IPCA LABS Announces Quarterly Results (1QFY21); Net Profit Up 243.5%

Tue, 29 Sep

IPCA LABS has announced its results for the quarter ended June 2020. Here is a detailed performance review of the same:

IPCA LABS Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-19*	3 Mar-20*	3 Jun-20*	QoQ Change	YoY Change
Net Sales	Rs m	10,110	10,048	14,853	47.8%	46.9%
Other income	Rs m	194	133	117	-12.2%	-39.9%
Turnover	Rs m	10,304	10,181	14,969	47.0%	45.3%
Expenses	Rs m	8,160	8,121	8,973	10.5%	10.0%
Gross profit	Rs m	1,950	1,927	5,880	205.1%	201.5%
Depreciation	Rs m	420	454	452	-0.3%	7.6%
Interest	Rs m	45	35	25	-29.1%	-45.0%
Profit before tax	Rs m	1,680	1,572	5,519	251.2%	228.6%
Tax	Rs m	359	294	983	234.2%	173.7%
Profit after tax	Rs m	1,321	1,278	4,536	255.1%	243.5%
Gross profit margin	%	19.3	19.2	39.6
Effective tax rate	%	21.4	18.7	17.8
Net profit margin	%	12.8	12.5	30.3

Year-on-Year Performance:

• The company's operating income during the quarter grew 46.9% on a year-on-year (YoY) basis. The expenses were up by 10.0% YoY during the same period.
• The company's operating profit increased by 201.5% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 39.6% in 1QFY21 as against 19.3% in 1QFY20.
• Depreciation charges increased by 7.6% and finance costs declined by 45.0% YoY, respectively.
• Other income declined by 39.9% YoY during the quarter.
• Net profit for the quarter increased by 243.5% YoY. Net profit margins during the quarter increased from 12.8% in 1QFY20 to 30.3% in 1QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 47.8% on a quarter-on-quarter (QoQ) basis. The expenses were up by 10.5% QoQ during the same period.
• The company's operating profit increased by 205.1% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 39.6% in 1QFY21 as against 19.2% in 4QFY20.
• Net profit for the quarter increased by 255.1% QoQ, while net profit margins increased from 12.6% in 4QFY20 to 30.3% in 1QFY21.

To see how IPCA LABS has performed over the last eight quarters,please visit here.

Get Details: First Stock to Potentially Accumulate Rs 7 Crore Long-term Wealth

IPCA LABS Share Price Performance

Over the last one year, IPCA LABS share price has moved up from Rs 923.0 to Rs 2,068.2, registering a Gain of Rs 1,145.2 or around 124.1%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 19,867.8 (up 0.2%). Over the last one year it has moved up from 12,692.6 to 19,867.8, a gain of 7,175 points (up 56.5%).

Overall, the S&P BSE SENSEX is down 1.4% over the year.

Current Valuations

At the current price of Rs 2,068.2, the price to earnings (P/E) ratio of IPCA LABS stands at 26.8 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 8.4 times.