IOL CHEMICALS & PHARM. Announces Quarterly Results (1QFY22); Net Profit Down 47.5%

Mon, 16 Aug

IOL CHEMICALS & PHARM. has announced its results for the quarter ended June 2021. Here is a detailed performance review of the same:

IOL CHEMICALS & PHARM. Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-20*	3 Mar-21*	3 Jun-21*	QoQ Change	YoY Change
Net Sales	Rs m	4,601	4,604	5,185	12.6%	12.7%
Other income	Rs m	58	62	57	-7.9%	-1.4%
Turnover	Rs m	4,659	4,666	5,242	12.4%	12.5%
Expenses	Rs m	3,080	3,492	4,084	16.9%	32.6%
Gross profit	Rs m	1,521	1,112	962	-13.4%	-36.7%
Depreciation	Rs m	94	100	103	3.5%	10.3%
Interest	Rs m	18	14	18	22.9%	-2.7%
Profit before tax	Rs m	1,467	1,060	899	-15.2%	-38.8%
Tax	Rs m	192	307	229	-25.6%	19.0%
Profit after tax	Rs m	1,275	753	670	-11.0%	-47.5%
Gross profit margin	%	33.1	24.1	18.6
Effective tax rate	%	13.1	29.0	25.4
Net profit margin	%	27.4	16.1	12.8

Year-on-Year Performance:

• The company's operating income during the quarter grew 12.7% on a year-on-year (YoY) basis. The expenses were up by 32.6% YoY during the same period.
• The company's operating profit declined by 36.7% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 18.6% in 1QFY22 as against 33.1% in 1QFY21.
• Depreciation charges increased by 10.3% and finance costs declined by 2.7% YoY, respectively.
• Other income declined by 1.4% YoY during the quarter.
• Net profit for the quarter declined by 47.5% YoY. Net profit margins during the quarter declined from 27.4% in 1QFY21 to 12.8% in 1QFY22.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 12.6% on a quarter-on-quarter (QoQ) basis. The expenses were up by 16.9% QoQ during the same period.
• The company's operating profit declined by 13.4% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 18.6% in 1QFY22 as against 24.1% in 4QFY21.
• Net profit for the quarter declined by 11.0% QoQ, while net profit margins declined from 16.1% in 4QFY21 to 12.8% in 1QFY22.

To see how IOL CHEMICALS & PHARM. has performed over the last eight quarters,please visit here.

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IOL CHEMICALS & PHARM. Share Price Performance

Over the last one year, IOL CHEMICALS & PHARM. share price has moved down from Rs 789.4 to Rs 608.0, registering a Loss of Rs 181.4 or around 23.0%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 25,870.0 (down 0.0%). Over the last one year it has moved up from 19,114.4 to 25,870.0, a gain of 6,756 points (up 35.3%).

Overall, the S&P BSE SENSEX is up 44.9% over the year.

Current Valuations

At the current price of Rs 608.0, the price to earnings (P/E) ratio of IOL CHEMICALS & PHARM. stands at 9.3 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 4.4 times.