MANGALAM DURGS AND ORGANICS LTD - Q2 FY 21- RESULTS REVIEW

 

MANGALAM DURGS AND ORGANICS LTD

Q2 FY 21 RESULTS REVIEW

DT 06 12 2020

 

COMPANY PROFILE

Mangalam Drugs & Organics Limited commenced its manufacturing of Active Pharmaceutical Ingredients (APIs) and Intermediates at VAPI – Gujarat in 1977.

It has a multi-product manufacturing facility on two locations, and an in-house Research & Development laboratory recognized by the Department of Scientific & Industrial Research, Delhi Govt. of India (DSIR).

Over the last three decades, Mangalam has acquired worldwide reputation as a single stop destination for frontline Anti-malaria.

Mangalam  has a diversified product range having synergies in operations and economies of scale.

Mangalam is amongst the top companies in Asia in all the products it makes; and is also the largest manufacturer of some of its products in the world.

It is presently focused in the manufacturing of the following:

Active Pharma Ingredients (APIs)

Intermediates

Specialty Chemicals

Along with the WHO-GENEVA GMP Certification and EDQM approval for its API manufacturing plant, the company is also in an agreement with the prestigious Clinton Health Access Initiatives (CHAI) under its Fight Malaria Program for supply of anti-malaria APIs worldwide.

BOARD OF DIRECTORS

Shri Govardhan M. Dhoot-Chairman & Managing Director

Shri Brijmohan M. Dhoot-Executive Director

ANNUAL REPORT 2019-20 -Excerpts

TRANSFER TO RESERVES AND DIVIDEND:

The Company has not transferred any amount in the Financial Year ended March 31, 2020 to Reserves.

Further, the Directors do not recommend any dividend on equity shares for the year ended March 31, 2020. (No dividend was declared or paid in FY 2019-20).

STATE OF COMPANY’S AFFAIRS:

The Company is once again back on the growth path. The revenue from operations for the Financial Year 2019-20 is Rs. 282.35 Cr.

The Company registered a growth of 24% over the previous year (previous year revenue from operations stood Rs. 227.58 Cr).

The Company has achieved export turnover of Rs. 91.92 Cr as against Rs.42.33 Cr for the previous year registering an excellent growth of 117.16%.

The  increase  in  the  export  and  domestic  sales  turnover  and  considerable  improvement  in  operational  performance  resulted  in  increased  profitability of Rs. 8.25 Cr as compared to previous year loss of Rs.(8.03 Cr).

FUTURE OUTLOOK

The Company was engaged in building and strengthening the Antimalarial and Antiviral business during initial months of last fiscal.

The Company is looking into going for backward integration for making the raw materials for its APIs like Acyclovir, Primaquine, Sulfadoxine and DBA etc.

 This is in line with the Make in India drive and will help in reducing the dependence on cost constraining advance intermediaries.

The Hydroxychloroquine  API contributed in addressing prophylactic needs of COVID-19 front line health workers during March month. In upcoming year too, the Company is committed to supply Hydroxychloroquine globally alongside developing APIs like Favipiravir which are in advanced clinical trials, as on report date. The pandemic tremors are felt globally and the Company is firmly placed to address various therapeutic needs with the diversified portfolio.

QUARTERLY RESULTS:

Mangalam Drugs & Organics (in Rs. Cr.)	Sep '20	Jun '20	Mar '20	Dec '19	Sep '19	YOY	QOQ
Net Sales	97	104	88	62	67	44.24	-6.38
Total Expenditure	81	92	83	59	63	28.57	-11.96
Raw Materials	79	69	53	37	46	72.12	13.59
Net Profit	11	8.3	5.1	1.7	0.81	1269	33.61
Basic EPS:FV 10	7	5.24	3.19	1.04	0.51
Equity Share Capital	15.83	15.83	15.83	15.83	15.83	0	0
Increase/Decrease in Stocks	-17.65	3.84	10.84	4.08	0.57	-3196.49	-559.64
Employees Cost	7.13	6.87	7.06	6.35	6.59	8.19	3.78
depreciation	2.27	2.06	2.1	2.06	2.27	0	10.19
Other Expenses	11.33	10.13	10.24	9.1	8.33	36.01	11.85
P/L Before Other Inc. , Int., Excpt. Items & Tax	15.36	11.56	5.06	2.9	3.86	297.93	32.87
Other Income	0.68	0.65	0.45	0.66	0.03	2166.67	4.62
P/L Before Int., Excpt. Items & Tax	16.04	12.21	5.52	3.56	3.89	312.34	31.37
Interest	2.6	2.16	2.46	2.54	2.75	-5.45	20.37
P/L Before Tax	13.44	10.05	3.05	1.02	1.14	1078.95	33.73
Tax	2.35	1.76	-2	-0.64	0.33	612.12	33.52

