AJANTA PHARMA 2018-19 Annual Report Analysis

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AJANTA PHARMA 2018-19 Annual Report Analysis
Mon, 24 Jun

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 3.3% 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 21.8% in FY18 to 18.6% in FY19.

AJANTA PHARMA Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 21,258 20,554 -3.3%
Other income Rs m 242 211 -12.7%
Total Revenues Rs m 21,499 20,765 -3.4%
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 % 21.8 18.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



AJANTA PHARMA Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 4 billion as compared to Rs 3 billion in FY18, thereby witnessing an increase of 9.1%.
  • Long-term debt down at Rs 7 million as compared to Rs 10 million during FY18, a fall of 34.7%.
  • Current assets fell 3% and stood at Rs 12 billion, while fixed assets rose 29% and stood at Rs 14 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 27 billion as against Rs 24 billion during FY18, thereby witnessing a growth of 10%.

AJANTA PHARMA Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 20,414 22,452 10.0
 
Current Liabilities Rs m 3,461 3,776 9.1
Long-term Debt Rs m 10 7 -34.7
Total Liabilities Rs m 24,486 26,962 10.1
 
Current assets Rs m 12,236 11,812 -3.5
Fixed Assets Rs m 11,140 14,398 29.3
Total Assets Rs m 24,486 26,962 10.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 33.3% 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 45 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 3,748 33.3%
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 45 -81.8%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for AJANTA PHARMA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 44.0, an decline from the EPS of Rs 52.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 950.0, stands at 21.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.5 times, while the price to sales ratio stands at 5.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 18.2 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 239.5 233.5
TTM Earnings per share Rs 52.8 44.0
Diluted earnings per share Rs 53.3 44.0
Price to Cash Flow x 16.0 18.2
TTM P/E ratio x 21.8 21.6
Price / Book Value ratio x 6.4 4.5
Market Cap Rs m 84,332 83,553
Dividends per share (Unadj.) Rs 0.0 9.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for AJANTA PHARMA

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 3.1x 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 14.4% during FY19, from 19.2% 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 3.1
Debtors’ Days Days 79 82
Interest coverage x 1,519.4 444.3
Debt to equity ratio x 0.0 0.0
Return on assets % 19.2 14.4
Return on equity % 23.0 17.2
Return on capital employed % 30.5 23.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 up from Rs 1,035.3 to Rs 950.0, registering a loss of Rs 85.3 or around 8.2%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 12,681.1 (down 0.1%). Over the last one year it has moved down from 14,298.5 to 12,681.1, a loss of 1,617 points (down 11.3%).

Overall, the S&P BSE SENSEX is up 10.4% over the year.

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

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Related Views on News

AJANTA PHARMA Announces Quarterly Results (3QFY20); Net Profit Up 60.8% (Quarterly Result Update)

Feb 6, 2020 | Updated on Feb 6, 2020

For the quarter ended December 2019, AJANTA PHARMA has posted a net profit of Rs 1 bn (up 60.8% YoY). Sales on the other hand came in at Rs 7 bn (up 34.2% YoY). Read on for a complete analysis of AJANTA PHARMA's quarterly results.

AJANTA PHARMA Announces Quarterly Results (2QFY20); Net Profit Down 7.2% (Quarterly Result Update)

Nov 8, 2019 | Updated on Nov 8, 2019

For the quarter ended September 2019, AJANTA PHARMA has posted a net profit of Rs 1 bn (down 7.2% YoY). Sales on the other hand came in at Rs 6 bn (up 18.1% YoY). Read on for a complete analysis of AJANTA PHARMA's quarterly results.

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