ALKEM LABORATORIES

Historical Financial Information

RATIOS & ASSUMTIONS

Units
Revenue Growth %
COGS
Salaries and Benefits
Other SG&A Expenses
Depriciation And amortization Expenses
Intrest
Other income (expenses)
taxes
dividens

ALKEM LABORATORIES HISTORIC

Financial Statements & DCF Analysis 2019

INCOME STATEMENT
INCOME
Revenue IN MM 73,572
Cost Of Goods Sold(COGS) IN MM (29,450),-
Gross Profit IN MM 44,122
EXPENSES
Salaries and Benefits IN MM (13,625),-
Other SG&A Expenses IN MM (19,350),-
EBITDA IN MM 11,148
Depriciation And amortization Expenses IN MM (1,932),-
EBIT IN MM 9,216
Intrest IN MM (546),-
 Other income (expenses) IN MM 3,169
Earning before Tax IN MM 11,838
taxes IN MM (131),-
net profit 11,707
BALANCE SHEET

Assets inMM
current assets
cash inMM 2,491
bank deposits inMM 4,126
Accounts Recievables inMM 12,484
inventory inMM 14,999
other currents assets inMM 4,294

Non current Assets inMM

plant property and equipments inMM 29,791
goodwill inMM 443
financial assets inMM 5,016
Other non current assets inMM 8,131
Total assets 81,774
Liablity
current liabilities
Accounts payable 9,623
other current liability 5,840
non current liability
debt 9,026
hboother non current liabilty 1,874
total liabilty 26,362
shareholder equity
Equity Capital 239
Retained Earning 54,154
shareholder equity
non controlling intrest 1,326
tottal liabilty &She 108,444

cash flow statement 2019

Cash Flow from Operating Activities:
Profit before tax
Adjustments for:
Depreciation and amortisation expense
Liabilities no longer required written back
Profit on sale of investments
Unrealised (gain) / loss on fair valuation of investments (net)
Profit on sale of property plant and equipment (net)
 Unrealised foreign currency (gain) / loss on revaluation (net)
Dividend Income
Impairment loss on property, plant and equipment
Interest Income
Interest expenses
Allowances for doubtful debts
Subtotal of Adjustments
Operating profit before working capital changes
Adjustments for changes in working capital:
(Increase) in trade receivables
(Increase) / Decrease in loans, other financial assets and other assets
(Increase) Decrease in inventories
Increase / (Decrease) in trade payable, other financial liabilities and other liabilities
Increase in provisions
Subtotal of adjustments
Cash generated from operations
Less: Income taxes paid (net of refund)
Net Cash generated from operating activities
Cash Flow from Investing Activities:
Purchases of property, plant and equipment
Sale of property, plant and equipment
(Purchase of) / Proceeds from sale of investments (net)
(Investment made in) / Redemption of bank deposits having maturity of more than
Dividend received
Interest received
Net cash generated from / (used in) investing activities
Cash Flow from Financing Activities:
Repayment of non-current borrowings (net)
Proceeds from current borrowings (net)
Proceeds from issue of compulsory convertible preferance shares
Dividends paid
Repayment of lease liabilities (net)
Interest paid
Net cash (used in)/generated from financing activities
Net (decrease)/increase in cash and cash equivalents (A+B+C)
Cash and cash equivalents as at beginning of the year
Add/Less: Effect of exchange difference on foreign currency cash and cash
Cash and cash equivalents as at end of the year (D+E) (Refer Note 3. 9)

SUPPORTING SCHEDULE
Working Capital
Accounts Receivable
Inventory
Accounts Paybles
Other
Total
 -9.24% 32.77% 19.96% 9.08%
40% 38% 39% 39%
-19% -16% -18% -18%
-26% -24% -20% -23%
-11% -11%
3% 4%
-4% -21% -3% -1%
1% 3% 12% 9%

HISTORICAL PERIOD FORCAST PERIOD

2020 2021 2022 2023 2024 2025 2026

66,771 88,650 106,342 115,993

(25,506),- (34,985),- (41,803),- (49,068),-
41,265 53,666 64,539 66,924

(10,668),- (16,210),- (19,627),- (21,314),-

(15,921),- (18,031),- (24,383),- (29,516),-
14,676 19,424 20,529 16,095
(1,868),- (2,746),- (3,040),- (3,104),-
12,808 16,678 17,490 12,990
(387),- (589),- (524),- (1,074),-
 14,341 2,332 1,477 1,131
26,762 18,421 18,443 13,048
(737),- (2,243),- (1,640),- (2,980),-
26,025 16,178 16,803 10,068

1,759 1,742 2,322 2,738

9,163 18,162 23,464 23,431
16,494 16,072 18,846 21,322
18,188 23,124 30,055 26,075
5,266 5,550 6,323 7,361

30,677 30,226 28,381 25,929

2,033 1,637 4,031 4,261
5,299 6,677 12,646 12,381
10,275 11,814 14,422 14,130
99,154 115,005 140,489 137,628

9,541 11,734 11,734 11,650

7,858 10,396 10,396 12,158

15,035 25,987 26,372 13,775

3,911 3,293 3,407 5,442
36,344 51,409 51,909 43,025

239 239 239 239

61,368 73,528 86,140 90,214

1,483 1,813 2,094 3,897

135,777 178,399 192,291 180,399

2020 2021 2022 2023

18,442.80 13,047.70

3,039.60 3,104.20
-160.1 -17.5
-33.8 -21.6
69 287.0)
14.3 123.6
 -177 -118.8
-1.9 -1.9
11.2 1,051.50
-1,226.80 -1,711.40
523.7 1,073.60
27.8 48.8
2,086.00 3,243.50
20,528.80 16,291.20

