Ipca Laboratories Reports Better Growth in Dec 2012 Quarter
DSIJ Intelligence / 30 Jan 2013
Ipca Laboratories came out with better set of numbers for Q3FY13
Ipca Laboratories’ topline for the company stood at Rs 704.99 crore for Q3FY13 as against Rs 618.86 for Q3FY12, thus witnessing a growth of 14% on YoY basis. The EBITDA witnessed a gain of 5% on a YoY basis to stand at Rs 158.38 crore for Q3FY13. The bottomline witnessed a growth of 37% on YoY basis to stand at Rs 87.89 crore.
The main reason for the growth in the topline can be attributed to better performance witnessed by the formulation and API segment. On an aggregate basis, the domestic business grew by 13.23% on a YoY basis to stand at Rs 250 crore for Q3FY13. The exports were substantial, witnessing a growth of 16.12% on a YoY basis to stand at Rs 442.37 crore.
| Particulars (Rs/Cr) | Q3FY13 | Q3FY12 | % Chg |
|---|---|---|---|
| Net Total Income | 704.99 | 618.86 | 13.92 |
| EBITDA | 158.38 | 150.50 | 5.24 |
| Net Profit | 87.89 | 63.93 | 37.48 |
| EBITDA Margin (%) | 22.47 | 24.32 | (185) bps |
| Net Profit Margin (%) | 12.47 | 10.33 | 214 bps |
On the margins front, the company has witnessed some pressure on the EBITDA levels as the margins went down by 186 basis points on a YoY basis and stood at 22.47%. But significant improvement has been seen as far as NPM is concerned, as it improved by 214 basis points on a YoY basis to stand at 12.47%.
The pressure on the EBITDA levels can be attributed to higher raw material prices and employee expenses that went up by 25.55% and 19.51% respectively on a YoY basis for Q3FY13. However, the finance cost came down to Rs 7.40 crore in Q3FY13 from Rs 10.15 crore for Q3FY12. The other factor that helped the company to give better net profit numbers was due the reduction in its forex loss and limiting it to Rs 18.58 crore during Q3FY13 as against a loss of Rs 39.88 crore on a YoY basis.
| Revenue Break Up | |||
|---|---|---|---|
| Particulars (Rs/Cr) | Q3FY13 | Q3FY12 | % Chg |
| Formulations | |||
| Domestic | 212.73 | 187.58 | 13.41 |
| Exports | 317.46 | 289.83 | 9.53 |
| Total Exports | 530.19 | 477.41 | 11.06 |
| APIs | |||
| Domestic | 37.31 | 33.24 | 12.24 |
| Exports | 124.91 | 91.13 | 37.07 |
| Total APIs | 162.22 | 124.37 | 30.43 |
At the current price, the stock trades at a PE of 18.17x which is much cheaper as compared to its other listed peers in the same sector. However the markets reacted negatively to the results witnessing a fall of more than 1.50% during the day.
We believe that one must hold the counter for a longer term perspective and new investors can enter the stock in a staggered manner.
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