Arch Pharma Annual Reports, Balance Sheet and Financials

Balance Sheet of Arch Pharma Labs Limited (In Rs. Crore)

Profit & Loss Statement of Arch Pharma Labs Limited (In Rs. Crore)

Arch Pharma Labs Limited Cash Flow Statement for the last three years (In Rs. Crore)

Summary of Arch Pharma Labs Limited Consolidated Cash Flow Statement:

1. Cash Flow from Operating Activities:

   - Net cash from operating activities was positive, indicating cash inflow, amounting to Rs. 115.33 crore in the year ending March 31, 2022, Rs. 278.33 crore in the year ending March 31, 2021, and Rs. 181.26 crore in the year ending March 31, 2020.

   - Net profit before tax and extraordinary items was positive, amounting to Rs. 58.53 crore in the year ending March 31, 2022, Rs. 1869.44 crore in the year ending March 31, 2021, and negative Rs. -160.19 crore in the year ending March 31, 2020.

   - Depreciation expenses and net interest expenses were incurred and adjusted for in each year.

   - Other adjustments were made, including items related to extraordinary items and operational income.

   - Cash generated from operations before working capital changes was positive, amounting to Rs. 180.65 crore in the year ending March 31, 2022, Rs. 154.25 crore in the year ending March 31, 2021, and Rs. 58.8 crore in the year ending March 31, 2020.

   - Working capital changes, including trade receivables, inventories, and other items, contributed to the cash flow from operating activities.

2. Cash Flow from Investing Activities:

   - Net cash used in investing activities was negative, indicating cash outflow, amounting to Rs. -10.68 crore in the year ending March 31, 2022, Rs. -7.89 crore in the year ending March 31, 2021, and Rs. -7.55 crore in the year ending March 31, 2020.

   - Activities include the purchase of fixed assets and other investing activities.

3. Cash Flow from Financing Activities:

   - Net cash used in financing activities was negative, indicating cash outflow, amounting to Rs. -105.16 crore in the year ending March 31, 2022, Rs. -269.93 crore in the year ending March 31, 2021, and Rs. -175.14 crore in the year ending March 31, 2020.

   - Activities include proceeds from other long-term borrowings, repayment of long-term borrowings, interest payments, and other financing activities.

4. Net Increase/ (Decrease) in Cash and Cash Equivalents:

   - There was a decrease in cash and cash equivalents of Rs. -0.51 crore in the year ending March 31, 2022, an increase of Rs. 0.51 crore in the year ending March 31, 2021, and a decrease of Rs. -1.43 crore in the year ending March 31, 2020.

   - Cash and cash equivalents at the beginning of the year were Rs. 3.28 crore in the year ending March 31, 2022, Rs. 2.77 crore in the year ending March 31, 2021, and Rs. 4.19 crore in the year ending March 31, 2020.

   - Cash and cash equivalents at the end of the year were Rs. 2.77 crore in the year ending March 31, 2022, Rs. 3.28 crore in the year ending March 31, 2021, and Rs. 2.77 crore in the year ending March 31, 2020.

Funds Flow Statement of Arch Pharma Labs Limited (In Rs. Crore)

Key Financial Ratios of Arch Pharma Labs Limited

Summary of Key Financial Ratios of Arch Pharma Labs:

1. Current Ratio:

The current ratio, measuring the company 's ability to meet short-term obligations, has remained relatively stable over the three years, with values of 1.28 in 2022, 1.26 in 2021, and 1.36 in 2020. The company appears to have enough current assets to cover its short-term liabilities, suggesting a satisfactory liquidity position.

2. Turnover Ratios:

- Fixed Assets Turnover Ratio: The fixed assets turnover ratio indicates how efficiently the company utilizes its fixed assets to generate revenue. Arch Pharma Labs has shown a steady improvement in this ratio, with values of 1.04 in 2022, 0.57 in 2021, and 0.53 in 2020. The increasing trend indicates better utilization of fixed assets over the years.

- Inventory Turnover Ratio: The inventory turnover ratio reflects how efficiently the company manages its inventory. Arch Pharma Labs has improved its inventory turnover significantly, with values of 1.78 in 2022, 0.91 in 2021, and 0.81 in 2020. This suggests improved inventory management and potentially reduced carrying costs.

- Debtors Turnover Ratio: The debtors turnover ratio indicates how efficiently the company collects cash from its debtors. Arch Pharma Labs has demonstrated consistent improvement in this area, with values of 4.45 in 2022, 2.57 in 2021, and 1.23 in 2020. The increasing trend suggests enhanced credit management and collection efficiency.

- Total Asset Turnover Ratio: The total asset turnover ratio measures the company 's ability to generate revenue from its total assets. Arch Pharma Labs has shown a considerable improvement in this ratio, with values of 0.89 in 2022, 0.48 in 2021, and 0.29 in 2020. This indicates better utilization of its assets to generate revenue.

3. Interest Cover Ratio:

The interest cover ratio evaluates the company 's ability to cover its interest expenses with its operating profit. In 2022, the interest cover ratio stands at 1.6, compared to -2.86 in 2021 and 0.22 in 2020. While it has improved, the ratio is still relatively low, suggesting the company may face challenges in covering its interest expenses.

4. Profitability Ratios:

- PBIDTM (%): The PBIDTM (Profit Before Interest, Depreciation, and Tax Margin) has significantly improved in 2022, reaching 13.9% from -89.6% in 2021 and 11.83% in 2020. This indicates a substantial improvement in the company 's operational profitability, which is a positive sign.

- PBITM (%): The PBITM (Profit Before Interest and Tax Margin) has also seen notable improvement, with values of 11.98% in 2022, -93.54% in 2021, and 7.03% in 2020. This suggests the company 's profitability has significantly improved before considering interest and taxes.

- PBDTM (%): The PBDTM (Profit Before Depreciation and Tax Margin) shows improvement, with values of 6.39% in 2022, -122.3% in 2021, and -20.54% in 2020. This indicates improved profitability after considering depreciation expenses.

5. Return Ratios:

Both the Return on Capital Employed (ROCE) and the Return on Net Worth (RONW) have shown improvement in 2022 compared to previous years. The ROCE stands at 8.95% in 2022, compared to -34.17% in 2021 and 0% in 2020. The RONW stands at 8.38% in 2022, compared to -127.16% in 2021 and 0% in 2020. These positive figures reflect an improvement in the company 's ability to generate returns for its capital and shareholders.

Overall, the financial ratios of Arch Pharma Labs Limited indicate significant improvements in profitability and operational efficiency in 2022 compared to previous years. However, the company still faces challenges in covering interest expenses and may need to sustain its positive momentum to achieve long-term financial stability. Investors and stakeholders should carefully analyze these ratios to make informed decisions about their involvement with the company.

Arch Pharma Labs Dividend History

Arch Pharma Recent Performance

• Revenue from Operations increased 85.40% from Rs. 706.01 Crore in FY 2021 to Rs. 1308.98 Crore in FY 2022.

• Total borrowings of the company decreased from Rs. 1231.86 Crore in FY 2021 to Rs. 869.90 Crore in FY 2022.
• The Finance cost of the company decreased by 57.40% from Rs. 230.84 Crore to Rs. 98.33 Crore.
• Profit after tax of the company stood at Rs. 58.71 Crore in FY 2022 against a Profit after tax of Rs. 1869.44 Crore in FY 2021, showing a fall of 96.55%.
• For FY 2022, the company’s EPS was Rs. 3.41.
• The Current Ratio of the company as of 31st March 2022 is 1.28.
• The book value per share of the company as of 31st March 2022 is Rs. 39.93.