Alembic Pharmaceuticals Reports 80% Surge in Net Profit: Boosts Investor Confidence
Alembic Pharmaceuticals reports an 80% surge in net profit for FY24, rising from ₹342 crore to ₹616 crore, driven by operational efficiencies and strategic product launches. This financial growth is driven by improved EBITDA and revenue.
by Damodharan N
Updated Jun 25, 2024
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Table of Content
Alembic Pharmaceuticals has achieved significant financial growth in the fiscal year 2023-24, marking an 80% increase in net profit, which rose from ₹342 crore in FY23 to ₹616 crore in FY24. This notable improvement is driven by enhanced operational efficiencies and strategic product launches across various markets.
Additionally, the company reported a 41% rise in EBITDA, reaching ₹961 crore, and a 10% increase in revenue, which totaled ₹6,229 crore.Investors and shareholders are particularly encouraged by Alembic's robust cash flow management and debt reduction efforts.
The company's strategic capital allocation and cost management initiatives have positioned it well for sustained growth and value generation. As Alembic continues to expand its market presence and optimize its operations, it stands as a promising investment opportunity.
Alembic Annual Report
Alembic Pharmaceuticals Limited, headquartered in Vadodara, India, is a leading pharmaceutical company with a strong presence in India, the U.S., and other global markets. Specializing in the production of pharmaceutical formulations and Active Pharmaceutical Ingredients (APIs), Alembic is renowned for its US FDA-approved manufacturing facilities. Read the full financial metrics for the company in the financial year 2023-24 in detail below.
Revenue and Profitability
- Total Revenue: ₹6,229 crore (up by 10% from ₹5,662 crore in FY23).
- Net Profit: ₹616 crore (an increase of 80% from ₹342 crore in FY23).
- EBITDA: ₹961 crore (a 41% increase from ₹682 crore in FY23).
Key Financial Ratios
- Current Ratio: 2.12 (19% increase from 1.78 in FY23).
- Debt-Equity Ratio: 0.09 (improvement of 39% from 0.15 in FY23).
- Debt Service Coverage Ratio: 12.24 (up by 450% from 2.23 in FY23).
- Return on Equity (ROE): 13.40% (a 30% increase from 10.35% in FY23).
- Return on Capital Employed (ROCE): 13.79% (up by 12% from 12.32% in FY23).
- Return on Investment (ROI): 9.80% (a 19% increase from 8.24% in FY23).
Operational Efficiency
- Inventory Turnover Ratio: 5.83 (an increase of 6% from 5.49 in FY23).
- Trade Receivables Turnover Ratio: 5.92 (slight decrease from 6.06 in FY23).
- Trade Payables Turnover Ratio: 5.63 (up by 8% from 5.20 in FY23).
- Net Capital Turnover Ratio: 4.30 (decrease of 8% from 4.68 in FY23).
Profit Margins
- Operating Margin: Improved due to efficient cost management and operational efficiencies.
- Net Profit Ratio: 9.89% (12% increase from 8.79% in FY23).
Dividends
- Dividend on Equity Shares: Recommended dividend of ₹11 per share (550%), compared to ₹8 per share (400%) in FY23.
Capital Management
- Objective: To ensure the company's ability to continue as a going concern and to provide an adequate return to shareholders through optimization of debt and equity balance.
Lease Liabilities
- Total Lease Liabilities: ₹82.71 crore (reduction from ₹86.16 crore in FY23).
- Non-Current: ₹62.88 crore
- Current: ₹19.83 crore
- Contractual Undiscounted Cash Flows: ₹101.81 crore.
Risk Management
- Foreign Exchange Risk: Sensitivity to a 5% change in currency rates impacting profits by approximately ₹47.49 crore.
- Interest Rate Risk: 50 basis points change impacting interest costs by ₹1.60 crore.
- Commodity Price Risk: Fluctuations managed through procurement policies.
This comprehensive financial performance showcases Alembic Pharmaceuticals' strong operational capabilities, efficient cost management, and strategic growth initiatives, indicating a solid investment opportunity for shareholders and potential investors.
