INDOCO REMEDIES Announces Quarterly Results (3QFY20); Net Profit Up 74.9%

Mon, 27 Jan

INDOCO REMEDIES has announced its results for the quarter ended December 2019. Here is a detailed performance review of the same:

INDOCO REMEDIES Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-18*	3 Sep-19*	3 Dec-19*	QoQ Change	YoY Change
Net Sales	Rs m	2,626	2,920	2,893	-0.9%	10.2%
Other income	Rs m	6	6	7	24.1%	26.3%
Turnover	Rs m	2,631	2,926	2,901	-0.9%	10.2%
Expenses	Rs m	2,378	2,598	2,542	-2.2%	6.9%
Gross profit	Rs m	248	321	351	9.2%	41.7%
Depreciation	Rs m	177	180	176	-2.5%	-0.8%
Interest	Rs m	37	54	69	29.1%	86.3%
Profit before tax	Rs m	39	93	113	21.6%	190.3%
Tax	Rs m	-14	20	20	0.0%
Profit after tax	Rs m	53	73	93	27.4%	74.9%
Gross profit margin	%	9.4	11.0	12.1
Effective tax rate	%	-36.9	21.3	17.5
Net profit margin	%	2.0	2.5	3.2

Year-on-Year Performance:

• The company's operating income during the quarter grew 10.2% on a year-on-year (YoY) basis. The expenses were up by 6.9% YoY during the same period.
• The company's operating profit increased by 41.7% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 12.1% in 3QFY20 as against 9.4% in 3QFY19.
• Depreciation charges declined by 0.8% and finance costs increased by 86.3% YoY, respectively.
• Other income increased by 26.3% YoY during the quarter.
• Net profit for the quarter increased by 74.9% YoY. Net profit margins during the quarter increased from 2.0% in 3QFY19 to 3.2% in 3QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 0.9% on a quarter-on-quarter (QoQ) basis. The expenses were down by 2.2% QoQ during the same period.
• The company's operating profit increased by 9.2% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 12.1% in 3QFY20 as against 11.0% in 2QFY19.
• Net profit for the quarter increased by 27.4% QoQ, while net profit margins increased from 2.5% in 2QFY19 to 3.2% in 3QFY20.

To see how INDOCO REMEDIES has performed over the last eight quarters,please visit here.

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INDOCO REMEDIES Share Price Performance

Over the last one year,INDOCO REMEDIES share price has moved up from Rs 182.0 to Rs 225.0, registering a Gain of Rs 43.0 or around 23.6%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 14,318.8 (up 1.5%). Over the last one year it has moved up from 13,948.3 to 14,318.8, a gain of 371 points (up 2.7%).

Overall, the S&P BSE SENSEX is up 14.2% over the year.

Current Valuations

At the current price of Rs 225.0, the price to earnings (P/E) ratio of INDOCO REMEDIES stands at 68.0 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 3.1 times.