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AUROBINDO PHARMA 2017-18 Annual Report Analysis

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AUROBINDO PHARMA 2017-18 Annual Report Analysis
Wed, 3 Oct

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 10.4% 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 22.9% in FY18 as against 23.0% in FY17.
  • Depreciation charges and finance costs increased by 30.5% YoY and 16.5% YoY, respectively.
  • Other income declined by 12.0% YoY.
  • Net profit for the year grew by 5.3% YoY.
  • Net profit margins during the year declined from 15.3% in FY17 to 14.6% in FY18.

AUROBINDO PHARMA Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 149,157 164,666 10.4%
Other income Rs m 1,159 1,020 -12.0%
Total Revenues Rs m 150,316 165,686 10.2%
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 23,012 24,229 5.3%
Gross profit margin % 23.0 22.9
Effective tax rate % 24.9 25.3
Net profit margin % 15.3 14.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 31.4%.
  • 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 29% and stood at Rs 81 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 211 billion as against Rs 162 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 93,719 116,804 24.6
 
Current Liabilities Rs m 66,056 86,806 31.4
Long-term Debt Rs m 1,814 4,512 148.7
Total Liabilities Rs m 162,494 211,052 29.9
 
Current assets Rs m 92,062 121,878 32.4
Fixed Assets Rs m 62,919 81,037 28.8
Total Assets Rs m 162,494 211,052 29.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 -20 billion, an improvement of 9.5% 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 19,548 -40.4%
Cash Flow from Investing Activities Rs m -17,870 -19,570 -
Cash Flow from Financing Activities Rs m -19,153 8,642 -
Net Cash Flow Rs m -4,239 8,922 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for AUROBINDO PHARMA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 41.4, an improvement from the EPS of Rs 39.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 778.6, stands at 19.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 2.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 15.3 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 254.6 281.1
TTM Earnings per share Rs 39.3 41.4
Diluted earnings per share Rs 39.3 41.4
Price to Cash Flow x 16.7 15.3
TTM P/E ratio x 19.3 19.3
Price / Book Value ratio x 4.7 3.3
Market Cap Rs m 456,166 455,613
Dividends per share (Unadj.) Rs 2.5 2.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 24.6% 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 27.4% 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 11.8% during FY18, from 14.6% 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 68 68
Interest coverage x 46.8 42.7
Debt to equity ratio x 0.0 0.0
Return on assets % 14.6 11.8
Return on equity % 24.6 20.7
Return on capital employed % 32.7 27.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 up from Rs 707.7 to Rs 778.6, registering a gain of Rs 71.0 or around 10.0%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 15,125.0 (up 0.4%). Over the last one year it has moved up from 13,557.0 to 15,125.0, a gain of 1,568 points (up 11.6%).

Overall, the S&P BSE SENSEX is up 15.4% over the year.

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

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For the quarter ended December 2018, AUROBINDO PHARMA has posted a net profit of Rs 7 bn (up 19.3% YoY). Sales on the other hand came in at Rs 53 bn (up 21.5% YoY). Read on for a complete analysis of AUROBINDO PHARMA's quarterly results.

AUROBINDO PHARMA 2017-18 Annual Report Analysis (Annual Result Update)

Dec 19, 2018 | Updated on Dec 19, 2018

Here's an analysis of the annual report of AUROBINDO PHARMA for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of AUROBINDO PHARMA. Also includes updates on the valuation of AUROBINDO PHARMA.

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