UNICHEM LAB Announces Quarterly Results (1QFY20); Net Profit Up 102.2%

Tue, 30 Jul

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

UNICHEM LAB Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-18*	3 Mar-19*	3 Jun-19*	QoQ Change	YoY Change
Net Sales	Rs m	2,014	2,771	2,325	-16.1%	15.4%
Other income	Rs m	193	226	280	24.1%	44.9%
Turnover	Rs m	2,207	2,996	2,605	-13.1%	18.0%
Expenses	Rs m	2,401	2,819	2,506	-11.1%	4.4%
Gross profit	Rs m	-387	-48	-181
Depreciation	Rs m	123	177	169	-4.9%	36.5%
Interest	Rs m	0	4	0	-88.6%	291.7%
Profit before tax	Rs m	-317	-4	-70
Tax	Rs m	-110	-41	-75
Profit after tax	Rs m	-207	37	5	-87.4%
Gross profit margin	%	-19.2	-1.7	-7.8
Effective tax rate	%	34.8	1,066.8	106.6
Net profit margin	%	-9.4	1.2	0.2

Year-on-Year Performance:

• The company's operating income during the quarter grew 15.4% on a year-on-year (YoY) basis. The expenses were up by 4.4% YoY during the same period.
• The company's operating profit declined by 53.1% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 7.8% in 1QFY20 as against 19.2% in 1QFY19.
• Depreciation charges increased by 36.5% and finance costs increased by 291.7% YoY, respectively.
• Other income increased by 44.9% YoY during the quarter.
• Net profit for the quarter increased by 102.2% YoY. Net profit margins during the quarter increased from -9.4% in 1QFY19 to 0.2% in 1QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 16.1% on a quarter-on-quarter (QoQ) basis. The expenses were down by 11.1% QoQ during the same period.
• The company's operating profit declined by 276.9% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 7.8% in 1QFY20 as against 1.7% in 4QFY19.
• Net profit for the quarter declined by 87.4% QoQ, while net profit margins declined from 1.2% in 4QFY19 to 0.2% in 1QFY20.

To see how UNICHEM LAB has performed over the last eight quarters,please visit here.

UNICHEM LAB Share Price Performance

Over the last one year,UNICHEM LAB share price has moved down from Rs 224.6 to Rs 163.9, registering a Loss of Rs 60.7 or around 27.0%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 12,965.0 (up 1.3%). Over the last one year it has moved down from 14,122.7 to 12,965.0, a gain of 1,158 points (down 8.2%).

Overall, the S&P BSE SENSEX is up 1.1% over the year.

Current Valuations

At the current price of Rs 163.9, the price to earnings (P/E) ratio of UNICHEM LAB stands at 52.8 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 0.6 times.