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AJANTA PHARMA 2018-19 Annual Report Analysis
Sun, 31 Mar

AJANTA PHARMA has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

AJANTA PHARMA Income Statement Analysis

  • Operating income during the year fell 3.1% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 14.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 27.6% in FY19 as against 31.0% in FY18.
  • Depreciation charges increased by 21.0% and finance costs increased by 182.9% YoY, respectively.
  • Other income declined by 12.7% YoY.
  • Net profit for the year declined by 17.4% YoY.
  • Net profit margins during the year declined from 22.1% in FY18 to 18.8% in FY19.

AJANTA PHARMA Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 21,207 20,554 -3.1%
Other income Rs m 242 211 -12.7%
Total Revenues Rs m 21,448 20,765 -3.2%
Gross profit Rs m 6,584 5,664 -14.0%
Depreciation Rs m 596 721 21.0%
Interest Rs m 4 12 182.9%
Profit before tax Rs m 6,226 5,143 -17.4%
Tax Rs m 1,539 1,273 -17.3%
Profit after tax Rs m 4,686 3,870 -17.4%
Gross profit margin % 31.0 27.6
Effective tax rate % 24.7 24.8
Net profit margin % 22.1 18.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

AJANTA PHARMA Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 5 billion as compared to Rs 3 billion in FY18, thereby witnessing an increase of 44.0%.
  • Long-term debt down at Rs 7 million as compared to Rs 10 million during FY18, a fall of 34.7%.
  • Current assets rose 6% and stood at Rs 13 billion, while fixed assets rose 34% and stood at Rs 16 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 29 billion as against Rs 24 billion during FY18, thereby witnessing a growth of 20%.

AJANTA PHARMA Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 20,397 22,441 10.0
 
Current Liabilities Rs m 3,461 4,984 44.0
Long-term Debt Rs m 10 7 -34.7
Total Liabilities Rs m 24,260 29,058 19.8
 
Current assets Rs m 12,236 13,005 6.3
Fixed Assets Rs m 12,024 16,053 33.5
Total Assets Rs m 24,260 29,058 19.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



AJANTA PHARMA Cash Flow Statement Analysis

  • AJANTA PHARMA's cash flow from operating activities (CFO) during FY19 stood at Rs 4 billion, an improvement of 33.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -1 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 43 million from the Rs 248 million net cash flows seen during FY18.

AJANTA PHARMA Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 2,811 3,745 33.2%
Cash Flow from Investing Activities Rs m -2,561 -2,228 -
Cash Flow from Financing Activities Rs m -2 -1,475 -
Net Cash Flow Rs m 248 43 -82.8%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for AJANTA PHARMA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 44.4, an decline from the EPS of Rs 53.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,030.4, stands at 22.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.9 times, while the price to sales ratio stands at 4.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 22.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 241.0 235.6
TTM Earnings per share Rs 53.2 44.4
Diluted earnings per share Rs 54.9 45.3
Price to Cash Flow x 22.7 22.0
TTM P/E ratio x 25.6 22.7
Price / Book Value ratio x 6.3 4.5
Market Cap Rs m 128,677 101,190
Dividends per share (Unadj.) Rs 0.0 9.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for AJANTA PHARMA

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.6x during FY19, from 3.5x during FY18. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 444.3x during FY19, from 1,519.4x during FY18. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company declined and down at 17.2% during FY19, from 23.0% during FY19. 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 declined and down at 23.0% during FY19, from 30.5% during FY18. 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 declined and down at 13.4% during FY19, from 19.3% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 3.5 2.6
Debtors’ Days Days 8 8
Interest coverage x 1,519.4 444.3
Debt to equity ratio x 0.0 0.0
Return on assets % 19.3 13.4
Return on equity % 23.0 17.2
Return on capital employed % 30.5 23.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

AJANTA PHARMA Share Price Performance

Over the last one year, AJANTA PHARMA share price has moved down from Rs 1,405.8 to Rs 1,030.4, registering a loss of Rs 375.4 or around 26.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 14,407.9 (up 1.4%). Over the last one year it has moved up from 13,157.6 to 14,407.9, a gain of 1,250 points (up 9.5%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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

Annual Report FAQs

What is the current share price of AJANTA PHARMA?

AJANTA PHARMA currently trades at Rs 2,238.1 per share. You can check out the latest share price performance of AJANTA PHARMA here...

What was the revenue of AJANTA PHARMA in FY19? How does it compare to earlier years?

The revenues of AJANTA PHARMA stood at Rs 20,765 m in FY19, which was down -3.2% compared to Rs 21,448 m reported in FY18.

AJANTA PHARMA's revenue has grown from Rs 14,787 m in FY15 to Rs 20,765 m in FY19.

Over the past 5 years, the revenue of AJANTA PHARMA has grown at a CAGR of 8.9%.

What was the net profit of AJANTA PHARMA in FY19? How does it compare to earlier years?

The net profit of AJANTA PHARMA stood at Rs 3,870 m in FY19, which was down -17.4% compared to Rs 4,686 m reported in FY18.

This compares to a net profit of Rs 5,068 m in FY17 and a net profit of Rs 4,156 m in FY16.

Over the past 5 years, AJANTA PHARMA net profit has grown at a CAGR of 5.7%.

What does the cash flow statement of AJANTA PHARMA reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of AJANTA PHARMA reveals:

  • Cash flow from operations increased in FY19 and stood at Rs 3,745 m as compared to Rs 2,811 m in FY18.
  • Cash flow from investments increased in FY19 and stood at Rs -2,228 m as compared to Rs -2,561 m in FY18.
  • Cash flow from financial activity decreased in FY19 and stood at Rs -1,475 m as compared to Rs -2 m in FY18.

Here's the cash flow statement of AJANTA PHARMA for the past 5 years.

(Rs m)FY15FY16FY17FY18FY19
From Operations2,7943,2616,0932,8113,745
From Investments-1,584-2,091-3,831-2,561-2,228
From Financial Activity-1,052-1,173-2,018-2-1,475
Net Cashflow159-324424843

What does the Key Ratio analysis of AJANTA PHARMA reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of AJANTA PHARMA reveals:

  • Operating profit margins witnessed a fall and stood at 27.6% in FY19 as against 31.0% in FY18.
  • Net profit margins declined from 22.1% in FY18 to 18.8% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.0 as compared to 0.0 in FY18.

Here's the ratio/financial analysis of AJANTA PHARMA for the past 5 years.

 FY15FY16FY17FY18FY19
Operating Profit Margin (%)34.034.235.031.027.6
Net Profit Margin (%)21.224.225.822.118.8
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of AJANTA PHARMA

 

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