AUROBINDO PHARMA 2021-22 Annual Report Analysis

Thu, 14 Jul

AUROBINDO PHARMA has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

AUROBINDO PHARMA Income Statement Analysis

• Operating income during the year fell 5.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 47.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.1% in FY22 as against 32.9% in FY21.
• Depreciation charges increased by 6.7% and finance costs decreased by 34.7% YoY, respectively.
• Other income declined by 15.3% YoY.
• Net profit for the year declined by 50.3% YoY.
• Net profit margins during the year declined from 21.8% in FY21 to 11.4% in FY22.

AUROBINDO PHARMA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	247,746	234,555	-5.3%
Other income	Rs m	3,809	3,226	-15.3%
Total Revenues	Rs m	251,555	237,781	-5.5%
Gross profit	Rs m	81,480	42,566	-47.8%
Depreciation	Rs m	10,554	11,265	6.7%
Interest	Rs m	745	486	-34.7%
Profit before tax	Rs m	73,990	34,040	-54.0%
Tax	Rs m	20,098	7,256	-63.9%
Profit after tax	Rs m	53,892	26,784	-50.3%
Gross profit margin	%	32.9	18.1
Effective tax rate	%	27.2	21.3
Net profit margin	%	21.8	11.4

Don't Miss: Best Chance to Access Midcap Stocks Research at 80% OFF

AUROBINDO PHARMA Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 82 billion as compared to Rs 107 billion in FY21, thereby witnessing an decrease of -23.5%.
• Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY21, a growth of 47.9%.
• Current assets fell 9% and stood at Rs 181 billion, while fixed assets rose 14% and stood at Rs 155 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 336 billion as against Rs 334 billion during FY21, thereby witnessing a growth of 1%.

AUROBINDO PHARMA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	219,299	245,760	12.1
Current Liabilities	Rs m	106,651	81,560	-23.5
Long-term Debt	Rs m	1,685	2,492	47.9
Total Liabilities	Rs m	334,013	336,331	0.7
Current assets	Rs m	198,235	181,227	-8.6
Fixed Assets	Rs m	135,778	155,104	14.2
Total Assets	Rs m	334,013	336,331	0.7

AUROBINDO PHARMA Cash Flow Statement Analysis

• AUROBINDO PHARMA's cash flow from operating activities (CFO) during FY22 stood at Rs 50 billion, an improvement of 50.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -32 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -30 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -12 billion from the Rs 26 billion net cash flows seen during FY21.

AUROBINDO PHARMA Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	33,291	50,165	50.7%
Cash Flow from Investing Activities	Rs m	5,987	-32,116	-
Cash Flow from Financing Activities	Rs m	-13,649	-29,693	-
Net Cash Flow	Rs m	25,831	-11,674	-

Current Valuations for AUROBINDO PHARMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 45.7, an decline from the EPS of Rs 92.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 553.4, stands at 12.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 12.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	422.8	400.3
TTM Earnings per share	Rs	92.0	45.7
Diluted earnings per share	Rs	92.0	45.7
Price to Cash Flow	x	8.0	12.7
TTM P/E ratio	x	9.6	12.1
Price / Book Value ratio	x	1.8	2.0
Market Cap	Rs m	397,398	482,799
Dividends per share (Unadj.)	Rs	4.0	9.0

Ratio Analysis for AUROBINDO PHARMA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY22, from 1.9x during FY21. 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 71.0x during FY22, from 100.3x during FY21. 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 10.9% during FY22, from 24.6% during FY22. 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 13.9% during FY22, from 33.8% during FY21. 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 8.1% during FY22, from 16.4% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.9	2.2
Debtors’ Days	Days	52	62
Interest coverage	x	100.3	71.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.4	8.1
Return on equity	%	24.6	10.9
Return on capital employed	%	33.8	13.9

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 963.1 to Rs 553.4, registering a loss of Rs 409.7 or around 42.5%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 22,544.4 (up 0.7%). Over the last one year it has moved down from 26,059.1 to 22,544.4, a loss of 3,515 points (down 13.5%).

Overall, the S&P BSE SENSEX is up 2.0% 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