SANOFI INDIA 2020-21 Annual Report Analysis

Fri, 31 Dec

SANOFI INDIA has announced its results for the year ended December 2021. Let us have a look at the detailed performance review of the company during FY20-21.

SANOFI INDIA Income Statement Analysis

• Operating income during the year rose 1.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 86.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 42.3% in CY21 as against 23.1% in CY20.
• Depreciation charges decreased by 18.9% increased by 0.0% YoY, respectively.
• Other income declined by 16.9% YoY.
• Net profit for the year grew by 97.7% YoY.
• Net profit margins during the year grew from 16.5% in CY20 to 31.9% in CY21.

SANOFI INDIA Income Statement 2020-21

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*	% Change
Net Sales	Rs m	29,019	29,566	1.9%
Other income	Rs m	898	746	-16.9%
Total Revenues	Rs m	29,917	30,312	1.3%
Gross profit	Rs m	6,714	12,515	86.4%
Depreciation	Rs m	822	667	-18.9%
Interest	Rs m	18	18	0.0%
Profit before tax	Rs m	6,772	12,576	85.7%
Tax	Rs m	1,996	3,132	56.9%
Profit after tax	Rs m	4,776	9,444	97.7%
Gross profit margin	%	23.1	42.3
Effective tax rate	%	29.5	24.9
Net profit margin	%	16.5	31.9

Don't Miss: Best Chance to Access Midcap Stocks Research at 80% OFF

SANOFI INDIA Balance Sheet Analysis

• The company's current liabilities during CY21 stood at Rs 23 billion as compared to Rs 17 billion in CY20, thereby witnessing an increase of 35.2%.
• Current assets rose 30% and stood at Rs 37 billion, while fixed assets fell 17% and stood at Rs 19 billion in CY21.
• Overall, the total assets and liabilities for CY21 stood at Rs 56 billion as against Rs 51 billion during CY20, thereby witnessing a growth of 9%.

SANOFI INDIA Balance Sheet as on December 2021

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*	% Change
Networth	Rs m	20,650	21,655	4.9
Current Liabilities	Rs m	16,941	22,908	35.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	50,934	55,553	9.1
Current assets	Rs m	28,406	36,791	29.5
Fixed Assets	Rs m	22,528	18,762	-16.7
Total Assets	Rs m	50,934	55,553	9.1

SANOFI INDIA Cash Flow Statement Analysis

• SANOFI INDIA's cash flow from operating activities (CFO) during CY21 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during CY21 stood at Rs 6 billion, an improvement of 128.2% on a YoY basis.
• Cash flow from financial activities (CFF) during CY21 stood at Rs -8 billion on a YoY basis.
• Overall, net cash flows for the company during CY21 stood at Rs 3 billion from the Rs 775 million net cash flows seen during CY20.

SANOFI INDIA Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-20	Dec-21
Cash Flow from Operating Activities	Rs m	6,111	5,588	-8.6%
Cash Flow from Investing Activities	Rs m	2,764	6,308	128.2%
Cash Flow from Financing Activities	Rs m	-8,100	-8,490	-
Net Cash Flow	Rs m	775	3,406	339.5%

Current Valuations for SANOFI INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 410.1, an improvement from the EPS of Rs 207.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 6,580.0, stands at 14.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.9 times, while the price to sales ratio stands at 6.5 times.
• The company's price to cash flow (P/CF) ratio stood at 19.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*
Sales per share (Unadj.)	Rs	1,260.1	1,283.8
TTM Earnings per share	Rs	207.4	410.1
Diluted earnings per share	Rs	207.4	410.1
Price to Cash Flow	x	18.0	19.0
TTM P/E ratio	x	19.2	14.6
Price / Book Value ratio	x	8.3	8.9
Market Cap	Rs m	171,567	191,661
Dividends per share (Unadj.)	Rs	365.0	490.0

Ratio Analysis for SANOFI INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during CY21, from 1.7x during CY20. 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 699.7x during CY21, from 377.2x during CY20. 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 43.6% during CY21, from 23.1% during CY21. 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 58.2% during CY21, from 32.9% during CY20. 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 17.0% during CY21, from 9.4% during CY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*
Current ratio	x	1.7	1.6
Debtors’ Days	Days	19	18
Interest coverage	x	377.2	699.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.4	17.0
Return on equity	%	23.1	43.6
Return on capital employed	%	32.9	58.2

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 7,775.5 to Rs 6,580.0, registering a loss of Rs 1,195.5 or around 15.4%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 22,927.4 (up 3.0%). Over the last one year it has moved down from 24,360.6 to 22,927.4, a loss of 1,433 points (down 5.9%).

Overall, the S&P BSE SENSEX is up 8.2% 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