IOL CHEMICALS AND PHARMACEUTICALS LTD - Q1 FY 21 RESULTS REVIEW - DATED 22 09 2020

 

IOL CHEMICALS AND PHARMACEUTICALS LTD

Q1 FY 21 RESULTS REVIEW   

DT 22-09-2020

 

Management

Rajender Mohan Malla       Chairman & Ind.Director

Varinder Gupta                  Managing Director

Vijay Garg                         Joint Managing Director

Vikas Gupta                       Executive Director

 

COMPANY OVERVIEW

IOL Chemicals and Pharmaceuticals Ltd manufactures active pharmaceutical ingredient, organic chemicals and intermediates.

The company was incorporated in the year 1986.

The company manufactures and supplies industrial chemicals and bulk drugs for use in various pharmaceutical applications.

Their portfolio includes industrial chemicals, industrial organic chemicals and bulk drugs.

The company has two segments namely chemicals and pharmaceuticals.

Under the chemical division, the company manufactures bulk chemicals, such as acetic acid and specialty chemicals, including ethyl acetate and acetic anhydride.

QUARTERLY RESULTS

 

IOL Chemicals and Pharmaceuticals (in Rs. Cr.)	Jun '20	Mar '20	Dec '19	Sep '19	Jun '19	YOY	QOQ
Net Sales	460.11	441.46	511.25	448.96	492.8	-6.63	4.22
Consumption of Raw Materials	251.79	247.12	279.51	253.13	264.29	-4.73	1.89
Increase/Decrease in Stocks	-3.55	-4.66	9.78	-0.73	16.57	-121.42	-23.82
Employees Cost	24.28	25.07	24.06	24.08	23.99	1.21	-3.15
depreciat	9.36	9.36	8.94	8.84	8.59	8.96	0
Other Expenses	35.47	37.08	38.4	39.56	43.34	-18.16	-4.34
P/L Before Other Inc. , Int., Excpt. Items & Tax	142.76	127.49	150.56	124.08	136.02	4.96	11.98
Other Income	5.8	5.35	3.96	3.39	3.32	74.7	8.41
P/L Before Int., Excpt. Items & Tax	148.56	132.84	154.52	127.47	139.34	6.62	11.83
Interest	1.82	2.76	3.76	6.09	8.32	-78.13	-34.06
P/L Before Tax	146.74	130.08	150.76	121.38	131.02	12	12.81
Tax	19.2	39.82	52.75	33.68	45.7	-57.99	-51.78
Net Profit	127.54	90.26	98.01	87.7	85.32	49.48	41.3
Equity Share Capital	58.71	56.89	56.89	56.89	56.89	3.2	3.2
Basic EPS	22.3	15.87	17.22	15.42	15	48.67	40.52
MP	829
PE	9.293722
VOLUMES	6,83,000
52 Wk L/H	147.35	898.4

 

 

Dividend Summary

For the year ending March 2020 IOL has declared an equity dividend of 30.00% amounting to Rs 3 per share. At the current share price of Rs 827.10 this results in a dividend yield of 0.36%.

 

The company has a good dividend track report and has consistently declared dividends for the last 5 years.

 

Annual Results	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Sales	1,894	1,685	983	710	580
Other Income	16	10	1	1	1
Total Income	1,910	1,695	985	711	581
Total Expenditure	1,356	1,308	889	638	558
EBIT	554	387	95	73	22
Interest	20	51	64	67	61
Tax	171	99	3	1	1
Net Profit	361	236	27	4	-40

 

Historical Prices
	3M BEF	Current Price	%Gain / Loss
Open Price	375	820	118.61
	1YR BEF
Open Price	184	820	345.77
	2YR BEF
Open Price	143	820	473.03
	3YR BEF
Open Price	60	820	1257.62

 

Share Holding Pattern in (%)
Standalone	Jun-20	Mar-20	Sep-19	Jun-19
Promoters	43.69	41.89	41.89	41.89
Pledged	0	0	0	0
FII/FPI	6.47	2.61	1.75	1.46
Total DII	25.73	29.5	31.34	32.54
Fin.Insts	0.23	0.24	0.36	0.55
Insurance Co	0	0	0	0
MF	0.02	0.02	0.02	0.02
Others DIIs	25.48	29.24	30.96	31.97
Others	24.12	26	25.02	24.11
Total	100.01	100	100	100
Per Share Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Basic EPS (Rs.)	64	42	5	1	-8
Diluted Eps (Rs.)	63	42	5	1	-8
Book Value [Excl. Reval Reserve]/Share (Rs.)	143	83	38	34	33
Dividend/Share (Rs.)	3	0	0	0	0
Face Value	10	10	10	10	10
Margin Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Gross Profit Margin (%)	31	25	13	15	9
Operating Margin (%)	29	23	10	10	4
Net Profit Margin (%)	19	14	3	1	-7
Return Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Return on Networth / Equity (%)	44	50	13	2	-22
ROCE (%)	62	57	19	15	-8
Return On Assets (%)	31	25	3	1	-5
Leverage Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Debt to Equity (x)	0	1	2	2	2
Interest Coverage Ratios (%)	26	8	1	1	0
Growth Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
3 Yr CAGR Sales (%)	39	54	30	36	1
3 Yr CAGR Net Profit (%)	261	612	-17	-74	248

 

SWOT ANALYSIS

STRENGTHS

Promoters increasing shareholding

High TTM EPS Growth

Strong QoQ EPS Growth in recent results

Growth in Net Profit and Profit Margin (QoQ) and YoY

Annual Net Profits improving for last 2 years

Zero Promoter Pledge

FII / FPI or Institutions increasing their shareholding

Recent Results : Growth in Operating Profit and operating margins (YoY)

Strong Price Momentum

OPPORTUNITIES

Current TTM PE Ratio less than 3 Year, 5 Year and 10 Year PE

High ROCE and Low PE

Negative to Positive growth in Sales and Profit with Strong Price momentum

RSI indicating price strength

THREATS

Increasing Trend in Non-Core Income

CHARTS

Lowest Price Point in Apr-2020

Then Onwards Upwards curve

Monthly TECHNICAL RATING

Bullish

Valuation

Market Cap (Rs Cr.)    4,882.24

P/E                             12.09

Book Value (Rs)          138.89

Dividend (%)              30

Industry P/E                37.28

EPS (TTM)                  68.73

P/C                             11.11

Price/Book                  5.99

Dividend Yield.(%)      0.36

Face Value (RS)          10

EARLIER NEWS :

03.08.2020  :

IOL Chemicals Standalone June 2020 Net Sales at Rs 460.11 crore, down 6.63% Y-o-Y

15.06.2020

IOL Chemicals Standalone March 2020 Net Sales at Rs 441.46 crore, up 4.54% Y-o-Y

30.05.2019

IOL Chemicals Standalone March 2019 Net Sales at Rs 422.29 crore, up 46.87% Y-o-Y

12.02.2019

IOL Chemicals Standalone December 2018 Net Sales at Rs 478.29 crore, up 82.08% Y-o-Y