest Rs m 272 160 -41.0%
Profit before tax Rs m 9,998 13,681 36.8%
Tax Rs m 1,992 2,533 27.2%
Profit after tax Rs m 8,006 11,148 39.2%
Gross profit margin % 25.4 27.4
Effective tax rate % 19.9 18.5
Net profit margin % 17.4 20.7
* 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 FY21 down at Rs 13 billion as compared to Rs 18 billion in FY20, thereby witnessing an decrease of -26.9%.
  • Long-term debt down at Rs 2 billion as compared to Rs 9 billion during FY20, a fall of 77.5%.
  • Current assets rose 5% and stood at Rs 26 billion, while fixed assets rose 17% and stood at Rs 41 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 67 billion as against Rs 60 billion during FY20, thereby witnessing a growth of 12%.

ALEMBIC PHARMA Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 32,194 51,276 59.3
 
Current Liabilities Rs m 17,516 12,808 -26.9
Long-term Debt Rs m 8,870 1,999 -77.5
Total Liabilities Rs m 59,891 67,090 12.0
 
Current assets Rs m 24,628 25,779 4.7
Fixed Assets Rs m 35,263 41,311 17.2
Total Assets Rs m 59,891 67,090 12.0
* 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 FY21 stood at Rs 15 billion, an improvement of 225.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -8 billion, an improvement of 14.6% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -6 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 262 million from the Rs -1 billion net cash flows seen during FY20.

ALEMBIC PHARMA Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m 4,492 14,634 225.8%
Cash Flow from Investing Activities Rs m -7,316 -8,388 -
Cash Flow from Financing Activities Rs m 1,549 -5,974 -
Net Cash Flow Rs m -1,272 262 -
* 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 56.7, an improvement from the EPS of Rs 42.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 965.2, stands at 17.0 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 3.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 12.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 244.3 274.4
TTM Earnings per share Rs 42.5 56.7
Diluted earnings per share Rs 40.7 56.7
Price to Cash Flow x 10.9 12.7
TTM P/E ratio x 13.1 17.0
Price / Book Value ratio x 3.3 3.2
Market Cap Rs m 105,343 164,818
Dividends per share (Unadj.) Rs 10.0 14.0
* 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 improved and stood at 2.0x during FY21, from 1.4x during FY20. 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 86.4x during FY21, from 37.8x during FY20. 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 21.7% during FY21, from 24.9% during FY21. 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 26.0% during FY21, from 25.0% during FY20. 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 16.9% during FY21, from 13.8% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 1.4 2.0
Debtors’ Days Days 7 2
Interest coverage x 37.8 86.4
Debt to equity ratio x 0.3 0.0
Return on assets % 13.8 16.9
Return on equity % 24.9 21.7
Return on capital employed % 25.0 26.0
* 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 up from Rs 533.7 to Rs 965.2, registering a gain of Rs 431.5 or around 80.9%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,328.2 (up 0.4%). Over the last one year it has moved up from 12,148.6 to 21,328.2, a gain of 9,180 points (up 75.6%).

Overall, the S&P BSE SENSEX is up 74.1% 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 FY21? How does it compare to earlier years?

The revenues of ALEMBIC PHARMA stood at Rs 54,806 m in FY21, which was up 18.6% compared to Rs 46,196 m reported in FY20.

ALEMBIC PHARMA's revenue has grown from Rs 31,372 m in FY17 to Rs 54,806 m in FY21.

Over the past 5 years, the revenue of ALEMBIC PHARMA has grown at a CAGR of 15.0%.

What was the net profit of ALEMBIC PHARMA in FY21? How does it compare to earlier years?

The net profit of ALEMBIC PHARMA stood at Rs 11,148 m in FY21, which was up 39.2% compared to Rs 8,006 m reported in FY20.

This compares to a net profit of Rs 5,926 m in FY19 and a net profit of Rs 4,209 m in FY18.

Over the past 5 years, ALEMBIC PHARMA net profit has grown at a CAGR of 28.7%.

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 FY21 and stood at Rs 14,634 m as compared to Rs 4,492 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -8,388 m as compared to Rs -7,316 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -5,974 m as compared to Rs 1,549 m in FY20.

Here's the cash flow statement of ALEMBIC PHARMA for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations3,2863,1248,1204,49214,634
From Investments-4,859-8,844-7,556-7,316-8,388
From Financial Activity-1,2895,0265901,549-5,974
Net Cashflow-2,862-6931,153-1,272262

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 27.4% in FY21 as against 25.4% in FY20.
  • Net profit margins grew from 17.4% in FY20 to 20.7% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.3 in FY20.

Here's the ratio/financial analysis of ALEMBIC PHARMA for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)19.619.721.825.427.4
Net Profit Margin (%)13.013.415.117.420.7
Debt to Equity Ratio (x)0.00.20.20.30.0

Read: Latest Annual Report Analysis of ALEMBIC PHARMA

 

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