InvestorQ : How were the results of Caplin Point Labs for the Sep-20 quarter?
Katherine Gonsalves made post

How were the results of Caplin Point Labs for the Sep-20 quarter?

rhea Babu answered.
2 weeks ago

This is another pharma company that has done pretty well. Caplin Point reported 18% increase in Sep-20 quarter sales at Rs.268 crore. The overall impact on the sales of the company was very limited in the Jun-20 quarter, despite the COVID scare.

We now look for operating performance. For Sep-20 quarter, operating profits were up 23.3% at Rs.78.55 crore supported by higher sales revenues resulting which resulted in more effective fixed cost absorption combined with better cost management. As a result, the OPM of the company expanded by nearly 126 bps to 29.30% in the second quarter.

Let us not turn to the bottom line. Net profits for the quarter were up 9.73% at Rs.62.8 crore. Due to a higher proportion of other income in the previous quarter the net margins actually contracted by 177 bps at 23.43%.

What is interesting for Caplin Point is that net cash flows from operating activities actually improved nearly four-fold to Rs.193 crore hinting at robust cash generation. This was due to favourable movements in inventories and trade receivables. Of course, major investments in the coming months will be in the oncology facility near Chennai and that could impact short term cash flows for the company.