CIPLA 2019-20 Annual Report Analysis

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CIPLA 2019-20 Annual Report Analysis
Wed, 4 Nov

CIPLA 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.

CIPLA Income Statement Analysis

  • Operating income during the year rose 4.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 3.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.2% in FY20 as against 19.4% in FY19.
  • Depreciation charges decreased by 11.4% and finance costs increased by 17.2% YoY, respectively.
  • Other income declined by 27.8% YoY.
  • Net profit for the year grew by 0.5% YoY.
  • Net profit margins during the year declined from 9.1% in FY19 to 8.8% in FY20.

CIPLA Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 159,710 166,949 4.5%
Other income Rs m 4,766 3,442 -27.8%
Total Revenues Rs m 164,475 170,391 3.6%
Gross profit Rs m 30,973 32,060 3.5%
Depreciation Rs m 13,263 11,747 -11.4%
Interest Rs m 1,684 1,974 17.2%
Profit before tax Rs m 20,791 21,782 4.8%
Tax Rs m 5,695 6,312 10.8%
Profit after tax Rs m 14,924 14,995 0.5%
Gross profit margin % 19.4 19.2
Effective tax rate % 27.4 29.0
Net profit margin % 9.1 8.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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CIPLA Balance Sheet Analysis

  • The company's current liabilities during FY20 stood at Rs 44 billion as compared to Rs 38 billion in FY19, thereby witnessing an increase of 16.5%.
  • Long-term debt down at Rs 24 billion as compared to Rs 38 billion during FY19, a fall of 38.1%.
  • Current assets fell 6% and stood at Rs 117 billion, while fixed assets rose 2% and stood at Rs 107 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 237 billion as against Rs 240 billion during FY19, thereby witnessing a fall of 1%.

CIPLA Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 150,123 157,630 5.0
 
Current Liabilities Rs m 37,715 43,931 16.5
Long-term Debt Rs m 38,301 23,693 -38.1
Total Liabilities Rs m 239,633 236,626 -1.3
 
Current assets Rs m 124,266 117,038 -5.8
Fixed Assets Rs m 105,190 107,424 2.1
Total Assets Rs m 239,633 236,626 -1.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



CIPLA Cash Flow Statement Analysis

  • CIPLA's cash flow from operating activities (CFO) during FY20 stood at Rs 31 billion, an improvement of 81.4% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs 1 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -29 billion on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs 2 billion from the Rs -3 billion net cash flows seen during FY19.

CIPLA 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 16,911 30,685 81.4%
Cash Flow from Investing Activities Rs m -16,687 1,040 -
Cash Flow from Financing Activities Rs m -3,487 -29,488 -
Net Cash Flow Rs m -3,451 2,340 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for CIPLA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.6, an improvement from the EPS of Rs 18.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 778.1, stands at 38.1 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 2.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 23.0 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 198.2 207.0
TTM Earnings per share Rs 18.5 18.6
Diluted earnings per share Rs 18.5 18.6
Price to Cash Flow x 22.1 23.0
TTM P/E ratio x 38.0 38.1
Price / Book Value ratio x 3.1 2.4
Market Cap Rs m 626,875 627,168
Dividends per share (Unadj.) Rs 3.0 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for CIPLA

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.7x during FY20, from 3.3x 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 12.0x 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 9.5% during FY20, from 9.9% 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 improved and stood at 12.8% during FY20, from 11.8% 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 improved and stood at 7.2% during FY20, from 6.9% 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 3.3 2.7
Debtors’ Days Days 95 85
Interest coverage x 13.3 12.0
Debt to equity ratio x 0.3 0.2
Return on assets % 6.9 7.2
Return on equity % 9.9 9.5
Return on capital employed % 11.8 12.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

CIPLA Share Price Performance

Over the last one year, CIPLA share price has moved up from Rs 467.9 to Rs 778.1, registering a gain of Rs 310.2 or around 66.3%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 19,662.4 (up 1.6%). Over the last one year it has moved up from 13,321.1 to 19,662.4, a gain of 6,341 points (up 47.6%).

Overall, the S&P BSE SENSEX is up 0.3% over the year.

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

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CIPLA Announces Quarterly Results (3QFY21); Net Profit Up 112.8% (Quarterly Result Update)

Feb 1, 2021 | Updated on Feb 1, 2021

For the quarter ended December 2020, CIPLA has posted a net profit of Rs 8 bn (up 112.8% YoY). Sales on the other hand came in at Rs 52 bn (up 18.2% YoY). Read on for a complete analysis of CIPLA's quarterly results.

CIPLA Announces Quarterly Results (1QFY21); Net Profit Up 21.4% (Quarterly Result Update)

Aug 10, 2020 | Updated on Aug 10, 2020

For the quarter ended June 2020, CIPLA has posted a net profit of Rs 6 bn (up 21.4% YoY). Sales on the other hand came in at Rs 43 bn (up 7.2% YoY). Read on for a complete analysis of CIPLA's quarterly results.

CIPLA 2018-19 Annual Report Analysis (Annual Result Update)

Sep 9, 2019 | Updated on Sep 9, 2019

Here's an analysis of the annual report of CIPLA for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of CIPLA. Also includes updates on the valuation of CIPLA.

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