SANOFI INDIA 2019-20 Annual Report Analysis

Thu, 31 Dec

SANOFI INDIA has announced its results for the year ended December 2020. Let us have a look at the detailed performance review of the company during FY19-20.

SANOFI INDIA Income Statement Analysis

• Operating income during the year fell 5.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 10.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.1% in CY20 as against 19.7% in CY19.
• Depreciation charges decreased by 17.7% and finance costs increased by 500.0% YoY, respectively.
• Other income declined by 4.6% YoY.
• Net profit for the year grew by 15.3% YoY.
• Net profit margins during the year grew from 13.5% in CY19 to 16.5% in CY20.

SANOFI INDIA Income Statement 2019-20

No. of Mths Year Ending		12 Dec-19*	12 Dec-20*	% Change
Net Sales	Rs m	30,706	29,019	-5.5%
Other income	Rs m	941	898	-4.6%
Total Revenues	Rs m	31,647	29,917	-5.5%
Gross profit	Rs m	6,060	6,714	10.8%
Depreciation	Rs m	999	822	-17.7%
Interest	Rs m	3	18	500.0%
Profit before tax	Rs m	5,999	6,772	12.9%
Tax	Rs m	1,857	1,996	7.5%
Profit after tax	Rs m	4,142	4,776	15.3%
Gross profit margin	%	19.7	23.1
Effective tax rate	%	31.0	29.5
Net profit margin	%	13.5	16.5

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SANOFI INDIA Balance Sheet Analysis

• The company's current liabilities during CY20 stood at Rs 17 billion as compared to Rs 17 billion in CY19, thereby witnessing an increase of 1.2%.
• Current assets fell 8% and stood at Rs 28 billion, while fixed assets rose 5% and stood at Rs 23 billion in CY20.
• Overall, the total assets and liabilities for CY20 stood at Rs 51 billion as against Rs 52 billion during CY19, thereby witnessing a fall of 3%.

SANOFI INDIA Balance Sheet as on December 2020

No. of Mths Year Ending		12 Dec-19*	12 Dec-20*	% Change
Networth	Rs m	24,000	20,650	-14.0
Current Liabilities	Rs m	16,735	16,941	1.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	52,399	50,934	-2.8
Current assets	Rs m	30,994	28,406	-8.4
Fixed Assets	Rs m	21,405	22,528	5.2
Total Assets	Rs m	52,399	50,934	-2.8

SANOFI INDIA Cash Flow Statement Analysis

• SANOFI INDIA's cash flow from operating activities (CFO) during CY20 stood at Rs 6 billion, an improvement of 48.2% on a YoY basis.
• Cash flow from investing activities (CFI) during CY20 stood at Rs 3 billion, an improvement of 320.7% on a YoY basis.
• Cash flow from financial activities (CFF) during CY20 stood at Rs -8 billion on a YoY basis.
• Overall, net cash flows for the company during CY20 stood at Rs 775 million from the Rs 3 billion net cash flows seen during CY19.

SANOFI INDIA Cash Flow Statement 2019-20

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-19	Dec-20
Cash Flow from Operating Activities	Rs m	4,123	6,111	48.2%
Cash Flow from Investing Activities	Rs m	657	2,764	320.7%
Cash Flow from Financing Activities	Rs m	-1,832	-8,100	-
Net Cash Flow	Rs m	2,948	775	-73.7%

Current Valuations for SANOFI INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 207.4, an improvement from the EPS of Rs 179.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 8,317.9, stands at 40.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.3 times, while the price to sales ratio stands at 6.6 times.
• The company's price to cash flow (P/CF) ratio stood at 30.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-19*	12 Dec-20*
Sales per share (Unadj.)	Rs	1,333.3	1,260.1
TTM Earnings per share	Rs	179.9	207.4
Diluted earnings per share	Rs	179.8	207.4
Price to Cash Flow	x	31.4	30.6
TTM P/E ratio	x	39.0	40.1
Price / Book Value ratio	x	6.0	8.3
Market Cap	Rs m	144,229	171,567
Dividends per share (Unadj.)	Rs	349.0	365.0

Ratio Analysis for SANOFI INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during CY20, from 1.9x during CY19. 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 377.2x during CY20, from 2,000.7x during CY19. 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 23.1% during CY20, from 17.3% during CY20. 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 32.9% during CY20, from 25.0% during CY19. 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 9.4% during CY20, from 7.9% during CY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-19*	12 Dec-20*
Current ratio	x	1.9	1.7
Debtors’ Days	Days	27	19
Interest coverage	x	2,000.7	377.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.9	9.4
Return on equity	%	17.3	23.1
Return on capital employed	%	25.0	32.9

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 5,835.2 to Rs 6,242.2, registering a gain of Rs 407.0 or around 7.0%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 12,148.6 (up 3.4%). Over the last one year it has moved down from 14,407.9 to 12,148.6, a loss of 2,259 points (down 15.7%).

Overall, the S&P BSE SENSEX is down 24.2% over the year.

(To know more, check out historical annual results for SANOFI INDIA and quarterly results for SANOFI INDIA)

Read: Latest Annual Report Analysis of SANOFI INDIA