ALEMBIC PHARMA 2020-21 Annual Report Analysis

Wed, 31 Mar

ALEMBIC PHARMA has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

ALEMBIC PHARMA Income Statement Analysis

• Operating income during the year rose 17.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 26.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 27.4% in FY21 as against 25.4% in FY20.
• Depreciation charges increased by 16.6% and finance costs decreased by 41.0% YoY, respectively.
• Other income grew by 530.3% YoY.
• Net profit for the year grew by 39.2% YoY.
• Net profit margins during the year grew from 17.4% in FY20 to 20.7% in FY21.

ALEMBIC PHARMA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	46,058	53,931	17.1%
Other income	Rs m	139	875	530.3%
Total Revenues	Rs m	46,196	54,806	18.6%
Gross profit	Rs m	11,704	14,801	26.5%
Depreciation	Rs m	1,573	1,835	16.6%
Interest	Rs m	272	160	-41.0%
Profit before tax	Rs m	9,998	13,681	36.8%
Tax	Rs m	1,992	2,533	27.2%
Profit after tax	Rs m	8,006	11,148	39.2%
Gross profit margin	%	25.4	27.4
Effective tax rate	%	19.9	18.5
Net profit margin	%	17.4	20.7

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ALEMBIC PHARMA Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 13 billion as compared to Rs 18 billion in FY20, thereby witnessing an decrease of -26.9%.
• Long-term debt down at Rs 2 billion as compared to Rs 9 billion during FY20, a fall of 77.5%.
• Current assets rose 5% and stood at Rs 26 billion, while fixed assets rose 17% and stood at Rs 41 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 67 billion as against Rs 60 billion during FY20, thereby witnessing a growth of 12%.

ALEMBIC PHARMA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	32,194	51,276	59.3
Current Liabilities	Rs m	17,516	12,808	-26.9
Long-term Debt	Rs m	8,870	1,999	-77.5
Total Liabilities	Rs m	59,891	67,090	12.0
Current assets	Rs m	24,628	25,779	4.7
Fixed Assets	Rs m	35,263	41,311	17.2
Total Assets	Rs m	59,891	67,090	12.0

ALEMBIC PHARMA Cash Flow Statement Analysis

• ALEMBIC PHARMA's cash flow from operating activities (CFO) during FY21 stood at Rs 15 billion, an improvement of 225.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -8 billion, an improvement of 14.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -6 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 262 million from the Rs -1 billion net cash flows seen during FY20.

ALEMBIC PHARMA Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	4,492	14,634	225.8%
Cash Flow from Investing Activities	Rs m	-7,316	-8,388	-
Cash Flow from Financing Activities	Rs m	1,549	-5,974	-
Net Cash Flow	Rs m	-1,272	262	-

Current Valuations for ALEMBIC PHARMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 56.7, an improvement from the EPS of Rs 42.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 965.2, stands at 17.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 3.5 times.
• The company's price to cash flow (P/CF) ratio stood at 12.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	244.3	274.4
TTM Earnings per share	Rs	42.5	56.7
Diluted earnings per share	Rs	40.7	56.7
Price to Cash Flow	x	10.9	12.7
TTM P/E ratio	x	13.1	17.0
Price / Book Value ratio	x	3.3	3.2
Market Cap	Rs m	105,343	164,818
Dividends per share (Unadj.)	Rs	10.0	14.0

Ratio Analysis for ALEMBIC PHARMA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY21, from 1.4x during FY20. 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 improved and stood at 86.4x during FY21, from 37.8x during FY20. 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 declined and down at 21.7% during FY21, from 24.9% during FY21. 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 26.0% during FY21, from 25.0% during FY20. 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 16.9% during FY21, from 13.8% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.4	2.0
Debtors’ Days	Days	7	2
Interest coverage	x	37.8	86.4
Debt to equity ratio	x	0.3	0.0
Return on assets	%	13.8	16.9
Return on equity	%	24.9	21.7
Return on capital employed	%	25.0	26.0

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

ALEMBIC PHARMA Share Price Performance

Over the last one year, ALEMBIC PHARMA share price has moved up from Rs 533.7 to Rs 965.2, registering a gain of Rs 431.5 or around 80.9%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,328.2 (up 0.4%). Over the last one year it has moved up from 12,148.6 to 21,328.2, a gain of 9,180 points (up 75.6%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of ALEMBIC PHARMA