AUROBINDO PHARMA 2022-23 Annual Report Analysis

Sun, 6 Aug

AUROBINDO PHARMA has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

AUROBINDO PHARMA Income Statement Analysis

• Operating income during the year rose 6.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 12.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.9% in FY23 as against 18.0% in FY22.
• Depreciation charges increased by 10.5% and finance costs increased by 188.8% YoY, respectively.
• Other income declined by 9.9% YoY.
• Net profit for the year declined by 27.2% YoY.
• Net profit margins during the year declined from 11.3% in FY22 to 7.8% in FY23.

AUROBINDO PHARMA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	234,555	248,554	6.0%
Other income	Rs m	3,226	2,906	-9.9%
Total Revenues	Rs m	237,781	251,460	5.8%
Gross profit	Rs m	42,253	37,070	-12.3%
Depreciation	Rs m	11,265	12,446	10.5%
Interest	Rs m	486	1,405	188.8%
Profit before tax	Rs m	33,727	26,125	-22.5%
Tax	Rs m	7,256	6,849	-5.6%
Profit after tax	Rs m	26,471	19,277	-27.2%
Gross profit margin	%	18.0	14.9
Effective tax rate	%	21.5	26.2
Net profit margin	%	11.3	7.8

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AUROBINDO PHARMA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 115 billion as compared to Rs 82 billion in FY22, thereby witnessing an increase of 40.9%.
• Long-term debt stood at Rs 6 billion as compared to Rs 2 billion during FY22, a growth of 148.4%.
• Current assets rose 19% and stood at Rs 215 billion, while fixed assets rose 14% and stood at Rs 177 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 392 billion as against Rs 336 billion during FY22, thereby witnessing a growth of 17%.

AUROBINDO PHARMA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	245,760	268,399	9.2
Current Liabilities	Rs m	81,560	114,938	40.9
Long-term Debt	Rs m	2,492	6,190	148.4
Total Liabilities	Rs m	336,331	392,125	16.6
Current assets	Rs m	180,436	214,599	18.9
Fixed Assets	Rs m	155,104	176,668	13.9
Total Assets	Rs m	336,331	392,125	16.6

AUROBINDO PHARMA Cash Flow Statement Analysis

• AUROBINDO PHARMA's cash flow from operating activities (CFO) during FY23 stood at Rs 24 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -40 billion, an improvement of 23.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 18 billion, an improvement of 161% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 2 billion from the Rs -12 billion net cash flows seen during FY22.

AUROBINDO PHARMA Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	50,165	23,868	-52.4%
Cash Flow from Investing Activities	Rs m	-32,116	-39,778	-
Cash Flow from Financing Activities	Rs m	-29,693	18,144	-
Net Cash Flow	Rs m	-11,674	2,298	-

Current Valuations for AUROBINDO PHARMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 32.9, an decline from the EPS of Rs 45.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 841.8, stands at 25.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 10.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	400.3	424.2
TTM Earnings per share	Rs	45.2	32.9
Diluted earnings per share	Rs	45.2	32.9
Price to Cash Flow	x	10.4	10.3
TTM P/E ratio	x	14.6	25.4
Price / Book Value ratio	x	2.0	1.2
Market Cap	Rs m	482,799	325,753
Dividends per share (Unadj.)	Rs	9.0	3.0

Ratio Analysis for AUROBINDO PHARMA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY23, from 2.2x during FY22. 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 19.6x during FY23, from 70.3x during FY22. 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 7.2% during FY23, from 10.8% during FY23. 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 10.0% during FY23, from 13.8% during FY22. 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 5.3% during FY23, from 8.0% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	2.2	1.9
Debtors’ Days	Days	62	66
Interest coverage	x	70.3	19.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.0	5.3
Return on equity	%	10.8	7.2
Return on capital employed	%	13.8	10.0

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 568.6 to Rs 841.8, registering a gain of Rs 273.3 or around 48.1%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 27,852.0 (up 0.6%). Over the last one year it has moved up from 23,184.7 to 27,852.0, a gain of 4,667 points (up 20.1%).

Overall, the S&P BSE SENSEX is up 12.6% over the year.

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