IPCA LABS Announces Quarterly Results (4QFY18); Net Profit Up 15.6%
Wed, 30 May

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

IPCA LABS Quarterly Financials

No. of Mths
Qtr. Ending
3
Mar-17*
3
Dec-17*
3
Mar-18*
QoQ ChangeYoY Change
Net SalesRs m6,6588,5927,828-8.9%17.6%
Other incomeRs m521101143.8%118.2%
TurnoverRs m6,7108,7027,941-8.7%18.3%
ExpensesRs m5,9816,9806,729-3.6%12.5%
Gross profitRs m6771,6121,099-31.8%62.4%
DepreciationRs m428438432-1.5%0.9%
InterestRs m44566515.2%46.6%
Profit before taxRs m2571,228717-41.6%178.9%
TaxRs m-18717220418.6%
Profit after taxRs m4441,056513-51.4%15.6%
Gross profit margin%10.218.814.0
Effective tax rate%-72.714.028.4
Net profit margin%6.612.16.5
* 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 17.6% on a year-on-year (YoY) basis. The expenses were up by 12.5% YoY during the same period.
  • The company's operating profit increased by 62.4% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 14.0% in 4QFY18 as against 10.2% in 4QFY17.
  • Depreciation charges and finance costs increased by 0.9% YoY and 46.6% YoY, respectively.
  • Other income increased by 118.2% YoY during the quarter.
  • Net profit for the quarter increased by 15.6% YoY. Net profit margins during the quarter declined from 6.6% in 4QFY17 to 6.5% in 4QFY18.
Quarter-on-Quarter Performance:
  • The company's operating income during the quarter grew 8.9% on a quarter-on-quarter (QoQ) basis. The expenses were down by 3.6% QoQ during the same period.
  • The company's operating profit increased by 31.8% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 14.0% in 4QFY18 as against 18.8% in 3QFY17.
  • Net profit for the quarter declined by 51.4% QoQ, while net profit margins declined from 12.1% in 3QFY17 to 6.5% in 4QFY18.

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 489.0 to Rs 674.0, registering a Gain of Rs 185.1 or around 37.8%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 13,144.6 (down 0.5%). Over the last one year it has moved down from 13,517.8 to 13,144.6, a gain of -373.2 points (down 2.8%).

Overall, the S&P BSE SENSEX is down 0.2% over the year.

Current Valuations

At the current price of Rs 674.0, the price to earnings (P/E) ratio of IPCA LABS stands at 36.5 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 3.5 times.