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News: Alembic Pharma has done an impairment review of CWIP assets of 3 new facilities in Gujarat namely Facility 2 (for oncology injectables and oral), Facility 3 (ophthalmic and general injectables) and Facility 4 (for oral solid dosages). The impairment amount as on Jan 1, 2023 stood at Rs 1,150 crores. The same shall be written-off to the Statement of Profit and Loss of the financial year 2022-23 which shall be utilised from General Reserve in order to maintain the accumulated unconditional distributable profits.
Views: This one time impairment impact notwithstanding, we believe this move bodes well for future return ratios and profitability. We expect more impairments in the due course.
Impact: Neutral