ALEMBIC PHARMA Announces Quarterly Results (1QFY20); Net Profit Up 36.4%

Wed, 21 Aug

ALEMBIC PHARMA has announced its results for the quarter ended June 2019. Here is a detailed performance review of the same:

ALEMBIC PHARMA Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-18*	3 Mar-19*	3 Jun-19*	QoQ Change	YoY Change
Net Sales	Rs m	8,625	9,270	9,489	2.4%	10.0%
Other income	Rs m	1	34	33	-2.4%	3190.0%
Turnover	Rs m	8,626	9,303	9,522	2.4%	10.4%
Expenses	Rs m	7,115	7,489	7,240	-3.3%	1.8%
Gross profit	Rs m	1,510	1,783	1,964	10.1%	30.0%
Depreciation	Rs m	276	300	354	18.2%	28.3%
Interest	Rs m	16	51	50	-2.0%	217.2%
Profit before tax	Rs m	1,220	1,467	1,593	8.6%	30.6%
Tax	Rs m	315	149	360	141.3%	14.0%
Profit after tax	Rs m	904	1,318	1,233	-6.4%	36.4%
Gross profit margin	%	17.5	19.2	20.7
Effective tax rate	%	25.9	10.2	22.6
Net profit margin	%	10.5	14.2	13.0

Year-on-Year Performance:

• The company's operating income during the quarter grew 10.0% on a year-on-year (YoY) basis. The expenses were up by 1.8% YoY during the same period.
• The company's operating profit increased by 30.0% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 20.7% in 1QFY20 as against 17.5% in 1QFY19.
• Depreciation charges increased by 28.3% and finance costs increased by 217.2% YoY, respectively.
• Other income increased by 3190.0% YoY during the quarter.
• Net profit for the quarter increased by 36.4% YoY. Net profit margins during the quarter increased from 10.5% in 1QFY19 to 13.0% in 1QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 2.4% on a quarter-on-quarter (QoQ) basis. The expenses were down by 3.3% QoQ during the same period.
• The company's operating profit increased by 10.1% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 20.7% in 1QFY20 as against 19.2% in 4QFY19.
• Net profit for the quarter declined by 6.4% QoQ, while net profit margins declined from 14.2% in 4QFY19 to 13.0% in 1QFY20.

To see how ALEMBIC PHARMA has performed over the last eight quarters,please visit here.

ALEMBIC PHARMA Share Price Performance

Over the last one year,ALEMBIC PHARMA share price has moved down from Rs 589.3 to Rs 518.0, registering a Loss of Rs 71.3 or around 12.1%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 12,504.9 (down 0.2%). Over the last one year it has moved down from 15,302.1 to 12,504.9, a gain of 2,797 points (down 18.3%).

Overall, the S&P BSE SENSEX is down 2.5% over the year.

Current Valuations

At the current price of Rs 518.0, the price to earnings (P/E) ratio of ALEMBIC PHARMA stands at 15.6 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 3.6 times.