AUROBINDO PHARMA 2018-19 Annual Report Analysis

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AUROBINDO PHARMA 2018-19 Annual Report Analysis
Wed, 6 Nov

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 18.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 4.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.2% in FY19 as against 22.9% 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 14.6% in FY18 to 12.0% in FY19.

AUROBINDO PHARMA Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 164,998 195,636 18.6%
Other income Rs m 1,020 1,553 52.3%
Total Revenues Rs m 166,018 197,189 18.8%
Gross profit Rs m 37,718 39,519 4.8%
Depreciation Rs m 5,580 6,680 19.7%
Interest Rs m 777 2,626 237.9%
Profit before tax Rs m 32,380 31,767 -1.9%
Tax Rs m 8,183 7,269 -11.2%
Profit after tax Rs m 24,229 23,645 -2.4%
Gross profit margin % 22.9 20.2
Effective tax rate % 25.3 22.9
Net profit margin % 14.6 12.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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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 39.0%.
  • 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 154 billion, while fixed assets rose 25% and stood at Rs 104 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 265 billion as against Rs 211 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 116,804 138,908 18.9
 
Current Liabilities Rs m 86,659 120,429 39.0
Long-term Debt Rs m 4,512 1,800 -60.1
Total Liabilities Rs m 211,052 264,544 25.3
 
Current assets Rs m 121,878 153,645 26.1
Fixed Assets Rs m 83,345 103,909 24.7
Total Assets Rs m 211,052 264,544 25.3
* 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 FY19 stood at Rs 16 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -29 billion, an improvement of 49.3% 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 16,220 -17.0%
Cash Flow from Investing Activities Rs m -19,266 -28,768 -
Cash Flow from Financing Activities Rs m 8,642 19,191 122.1%
Net Cash Flow Rs m 8,919 6,656 -25.4%
* 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 40.4, an decline from the EPS of Rs 41.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 454.5, stands at 10.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 2.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 8.8 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 281.6 333.9
TTM Earnings per share Rs 41.4 40.4
Diluted earnings per share Rs 41.4 40.4
Price to Cash Flow x 8.9 8.8
TTM P/E ratio x 10.5 10.5
Price / Book Value ratio x 3.3 2.9
Market Cap Rs m 266,282 265,959
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 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 13.1x 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 27.4% 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 9.9% during FY19, from 11.8% 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 13.1
Debt to equity ratio x 0.0 0.0
Return on assets % 11.8 9.9
Return on equity % 20.7 17.0
Return on capital employed % 27.4 23.8
* 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 down from Rs 786.2 to Rs 454.5, registering a loss of Rs 331.7 or around 42.2%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 13,255.0 (up 0.5%). Over the last one year it has moved down from 14,441.9 to 13,255.0, a loss of 1,187 points (down 8.2%).

Overall, the S&P BSE SENSEX is up 15.1% over the year.

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

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