Alembic Chemicals Ltd

P& L
Statement for year ended on 31st
December2019

Profit and Loss Items Amount

(Rs. Crores)

Net Sales 1,695

Cost of Goods Sold 1,195
Selling and admin Expenses 302
Depreciation 40
Total Expenses 1,537
PBIT 158
Interest 30
PBT 128
0.351563 Tax 45
0.35 PAT 83
55.3 PER Share Data
10.5 EPS(Rs) 3.32
DPS(Rs) 2.2
Book Value (Rs) 29.2
Market Price(Rs)
High 28.16
Low 13.14
Average 20.65
Alembic Chemicals Ltd.
Balance sheet as on 31st December'20

Amount
Sources of Funds (Rs. Crores)
Shareholders' Funds
Paid Up Capital 250
(25 Crs shares @Rs10/-)
Reserves & Suplus 425 675
Debt Funds
Secured 200
Unsecured 95 295
Current Liabilities 178
Capital Employed 1,148

Uses Of Funds
Gross Block 657 575
Less: Depreciation 285
Net Block 372
Investments 23
Current Assets 753
1,148
 ·         Sales will grow @ 6% in 2020, @7% in 2021, @8% in 2022 and thereafter
·         Costs are expected to decline due to operational efficiency, consolidation of operations etc. Alembic’s
·         It is estimated that 11% is the average WDV depreciation rate for various blocks of assets (As per IT R
5% of sales will be invested in CAPEX
·         Alembic’s NWC to Sales ratio is 34% and TEAM AFL is of the opinion that the ratio will remain more o
·         After a horizon period of 5 years the FCF will grow @7% ( On a conservative approach)
 of operations etc. Alembic’s COGS has averaged around 70-71%of Sales and is now anticipated to be brought down to 66% of Sales.
s blocks of assets (As per IT Rules)

the ratio will remain more or less same.

ative approach)
ought down to 66% of Sales. This will take 2 yrs and the same with selling & Admin Expenses.
Alembic Chemicals Ltd

P& L
Statement for year
ended on 31st Dec
2019 2020 2021 2022 2023 2024

Profit and Loss Items Amount

(Rs. Crores)

Net Sales 1,695.00 1,796.70 1,922.47 2,076.27 2,242.37 2,421.76 2591.28

Cost of Goods Sold 1,195.00 1,239.72 1,268.83 1,370.34 1,479.96 1,598.36 1,710.24
Selling and admin E 302.00 305.44 307.60 311.44 336.36 363.26 388.69
Depreciation 40.00 50.24 54.60 59.17 64.08 69.36
Total Expenses 1,537.00 1,595.40 1,631.02 1,740.94 1,880.39 2,030.98
PBIT 158.00 201.30 291.45 335.33 361.97 390.77
less Tax 45
add: tax on 10.50 55.50 70.45 102.01 117.36 126.69 136.77
NOPAT 102.50 130.84 189.44 217.96 235.28 254.00
Add Depreciation 50.24 54.60 59.17 64.08 69.36
Less CAPEX 84.75 89.84 96.12 103.81 112.12
less change in n.w.c 35.88 42.76 52.29 56.47 60.99
FCF 60.46 111.44 128.71 139.07 150.25 160.7704
Terminal Value= {FCF (1+g)} / (WACC-g)
Dep Sch
Particular 2020 2021 2022 2023 2024
Bg. Of yr 372.00 406.51 441.74 478.70 518.44
Add. During yr 84.75 89.84 96.12 103.81 112.12
Total 456.75 496.34 537.87 582.52 630.56
Dep. For the yr 50.24 54.60 59.17 64.08 69.36
NFA 406.51 441.74 478.70 518.44 561.20

NWC 2020 2021 2022 2023 2024

SALES 1,796.70 1,922.47 2,076.27 2,242.37 2,421.76
34% 575 610.88 653.64 705.93 762.41 823.40
Change 35.88 42.76 52.29 56.47 60.99