DIVIS LABORATORIES 2017-18 Annual Report Analysis

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DIVIS LABORATORIES 2017-18 Annual Report Analysis
Tue, 1 Jan

DIVIS LABORATORIES has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

DIVIS LABORATORIES Income Statement Analysis

  • Operating income during the year fell 4.3% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 12.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 32.4% in FY18 as against 35.6% in FY17.
  • Depreciation charges increased by 15.5% and finance costs decreased by 41.2% YoY, respectively.
  • Other income grew by 51.5% YoY.
  • Net profit for the year declined by 17.3% YoY.
  • Net profit margins during the year declined from 25.6% in FY17 to 21.9% in FY18.

DIVIS LABORATORIES Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 40,643 38,915 -4.3%
Other income Rs m 749 1,134 51.5%
Total Revenues Rs m 41,392 40,049 -3.2%
Gross profit Rs m 14,460 12,617 -12.7%
Depreciation Rs m 1,233 1,425 15.5%
Interest Rs m 23 13 -41.2%
Profit before tax Rs m 13,953 12,313 -11.8%
Tax Rs m 3,349 3,543 5.8%
Profit after tax Rs m 10,604 8,770 -17.3%
Gross profit margin % 35.6 32.4
Effective tax rate % 24.0 28.8
Net profit margin % 25.6 21.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



DIVIS LABORATORIES Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 7 billion as compared to Rs 7 billion in FY17, thereby witnessing an decrease of -1.3%.
  • Current assets rose 13% and stood at Rs 45 billion, while fixed assets rose 6% and stood at Rs 21 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 68 billion as against Rs 62 billion during FY17, thereby witnessing a growth of 10%.

DIVIS LABORATORIES Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 53,574 59,156 10.4
 
Current Liabilities Rs m 6,595 6,507 -1.3
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 61,585 67,832 10.1
 
Current assets Rs m 40,105 45,351 13.1
Fixed Assets Rs m 19,995 21,160 5.8
Total Assets Rs m 61,585 67,832 10.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



DIVIS LABORATORIES Cash Flow Statement Analysis

  • DIVIS LABORATORIES's cash flow from operating activities (CFO) during FY18 stood at Rs 8 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -5 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -3 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -166 million from the Rs 132 million net cash flows seen during FY17.

DIVIS LABORATORIES Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 11,504 7,759 -32.6%
Cash Flow from Investing Activities Rs m -11,396 -4,783 -
Cash Flow from Financing Activities Rs m 24 -3,142 -
Net Cash Flow Rs m 132 -166 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for DIVIS LABORATORIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.0, an decline from the EPS of Rs 39.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,485.6, stands at 34.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 5.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 38.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 153.1 146.6
TTM Earnings per share Rs 39.9 33.0
Diluted earnings per share Rs 39.9 33.0
Price to Cash Flow x 33.3 38.7
TTM P/E ratio x 34.3 34.3
Price / Book Value ratio x 5.0 3.8
Market Cap Rs m 394,382 394,379
Dividends per share (Unadj.) Rs 10.0 10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for DIVIS LABORATORIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 7.0x during FY18, from 6.1x during FY17. 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 926.8x during FY18, from 618.4x during FY17. 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 14.8% during FY18, from 19.8% during FY18. 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 20.8% during FY18, from 26.1% during FY17. 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 12.9% during FY18, from 17.3% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 6.1 7.0
Debtors’ Days Days 81 95
Interest coverage x 618.4 926.8
Debt to equity ratio x 0.0 0.0
Return on assets % 17.3 12.9
Return on equity % 19.8 14.8
Return on capital employed % 26.1 20.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

DIVIS LABORATORIES Share Price Performance

Over the last one year, DIVIS LABORATORIES share price has moved up from Rs 1,098.2 to Rs 1,485.6, registering a gain of Rs 387.4 or around 35.3%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 13,982.3 (up 0.4%). Over the last one year it has moved down from 14,799.4 to 13,982.3, a loss of 817 points (down 5.5%).

Overall, the S&P BSE SENSEX is up 6.4% over the year.

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

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

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