InvestorQ : How did IPCA Laboratories manage to report such strong results for the Sep-20 quarter?
swati Bakhda made post

How did IPCA Laboratories manage to report such strong results for the Sep-20 quarter?

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Sam Eswaran answered.
2 months ago
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Mumbai based IPCA Labs reported 6% higher sales revenues at Rs.1361 crore for the Sep-20 quarter. Like most other pharma companies, IPCA also managed to hold its own through the pandemic. The operating profits for the period were up 42.5% at Rs.308 crore on the back of higher sales absorbing fixed costs more effectively and lower other expenses.

This resulted in the OPM expanding from 16.84% to 22.63% in the Sep-20 quarter. Profit after tax (PAT) for the quarter was stronger by 37.8% to Rs.267 crore resulting in the PAT margins expanding but from 15.07% to 19.59% in Q2.

The strong performance also showed up in the net cash generated from operating activities which grew by over 300% at Rs.701 crore. This was largely on account of higher pre-tax profits and better working capital management resulting in operating efficiencies.

There were too many surprises in the segmental growth. While most of the segment showed mild to flat growth, the biggest yoy growth of 21% came from the active pharma ingredients or the API segment which contributed Rs381cr to the total revenues of IPCA.
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