You can access the detailed report here.
Alembic
Alembic Pharmaceuticals Limited (Alembic) is a diversified pharmaceutical company headquartered in Vadodara, India. The company has a significant presence in India, the U.S., and other regulated and emerging markets.
Alembic's key business verticals include the manufacturing of a wide range of pharmaceutical formulations that are marketed globally and the production of various Active Pharmaceutical Ingredients (APIs) used in the formulation of medicines.
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Alembic Pharmaceuticals Reports 80% Surge in Net Profit: Boosts Investor Confidence - FAQs
1. What was Alembic Pharmaceuticals' total revenue for FY24?
₹6,229 crore (up 10% from ₹5,662 crore in FY23).
2. What is the net profit for Alembic Pharmaceuticals in FY24?
₹616 crore (an increase of 80% from ₹342 crore in FY23).
3. How much did the EBITDA grow in FY24?
EBITDA grew by 41%, reaching ₹961 crore.
4. What is the current ratio for Alembic Pharmaceuticals in FY24?
2.12 (a 19% increase from 1.78 in FY23).
5. What is the debt-equity ratio reported in FY24?
0.09 (improved by 39% from 0.15 in FY23).
6. What was the debt service coverage ratio in FY24?
12.24 (up by 450% from 2.23 in FY23).
7. What is the return on equity (ROE) for FY24?
13.40% (a 30% increase from 10.35% in FY23).
8. What is the return on capital employed (ROCE) for FY24?
13.79% (up by 12% from 12.32% in FY23).
9. What is Alembic's return on investment (ROI) for FY24?
9.80% (a 19% increase from 8.24% in FY23).
10. What is the inventory turnover ratio for FY24?
5.83 (an increase of 6% from 5.49 in FY23).
11. What is the trade receivables turnover ratio for FY24?
5.92 (slightly decreased from 6.06 in FY23).
12. What is the trade payables turnover ratio for FY24?
5.63 (up by 8% from 5.20 in FY23).
13. What is the net capital turnover ratio for FY24?
4.30 (decrease of 8% from 4.68 in FY23).
14. What is the net profit ratio for Alembic in FY24?
9.89% (12% increase from 8.79% in FY23).
15. What was the recommended dividend per equity share for FY24?
₹11 per share (550%), compared to ₹8 per share (400%) in FY23.
16. What were the total lease liabilities at the end of FY24?
₹82.71 crore (down from ₹86.16 crore in FY23).
17. How much were the non-current lease liabilities in FY24?
₹62.88 crore.
18. How much were the current lease liabilities in FY24?
₹19.83 crore.
19. What were the contractual undiscounted cash flows for lease liabilities in FY24?
₹101.81 crore.
20. What was the foreign exchange risk impact for Alembic in FY24?
A 5% change in currency rates impacted profits by approximately ₹47.49 crore.
21. What was the interest rate risk impact for Alembic in FY24?
A 50 basis points change impacted interest costs by ₹1.60 crore.
22. Where is Alembic Pharmaceuticals headquartered?
The company is headquartered in Vadodara, Gujarat, India.
23. What are the key business verticals of Alembic Pharmaceuticals?
The key business verticals include formulations and APIs.
24. What was Alembic's revenue for FY 2023-24?
The revenue was ₹6,228.63 crore.
25. What was the net profit for FY 2023-24?
The net profit was ₹550.76 crore.
26. How much did Alembic spend on R&D in FY 2023-24?
The R&D expenditure was ₹474.92 crore.
27. What is the revenue contribution of formulations?
The revenue from formulations was ₹4,982.41 crore.
28. What is the revenue contribution of APIs?
The revenue from APIs was ₹1,246.22 crore.
29. How many products did Alembic launch in RoW markets during FY 2023-24?
Alembic launched 14 products in RoW markets during FY 2023-24.
30. What is the equity of Alembic as of March 31, 2024?
The equity was ₹475 crore.
31. What is Alembic's return on capital employed (ROCE)?
The ROCE was 15%.
32. What is the net debt-equity ratio of Alembic?
The net debt-equity ratio was 0.06.
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