Operating profit margin has slumped from 30.37% to 17.79%, leading to 42.08% decline in operating profit to Rs 235.93 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 19.64% to 21.47%.   Purchase of finished goods cost rose from 3.76% to 8.60%.   Employee cost increased from 21.02% to 21.54%.   Other expenses rose from 24.49% to 30.85%.   

Other income rose 506.45% to Rs 1.88 crore.  Provision for interest fell 68.37% to Rs 2.11 crore.  

Provision for depreciation rose 28.07% to Rs 53.15 crore.  

Profit before tax shrink 49.22% to Rs 182.55 crore.  Share of profit/loss was 2,104.44% higher at Rs 9.92 crore.  Provision for tax was expense of Rs 34.2 crore, compared to Rs 66.77 crore.  Effective tax rate was 17.77% compared to 18.55%.

Minority interest increased 24.52% to Rs -6.25 crore.  Net profit attributable to owners of the company decreased 45.43% to Rs 164.52 crore.  

Promoters' stake was 69.48% as of 30 June 2021 ,compared to 72.97% as of 30 June 2020 .  

Full year results analysis.

Net sales (including other operating income) of Alembic Pharmaceuticals has increased 17.10% to Rs 5393.13 crore.  

Operating profit margin has jumped from 26.55% to 28.88%, leading to 27.35% rise in operating profit to Rs 1,557.55 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 20.33% to 21.22%.   Purchase of finished goods cost fell from 5.63% to 4.76%.   Employee cost decreased from 18.82% to 18.81%.   Other expenses fell from 29.83% to 27.33%.   

Other income rose 102.83% to Rs 10.02 crore.  Provision for interest fell 41.02% to Rs 16.02 crore.  Loan funds declined from Rs 1,747.49 crore as of 31 March 2020 to Rs 199.91 crore as of 31 March 2021.  Inventories rose to Rs 1,486.15 crore as of 31 March 2021 from Rs 1,187.53 crore as of 31 March 2020.  Sundry debtors were lower at Rs 348.58 crore as of 31 March 2021 compared to Rs 864.75 crore as of 31 March 2020.  Cash and bank balance rose to Rs 105.84 crore as of 31 March 2021 from Rs 80.75 crore as of 31 March 2020.  Investments rose to Rs 236.28 crore as of 31 March 2021 from Rs 17.62 crore as of 31 March 2020 .  

Provision for depreciation rose 16.62% to Rs 183.47 crore.  Fixed assets increased to Rs 3,648.02 crore as of 31 March 2021 from Rs 3,099.00 crore as of 31 March 2020.  Intangible assets increased from Rs 299.02 crore to Rs 322.94 crore.  

Profit before tax grew 31.11% to Rs 1,368.08 crore.  Share of profit/loss was 63,380% higher at Rs 31.74 crore.  Provision for tax was expense of Rs 253.32 crore, compared to Rs 199.18 crore.  Effective tax rate was 18.10% compared to 19.92%.

Minority interest decreased 12.41% to Rs -31.61 crore.  Net profit attributable to owners of the company increased 42.14% to Rs 1,178.11 crore.  

Equity capital increased from Rs 37.70 crore as of 31 March 2020 to Rs 39.31 crore as of 31 March 2021.  Per share face Value remained same at Rs 2.00.  

Promoters' stake was 69.48% as of 31 March 2021 ,compared to 72.97% as of 31 March 2020 .  

Cash flow from operating activities increased to Rs 1,463.38 crore for year ended March 2021 from Rs 449.14 crore for year ended March 2020.  Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 659.52 crore, compared to Rs 734.89 crore during the year ended March 2020.   

Other Highlights

In Q1FY22, US Generics business de-grew by 38% to Rs 369 crore, Ex-US International Formulations grew 13% to Rs 197 crore compared to Q1FY21.

India Branded Business grew by 57% on QoQ basis to Rs 481 crore.

API business grew 6 % on QoQ basis to Rs 279 crore.

In Q1FY22, revenue contribution from generics was 43%, branded business contributed 36% and API contributed 21%.

Management believes growth driver to be Emphasis on Specialty segment.

Company received 7 ANDA (Abbreviated New Drug Application) approvals during the quarter, Cumulative ANDA approvals stands at 146 (including 18 tentative).

Management Commentary: Mr. Pranav Amin, Managing Director, Alembic Pharmaceuticals Limited said "The India business grew exceptionally well and outpaced the Industry, we hope to see this momentum continuing due to the initiatives undertaken recently. The US business faced price erosion due to increased competition. However, our long term view of the US market remains intact."