ZYDUS WELLNESS 2018-19 Annual Report Analysis

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ZYDUS WELLNESS 2018-19 Annual Report Analysis
Mon, 16 Sep

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 64.4% 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 24.4% 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 24.9% in FY18 to 19.4% in FY19.

ZYDUS WELLNESS Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 5,126 8,428 64.4%
Other income Rs m 351 389 10.9%
Total Revenues Rs m 5,477 8,817 61.0%
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 % 24.4 20.7
Effective tax rate % 8.8 -0.4
Net profit margin % 24.9 19.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 4,297% and stood at Rs 46 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 55 billion as against Rs 8 billion during FY18, thereby witnessing a growth of 559%.

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 8,289 54,585 558.5
 
Current assets Rs m 6,470 6,980 7.9
Fixed Assets Rs m 1,041 45,777 4,296.6
Total Assets Rs m 8,289 54,585 558.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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: Company Reports, Regulatory Filings, 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 1,774.8, stands at 30.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 10.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 37.8 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 131.2 146.2
TTM Earnings per share Rs 34.9 29.7
Diluted earnings per share Rs 34.9 43.8
Price to Cash Flow x 47.7 37.8
TTM P/E ratio x 30.9 30.9
Price / Book Value ratio x 6.0 2.5
Market Cap Rs m 69,339 69,393
Dividends per share (Unadj.) Rs 8.0 5.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 3.7% during FY19, from 16.7% 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 6 42
Interest coverage x 89.1 6.7
Debt to equity ratio x 0.0 0.4
Return on assets % 16.7 3.7
Return on equity % 19.7 5.1
Return on capital employed % 21.9 4.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 1,620.8 to Rs 1,774.8, registering a gain of Rs 154.0 or around 9.5%.

Overall, the S&P BSE SENSEX is down 2.5% over the year.

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

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Related Views on News

ZYDUS WELLNESS Announces Quarterly Results (1QFY20); Net Profit Up 212.5% (Quarterly Result Update)

Aug 2, 2019 | Updated on Aug 2, 2019

For the quarter ended June 2019, ZYDUS WELLNESS has posted a net profit of Rs 804 m (up 212.5% YoY). Sales on the other hand came in at Rs 6 bn (up 333.6% YoY). Read on for a complete analysis of ZYDUS WELLNESS's quarterly results.

ZYDUS WELLNESS Announces Quarterly Results (4QFY19); Net Profit Up 71.9% (Quarterly Result Update)

May 29, 2019 | Updated on May 29, 2019

For the quarter ended March 2019, ZYDUS WELLNESS has posted a net profit of Rs 623 m (up 71.9% YoY). Sales on the other hand came in at Rs 4 bn (up 216.1% YoY). Read on for a complete analysis of ZYDUS WELLNESS's quarterly results.

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