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PROCTER & GAMBLE HEALTH 2017-18 Annual Report Analysis
Mon, 31 Dec

PROCTER & GAMBLE HEALTH has announced its results for the year ended December 2018. Let us have a look at the detailed performance review of the company during FY17-18.

PROCTER & GAMBLE HEALTH Income Statement Analysis

  • Operating income during the year rose 88.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 147.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.8% in CY18 as against 12.8% in CY17.
  • Depreciation charges increased by 10.5% increased by 0.0% YoY, respectively.
  • Other income grew by 763.2% YoY.
  • Net profit for the year grew by 793.1% YoY.
  • Net profit margins during the year grew from 13.7% in CY17 to 65.1% in CY18.

PROCTER & GAMBLE HEALTH Income Statement 2017-18

No. of Mths Year Ending 12 Dec-17* 12 Dec-18* % Change
Net Sales Rs m 6,848 12,881 88.1%
Other income Rs m 837 7,223 763.2%
Total Revenues Rs m 7,685 20,104 161.6%
Gross profit Rs m 876 2,167 147.3%
Depreciation Rs m 191 211 10.5%
Interest Rs m 0 0 0.0%
Profit before tax Rs m 1,522 9,179 503.1%
Tax Rs m 583 792 35.9%
Profit after tax Rs m 939 8,387 793.1%
Gross profit margin % 12.8 16.8
Effective tax rate % 38.3 8.6
Net profit margin % 13.7 65.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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PROCTER & GAMBLE HEALTH Balance Sheet Analysis

  • The company's current liabilities during CY18 stood at Rs 5 billion as compared to Rs 4 billion in CY17, thereby witnessing an increase of 55.5%.
  • Current assets rose 115% and stood at Rs 19 billion, while fixed assets rose 9% and stood at Rs 7 billion in CY18.
  • Overall, the total assets and liabilities for CY18 stood at Rs 26 billion as against Rs 15 billion during CY17, thereby witnessing a growth of 70%.

PROCTER & GAMBLE HEALTH Balance Sheet as on December 2018

No. of Mths Year Ending 12 Dec-17* 12 Dec-18* % Change
Networth Rs m 7,333 15,401 110.0
 
Current Liabilities Rs m 3,522 5,477 55.5
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 15,160 25,826 70.4
 
Current assets Rs m 8,793 18,892 114.9
Fixed Assets Rs m 6,367 6,935 8.9
Total Assets Rs m 15,160 25,826 70.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



PROCTER & GAMBLE HEALTH Cash Flow Statement Analysis

  • PROCTER & GAMBLE HEALTH's cash flow from operating activities (CFO) during CY18 stood at Rs -1 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during CY18 stood at Rs 13 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during CY18 stood at Rs -301 million on a YoY basis.
  • Overall, net cash flows for the company during CY18 stood at Rs 11 billion from the Rs -160 million net cash flows seen during CY17.

PROCTER & GAMBLE HEALTH Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Dec-17 Dec-18
Cash Flow from Operating Activities Rs m 537 -1,304 -
Cash Flow from Investing Activities Rs m -476 12,697 -
Cash Flow from Financing Activities Rs m -220 -301 -
Net Cash Flow Rs m -160 11,092 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for PROCTER & GAMBLE HEALTH

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 505.3, an improvement from the EPS of Rs 56.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 3,084.2, stands at 46.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 4.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 4.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Dec-17* 12 Dec-18*
Sales per share (Unadj.) Rs 412.5 776.0
TTM Earnings per share Rs 56.6 505.3
Diluted earnings per share Rs 56.6 505.3
Price to Cash Flow x 18.9 4.7
TTM P/E ratio x 27.8 46.5
Price / Book Value ratio x 2.6 2.6
Market Cap Rs m 19,010 40,256
Dividends per share (Unadj.) Rs 15.0 440.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for PROCTER & GAMBLE HEALTH

