ALEMBIC PHARMA 2023-24 Annual Report Analysis

Tue, 25 Jun

ALEMBIC PHARMA 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 PHARMA Income Statement Analysis

• Operating income during the year rose 10.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 37.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.0% in FY24 as against 12.0% in FY23.
• Depreciation charges decreased by 1.0% and finance costs increased by 12.0% YoY, respectively.
• Other income grew by 855.3% YoY.
• Net profit for the year grew by 80.1% YoY.
• Net profit margins during the year grew from 6.1% in FY23 to 9.9% in FY24.

ALEMBIC PHARMA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	56,526	62,286	10.2%
Other income	Rs m	30	290	855.3%
Total Revenues	Rs m	56,557	62,577	10.6%
Gross profit	Rs m	6,772	9,317	37.6%
Depreciation	Rs m	2,754	2,727	-1.0%
Interest	Rs m	502	562	12.0%
Profit before tax	Rs m	3,546	6,318	78.2%
Tax	Rs m	126	160	27.1%
Profit after tax	Rs m	3,420	6,158	80.1%
Gross profit margin	%	12.0	15.0
Effective tax rate	%	3.6	2.5
Net profit margin	%	6.1	9.9

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ALEMBIC PHARMA Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 15 billion as compared to Rs 16 billion in FY23, thereby witnessing an decrease of -7.3%.
• Current assets rose 8% and stood at Rs 31 billion, while fixed assets rose 2% and stood at Rs 32 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 63 billion as against Rs 61 billion during FY23, thereby witnessing a growth of 5%.

ALEMBIC PHARMA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	43,705	48,182	10.2
Current Liabilities	Rs m	16,408	15,203	-7.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	60,637	63,412	4.6
Current assets	Rs m	29,139	31,438	7.9
Fixed Assets	Rs m	31,498	31,974	1.5
Total Assets	Rs m	60,637	63,412	4.6

ALEMBIC PHARMA Cash Flow Statement Analysis

• ALEMBIC PHARMA's cash flow from operating activities (CFO) during FY24 stood at Rs 8 billion, an improvement of 10.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 447 million from the Rs 144 million net cash flows seen during FY23.

ALEMBIC PHARMA 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	7,239	8,032	10.9%
Cash Flow from Investing Activities	Rs m	-4,476	-3,206	-
Cash Flow from Financing Activities	Rs m	-2,620	-4,379	-
Net Cash Flow	Rs m	144	447	210.8%

Current Valuations for ALEMBIC PHARMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 31.3, an improvement from the EPS of Rs 17.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 902.2, stands at 28.8 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 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 17.5 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	287.6	316.9
TTM Earnings per share	Rs	17.4	31.3
Diluted earnings per share	Rs	17.4	31.3
Price to Cash Flow	x	15.8	17.5
TTM P/E ratio	x	26.1	28.8
Price / Book Value ratio	x	2.8	3.2
Market Cap	Rs m	123,402	155,098
Dividends per share (Unadj.)	Rs	8.0	11.0

Ratio Analysis for ALEMBIC PHARMA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY24, from 1.8x 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 improved and stood at 12.2x during FY24, from 8.1x 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 12.8% during FY24, from 7.8% 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 14.3% during FY24, from 9.3% 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 10.6% during FY24, from 6.5% 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	1.8	2.1
Debtors’ Days	Days	7	6
Interest coverage	x	8.1	12.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.5	10.6
Return on equity	%	7.8	12.8
Return on capital employed	%	9.3	14.3

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 604.2 to Rs 902.2, registering a gain of Rs 298.0 or around 49.3%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 36,712.0 (down 0.2%). Over the last one year it has moved up from 24,905.5 to 36,712.0, a gain of 11,807 points (up 47.4%).

Overall, the S&P BSE SENSEX is up 21.8% over the year.

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