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ZYDUS WELLNESS 2018-19 Annual Report Analysis
Sun, 31 Mar

ZYDUS WELLNESS has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

ZYDUS WELLNESS Income Statement Analysis

  • Operating income during the year rose 61.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 39.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.7% in FY19 as against 24.0% in FY18.
  • Depreciation charges increased by 40.9% and finance costs increased by 1670.0% YoY, respectively.
  • Other income grew by 10.9% YoY.
  • Net profit for the year grew by 25.4% YoY.
  • Net profit margins during the year declined from 26.1% in FY18 to 20.3% in FY19.

ZYDUS WELLNESS Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 5,221 8,428 61.4%
Other income Rs m 351 389 10.9%
Total Revenues Rs m 5,572 8,817 58.3%
Gross profit Rs m 1,253 1,744 39.2%
Depreciation Rs m 89 125 40.9%
Interest Rs m 17 301 1,670.0%
Profit before tax Rs m 1,497 1,706 14.0%
Tax Rs m 132 -6 -104.6%
Profit after tax Rs m 1,365 1,712 25.4%
Gross profit margin % 24.0 20.7
Effective tax rate % 8.8 -0.4
Net profit margin % 26.1 20.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

ZYDUS WELLNESS Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 5 billion as compared to Rs 1 billion in FY18, thereby witnessing an increase of 348.9%.
  • Long-term debt stood at Rs 15 billion as compared to Rs 0 million during FY18, a fall of 0.0%.
  • Current assets rose 8% and stood at Rs 7 billion, while fixed assets rose 4,221% and stood at Rs 47 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 54 billion as against Rs 8 billion during FY18, thereby witnessing a growth of 610%.

ZYDUS WELLNESS Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 6,912 33,863 389.9
 
Current Liabilities Rs m 1,217 5,463 348.9
Long-term Debt Rs m 0 15,000 0.0
Total Liabilities Rs m 7,548 53,555 609.5
 
Current assets Rs m 6,470 6,977 7.8
Fixed Assets Rs m 1,078 46,578 4,221.2
Total Assets Rs m 7,548 53,555 609.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ZYDUS WELLNESS Cash Flow Statement Analysis

  • ZYDUS WELLNESS's cash flow from operating activities (CFO) during FY19 stood at Rs 1 billion, an improvement of 116.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -42 billion, an improvement of 6,939.3% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 41 billion, an improvement of 222,712% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 1 billion from the Rs 81 million net cash flows seen during FY18.

ZYDUS WELLNESS Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 691 1,494 116.3%
Cash Flow from Investing Activities Rs m -591 -41,617 -
Cash Flow from Financing Activities Rs m -18 40,515 -
Net Cash Flow Rs m 81 1,086 1,236.9%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ZYDUS WELLNESS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 29.7, an decline from the EPS of Rs 34.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,298.5, stands at 48.6 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 8.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 45.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 133.6 146.2
TTM Earnings per share Rs 34.9 29.7
Diluted earnings per share Rs 21.5 26.9
Price to Cash Flow x 51.3 45.7
TTM P/E ratio x 55.5 48.6
Price / Book Value ratio x 6.0 2.5
Market Cap Rs m 41,592 84,045
Dividends per share (Unadj.) Rs 8.0 5.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ZYDUS WELLNESS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY19, from 5.3x during FY18. 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 6.7x during FY19, from 89.1x during FY18. 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 5.1% during FY19, from 19.7% during FY19. 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 4.1% during FY19, from 21.9% during FY18. 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 3.8% during FY19, from 18.3% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 5.3 1.3
Debtors’ Days Days 61 416
Interest coverage x 89.1 6.7
Debt to equity ratio x 0.0 0.4
Return on assets % 18.3 3.8
Return on equity % 19.7 5.1
Return on capital employed % 21.9 4.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

ZYDUS WELLNESS Share Price Performance

Over the last one year, ZYDUS WELLNESS share price has moved up from Rs 1,173.1 to Rs 1,298.5, registering a gain of Rs 125.4 or around 10.7%.

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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

Annual Report FAQs

What is the current share price of ZYDUS WELLNESS?

ZYDUS WELLNESS currently trades at Rs 1,470.4 per share. You can check out the latest share price performance of ZYDUS WELLNESS here...

What was the revenue of ZYDUS WELLNESS in FY19? How does it compare to earlier years?

The revenues of ZYDUS WELLNESS stood at Rs 8,817 m in FY19, which was up 58.3% compared to Rs 5,572 m reported in FY18.

ZYDUS WELLNESS' revenue has grown from Rs 3,998 m in FY16 to Rs 8,817 m in FY19.

Over the past 4 years, the revenue of ZYDUS WELLNESS has grown at a CAGR of 30.2%.

What was the net profit of ZYDUS WELLNESS in FY19? How does it compare to earlier years?

The net profit of ZYDUS WELLNESS stood at Rs 1,712 m in FY19, which was up 25.4% compared to Rs 1,365 m reported in FY18.

This compares to a net profit of Rs 1,113 m in FY17 and a net profit of Rs 1,052 m in FY16.

Over the past 4 years, ZYDUS WELLNESS net profit has grown at a CAGR of 17.6%.

What does the cash flow statement of ZYDUS WELLNESS reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of ZYDUS WELLNESS reveals:

  • Cash flow from operations increased in FY19 and stood at Rs 1,494 m as compared to Rs 691 m in FY18.
  • Cash flow from investments decreased in FY19 and stood at Rs -41,617 m as compared to Rs -591 m in FY18.
  • Cash flow from financial activity increased in FY19 and stood at Rs 40,515 m as compared to Rs -18 m in FY18.

Here's the cash flow statement of ZYDUS WELLNESS for the past 4 years.

(Rs m)FY16FY17FY18FY19
From Operations8997706911,494
From Investments-278-721-591-41,617
From Financial Activity-585-62-1840,515
Net Cashflow36-13811,086

What does the Key Ratio analysis of ZYDUS WELLNESS reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of ZYDUS WELLNESS reveals:

  • Operating profit margins witnessed a fall and stood at 20.7% in FY19 as against 24.0% in FY18.
  • Net profit margins declined from 26.1% in FY18 to 20.3% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.4 as compared to 0.0 in FY18.

Here's the ratio/financial analysis of ZYDUS WELLNESS for the past 4 years.

 FY16FY17FY18FY19
Operating Profit Margin (%)24.924.924.020.7
Net Profit Margin (%)28.627.926.120.3
Debt to Equity Ratio (x)0.00.00.00.4

Read: Latest Annual Report Analysis of ZYDUS WELLNESS

 

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