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ASTRAZENECA PHARMA 2017-18 Annual Report Analysis

Sat, 31 Mar

ASTRAZENECA PHARMA has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

ASTRAZENECA PHARMA Income Statement Analysis

• Operating income during the year rose 5.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 25.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.1% in FY18 as against 6.9% in FY17.
• Depreciation charges decreased by 6.9% increased by 0.0% YoY, respectively.
• Other income declined by 14.9% YoY.
• Net profit for the year grew by 29.2% YoY.
• Net profit margins during the year grew from 3.7% in FY17 to 4.5% in FY18.

ASTRAZENECA PHARMA Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	5,388	5,700	5.8%
Other income	Rs m	144	123	-14.9%
Total Revenues	Rs m	5,532	5,823	5.3%
Gross profit	Rs m	369	463	25.3%
Depreciation	Rs m	158	147	-6.9%
Interest	Rs m	0	0	0.0%
Profit before tax	Rs m	355	438	23.4%
Tax	Rs m	155	179	15.8%
Profit after tax	Rs m	201	259	29.2%
Gross profit margin	%	6.9	8.1
Effective tax rate	%	43.5	40.8
Net profit margin	%	3.7	4.5

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ASTRAZENECA PHARMA Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 2 billion as compared to Rs 2 billion in FY17, thereby witnessing an increase of 8.2%.
• Current assets rose 26% and stood at Rs 3 billion, while fixed assets fell 3% and stood at Rs 2 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 6 billion as against Rs 5 billion during FY17, thereby witnessing a growth of 12%.

ASTRAZENECA PHARMA Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	2,212	2,449	10.7
Current Liabilities	Rs m	2,021	2,187	8.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	5,136	5,753	12.0
Current assets	Rs m	2,633	3,326	26.4
Fixed Assets	Rs m	2,503	2,427	-3.1
Total Assets	Rs m	5,136	5,753	12.0

ASTRAZENECA PHARMA Cash Flow Statement Analysis

• ASTRAZENECA PHARMA's cash flow from operating activities (CFO) during FY18 stood at Rs 88 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -94 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 0 million, an improvement of 0% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -6 million from the Rs 384 million net cash flows seen during FY17.

ASTRAZENECA PHARMA Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	381	88	-76.9%
Cash Flow from Investing Activities	Rs m	3	-94	-
Cash Flow from Financing Activities	Rs m	0	0	0.0%
Net Cash Flow	Rs m	384	-6	-

Current Valuations for ASTRAZENECA PHARMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.4, an improvement from the EPS of Rs 8.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 926.5, stands at 88.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.5 times, while the price to sales ratio stands at 4.1 times.
• The company's price to cash flow (P/CF) ratio stood at 66.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	215.5	228.0
TTM Earnings per share	Rs	8.0	10.4
Diluted earnings per share	Rs	8.0	10.4
Price to Cash Flow	x	65.5	66.4
TTM P/E ratio	x	96.2	88.9
Price / Book Value ratio	x	12.0	11.0
Market Cap	Rs m	26,550	27,007
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ASTRAZENECA PHARMA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY18, from 1.3x during FY17. The current ratio measures the company's ability to pay short-term and long-term obligations.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 10.6% during FY18, from 9.1% during FY18. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 17.9% during FY18, from 16.0% during FY17. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 4.5% during FY18, from 3.9% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	1.3	1.5
Debtors’ Days	Days	29	35
Interest coverage	x	0.0	0.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.9	4.5
Return on equity	%	9.1	10.6
Return on capital employed	%	16.0	17.9

To see how ASTRAZENECA PHARMA has performed over the last 5 years, please visit here.

ASTRAZENECA PHARMA Share Price Performance

Over the last one year, ASTRAZENECA PHARMA share price has moved down from Rs 940.7 to Rs 926.5, registering a loss of Rs 14.2 or around 1.5%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 13,157.6 (down 1.1%). Over the last one year it has moved down from 15,312.4 to 13,157.6, a loss of 2,155 points (down 14.1%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for ASTRAZENECA PHARMA and quarterly results for ASTRAZENECA PHARMA)

Read: Latest Annual Report Analysis of ASTRAZENECA PHARMA