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Get detailed information about the Arch Pharmalabs Share Price. In this research report, you will get to know about Arch Pharmalabs Peers data. In addition, get the complete details about the Net Profit Growth, Revenue Growth and Book Value Growth.
Growth in %
22.57%
1 Year
24.55%
2 Year
47.78%
3 Year
Growth in %
1072.06%
1 Year
277.28%
2 Year
212.71%
3 Year
Growth in %
1071.90%
1 Year
277.38%
2 Year
139.83%
3 Year
The company's EPS has increased dramatically, standing at Rs.123 per share in FY21, up from Rs.-11 in FY20. The reason for this exponential growth was expectational items worth Rs. 2761 cr. in loans/interest written back. However, the company loss is Rs 891 cr. when the expectational items are removed from the FY21 net profit. The company's share count remains unchanged at 15,19,23,076.
Growth in %
54.51%
1 Year
27.79%
2 Year
-3.99%
3 Year
Growth in %
-997.81%
1 Year
-247.99%
2 Year
-34.04%
3 Year
The EBITDA for the company has fallen from Rs 55 cr. in FY20 to Rs. - 633 cr. in FY21. The reason for this massive rise in the losses was due to the rise in establishment expenses which were accounted for bad debts written off and deposits written off by Rs 830 cr. and Rs. 577 cr. respectively, along with this, there was a significant rise in employee benefits expense of 20% y-o-y.
Growth in %
-2316.04%
1 Year
-478.82%
2 Year
-29.83%
3 Year
The operating income of the company for FY21 is at Rs -891.45 cr. in comparison to Rs. -183 cr. in FY20. The overall fall in the EBT was driven by the EBITDA which was Rs. -633 cr. for the same period. were as the overall PBT was amplified due to an increased interest cost of Rs 231 cr. in FY21 in comparison to Rs. 211 cr. in FY20, reason for this rise in interest cost was the capital restructuring by JM Financial ARC.
Growth in %
-24.03%
1 Year
-14.49%
2 Year
-6.89%
3 Year
Total assets have decreased from Rs 3,109 cr. to Rs 2,362 cr. This is primarily due to a decrease in. trade receivables, inventory, short-term loans & advances, and long-term investments by Rs 165 cr. , Rs. 61 cr. , Rs. 322 cr. and Rs. 145 cr. respectively in FY21. This significant drop in trade receivables is due to a payment from 6-month debtors of several Rs. 124 cr., as well as a decrease in short-term loans and advances due to payment received from advances against supplies and services.
Growth in %
48.51%
1 Year
327.04%
2 Year
33.19%
3 Year
Cash flow from operations showed a significant rise in FY21. It was Rs.187 cr. in FY20 and rose to Rs. 287 cr. in FY21. The rise primarily accounts because of the addition in current liabilities and adjustment of establishment expenses (The expenses and asset purchases associated with getting the business started are included in the establishment costs) by Rs. 216 cr. and Rs. 756 cr. in FY21.
The company's overall debt to equity ratio has improved, with total debt falling to Rs. 1,049 cr. in FY21 from Rs. 3,070 cr. in FY20. The reason for this significant decline is a drop in Non-current other Term loans from Rs 2,972 crore in FY20 to Rs 1,029 crore in FY21 which is assumed to be acquired by JMFARC. Whereas the company's overall equity increased from Rs. -1604 cr. in FY20 to Rs 232 cr., this was due to exceptional gains of Rs. 2761 cr.
The current ratio of the company has declined from 1.4 in FY20 to 1.2 in FY21, showcasing a decline of 13% y-o-y. The major reason for this decline was a decrease in overall current assets due to a fall in trade receivables, inventory, and short-term loans & advances by Rs 165 cr., Rs. 61 cr., and Rs. 322 cr. respectively in FY21. While the overall other current liabilities fell by 34% due to a major decrease in short-term liabilities and another current lability by 74% and 51% respectively.
The interest coverage ratio fell to negative 2.9 due to negative EBIT for FY21 of Rs. 661 cr. and an increased interest cost by 9 % y-o-y
There is a marginal decrease in EBIT, EBITDA, PBT, and PAT margin% primarily on account of a fall in net income due to the establishment expenses in FY21, along with it the company despite having top-notch production facilities, the company has struggled to raise financing due to its inadequate net worth position and inability to secure long-term contracts with clients and suppliers.
Arch Pharma Labs Limited has been losing money since 2018 and was only able to generate a profit in FY21 due to exceptional items worth Rs 2760 crore. As a result, the profitability ratios for this company should not be considered because they are untrustworthy.
The ROE of the company has been negative for the past 3 years, this was due to losses and negative total equity. As per Dupont Analysis, the net income margin and the equity multiplier drove the overall decrease in the ROE. Net income margin has witnessed a growth of 950% in FY21 from FY20, the reason being the increase in PAT of the company due to exceptional items of Rs. 2,760 cr. due to interest/loans written back along with it the equity multiplier was at -4 reason being the negative reserves and surplus due to losses carried forward from the past 3 years. Overall, the asset turnover ratio has increased by 29% this was due to increased operating revenue in FY21 by 12% and a decrease in total assets.
The ROCE are the company dropped down to a negative 48%, this was due to the negative EBIT in FY21 of Rs. 660 cr. which drove the whole ratio. While the capital employed of the firm has decreased by 13% y-o-y due to decreased long-term debt in FY21 by 66% as it was acquired by JMFARC according to the Asset reconstruction agreement between both entities in 2016.
The ROA of the company rose to 68% in FY21, the reason for this rise is the net income of Rs.1869 cr. which the company reported in FY21 due to exceptional items of Rs. 2760 cr. in due to interest written back. While the assets of the company have fallen y-o-y by 14% reason being the decline in the short-term loans and advances as well as trade receivables in FY21