ALEMBIC PHARMA 2022-23 Annual Report Analysis

Thu, 22 Jun

ALEMBIC PHARMA 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 PHARMA Income Statement Analysis

• Operating income during the year rose 6.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 23.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.0% in FY23 as against 16.6% in FY22.
• Depreciation charges decreased by 4.0% and finance costs increased by 183.0% YoY, respectively.
• Other income declined by 94.0% YoY.
• Net profit for the year declined by 34.4% YoY.
• Net profit margins during the year declined from 9.8% in FY22 to 6.1% in FY23.

ALEMBIC PHARMA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	53,058	56,526	6.5%
Other income	Rs m	505	30	-94.0%
Total Revenues	Rs m	53,563	56,557	5.6%
Gross profit	Rs m	8,794	6,772	-23.0%
Depreciation	Rs m	2,868	2,754	-4.0%
Interest	Rs m	177	502	183.0%
Profit before tax	Rs m	6,254	3,546	-43.3%
Tax	Rs m	1,045	126	-87.9%
Profit after tax	Rs m	5,209	3,420	-34.4%
Gross profit margin	%	16.6	12.0
Effective tax rate	%	16.7	3.6
Net profit margin	%	9.8	6.1

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ALEMBIC PHARMA Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 16 billion as compared to Rs 18 billion in FY22, thereby witnessing an decrease of -10.4%.
• Current assets fell 2% and stood at Rs 29 billion, while fixed assets fell 26% and stood at Rs 31 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 61 billion as against Rs 72 billion during FY22, thereby witnessing a fall of 16%.

ALEMBIC PHARMA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	52,375	43,705	-16.6
Current Liabilities	Rs m	18,306	16,408	-10.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	72,302	60,637	-16.1
Current assets	Rs m	29,748	29,139	-2.0
Fixed Assets	Rs m	42,554	31,498	-26.0
Total Assets	Rs m	72,302	60,637	-16.1

ALEMBIC PHARMA Cash Flow Statement Analysis

• ALEMBIC PHARMA's cash flow from operating activities (CFO) during FY23 stood at Rs 7 billion, an improvement of 31.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -4 billion, an improvement of 20.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 144 million from the Rs -370 million net cash flows seen during FY22.

ALEMBIC PHARMA 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	5,524	7,240	31.1%
Cash Flow from Investing Activities	Rs m	-3,720	-4,476	-
Cash Flow from Financing Activities	Rs m	-2,174	-2,620	-
Net Cash Flow	Rs m	-370	144	-

Current Valuations for ALEMBIC PHARMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.4, an decline from the EPS of Rs 26.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 621.6, stands at 32.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 20.0 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	269.9	287.6
TTM Earnings per share	Rs	26.5	17.4
Diluted earnings per share	Rs	26.5	17.4
Price to Cash Flow	x	18.0	20.0
TTM P/E ratio	x	28.5	32.8
Price / Book Value ratio	x	3.3	2.8
Market Cap	Rs m	173,172	123,402
Dividends per share (Unadj.)	Rs	10.0	8.0

Ratio Analysis for ALEMBIC PHARMA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY23, from 1.6x 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 8.1x during FY23, from 36.3x 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 declined and down at 7.8% during FY23, from 9.9% 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 declined and down at 9.3% during FY23, from 12.3% 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 declined and down at 6.5% during FY23, from 7.5% 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	1.6	1.8
Debtors’ Days	Days	6	7
Interest coverage	x	36.3	8.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.5	6.5
Return on equity	%	9.9	7.8
Return on capital employed	%	12.3	9.3

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 719.2 to Rs 621.6, registering a loss of Rs 97.7 or around 13.6%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 25,036.3 (down 0.3%). Over the last one year it has moved up from 21,241.4 to 25,036.3, a gain of 3,795 points (up 17.9%).

Overall, the S&P BSE SENSEX is up 22.9% over the year.

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