ALEMBIC 2023-24 Annual Report Analysis

Tue, 16 Jul

ALEMBIC has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

ALEMBIC Income Statement Analysis

• Operating income during the year rose 23.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 91.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 36.1% in FY24 as against 23.4% in FY23.
• Depreciation charges increased by 16.6% and finance costs increased by 138.5% YoY, respectively.
• Other income declined by 14.8% YoY.
• Net profit for the year grew by 15.2% YoY.
• Net profit margins during the year declined from 63.4% in FY23 to 59.0% in FY24.

ALEMBIC Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,272	1,575	23.8%
Other income	Rs m	643	548	-14.8%
Total Revenues	Rs m	1,915	2,123	10.8%
Gross profit	Rs m	297	569	91.3%
Depreciation	Rs m	67	78	16.6%
Interest	Rs m	5	11	138.5%
Profit before tax	Rs m	868	1,027	18.3%
Tax	Rs m	62	98	58.9%
Profit after tax	Rs m	806	929	15.2%
Gross profit margin	%	23.4	36.1
Effective tax rate	%	7.1	9.6
Net profit margin	%	63.4	59.0

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ALEMBIC Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 961 million as compared to Rs 896 million in FY23, thereby witnessing an increase of 7.3%.
• Long-term debt stood at Rs 74 million as compared to Rs 0 million during FY23, a fall of 0.0%.
• Current assets fell 20% and stood at Rs 1 billion, while fixed assets rose 8% and stood at Rs 22 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 23 billion as against Rs 22 billion during FY23, thereby witnessing a growth of 6%.

ALEMBIC Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	20,780	21,856	5.2
Current Liabilities	Rs m	896	961	7.3
Long-term Debt	Rs m	0	74	0.0
Total Liabilities	Rs m	22,103	23,346	5.6
Current assets	Rs m	1,779	1,432	-19.5
Fixed Assets	Rs m	20,324	21,914	7.8
Total Assets	Rs m	22,103	23,346	5.6

ALEMBIC Cash Flow Statement Analysis

• ALEMBIC's cash flow from operating activities (CFO) during FY24 stood at Rs 227 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 258 million, an improvement of 254.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -482 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 3 million from the Rs -2 million net cash flows seen during FY23.

ALEMBIC Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	389	227	-41.6%
Cash Flow from Investing Activities	Rs m	73	258	254.1%
Cash Flow from Financing Activities	Rs m	-464	-482	-
Net Cash Flow	Rs m	-2	3	-

Current Valuations for ALEMBIC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.6, an improvement from the EPS of Rs 3.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 154.3, stands at 42.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 25.2 times.
• The company's price to cash flow (P/CF) ratio stood at 21.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	5.0	6.1
TTM Earnings per share	Rs	3.1	3.6
Diluted earnings per share	Rs	3.1	3.6
Price to Cash Flow	x	17.4	21.3
TTM P/E ratio	x	18.9	42.7
Price / Book Value ratio	x	0.9	1.0
Market Cap	Rs m	18,298	21,403
Dividends per share (Unadj.)	Rs	2.2	2.4

Ratio Analysis for ALEMBIC

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY24, from 2.0x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 93.6x during FY24, from 187.7x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 4.2% during FY24, from 3.9% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 4.7% during FY24, from 4.2% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 4.0% during FY24, from 3.7% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	2.0	1.5
Debtors’ Days	Days	673	458
Interest coverage	x	187.7	93.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.7	4.0
Return on equity	%	3.9	4.2
Return on capital employed	%	4.2	4.7

To see how ALEMBIC has performed over the last 5 years, please visit here.

ALEMBIC Share Price Performance

Over the last one year, ALEMBIC share price has moved up from Rs 76.2 to Rs 154.3, registering a gain of Rs 78.1 or around 102.5%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 38,787.8 (up 0.0%). Over the last one year it has moved up from 26,229.9 to 38,787.8, a gain of 12,558 points (up 47.9%).

Overall, the S&P BSE SENSEX is up 23.5% over the year.

(To know more, check out historical annual results for ALEMBIC and quarterly results for ALEMBIC)