AUROBINDO PHARMA 2020-21 Annual Report Analysis

Wed, 31 Mar

AUROBINDO PHARMA has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

AUROBINDO PHARMA Income Statement Analysis

• Operating income during the year rose 7.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 68.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 32.9% in FY21 as against 20.9% in FY20.
• Depreciation charges increased by 9.2% and finance costs decreased by 75.6% YoY, respectively.
• Other income grew by 98.5% YoY.
• Net profit for the year grew by 88.5% YoY.
• Net profit margins during the year grew from 12.4% in FY20 to 21.8% in FY21.

AUROBINDO PHARMA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	230,985	247,746	7.3%
Other income	Rs m	1,919	3,809	98.5%
Total Revenues	Rs m	232,904	251,555	8.0%
Gross profit	Rs m	48,382	81,480	68.4%
Depreciation	Rs m	9,667	10,554	9.2%
Interest	Rs m	3,051	745	-75.6%
Profit before tax	Rs m	37,582	73,990	96.9%
Tax	Rs m	8,994	20,098	123.5%
Profit after tax	Rs m	28,589	53,892	88.5%
Gross profit margin	%	20.9	32.9
Effective tax rate	%	23.9	27.2
Net profit margin	%	12.4	21.8

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AUROBINDO PHARMA Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 107 billion as compared to Rs 114 billion in FY20, thereby witnessing an decrease of -6.3%.
• Long-term debt stood at Rs 2 billion as compared to Rs 0 million during FY20, a fall of 0.0%.
• Current assets rose 21% and stood at Rs 198 billion, while fixed assets rose 10% and stood at Rs 136 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 334 billion as against Rs 288 billion during FY20, thereby witnessing a growth of 16%.

AUROBINDO PHARMA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	168,247	219,299	30.3
Current Liabilities	Rs m	113,846	106,652	-6.3
Long-term Debt	Rs m	0	1,684	0.0
Total Liabilities	Rs m	287,645	334,013	16.1
Current assets	Rs m	164,125	198,235	20.8
Fixed Assets	Rs m	123,520	135,778	9.9
Total Assets	Rs m	287,645	334,013	16.1

AUROBINDO PHARMA Cash Flow Statement Analysis

• AUROBINDO PHARMA's cash flow from operating activities (CFO) during FY21 stood at Rs 33 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 6 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -14 billion, an improvement of 30% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 26 billion from the Rs 9 billion net cash flows seen during FY20.

AUROBINDO PHARMA Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	43,813	33,289	-24.0%
Cash Flow from Investing Activities	Rs m	-15,676	5,987	-
Cash Flow from Financing Activities	Rs m	-19,472	-13,648	-
Net Cash Flow	Rs m	8,712	25,831	196.5%

Current Valuations for AUROBINDO PHARMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 92.0, an improvement from the EPS of Rs 48.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 881.6, stands at 9.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 6.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	394.2	422.8
TTM Earnings per share	Rs	48.8	92.0
Diluted earnings per share	Rs	48.8	92.0
Price to Cash Flow	x	6.3	6.2
TTM P/E ratio	x	8.5	9.6
Price / Book Value ratio	x	1.9	1.8
Market Cap	Rs m	327,877	397,398
Dividends per share (Unadj.)	Rs	3.0	4.0

Ratio Analysis for AUROBINDO PHARMA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY21, from 1.4x during FY20. 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 improved and stood at 100.3x during FY21, from 13.3x during FY20. 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 improved and stood at 24.6% during FY21, from 17.0% during FY21. 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 improved and stood at 33.8% during FY21, from 24.2% during FY20. 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 improved and stood at 16.4% during FY21, from 11.0% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.4	1.9
Debtors’ Days	Days	68	52
Interest coverage	x	13.3	100.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.0	16.4
Return on equity	%	17.0	24.6
Return on capital employed	%	24.2	33.8

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 413.1 to Rs 881.6, registering a gain of Rs 468.5 or around 113.4%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,328.2 (up 0.4%). Over the last one year it has moved up from 12,148.6 to 21,328.2, a gain of 9,180 points (up 75.6%).

Overall, the S&P BSE SENSEX is up 74.1% 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