CIPLA 2022-23 Annual Report Analysis

Fri, 21 Jul

CIPLA 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.

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 11.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.1% in FY23 as against 19.9% in FY22.
• Depreciation charges increased by 11.4% and finance costs increased by 3.0% YoY, respectively.
• Other income grew by 59.2% YoY.
• Net profit for the year grew by 10.8% YoY.
• Net profit margins during the year grew from 11.8% in FY22 to 12.5% in FY23.

CIPLA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	217,633	227,531	4.5%
Other income	Rs m	3,217	5,121	59.2%
Total Revenues	Rs m	220,851	232,653	5.3%
Gross profit	Rs m	43,298	48,079	11.0%
Depreciation	Rs m	10,520	11,721	11.4%
Interest	Rs m	1,064	1,095	3.0%
Profit before tax	Rs m	34,933	40,384	15.6%
Tax	Rs m	9,338	12,029	28.8%
Profit after tax	Rs m	25,595	28,355	10.8%
Gross profit margin	%	19.9	21.1
Effective tax rate	%	26.7	29.8
Net profit margin	%	11.8	12.5

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CIPLA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 50 billion as compared to Rs 49 billion in FY22, thereby witnessing an increase of 2.5%.
• Current assets rose 14% and stood at Rs 168 billion, while fixed assets fell 2% and stood at Rs 117 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 290 billion as against Rs 267 billion during FY22, thereby witnessing a growth of 9%.

CIPLA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	207,977	233,460	12.3
Current Liabilities	Rs m	49,129	50,333	2.5
Long-term Debt	Rs m	4,162	0	-100.0
Total Liabilities	Rs m	266,523	290,067	8.8
Current assets	Rs m	147,108	168,051	14.2
Fixed Assets	Rs m	119,248	117,318	-1.6
Total Assets	Rs m	266,523	290,067	8.8

CIPLA Cash Flow Statement Analysis

• CIPLA's cash flow from operating activities (CFO) during FY23 stood at Rs 32 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -24 billion, an improvement of 27.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -10 billion, an improvement of 40% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -968 million from the Rs -1 billion net cash flows seen during FY22.

CIPLA 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	33,259	32,377	-2.7%
Cash Flow from Investing Activities	Rs m	-18,719	-23,885	-
Cash Flow from Financing Activities	Rs m	-15,998	-9,583	-
Net Cash Flow	Rs m	-1,323	-968	-

Current Valuations for CIPLA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 35.1, an improvement from the EPS of Rs 31.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,049.2, stands at 29.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 3.7 times.
• The company's price to cash flow (P/CF) ratio stood at 20.5 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	269.7	281.9
TTM Earnings per share	Rs	31.7	35.1
Diluted earnings per share	Rs	31.7	35.1
Price to Cash Flow	x	22.8	20.5
TTM P/E ratio	x	32.1	29.9
Price / Book Value ratio	x	3.7	3.5
Market Cap	Rs m	762,177	822,164
Dividends per share (Unadj.)	Rs	5.0	8.5

Ratio Analysis for CIPLA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.3x during FY23, from 3.0x 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 improved and stood at 37.9x during FY23, from 33.8x 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 12.1% during FY23, from 12.3% 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 improved and stood at 17.8% during FY23, from 17.0% 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 improved and stood at 10.2% during FY23, from 10.0% 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	3.0	3.3
Debtors’ Days	Days	6	7
Interest coverage	x	33.8	37.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.0	10.2
Return on equity	%	12.3	12.1
Return on capital employed	%	17.0	17.8

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 968.2 to Rs 1,049.2, registering a gain of Rs 81.1 or around 8.4%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 26,692.7 (down 0.2%). Over the last one year it has moved up from 22,705.9 to 26,692.7, a gain of 3,987 points (up 17.6%).

Overall, the S&P BSE SENSEX is up 20.4% over the year.

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