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 3.4x during CY18, from 2.5x during CY17. The current ratio measures the company's ability to pay short-term and long-term obligations.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company improved and stood at 54.5% during CY18, from 12.8% during CY18. 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 59.6% during CY18, from 20.8% during CY17. 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 32.5% during CY18, from 6.2% during CY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Dec-17* 12 Dec-18*
Current ratio x 2.5 3.4
Debtors’ Days Days 65 188
Interest coverage x 0.0 0.0
Debt to equity ratio x 0.0 0.0
Return on assets % 6.2 32.5
Return on equity % 12.8 54.5
Return on capital employed % 20.8 59.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how PROCTER & GAMBLE HEALTH has performed over the last 5 years, please visit here.

PROCTER & GAMBLE HEALTH Share Price Performance

Over the last one year, PROCTER & GAMBLE HEALTH share price has moved up from Rs 1,041.1 to Rs 1,504.7, registering a gain of Rs 463.6 or around 44.5%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 13,157.6 (down 1.1%). Over the last one year it has moved down from 15,312.4 to 13,157.6, a loss of 2,155 points (down 14.1%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for PROCTER & GAMBLE HEALTH and quarterly results for PROCTER & GAMBLE HEALTH)

Annual Report FAQs

What is the current share price of PROCTER & GAMBLE HEALTH?

PROCTER & GAMBLE HEALTH currently trades at Rs 4,857.4 per share. You can check out the latest share price performance of PROCTER & GAMBLE HEALTH here...

What was the revenue of PROCTER & GAMBLE HEALTH in CY18? How does it compare to earlier years?

The revenues of PROCTER & GAMBLE HEALTH stood at Rs 20,104 m in CY18, which was up 161.6% compared to Rs 7,685 m reported in CY17.

PROCTER & GAMBLE HEALTH's revenue has grown from Rs 9,283 m in CY15 to Rs 20,104 m in CY18.

Over the past 4 years, the revenue of PROCTER & GAMBLE HEALTH has grown at a CAGR of 29.4%.

What was the net profit of PROCTER & GAMBLE HEALTH in CY18? How does it compare to earlier years?

The net profit of PROCTER & GAMBLE HEALTH stood at Rs 8,387 m in CY18, which was up 793.1% compared to Rs 939 m reported in CY17.

This compares to a net profit of Rs 791 m in CY16 and a net profit of Rs 536 m in CY15.

Over the past 4 years, PROCTER & GAMBLE HEALTH net profit has grown at a CAGR of 150.2%.

What does the cash flow statement of PROCTER & GAMBLE HEALTH 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 PROCTER & GAMBLE HEALTH reveals:

  • Cash flow from operations decreased in CY18 and stood at Rs -1,304 m as compared to Rs 537 m in CY17.
  • Cash flow from investments increased in CY18 and stood at Rs 12,697 m as compared to Rs -476 m in CY17.
  • Cash flow from financial activity decreased in CY18 and stood at Rs -301 m as compared to Rs -220 m in CY17.

Here's the cash flow statement of PROCTER & GAMBLE HEALTH for the past 4 years.

(Rs m)CY15CY16CY17CY18
From Operations8351,070537-1,304
From Investments-678-750-47612,697
From Financial Activity-119-150-220-301
Net Cashflow37171-16011,092

What does the Key Ratio analysis of PROCTER & GAMBLE HEALTH 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 PROCTER & GAMBLE HEALTH reveals:

  • Operating profit margins witnessed a fall and down at 16.8% in CY18 as against 12.8% in CY17.
  • Net profit margins grew from 13.7% in CY17 to 65.1% in CY18.
  • Debt to Equity ratio for CY18 stood at 0.0 as compared to 0.0 in CY17.

Here's the ratio/financial analysis of PROCTER & GAMBLE HEALTH for the past 4 years.

 CY15CY16CY17CY18
Operating Profit Margin (%)9.212.112.816.8
Net Profit Margin (%)5.98.313.765.1
Debt to Equity Ratio (x)0.00.00.00.0

Read: Latest Annual Report Analysis of PROCTER & GAMBLE HEALTH

 

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