-2,217.50 -1,347.10
-435.8 -770.1
-6,731.40 4,734.10
3,344.90 145.1
590.2 505.7
-5,449.60 3,267.70
15,079.20 19,558.90
-3,969.00 -2,733.90
11,110.20 16,825.00

-3,388.80 -2,329.10
109 32
-409.3 -2,175.30
-11,641.80 4,129.80
1.9 1.9
977.7 1,469.10
-14,351.30 1,128.40

-192.9 -95
8,820.70 12,689.8)
- 1,614.80
-4,219.10 -5,295.20
-211.7 -238.4
-401.3 -904.6
3,795.70 -17,608.20
554.6 345.2
1,742.20 2,321.80
25 71
2,321.80 2,738.00

-2,217.50 -1,347.10
-6,731.40 4,734.10
3,344.90 145.10
 154.4 -264.4
-5449.6 3267.7
CAST PERIOD
2027 2028
cash flow statement 2019
Cash Flow from Operating Activities:
Profit before tax
Adjustments for:
Depreciation and amortisation expense
Liabilities no longer required written back
Profit on sale of investments
Unrealised (gain) / loss on fair valuation of investments (net)
Profit on sale of property plant and equipment (net)
Unrealised foreign currency (gain) / loss on revaluation (net)
Dividend Income
Impairment loss on property, plant and equipment
Interest Income
Interest expenses
Allowances for doubtful debts
Subtotal of Adjustments
Operating profit before working capital changes
Adjustments for changes in working capital:
(Increase) in trade receivables
(Increase) / Decrease in loans, other financial assets and other assets
(Increase) Decrease in inventories
Increase / (Decrease) in trade payable, other financial liabilities and other liabilities
Increase in provisions
Subtotal of adjustments
Cash generated from operations
Less: Income taxes paid (net of refund)
Net Cash generated from operating activities
Cash Flow from Investing Activities:
Purchases of property, plant and equipment
Sale of property, plant and equipment
(Purchase of) / Proceeds from sale of investments (net)
(Investment made in) / Redemption of bank deposits having maturity of more than
Dividend received
Interest received
Net cash generated from / (used in) investing activities
Cash Flow from Financing Activities:
Repayment of non-current borrowings (net)
Proceeds from current borrowings (net)
Proceeds from issue of compulsory convertible preferance shares
Dividends paid
Repayment of lease liabilities (net)
Interest paid
Net cash (used in)/generated from financing activities
Net (decrease)/increase in cash and cash equivalents (A+B+C)
Cash and cash equivalents as at beginning of the year
 Add/Less: Effect of exchange difference on foreign currency cash and cash
Cash and cash equivalents as at end of the year (D+E) (Refer Note 3. 9)

CASH FLOW STATEMENT

Operating cash flow

Net Earning
Plus Depreiciation & Amortization
Plus/Less: Adjustment For Non Operating Items
SUPPORTING SCHEDULE
Working Capital
Accounts Receivable
Inventory
Accounts Paybles
Other
Total

Depriciation schedule
PPE Openings
Plus Capex
Less Dep
PPE Closing

Debt & Intrest Schedule

Debt Openings
Issuance & Repayment
Debt Closing
Intrest Expense
2020 2021 2022 2023

18,442.80 13,047.70

3,039.60 3,104.20
-160.1 -17.5
-33.8 -21.6
69 287.0)
14.3 123.6
-177 -118.8
-1.9 -1.9
11.2 1,051.50
-1,226.80 -1,711.40
523.7 1,073.60
27.8 48.8
2,086.00 3,243.50
20,528.80 16,291.20

-2,217.50 -1,347.10
-435.8 -770.1
-6,731.40 4,734.10
3,344.90 145.1
590.2 505.7
-5,449.60 3,267.70
15,079.20 19,558.90
-3,969.00 -2,733.90
11,110.20 16,825.00

-3,388.80 -2,329.10
109 32
-409.3 -2,175.30
-11,641.80 4,129.80
1.9 1.9
977.7 1,469.10
-14,351.30 1,128.40

-192.9 -95
8,820.70 12,689.8)
- 1,614.80
-4,219.10 -5,295.20
-211.7 -238.4
-401.3 -904.6
3,795.70 -17,608.20
554.6 345.2
1,742.20 2,321.80
 25 71
2,321.80 2,738.00

15,054.00 10,718.60
3,039.60 3104.2
-953.60 139.30
-2,217.50 -1,347.10
-6,731.40 4,734.10
3,344.90 145.10
154.4 -264.4
-5449.6 3267.7

27909 28381.2
3,511.80 652
-3,039.60 -3,104.20
28381.2 25929

17920 26372.1
8452.1 -12597.3
26372.1 13774.8
-523.7 -1073.6
ALKEM LABORATOROES LIMITED
Scenerios

Scenerios Growth% 2024

base case 13.14% 13%
bull case 32.77% 33%
bear case 9.24% 9%
Annual growth Tapering 20%
2025 2026 2027 2028
11% 8% 7% 5%
26% 21% 17% 13%
7% 6% 5% 4%