SANOFI INDIA 2019-20 Annual Report Analysis

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SANOFI INDIA 2019-20 Annual Report Analysis
Mon, 25 Oct

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 13.1% in CY19 to 16.0% 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 % 13.1 16.0
* 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 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
* 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 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%
* 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 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 8,289.9, stands at 32.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 8.3 times, while the price to sales ratio stands at 5.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 34.1 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 37.1 34.1
TTM P/E ratio x 32.9 32.9
Price / Book Value ratio x 6.0 8.3
Market Cap Rs m 190,920 190,920
Dividends per share (Unadj.) Rs 349.0 365.0
* 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 1.7x 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
* 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 down from Rs 8,430.5 to Rs 8,289.9, registering a loss of Rs 140.6 or around 1.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 25,054.2 (down 0.1%). Over the last one year it has moved up from 19,637.3 to 25,054.2, a gain of 5,417 points (up 27.6%).

Overall, the S&P BSE SENSEX is up 49.8% over the year.

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

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Related Views on News

SANOFI INDIA Announces Quarterly Results (2QFY21); Net Profit Up 5.0% (Quarterly Result Update)

Oct 29, 2020 | Updated on Oct 29, 2020

For the quarter ended September 2020, SANOFI INDIA has posted a net profit of Rs 1 bn (up 5.0% YoY). Sales on the other hand came in at Rs 7 bn (down 11.9% YoY). Read on for a complete analysis of SANOFI INDIA's quarterly results.

SANOFI INDIA Announces Quarterly Results (1QFY21); Net Profit Up 39.9% (Quarterly Result Update)

Aug 26, 2020 | Updated on Aug 26, 2020

For the quarter ended June 2020, SANOFI INDIA has posted a net profit of Rs 1 bn (up 39.9% YoY). Sales on the other hand came in at Rs 7 bn (down 5.0% YoY). Read on for a complete analysis of SANOFI INDIA's quarterly results.

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