DIVIS LABORATORIES 2018-19 Annual Report Analysis

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DIVIS LABORATORIES 2018-19 Annual Report Analysis
Thu, 10 Oct

DIVIS LABORATORIES 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.

DIVIS LABORATORIES Income Statement Analysis

  • Operating income during the year rose 27.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 48.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 37.8% in FY19 as against 32.4% in FY18.
  • Depreciation charges increased by 18.5% and finance costs increased by 163.2% YoY, respectively.
  • Other income grew by 37.2% YoY.
  • Net profit for the year grew by 54.2% YoY.
  • Net profit margins during the year grew from 21.9% in FY18 to 26.5% in FY19.

DIVIS LABORATORIES Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 38,915 49,463 27.1%
Other income Rs m 1,134 1,556 37.2%
Total Revenues Rs m 40,049 51,019 27.4%
Gross profit Rs m 12,617 18,718 48.4%
Depreciation Rs m 1,425 1,689 18.5%
Interest Rs m 13 35 163.2%
Profit before tax Rs m 12,313 18,551 50.7%
Tax Rs m 3,543 5,023 41.8%
Profit after tax Rs m 8,770 13,527 54.2%
Gross profit margin % 32.4 37.8
Effective tax rate % 28.8 27.1
Net profit margin % 21.9 26.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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DIVIS LABORATORIES Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 8 billion as compared to Rs 7 billion in FY18, thereby witnessing an increase of 29.6%.
  • Current assets rose 3% and stood at Rs 47 billion, while fixed assets rose 22% and stood at Rs 26 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 80 billion as against Rs 68 billion during FY18, thereby witnessing a growth of 18%.

DIVIS LABORATORIES Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 59,156 69,493 17.5
 
Current Liabilities Rs m 6,534 8,468 29.6
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 67,859 80,383 18.5
 
Current assets Rs m 45,351 46,501 2.5
Fixed Assets Rs m 21,160 25,797 21.9
Total Assets Rs m 67,859 80,383 18.5
* 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 FY19 stood at Rs 10 billion, an improvement of 23.0% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -7 billion, an improvement of 43.3% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -2 billion, an improvement of 22% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 230 million from the Rs -166 million net cash flows seen during FY18.

DIVIS LABORATORIES 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 7,759 9,543 23.0%
Cash Flow from Investing Activities Rs m -4,783 -6,854 -
Cash Flow from Financing Activities Rs m -3,142 -2,459 -
Net Cash Flow Rs m -166 230 -
* 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 51.0, an improvement from the EPS of Rs 33.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,673.5, stands at 33.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.3 times, while the price to sales ratio stands at 7.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 29.2 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 146.6 186.3
TTM Earnings per share Rs 33.0 51.0
Diluted earnings per share Rs 33.0 51.0
Price to Cash Flow x 43.6 29.2
TTM P/E ratio x 33.3 33.3
Price / Book Value ratio x 3.8 5.3
Market Cap Rs m 444,264 444,261
Dividends per share (Unadj.) Rs 10.0 16.0
* 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 deteriorated and stood at 5.5x during FY19, from 6.9x 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 531.0x during FY19, from 926.8x 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 improved and stood at 19.5% during FY19, from 14.8% 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 improved and stood at 26.7% during FY19, from 20.8% 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 improved and stood at 16.9% during FY19, from 12.9% 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 6.9 5.5
Debtors’ Days Days 95 86
Interest coverage x 926.8 531.0
Debt to equity ratio x 0.0 0.0
Return on assets % 12.9 16.9
Return on equity % 14.8 19.5
Return on capital employed % 20.8 26.7
* 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 1,295.4 to Rs 1,673.5, registering a gain of Rs 378.1 or around 29.2%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 12,062.0 (down 0.2%). Over the last one year it has moved down from 14,673.1 to 12,062.0, a loss of 2,611 points (down 17.8%).

Overall, the S&P BSE SENSEX is up 11.0% over the year.

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

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For the quarter ended June 2020, DIVIS LABORATORIES has posted a net profit of Rs 5 bn (up 84.1% YoY). Sales on the other hand came in at Rs 17 bn (up 50.0% YoY). Read on for a complete analysis of DIVIS LABORATORIES's quarterly results.

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For the quarter ended March 2020, DIVIS LABORATORIES has posted a net profit of Rs 4 bn (up 35.4% YoY). Sales on the other hand came in at Rs 14 bn (up 9.5% YoY). Read on for a complete analysis of DIVIS LABORATORIES's quarterly results.

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