ALEMBIC PHARMA Announces Quarterly Results (2QFY20); Net Profit Up 25.2%

Fri, 1 Nov

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

ALEMBIC PHARMA Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-18*	3 Jun-19*	3 Sep-19*	QoQ Change	YoY Change
Net Sales	Rs m	11,271	9,489	12,409	30.8%	10.1%
Other income	Rs m	24	33	4	-89.0%	-84.8%
Turnover	Rs m	11,294	9,522	12,412	30.4%	9.9%
Expenses	Rs m	8,247	7,240	8,954	23.7%	8.6%
Gross profit	Rs m	3,023	1,964	3,455	76.0%	14.3%
Depreciation	Rs m	286	354	360	1.6%	25.6%
Interest	Rs m	58	50	71	42.0%	21.8%
Profit before tax	Rs m	2,703	1,593	3,029	90.1%	12.1%
Tax	Rs m	703	360	525	45.9%	-25.3%
Profit after tax	Rs m	2,000	1,233	2,504	103.0%	25.2%
Gross profit margin	%	26.8	20.7	27.8
Effective tax rate	%	26.0	22.6	17.3
Net profit margin	%	17.7	13.0	20.2

Year-on-Year Performance:

• The company's operating income during the quarter grew 10.1% on a year-on-year (YoY) basis. The expenses were up by 8.6% YoY during the same period.
• The company's operating profit increased by 14.3% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 27.8% in 2QFY20 as against 26.8% in 2QFY19.
• Depreciation charges increased by 25.6% and finance costs increased by 21.8% YoY, respectively.
• Other income declined by 84.8% YoY during the quarter.
• Net profit for the quarter increased by 25.2% YoY. Net profit margins during the quarter increased from 17.7% in 2QFY19 to 20.2% in 2QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 30.8% on a quarter-on-quarter (QoQ) basis. The expenses were up by 23.7% QoQ during the same period.
• The company's operating profit increased by 76.0% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 27.8% in 2QFY20 as against 20.7% in 1QFY19.
• Net profit for the quarter increased by 103.0% QoQ, while net profit margins increased from 12.9% in 1QFY19 to 20.2% in 2QFY20.

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

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ALEMBIC PHARMA Share Price Performance

Over the last one year,ALEMBIC PHARMA share price has moved down from Rs 601.6 to Rs 561.0, registering a Loss of Rs 40.6 or around 6.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 13,342.2 (up 0.9%). Over the last one year it has moved down from 14,632.9 to 13,342.2, a gain of 1,291 points (down 8.8%).

Overall, the S&P BSE SENSEX is up 16.6% over the year.

Current Valuations

At the current price of Rs 561.0, 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 3.9 times.