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SANOFI INDIA 2017-18 Annual Report Analysis
Mon, 31 Dec

SANOFI INDIA 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.

SANOFI INDIA Income Statement Analysis

  • Operating income during the year rose 13.8% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 16.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.5% in CY18 as against 22.1% in CY17.
  • Depreciation charges increased by 0.5% and finance costs decreased by 36.4% YoY, respectively.
  • Other income grew by 11.9% YoY.
  • Net profit for the year grew by 16.7% YoY.
  • Net profit margins during the year grew from 13.4% in CY17 to 13.7% in CY18.

SANOFI INDIA Income Statement 2017-18

No. of Mths Year Ending 12 Dec-17* 12 Dec-18* % Change
Net Sales Rs m 24,358 27,708 13.8%
Other income Rs m 807 903 11.9%
Total Revenues Rs m 25,165 28,611 13.7%
Gross profit Rs m 5,372 6,229 16.0%
Depreciation Rs m 1,022 1,027 0.5%
Interest Rs m 11 7 -36.4%
Profit before tax Rs m 5,146 6,098 18.5%
Tax Rs m 1,886 2,292 21.5%
Profit after tax Rs m 3,260 3,806 16.7%
Gross profit margin % 22.1 22.5
Effective tax rate % 36.6 37.6
Net profit margin % 13.4 13.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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SANOFI INDIA Balance Sheet Analysis

  • The company's current liabilities during CY18 stood at Rs 12 billion as compared to Rs 10 billion in CY17, thereby witnessing an increase of 24.0%.
  • Current assets rose 20% and stood at Rs 22 billion, while fixed assets rose 4% and stood at Rs 26 billion in CY18.
  • Overall, the total assets and liabilities for CY18 stood at Rs 48 billion as against Rs 43 billion during CY17, thereby witnessing a growth of 10%.

SANOFI INDIA Balance Sheet as on December 2018

No. of Mths Year Ending 12 Dec-17* 12 Dec-18* % Change
Networth Rs m 20,008 21,855 9.2
 
Current Liabilities Rs m 9,624 11,930 24.0
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 43,239 47,693 10.3
 
Current assets Rs m 18,045 21,617 19.8
Fixed Assets Rs m 25,194 26,076 3.5
Total Assets Rs m 43,239 47,693 10.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



SANOFI INDIA Cash Flow Statement Analysis

  • SANOFI INDIA's cash flow from operating activities (CFO) during CY18 stood at Rs 4 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during CY18 stood at Rs -731 million on a YoY basis.
  • Cash flow from financial activities (CFF) during CY18 stood at Rs -2 billion on a YoY basis.
  • Overall, net cash flows for the company during CY18 stood at Rs 1 billion from the Rs 2 billion net cash flows seen during CY17.

SANOFI INDIA 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 4,351 3,739 -14.1%
Cash Flow from Investing Activities Rs m -787 -731 -
Cash Flow from Financing Activities Rs m -1,884 -1,972 -
Net Cash Flow Rs m 1,680 1,036 -38.3%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for SANOFI INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 165.3, an improvement from the EPS of Rs 141.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 6,352.7, stands at 38.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 6.7 times, while the price to sales ratio stands at 5.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 27.3 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 1,057.7 1,203.1
TTM Earnings per share Rs 141.6 165.3
Diluted earnings per share Rs 141.6 165.3
Price to Cash Flow x 25.4 27.3
TTM P/E ratio x 33.3 38.4
Price / Book Value ratio x 5.1 6.0
Market Cap Rs m 101,864 132,081
Dividends per share (Unadj.) Rs 71.0 84.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for SANOFI INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.8x during CY18, from 1.9x during CY17. 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 improved and stood at 872.1x during CY18, from 468.8x during CY17. 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 17.4% during CY18, from 16.3% 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 27.9% during CY18, from 25.8% 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 8.0% during CY18, from 7.6% 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 1.9 1.8
Debtors’ Days Days 29 21
Interest coverage x 468.8 872.1
Debt to equity ratio x 0.0 0.0
Return on assets % 7.6 8.0
Return on equity % 16.3 17.4
Return on capital employed % 25.8 27.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how SANOFI INDIA has performed over the last 5 years, please visit here.

SANOFI INDIA Share Price Performance

Over the last one year, SANOFI INDIA share price has moved up from Rs 4,715.3 to Rs 5,163.1, registering a gain of Rs 447.8 or around 9.5%.

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 SANOFI INDIA and quarterly results for SANOFI INDIA)

Annual Report FAQs

What is the current share price of SANOFI INDIA?

SANOFI INDIA currently trades at Rs 7,696.7 per share. You can check out the latest share price performance of SANOFI INDIA here...

What was the revenue of SANOFI INDIA in CY18? How does it compare to earlier years?

The revenues of SANOFI INDIA stood at Rs 28,611 m in CY18, which was up 13.7% compared to Rs 25,165 m reported in CY17.

SANOFI INDIA's revenue has grown from Rs 19,937 m in CY14 to Rs 28,611 m in CY18.

Over the past 5 years, the revenue of SANOFI INDIA has grown at a CAGR of 9.5%.

What was the net profit of SANOFI INDIA in CY18? How does it compare to earlier years?

The net profit of SANOFI INDIA stood at Rs 3,806 m in CY18, which was up 16.7% compared to Rs 3,260 m reported in CY17.

This compares to a net profit of Rs 3,042 m in CY16 and a net profit of Rs 3,215 m in CY15.

Over the past 5 years, SANOFI INDIA net profit has grown at a CAGR of 9.6%.

What does the cash flow statement of SANOFI INDIA 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 SANOFI INDIA reveals:

  • Cash flow from operations decreased in CY18 and stood at Rs 3,739 m as compared to Rs 4,351 m in CY17.
  • Cash flow from investments increased in CY18 and stood at Rs -731 m as compared to Rs -787 m in CY17.
  • Cash flow from financial activity decreased in CY18 and stood at Rs -1,972 m as compared to Rs -1,884 m in CY17.

Here's the cash flow statement of SANOFI INDIA for the past 5 years.

(Rs m)CY14CY15CY16CY17CY18
From Operations2,6502,1323,2214,3513,739
From Investments613359-1,550-787-731
From Financial Activity-1,217-1,470-1,802-1,884-1,972
Net Cashflow2,0461,021-1311,6801,036

What does the Key Ratio analysis of SANOFI INDIA 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 SANOFI INDIA reveals:

  • Operating profit margins witnessed a fall and down at 22.5% in CY18 as against 22.1% in CY17.
  • Net profit margins grew from 13.4% in CY17 to 13.7% 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 SANOFI INDIA for the past 5 years.

 CY14CY15CY16CY17CY18
Operating Profit Margin (%)21.025.323.122.122.5
Net Profit Margin (%)13.715.013.113.413.7
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of SANOFI INDIA

 

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