SANOFI INDIA 2021-22 Annual Report Analysis

Sat, 31 Dec

SANOFI INDIA has announced its results for the year ended December 2022. Let us have a look at the detailed performance review of the company during FY21-22.

SANOFI INDIA Income Statement Analysis

• Operating income during the year fell 6.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 33.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 30.1% in CY22 as against 42.3% in CY21.
• Depreciation charges decreased by 37.2% and finance costs decreased by 5.6% YoY, respectively.
• Other income declined by 2.1% YoY.
• Net profit for the year declined by 34.3% YoY.
• Net profit margins during the year declined from 31.9% in CY21 to 22.4% in CY22.

SANOFI INDIA Income Statement 2021-22

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*	% Change
Net Sales	Rs m	29,566	27,701	-6.3%
Other income	Rs m	746	730	-2.1%
Total Revenues	Rs m	30,312	28,431	-6.2%
Gross profit	Rs m	12,515	8,349	-33.3%
Depreciation	Rs m	667	419	-37.2%
Interest	Rs m	18	17	-5.6%
Profit before tax	Rs m	12,576	8,643	-31.3%
Tax	Rs m	3,132	2,437	-22.2%
Profit after tax	Rs m	9,444	6,206	-34.3%
Gross profit margin	%	42.3	30.1
Effective tax rate	%	24.9	28.2
Net profit margin	%	31.9	22.4

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SANOFI INDIA Balance Sheet Analysis

• The company's current liabilities during CY22 stood at Rs 27 billion as compared to Rs 23 billion in CY21, thereby witnessing an increase of 19.8%.
• Current assets fell 2% and stood at Rs 36 billion, while fixed assets fell 35% and stood at Rs 12 billion in CY22.
• Overall, the total assets and liabilities for CY22 stood at Rs 48 billion as against Rs 56 billion during CY21, thereby witnessing a fall of 13%.

SANOFI INDIA Balance Sheet as on December 2022

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*	% Change
Networth	Rs m	21,655	12,136	-44.0
Current Liabilities	Rs m	22,899	27,425	19.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	55,553	48,279	-13.1
Current assets	Rs m	36,752	36,121	-1.7
Fixed Assets	Rs m	18,762	12,148	-35.3
Total Assets	Rs m	55,553	48,279	-13.1

SANOFI INDIA Cash Flow Statement Analysis

• SANOFI INDIA's cash flow from operating activities (CFO) during CY22 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during CY22 stood at Rs 7 billion, an improvement of 3.2% on a YoY basis.
• Cash flow from financial activities (CFF) during CY22 stood at Rs -16 billion on a YoY basis.
• Overall, net cash flows for the company during CY22 stood at Rs -5 billion from the Rs 3 billion net cash flows seen during CY21.

SANOFI INDIA Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-21	Dec-22
Cash Flow from Operating Activities	Rs m	5,588	3,987	-28.7%
Cash Flow from Investing Activities	Rs m	6,308	6,509	3.2%
Cash Flow from Financing Activities	Rs m	-8,490	-15,827	-
Net Cash Flow	Rs m	3,406	-5,331	-

Current Valuations for SANOFI INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 269.5, an decline from the EPS of Rs 410.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 5,849.7, stands at 21.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.1 times, while the price to sales ratio stands at 4.9 times.
• The company's price to cash flow (P/CF) ratio stood at 23.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*
Sales per share (Unadj.)	Rs	1,283.8	1,202.8
TTM Earnings per share	Rs	410.1	269.5
Diluted earnings per share	Rs	410.1	269.5
Price to Cash Flow	x	18.0	23.3
TTM P/E ratio	x	19.2	21.7
Price / Book Value ratio	x	8.9	12.7
Market Cap	Rs m	191,661	154,224
Dividends per share (Unadj.)	Rs	490.0	570.0

Ratio Analysis for SANOFI INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during CY22, from 1.6x during CY21. 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 509.4x during CY22, from 699.7x during CY21. 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 51.1% during CY22, from 43.6% during CY22. 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 71.4% during CY22, from 58.2% during CY21. 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 declined and down at 12.9% during CY22, from 17.0% during CY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*
Current ratio	x	1.6	1.3
Debtors’ Days	Days	18	17
Interest coverage	x	699.7	509.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.0	12.9
Return on equity	%	43.6	51.1
Return on capital employed	%	58.2	71.4

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 7,877.2 to Rs 7,506.4, registering a loss of Rs 370.8 or around 4.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 24,303.8 (down 1.0%). Over the last one year it has moved up from 21,328.2 to 24,303.8, a gain of 2,976 points (up 14.0%).

Overall, the S&P BSE SENSEX is up 16.8% 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