InvestorQ : What is your view on the latest Sep-20 quarter results of Advanced Enzymes?
ishika Banerjee made post

What is your view on the latest Sep-20 quarter results of Advanced Enzymes?

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Niti Shenoi answered.
2 weeks ago
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Specialized enzyme company, Advanced Enzymes, reported a spurt of 21% in Q2 net profit at Rs.38.6 crore even as the company maintained hefty margins. The company reported 8.03% higher Sep-20 quarter top line sales revenues at Rs.121 crore. Sale of enzymes held rock steady in the midst of the pandemic so post-COVID recovery was hardly an issue.

Let us look at operating profits first. It was up 26.76% at Rs.51.72 crore in the Sep-20 quarter. This growth was achieved largely on the back of lower cost of materials consumed. For this quarter, the operating margin expanded from 36.61% in the Sep-19 quarter to 42.96% in Sep-20 quarter; that is a margin expansion of more than 600 basis points.

The bottom line was also fairly impressive with PAT growing by 21.11% at Rs.38.56 crore for the Sep-20 quarter. The saga of rich margins continued in the bottom line also with PAT margins expanding from 28.57% to 32.03% in the Sep-20 quarter.

The biggest chunk of the revenues of Advanced Enzymes of 73% came from human healthcare followed by 16% from bio-processing. The animal healthcare segment generated 11% of the total revenues. Close to 85% of the revenues were equally split between the US and India, and the domestic franchise gives it a big advantage.

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