AUROBINDO PHARMA 2018-19 Annual Report Analysis

Sun, 31 Mar

AUROBINDO 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.

AUROBINDO PHARMA Income Statement Analysis

• Operating income during the year rose 19.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.8% in FY19 as against 23.0% in FY18.
• Depreciation charges increased by 19.7% and finance costs increased by 237.9% YoY, respectively.
• Other income grew by 52.3% YoY.
• Net profit for the year declined by 2.4% YoY.
• Net profit margins during the year declined from 14.7% in FY18 to 12.1% in FY19.

AUROBINDO PHARMA Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	164,262	195,636	19.1%
Other income	Rs m	1,020	1,553	52.3%
Total Revenues	Rs m	165,282	197,189	19.3%
Gross profit	Rs m	37,718	38,639	2.4%
Depreciation	Rs m	5,580	6,680	19.7%
Interest	Rs m	777	2,626	237.9%
Profit before tax	Rs m	32,380	30,887	-4.6%
Tax	Rs m	8,183	7,269	-11.2%
Profit after tax	Rs m	24,198	23,618	-2.4%
Gross profit margin	%	23.0	19.8
Effective tax rate	%	25.3	23.5
Net profit margin	%	14.7	12.1

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AUROBINDO PHARMA Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 120 billion as compared to Rs 87 billion in FY18, thereby witnessing an increase of 38.7%.
• Long-term debt down at Rs 2 billion as compared to Rs 5 billion during FY18, a fall of 60.1%.
• Current assets rose 26% and stood at Rs 153 billion, while fixed assets rose 25% and stood at Rs 109 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 263 billion as against Rs 209 billion during FY18, thereby witnessing a growth of 25%.

AUROBINDO PHARMA Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	116,804	138,907	18.9
Current Liabilities	Rs m	86,659	120,206	38.7
Long-term Debt	Rs m	4,512	1,800	-60.1
Total Liabilities	Rs m	209,422	262,711	25.4
Current assets	Rs m	121,782	153,323	25.9
Fixed Assets	Rs m	87,641	109,388	24.8
Total Assets	Rs m	209,422	262,711	25.4

AUROBINDO PHARMA Cash Flow Statement Analysis

• AUROBINDO PHARMA's cash flow from operating activities (CFO) during FY19 stood at Rs 17 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -29 billion, an improvement of 50.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs 19 billion, an improvement of 122% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 7 billion from the Rs 9 billion net cash flows seen during FY18.

AUROBINDO 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	19,545	16,510	-15.5%
Cash Flow from Investing Activities	Rs m	-19,266	-29,026	-
Cash Flow from Financing Activities	Rs m	8,642	19,191	122.1%
Net Cash Flow	Rs m	8,919	6,656	-25.4%

Current Valuations for AUROBINDO PHARMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 40.3, an decline from the EPS of Rs 41.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 786.0, stands at 19.5 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 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 13.1 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	280.4	333.9
TTM Earnings per share	Rs	41.3	40.3
Diluted earnings per share	Rs	41.3	40.3
Price to Cash Flow	x	11.0	13.1
TTM P/E ratio	x	13.5	19.5
Price / Book Value ratio	x	3.3	2.9
Market Cap	Rs m	384,634	397,541
Dividends per share (Unadj.)	Rs	2.5	2.5

Ratio Analysis for AUROBINDO PHARMA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY19, from 1.4x 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 12.8x during FY19, from 42.7x 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 17.0% during FY19, from 20.7% 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 23.8% during FY19, from 27.3% 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 10.0% during FY19, from 11.9% 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	1.4	1.3
Debtors’ Days	Days	68	64
Interest coverage	x	42.7	12.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.9	10.0
Return on equity	%	20.7	17.0
Return on capital employed	%	27.3	23.8

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 557.3 to Rs 786.0, registering a gain of Rs 228.8 or around 41.0%.

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 AUROBINDO PHARMA and quarterly results for AUROBINDO PHARMA)

Read: Latest Annual Report Analysis of AUROBINDO PHARMA