SANOFI INDIA 2022-23 Annual Report Analysis

Wed, 24 Apr

SANOFI INDIA has announced its results for the year ended December 2023. Let us have a look at the detailed performance review of the company during FY22-23.

SANOFI INDIA Income Statement Analysis

• Operating income during the year rose 2.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 1.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 28.8% in CY23 as against 30.1% in CY22.
• Depreciation charges decreased by 5.5% increased by 0.0% YoY, respectively.
• Other income declined by 8.9% YoY.
• Net profit for the year declined by 2.9% YoY.
• Net profit margins during the year declined from 22.4% in CY22 to 21.1% in CY23.

SANOFI INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*	% Change
Net Sales	Rs m	27,701	28,511	2.9%
Other income	Rs m	730	665	-8.9%
Total Revenues	Rs m	28,431	29,176	2.6%
Gross profit	Rs m	8,349	8,203	-1.7%
Depreciation	Rs m	419	396	-5.5%
Interest	Rs m	17	17	0.0%
Profit before tax	Rs m	8,643	8,455	-2.2%
Tax	Rs m	2,437	2,426	-0.5%
Profit after tax	Rs m	6,206	6,029	-2.9%
Gross profit margin	%	30.1	28.8
Effective tax rate	%	28.2	28.7
Net profit margin	%	22.4	21.1

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SANOFI INDIA Balance Sheet Analysis

• The company's current liabilities during CY23 down at Rs 25 billion as compared to Rs 27 billion in CY22, thereby witnessing an decrease of -7.6%.
• Current assets fell 13% and stood at Rs 31 billion, while fixed assets rose 29% and stood at Rs 16 billion in CY23.
• Overall, the total assets and liabilities for CY23 stood at Rs 47 billion as against Rs 48 billion during CY22, thereby witnessing a fall of 3%.

SANOFI INDIA Balance Sheet as on December 2023

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*	% Change
Networth	Rs m	12,136	9,469	-22.0
Current Liabilities	Rs m	27,425	25,347	-7.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	48,279	47,028	-2.6
Current assets	Rs m	36,121	31,314	-13.3
Fixed Assets	Rs m	12,148	15,714	29.4
Total Assets	Rs m	48,279	47,028	-2.6

SANOFI INDIA Cash Flow Statement Analysis

• SANOFI INDIA's cash flow from operating activities (CFO) during CY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during CY23 stood at Rs 375 million on a YoY basis.
• Cash flow from financial activities (CFF) during CY23 stood at Rs -9 billion, an improvement of 45% on a YoY basis.
• Overall, net cash flows for the company during CY23 stood at Rs -6 billion from the Rs -5 billion net cash flows seen during CY22.

SANOFI INDIA Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-22	Dec-23
Cash Flow from Operating Activities	Rs m	3,987	2,304	-42.2%
Cash Flow from Investing Activities	Rs m	6,509	375	-94.2%
Cash Flow from Financing Activities	Rs m	-15,827	-8,783	-
Net Cash Flow	Rs m	-5,331	-6,104	-

Current Valuations for SANOFI INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 261.8, an decline from the EPS of Rs 269.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 8,067.1, stands at 30.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 19.6 times, while the price to sales ratio stands at 6.5 times.
• The company's price to cash flow (P/CF) ratio stood at 24.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*
Sales per share (Unadj.)	Rs	1,202.8	1,238.0
TTM Earnings per share	Rs	269.5	261.8
Diluted earnings per share	Rs	269.5	261.8
Price to Cash Flow	x	20.3	24.2
TTM P/E ratio	x	21.7	30.8
Price / Book Value ratio	x	12.7	16.4
Market Cap	Rs m	154,224	155,659
Dividends per share (Unadj.)	Rs	570.0	167.0

Ratio Analysis for SANOFI INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during CY23, from 1.3x during CY22. 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 498.4x during CY23, from 509.4x during CY22. 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 63.7% during CY23, from 51.1% during CY23. 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 89.5% during CY23, from 71.4% during CY22. 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 CY23, from 12.9% during CY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*
Current ratio	x	1.3	1.2
Debtors’ Days	Days	17	17
Interest coverage	x	509.4	498.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.9	12.9
Return on equity	%	51.1	63.7
Return on capital employed	%	71.4	89.5

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 7,506.4 to Rs 5,739.9, registering a loss of Rs 1,766.5 or around 23.5%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,883.5 (up 0.4%). Over the last one year it has moved down from 24,303.8 to 21,883.5, a loss of 2,420 points (down 10.0%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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