 

MP  143

PE   5.11      

VOLUME 157000  

52 Wk L/H     20.4       175.3

TECHNICAL RATING       

MONTHLY      VERY BULLISH    

Annual Results	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Sales	282	227	279	302	295
Net Profit	8	-8	19	22	16
Other Income	1	0	0	0	0
Total Income	283	227	280	303	295
Total Expenditure	266	224	239	261	261
EBIT	16	2	41	41	33
Interest	10	8	11	10	9
Tax	-2	2	9	8	7

 

historical prices
3yr before	164
2Yr Bef	74.35
1Yr Bef	29.7
3month bef	119.8
1Month	145.55
1 week	149
now	142.8

 

Share Holding Pattern in (%)
Standalone	Sep-20	Jun-20	Mar-20	Dec-19
Promoters	50.53	50.53	50.53	50.53
Pledged	33.57	61.89	61.89	0
FII/FPI	0	0	0	0
Total DII	5.58	5.94	5.97	5.9
Fin.Insts	0.01	0.01	0.01	0.08
Insurance Co	0	0	0	0
MF	0	0	0	0
Others DIIs	5.57	5.93	5.96	5.82
Others	43.89	43.54	43.5	43.58
Total	100	100.01	100	100.01

 

Type	Dividend%	Ex-Dividend date
Interim	5	Dec 21, 2017
Final	2	Sep 19, 2006
Final	2	Aug 30, 2005

 

CASH FLOWS	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Operating Activities	30	21	24	42	21
Investing Activities	-6	-9	-15	-39	-10
Financing Activities	-23	-11	-8	-3	-11
Others	0	0	0	0	0
Net Cash Flow	0	1	0	0	0

 

Per Share Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Basic EPS (Rs.)	5.21	-5.07	12.57	14.07	11.15
Diluted Eps (Rs.)	5.21	-5.07	12.57	14.07	10.13
Book Value [Excl. Reval Reserve]/Share (Rs.)	65.67	60.44	65.56	54.15	42.79
Dividend/Share (Rs.)	0	0	0.5	0	0
Face Value	10	10	10	10	10
Margin Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Gross Profit Margin (%)	8.8	4.39	17.07	15.26	12.78
Operating Margin (%)	5.89	1.27	14.72	13.6	11.28
Net Profit Margin (%)	2.92	-3.52	7.11	7.35	5.43
Return Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Return on Networth / Equity (%)	7.93	-8.39	19.16	25.98	26.05
ROCE (%)	13.74	2.41	32.39	36.88	18.45
Return On Assets (%)	3.57	-3.79	8.77	11.75	10.03
Liquidity Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Current Ratio (X)	1.09	1.16	1.23	1.23	1.37
Quick Ratio (X)	0.5	0.35	0.63	0.75	0.72
Leverage Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Debt to Equity (x)	0.44	0.62	0.6	0.68	0.85
Interest Coverage Ratios (%)	1.6	0.34	3.49	4.11	3.58

 

 

Turnover Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Asset Turnover Ratio (%)	122.4	107.67	123.19	159.83	184.66
Inventory Turnover Ratio (X)	4.35	3.1	4.65	8.13	6.23
Valuation Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
P/E (x)	0	-10.77	12.92	10.31	22.72
P/B (x)	0.46	0.91	2.47	2.66	5.93
EV/EBITDA (x)	3.72	14.5	6.67	6.18	11.04
P/S (x)	0.17	0.38	0.92	0.75	1.24
Growth Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
3 Yr CAGR Sales (%)	-2.31	-8.29	8.2	35.29	33.05
3 Yr CAGR Net Profit (%)	--	--	47.96	94.24	10.75

 

BALANCE SHEET
quities & Liabilities	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Share Capital	15	15	15	15	14
Reserves & Surplus	88	79	87	69	38
Current Liabilities	109	90	99	77	72
Other Liabilities	17	24	23	26	33
Total Liabilities	230	211	226	189	159
Assets
Fixed Assets	102	103	101	92	59
Current Assets	119	105	122	95	99
Other Assets	9	2	1	1
Total Assets	230	211	226	189	159
Other Info
Contingent Liabilities	7	6	1	8	6