InvestorQ : How did Alembic Pharma report such attractive results in the Sep-20 quarter?
Rashi Mehra made post

How did Alembic Pharma report such attractive results in the Sep-20 quarter?

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Archita Jajjoo answered.
6 months ago
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Gujarat based Alembic Pharma reported 17.43% hike in sales at Rs.1,457 crore for the Sep-20 quarter. The operating profits were up 29% at Rs.400 crore while net profits were up 30% at Rs.325 crore.

Just look at the impact on the margins. OPM was sharply higher at 27.43% in the Sep-20 quarter while net profit margins were up 22.33% on the back of improved realizations and cost cuts. This was also supported by a fall in debt equity ratio from 0.48 to 0.13.

During the first half of the fiscal year, the cash generated from operating activities spiked by nearly five times at Rs.1029 crore. The good thing was that it was the domestic business that was the driver for growth even as the global API business also taken off with leading pharma players looking to de-risk their dependence on China.

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