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IPCA LABS Announces Quarterly Results (2QFY19); Net Profit Up 24.1%
Thu, 15 Nov

IPCA LABS has announced its results for the quarter ended September 2018. Here is a detailed performance review of the same:

IPCA LABS Quarterly Financials

No. of Mths
Qtr. Ending
3
Sep-17*
3
Jun-18*
3
Sep-18*
QoQ ChangeYoY Change
Net SalesRs m8,6438,5399,97816.9%15.4%
Other incomeRs m1101361380.9%25.0%
TurnoverRs m8,7538,67610,11616.6%15.6%
ExpensesRs m7,1537,3998,25011.5%15.3%
Gross profitRs m1,4901,1401,72851.6%15.9%
DepreciationRs m441445432-3.0%-2.0%
InterestRs m644924-51.7%-62.8%
Profit before taxRs m1,0967821,41080.3%28.7%
TaxRs m13112721367.4%62.0%
Profit after taxRs m9656551,19782.8%24.1%
Gross profit margin%17.213.417.3
Effective tax rate%12.016.215.1
Net profit margin%11.07.611.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster


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 15.3% YoY during the same period.
  • The company's operating profit increased by 15.9% YoY during the quarter. Consequently, operating profit margins remained same and stood at 17.3% in 2QFY19.
  • Depreciation charges declined by 2.0% and finance costs declined by 62.8% YoY, respectively.
  • Other income increased by 25.0% YoY during the quarter.
  • Net profit for the quarter increased by 24.1% YoY. Net profit margins during the quarter increased from 11.0% in 2QFY18 to 11.8% in 2QFY19.
Quarter-on-Quarter Performance:
  • The company's operating income during the quarter grew 16.9% on a quarter-on-quarter (QoQ) basis. The expenses were up by 11.5% QoQ during the same period.
  • The company's operating profit increased by 51.6% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 17.3% in 2QFY19 as against 13.4% in 1QFY18.
  • Net profit for the quarter increased by 82.8% QoQ, while net profit margins increased from 7.5% in 1QFY18 to 11.8% in 2QFY19.

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

IPCA LABS Share Price Performance

Over the last one year, IPCA LABS share price has moved up from Rs 526.4 to Rs 758.0, registering a Gain of Rs 231.7 or around 44.0%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 14,210.2 (down 0.1%). Over the last one year it has moved up from 13,548.3 to 14,210.2, a gain of 662 points (up 4.9%).

Overall, the S&P BSE SENSEX is up 6.8% over the year.

Current Valuations

At the current price of Rs 758.0, the price to earnings (P/E) ratio of IPCA LABS stands at 28.0 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 3.6 times.