IPCA LABS Announces Quarterly Results (2QFY20); Net Profit Up 63.7%
Tue, 12 Nov

IPCA LABS has announced its results for the quarter ended September 2019. Here is a detailed performance review of the same:

IPCA LABS Quarterly Financials

No. of Mths
Qtr. Ending
3
Sep-18*
3
Jun-19*
3
Sep-19*
QoQ ChangeYoY Change
Net SalesRs m9,97810,11012,12619.9%21.5%
Other incomeRs m138194143-26.2%4.2%
TurnoverRs m10,11610,30412,26919.1%21.3%
ExpensesRs m8,2508,1609,51016.5%15.3%
Gross profitRs m1,7281,9502,61634.1%51.4%
DepreciationRs m4324204517.3%4.5%
InterestRs m244541-9.4%70.2%
Profit before taxRs m1,4101,6802,26735.0%60.8%
TaxRs m213359307-14.5%44.4%
Profit after taxRs m1,1971,3211,96048.4%63.7%
Gross profit margin%17.319.321.6
Effective tax rate%15.121.413.5
Net profit margin%11.812.816.0
* 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 21.5% 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 51.4% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 21.6% in 2QFY20 as against 17.3% in 2QFY19.
  • Depreciation charges increased by 4.5% and finance costs increased by 70.2% YoY, respectively.
  • Other income increased by 4.2% YoY during the quarter.
  • Net profit for the quarter increased by 63.7% YoY. Net profit margins during the quarter increased from 11.8% in 2QFY19 to 16.0% in 2QFY20.
Quarter-on-Quarter Performance:
  • The company's operating income during the quarter grew 19.9% on a quarter-on-quarter (QoQ) basis. The expenses were up by 16.5% QoQ during the same period.
  • The company's operating profit increased by 34.1% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 21.6% in 2QFY20 as against 19.3% in 1QFY19.
  • Net profit for the quarter increased by 48.4% QoQ, while net profit margins increased from 12.8% in 1QFY19 to 16.0% in 2QFY20.

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 712.9 to Rs 1,090.8, registering a Gain of Rs 377.9 or around 53.0%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 13,126.2 (up 0.3%). Over the last one year it has moved down from 14,587.7 to 13,126.2, a gain of 1,462 points (down 10.0%).

Overall, the S&P BSE SENSEX is up 15.9% over the year.

Current Valuations

At the current price of Rs 1,090.8, the price to earnings (P/E) ratio of IPCA LABS stands at 23.0 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 4.4 times.