IPCA LABS Announces Quarterly Results (3QFY21); Net Profit Up 32.2%

Fri, 5 Feb

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

IPCA LABS Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-19*	3 Sep-20*	3 Dec-20*	QoQ Change	YoY Change
Net Sales	Rs m	11,391	12,978	13,152	1.3%	15.5%
Other income	Rs m	176	150	157	4.3%	-11.2%
Turnover	Rs m	11,567	13,128	13,309	1.4%	15.1%
Expenses	Rs m	8,736	9,376	9,664	3.1%	10.6%
Gross profit	Rs m	2,654	3,602	3,488	-3.1%	31.4%
Depreciation	Rs m	462	463	477	3.0%	3.2%
Interest	Rs m	38	18	16	-13.8%	-58.9%
Profit before tax	Rs m	2,331	3,271	3,153	-3.6%	35.2%
Tax	Rs m	365	514	553	7.5%	51.6%
Profit after tax	Rs m	1,966	2,757	2,600	-5.7%	32.2%
Gross profit margin	%	23.3	27.8	26.5
Effective tax rate	%	15.6	15.7	17.5
Net profit margin	%	17.0	21.0	19.5

Year-on-Year Performance:

• The company's operating income during the quarter grew 15.5% on a year-on-year (YoY) basis. The expenses were up by 10.6% YoY during the same period.
• The company's operating profit increased by 31.4% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 26.5% in 3QFY21 as against 23.3% in 3QFY20.
• Depreciation charges increased by 3.2% and finance costs declined by 58.9% YoY, respectively.
• Other income declined by 11.2% YoY during the quarter.
• Net profit for the quarter increased by 32.2% YoY. Net profit margins during the quarter increased from 17.0% in 3QFY20 to 19.5% in 3QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 1.3% on a quarter-on-quarter (QoQ) basis. The expenses were up by 3.1% QoQ during the same period.
• The company's operating profit declined by 3.1% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 26.5% in 3QFY21 as against 27.8% in 2QFY20.
• Net profit for the quarter declined by 5.7% QoQ, while net profit margins declined from 21.0% in 2QFY20 to 19.5% in 3QFY21.

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

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IPCA LABS Share Price Performance

Over the last one year, IPCA LABS share price has moved up from Rs 1,220.7 to Rs 1,947.1, registering a Gain of Rs 726.4 or around 59.5%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,735.0 (up 0.5%). Over the last one year it has moved up from 13,946.5 to 21,735.0, a gain of 7,788 points (up 55.8%).

Overall, the S&P BSE SENSEX is up 27.4% over the year.

Current Valuations

At the current price of Rs 1,947.1, the price to earnings (P/E) ratio of IPCA LABS stands at 22.0 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 7.9 times.