CADILA HEALTHCARE 2019-20 Annual Report Analysis

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CADILA HEALTHCARE 2019-20 Annual Report Analysis
Mon, 26 Oct

CADILA HEALTHCARE has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

CADILA HEALTHCARE Income Statement Analysis

  • Operating income during the year rose 8.3% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 18.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.0% in FY20 as against 22.6% in FY19.
  • Depreciation charges increased by 16.4% and finance costs increased by 76.6% YoY, respectively.
  • Other income declined by 43.4% YoY.
  • Net profit for the year declined by 36.6% YoY.
  • Net profit margins during the year declined from 14.2% in FY19 to 8.4% in FY20.

CADILA HEALTHCARE Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 131,656 142,531 8.3%
Other income Rs m 2,011 1,139 -43.4%
Total Revenues Rs m 133,667 143,670 7.5%
Gross profit Rs m 29,731 24,198 -18.6%
Depreciation Rs m 5,986 6,965 16.4%
Interest Rs m 1,935 3,418 76.6%
Profit before tax Rs m 23,821 14,954 -37.2%
Tax Rs m 5,303 3,198 -39.7%
Profit after tax Rs m 18,987 12,044 -36.6%
Gross profit margin % 22.6 17.0
Effective tax rate % 22.3 21.4
Net profit margin % 14.2 8.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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CADILA HEALTHCARE Balance Sheet Analysis

  • The company's current liabilities during FY20 stood at Rs 83 billion as compared to Rs 73 billion in FY19, thereby witnessing an increase of 12.6%.
  • Long-term debt down at Rs 32 billion as compared to Rs 39 billion during FY19, a fall of 18.6%.
  • Current assets rose 3% and stood at Rs 87 billion, while fixed assets fell 0% and stood at Rs 133 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 237 billion as against Rs 235 billion during FY19, thereby witnessing a growth of 1%.

CADILA HEALTHCARE Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 103,863 103,757 -0.1
 
Current Liabilities Rs m 73,425 82,694 12.6
Long-term Debt Rs m 39,497 32,146 -18.6
Total Liabilities Rs m 234,831 236,866 0.9
 
Current assets Rs m 84,981 87,154 2.6
Fixed Assets Rs m 133,493 133,236 -0.2
Total Assets Rs m 234,831 236,866 0.9
* 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 FY20 stood at Rs 25 billion, an improvement of 95.4% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -10 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -11 billion on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs 4 billion from the Rs -8 billion net cash flows seen during FY19.

CADILA HEALTHCARE Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 12,819 25,054 95.4%
Cash Flow from Investing Activities Rs m -42,387 -10,123 -
Cash Flow from Financing Activities Rs m 18,846 -10,942 -
Net Cash Flow Rs m -8,109 3,989 -
* 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 11.8, an decline from the EPS of Rs 18.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 416.0, stands at 32.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 2.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 22.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 128.6 139.2
TTM Earnings per share Rs 18.5 11.8
Diluted earnings per share Rs 18.5 11.8
Price to Cash Flow x 17.4 22.7
TTM P/E ratio x 32.0 32.0
Price / Book Value ratio x 3.6 2.8
Market Cap Rs m 425,876 425,876
Dividends per share (Unadj.) Rs 3.5 3.5
* 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 deteriorated and stood at 1.1x during FY20, from 1.2x during FY19. 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 5.4x during FY20, from 13.3x during FY19. 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 11.6% during FY20, from 18.3% during FY20. 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 13.7% during FY20, from 18.3% during FY19. 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 6.5% during FY20, from 8.9% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 1.2 1.1
Debtors’ Days Days 110 94
Interest coverage x 13.3 5.4
Debt to equity ratio x 0.4 0.3
Return on assets % 8.9 6.5
Return on equity % 18.3 11.6
Return on capital employed % 18.3 13.7
* 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 243.9 to Rs 416.0, registering a gain of Rs 172.1 or around 70.6%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 19,304.8 (down 1.7%). Over the last one year it has moved up from 12,897.9 to 19,304.8, a gain of 6,407 points (up 49.7%).

Overall, the S&P BSE SENSEX is up 2.6% over the year.

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

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Related Views on News

CADILA HEALTHCARE Announces Quarterly Results (3QFY21); Net Profit Up 40.6% (Quarterly Result Update)

Feb 10, 2021 | Updated on Feb 10, 2021

For the quarter ended December 2020, CADILA HEALTHCARE has posted a net profit of Rs 5 bn (up 40.6% YoY). Sales on the other hand came in at Rs 38 bn (up 4.3% YoY). Read on for a complete analysis of CADILA HEALTHCARE's quarterly results.

CADILA HEALTHCARE Announces Quarterly Results (1QFY21); Net Profit Up 49.3% (Quarterly Result Update)

Aug 21, 2020 | Updated on Aug 21, 2020

For the quarter ended June 2020, CADILA HEALTHCARE has posted a net profit of Rs 5 bn (up 49.3% YoY). Sales on the other hand came in at Rs 36 bn (up 4.1% YoY). Read on for a complete analysis of CADILA HEALTHCARE's quarterly results.

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