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AUROBINDO PHARMA 2017-18 Annual Report Analysis
Sat, 31 Mar

AUROBINDO 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.

AUROBINDO PHARMA Income Statement Analysis

  • Operating income during the year rose 11.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 9.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 23.0% in FY18 as against 23.3% in FY17.
  • Depreciation charges increased by 30.5% and finance costs increased by 16.5% YoY, respectively.
  • Other income declined by 12.0% YoY.
  • Net profit for the year grew by 5.4% YoY.
  • Net profit margins during the year declined from 15.6% in FY17 to 14.7% in FY18.

AUROBINDO PHARMA Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 147,292 164,262 11.5%
Other income Rs m 1,159 1,020 -12.0%
Total Revenues Rs m 148,451 165,282 11.3%
Gross profit Rs m 34,343 37,718 9.8%
Depreciation Rs m 4,276 5,580 30.5%
Interest Rs m 667 777 16.5%
Profit before tax Rs m 30,558 32,380 6.0%
Tax Rs m 7,597 8,183 7.7%
Profit after tax Rs m 22,962 24,198 5.4%
Gross profit margin % 23.3 23.0
Effective tax rate % 24.9 25.3
Net profit margin % 15.6 14.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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AUROBINDO PHARMA Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 87 billion as compared to Rs 66 billion in FY17, thereby witnessing an increase of 31.2%.
  • Long-term debt stood at Rs 5 billion as compared to Rs 2 billion during FY17, a growth of 148.7%.
  • Current assets rose 32% and stood at Rs 122 billion, while fixed assets rose 27% and stood at Rs 88 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 209 billion as against Rs 161 billion during FY17, thereby witnessing a growth of 30%.

AUROBINDO PHARMA Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 93,718 116,804 24.6
 
Current Liabilities Rs m 66,056 86,659 31.2
Long-term Debt Rs m 1,814 4,512 148.7
Total Liabilities Rs m 160,817 209,422 30.2
 
Current assets Rs m 92,062 121,782 32.3
Fixed Assets Rs m 68,755 87,641 27.5
Total Assets Rs m 160,817 209,422 30.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



AUROBINDO PHARMA Cash Flow Statement Analysis

  • AUROBINDO PHARMA's cash flow from operating activities (CFO) during FY18 stood at Rs 20 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -19 billion, an improvement of 7.8% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 9 billion, an improvement of 145% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 9 billion from the Rs -4 billion net cash flows seen during FY17.

AUROBINDO 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 32,786 19,545 -40.4%
Cash Flow from Investing Activities Rs m -17,870 -19,266 -
Cash Flow from Financing Activities Rs m -19,153 8,642 -
Net Cash Flow Rs m -4,239 8,919 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for AUROBINDO PHARMA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 41.3, an improvement from the EPS of Rs 39.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 557.3, stands at 13.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 2.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 12.9 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 251.4 280.4
TTM Earnings per share Rs 39.2 41.3
Diluted earnings per share Rs 39.2 41.3
Price to Cash Flow x 14.5 12.9
TTM P/E ratio x 17.3 13.5
Price / Book Value ratio x 4.7 3.3
Market Cap Rs m 444,392 384,634
Dividends per share (Unadj.) Rs 2.5 2.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for AUROBINDO PHARMA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.4x during FY18, from 1.4x during FY17. 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 42.7x during FY18, from 46.8x during FY17. 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 20.7% during FY18, from 24.5% 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 declined and down at 27.3% during FY18, from 32.7% 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 declined and down at 11.9% during FY18, from 14.7% 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 1.4 1.4
Debtors’ Days Days 69 68
Interest coverage x 46.8 42.7
Debt to equity ratio x 0.0 0.0
Return on assets % 14.7 11.9
Return on equity % 24.5 20.7
Return on capital employed % 32.7 27.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

AUROBINDO PHARMA Share Price Performance

Over the last one year, AUROBINDO PHARMA share price has moved down from Rs 675.2 to Rs 557.3, registering a loss of Rs 117.9 or around 17.5%.

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 AUROBINDO PHARMA and quarterly results for AUROBINDO PHARMA)

Annual Report FAQs

What is the current share price of AUROBINDO PHARMA?

AUROBINDO PHARMA currently trades at Rs 995.7 per share. You can check out the latest share price performance of AUROBINDO PHARMA here...

What was the revenue of AUROBINDO PHARMA in FY18? How does it compare to earlier years?

The revenues of AUROBINDO PHARMA stood at Rs 165,282 m in FY18, which was up 11.3% compared to Rs 148,451 m reported in FY17.

AUROBINDO PHARMA's revenue has grown from Rs 79,620 m in FY14 to Rs 165,282 m in FY18.

Over the past 5 years, the revenue of AUROBINDO PHARMA has grown at a CAGR of 20.0%.

What was the net profit of AUROBINDO PHARMA in FY18? How does it compare to earlier years?

The net profit of AUROBINDO PHARMA stood at Rs 24,198 m in FY18, which was up 5.4% compared to Rs 22,962 m reported in FY17.

This compares to a net profit of Rs 20,221 m in FY16 and a net profit of Rs 15,713 m in FY15.

Over the past 5 years, AUROBINDO PHARMA net profit has grown at a CAGR of 19.9%.

What does the cash flow statement of AUROBINDO 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 AUROBINDO PHARMA reveals:

  • Cash flow from operations decreased in FY18 and stood at Rs 19,545 m as compared to Rs 32,786 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -19,266 m as compared to Rs -17,870 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs 8,642 m as compared to Rs -19,153 m in FY17.

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

(Rs m)FY14FY15FY16FY17FY18
From Operations6,46312,36814,19832,78619,545
From Investments-8,187-13,980-14,452-17,870-19,266
From Financial Activity1,1769323,654-19,1538,642
Net Cashflow-5473,1313,397-4,2398,919

What does the Key Ratio analysis of AUROBINDO 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 AUROBINDO PHARMA reveals:

  • Operating profit margins witnessed a fall and stood at 23.0% in FY18 as against 23.3% in FY17.
  • Net profit margins declined from 15.6% in FY17 to 14.7% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.0 as compared to 0.0 in FY17.

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

 FY14FY15FY16FY17FY18
Operating Profit Margin (%)26.921.423.423.323.0
Net Profit Margin (%)14.713.114.815.614.7
Debt to Equity Ratio (x)0.30.30.10.00.0

Read: Latest Annual Report Analysis of AUROBINDO PHARMA

 

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