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CADILA HEALTHCARE 2017-18 Annual Report Analysis

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CADILA HEALTHCARE 2017-18 Annual Report Analysis
Thu, 16 Aug

CADILA HEALTHCARE has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

CADILA HEALTHCARE Income Statement Analysis

  • Operating income during the year rose 27.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 49.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.9% in FY18 as against 20.3% in FY17.
  • Depreciation charges and finance costs increased by 44.3% YoY and 104.3% YoY, respectively.
  • Other income declined by 11.8% YoY.
  • Net profit for the year grew by 20.4% YoY.
  • Net profit margins during the year declined from 16.0% in FY17 to 15.2% in FY18.

CADILA HEALTHCARE Income Statement 2017-18

No. of Mths Year Ending12 Mar-17*12 Mar-18*% Change
Net SalesRs m93,765119,04927.0%
Other incomeRs m1,2841,132-11.8%
Total RevenuesRs m95,049120,18126.4%
Gross profitRs m19,04428,47549.5%
DepreciationRs m3,7335,38844.3%
InterestRs m446911104.3%
Profit before taxRs m16,14923,30844.3%
TaxRs m1,2895,644337.9%
Profit after taxRs m15,19518,29220.4%
Gross profit margin%20.323.9
Effective tax rate%8.024.2
Net profit margin%16.015.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



CADILA HEALTHCARE Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 61 billion as compared to Rs 53 billion in FY17, thereby witnessing an increase of 14.4%.
  • Long-term debt stood at Rs 26 billion as compared to Rs 25 billion during FY17, a growth of 3.5%.
  • Current assets rose 36% and stood at Rs 82 billion, while fixed assets rose 15% and stood at Rs 84 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 181 billion as against Rs 152 billion during FY17, thereby witnessing a growth of 19%.

CADILA HEALTHCARE Balance Sheet as on March 2018

No. of Mths Year Ending12 Mar-17*12 Mar-18*% Change
NetworthRs m69,60087,44525.6
 
Current LiabilitiesRs m53,05860,72014.4
Long-term DebtRs m24,68425,5513.5
Total LiabilitiesRs m152,207180,65318.7
 
Current assetsRs m60,22382,00536.2
Fixed AssetsRs m 72,98483,70314.7
Total AssetsRs m152,207180,65318.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



CADILA HEALTHCARE Cash Flow Statement Analysis

  • CADILA HEALTHCARE's cash flow from operating activities (CFO) during FY18 stood at Rs 9 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -10 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 515 million on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -29 million from the Rs 8 billion net cash flows seen during FY17.

CADILA HEALTHCARE Cash Flow Statement 2017-18

ParticularsNo. of months1212% Change
Year EndingMar-17Mar-18
Cash Flow from Operating ActivitiesRs m13,1179,193-29.9%
Cash Flow from Investing ActivitiesRs m-28,719-9,737-
Cash Flow from Financing ActivitiesRs m23,158515-97.8%
Net Cash FlowRs m7,556-29-
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for CADILA HEALTHCARE

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.9, an improvement from the EPS of Rs 14.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 334.8, stands at 16.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.4 times, while the price to sales ratio stands at 4.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 14.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending12 Mar-17*12 Mar-18*
Sales per share (Unadj.)Rs91.6116.3
TTM Earnings per shareRs14.817.9
Diluted earnings per shareRs14.817.9
Price to Cash Flow x18.414.9
TTM P/E ratiox16.516.5
Price / Book Value ratiox5.65.4
Market CapRs m342,748342,748
Dividends per share (Unadj.)Rs3.23.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for CADILA HEALTHCARE

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.4x during FY18, from 1.1x during FY17. 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 26.6x during FY18, from 37.2x during FY17. 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 20.9% during FY18, from 21.8% during FY18. 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 22.0% during FY18, from 18.0% during FY17. 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 10.6% during FY18, from 10.3% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending12 Mar-17*12 Mar-18*
Current ratiox1.11.4
Debtors’ DaysDays8998
Interest coveragex37.226.6
Debt to equity ratiox0.40.3
Return on assets%10.310.6
Return on equity%21.820.9
Return on capital employed%18.022.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how CADILA HEALTHCARE has performed over the last 5 years, please visit here.

CADILA HEALTHCARE Share Price Performance

Over the last one year, CADILA HEALTHCARE share price has moved up from Rs 483.6 to Rs 334.8, registering a loss of Rs 148.8 or around 30.8%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 14,801.2 (up 0.8%). Over the last one year it has moved up from 13,214.8 to 14,801.2, a gain of 1,586 points (up 12.0%).

Overall, the S&P BSE SENSEX is up 20.2% over the year.

(To know more, check out historical annual results for CADILA HEALTHCARE and quarterly results for CADILA HEALTHCARE)

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CADILA HEALTHCARE Announces Quarterly Results (3QFY19); Net Profit Down 3.7% (Quarterly Result Update)

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For the quarter ended December 2018, CADILA HEALTHCARE has posted a net profit of Rs 5 bn (down 3.7% YoY). Sales on the other hand came in at Rs 36 bn (up 9.8% YoY). Read on for a complete analysis of CADILA HEALTHCARE's quarterly results.

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