CIPLA 2020-21 Annual Report Analysis

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CIPLA 2020-21 Annual Report Analysis
Wed, 20 Oct

CIPLA has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

CIPLA Income Statement Analysis

  • Operating income during the year rose 11.8% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 34.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.8% in FY21 as against 18.1% in FY20.
  • Depreciation charges decreased by 8.8% and finance costs decreased by 18.6% YoY, respectively.
  • Other income declined by 27.0% YoY.
  • Net profit for the year grew by 55.2% YoY.
  • Net profit margins during the year grew from 8.8% in FY20 to 12.4% in FY21.

CIPLA Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 171,320 191,596 11.8%
Other income Rs m 3,694 2,698 -27.0%
Total Revenues Rs m 175,014 194,294 11.0%
Gross profit Rs m 31,061 41,841 34.7%
Depreciation Rs m 11,000 10,031 -8.8%
Interest Rs m 1,974 1,607 -18.6%
Profit before tax Rs m 21,782 32,901 51.0%
Tax Rs m 6,312 8,888 40.8%
Profit after tax Rs m 15,470 24,013 55.2%
Gross profit margin % 18.1 21.8
Effective tax rate % 29.0 27.0
Net profit margin % 8.8 12.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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CIPLA Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 46 billion as compared to Rs 44 billion in FY20, thereby witnessing an increase of 4.5%.
  • Long-term debt down at Rs 12 billion as compared to Rs 24 billion during FY20, a fall of 49.2%.
  • Current assets rose 13% and stood at Rs 132 billion, while fixed assets fell 1% and stood at Rs 116 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 248 billion as against Rs 234 billion during FY20, thereby witnessing a growth of 6%.

CIPLA Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 157,100 182,844 16.4
 
Current Liabilities Rs m 43,931 45,916 4.5
Long-term Debt Rs m 23,693 12,028 -49.2
Total Liabilities Rs m 234,228 248,372 6.0
 
Current assets Rs m 117,062 132,095 12.8
Fixed Assets Rs m 117,166 116,277 -0.8
Total Assets Rs m 234,228 248,372 6.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



CIPLA Cash Flow Statement Analysis

  • CIPLA's cash flow from operating activities (CFO) during FY21 stood at Rs 38 billion, an improvement of 22.4% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -24 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -13 billion, an improvement of 55% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 509 million from the Rs 2 billion net cash flows seen during FY20.

CIPLA Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m 30,685 37,552 22.4%
Cash Flow from Investing Activities Rs m 1,040 -23,872 -
Cash Flow from Financing Activities Rs m -29,488 -13,299 -
Net Cash Flow Rs m 2,340 509 -78.2%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for CIPLA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 29.8, an improvement from the EPS of Rs 19.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 907.8, stands at 28.8 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 2.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 21.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 212.5 237.6
TTM Earnings per share Rs 19.2 29.8
Diluted earnings per share Rs 19.2 29.8
Price to Cash Flow x 27.6 21.5
TTM P/E ratio x 28.8 28.8
Price / Book Value ratio x 2.4 2.8
Market Cap Rs m 731,860 732,071
Dividends per share (Unadj.) Rs 4.0 5.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for CIPLA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.9x during FY21, from 2.7x during FY20. 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 improved and stood at 21.5x during FY21, from 12.0x during FY20. 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 improved and stood at 13.1% during FY21, from 9.8% during FY21. 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 17.7% during FY21, from 13.1% during FY20. 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 10.3% during FY21, from 7.4% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 2.7 2.9
Debtors’ Days Days 8 7
Interest coverage x 12.0 21.5
Debt to equity ratio x 0.2 0.1
Return on assets % 7.4 10.3
Return on equity % 9.8 13.1
Return on capital employed % 13.1 17.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 764.1 to Rs 907.8, registering a gain of Rs 143.7 or around 18.8%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 25,499.2 (down 1.4%). Over the last one year it has moved up from 19,772.3 to 25,499.2, a gain of 5,727 points (up 29.0%).

Overall, the S&P BSE SENSEX is up 51.5% over the year.

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

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Related Views on News

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 2019-20 Annual Report Analysis (Annual Result Update)

Nov 4, 2020 | Updated on Nov 4, 2020

Here's an analysis of the annual report of CIPLA for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of CIPLA. Also includes updates on the valuation of CIPLA.

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.

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