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INDOCO REMEDIES 2017-18 Annual Report Analysis
Sat, 31 Mar

INDOCO REMEDIES has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

INDOCO REMEDIES Income Statement Analysis

  • Operating income during the year fell 1.3% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 14.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.7% in FY18 as against 14.7% in FY17.
  • Depreciation charges increased by 7.0% and finance costs increased by 278.4% YoY, respectively.
  • Other income grew by 35.7% YoY.
  • Net profit for the year declined by 46.6% YoY.
  • Net profit margins during the year declined from 7.3% in FY17 to 4.0% in FY18.

INDOCO REMEDIES Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 10,528 10,386 -1.3%
Other income Rs m 59 81 35.7%
Total Revenues Rs m 10,587 10,466 -1.1%
Gross profit Rs m 1,545 1,316 -14.8%
Depreciation Rs m 633 677 7.0%
Interest Rs m 62 235 278.4%
Profit before tax Rs m 909 484 -46.8%
Tax Rs m 139 72 -47.8%
Profit after tax Rs m 771 412 -46.6%
Gross profit margin % 14.7 12.7
Effective tax rate % 15.3 15.0
Net profit margin % 7.3 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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INDOCO REMEDIES Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 4 billion as compared to Rs 4 billion in FY17, thereby witnessing an increase of 6.9%.
  • Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY17, a fall of 6.8%.
  • Current assets fell 6% and stood at Rs 5 billion, while fixed assets rose 10% and stood at Rs 7 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 12 billion as against Rs 12 billion during FY17, thereby witnessing a growth of 2%.

INDOCO REMEDIES Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 6,513 6,750 3.6
 
Current Liabilities Rs m 3,904 4,174 6.9
Long-term Debt Rs m 1,323 1,233 -6.8
Total Liabilities Rs m 11,888 12,177 2.4
 
Current assets Rs m 5,721 5,390 -5.8
Fixed Assets Rs m 6,167 6,787 10.1
Total Assets Rs m 11,888 12,177 2.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



INDOCO REMEDIES Cash Flow Statement Analysis

  • INDOCO REMEDIES's cash flow from operating activities (CFO) during FY18 stood at Rs 1 billion, an improvement of 38.4% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -1 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -388 million on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -515 million from the Rs 497 million net cash flows seen during FY17.

INDOCO REMEDIES Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 886 1,227 38.4%
Cash Flow from Investing Activities Rs m -1,706 -1,354 -
Cash Flow from Financing Activities Rs m 1,316 -388 -
Net Cash Flow Rs m 497 -515 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for INDOCO REMEDIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.5, an decline from the EPS of Rs 8.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 210.8, stands at 47.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 1.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 21.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 114.2 112.7
TTM Earnings per share Rs 8.4 4.5
Diluted earnings per share Rs 8.4 4.5
Price to Cash Flow x 16.4 21.0
TTM P/E ratio x 29.7 47.1
Price / Book Value ratio x 4.3 3.4
Market Cap Rs m 28,078 22,853
Dividends per share (Unadj.) Rs 1.6 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for INDOCO REMEDIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY18, from 1.5x during FY17. 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 3.1x during FY18, from 15.6x during FY17. 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 declined and down at 6.1% during FY18, from 11.8% during FY18. 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 declined and down at 9.0% during FY18, from 12.4% during FY17. 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 5.3% during FY18, from 7.0% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 1.5 1.3
Debtors’ Days Days 748 736
Interest coverage x 15.6 3.1
Debt to equity ratio x 0.2 0.2
Return on assets % 7.0 5.3
Return on equity % 11.8 6.1
Return on capital employed % 12.4 9.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how INDOCO REMEDIES has performed over the last 5 years, please visit here.

INDOCO REMEDIES Share Price Performance

Over the last one year, INDOCO REMEDIES share price has moved down from Rs 250.0 to Rs 210.8, registering a loss of Rs 39.2 or around 15.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 13,157.6 (down 1.1%). Over the last one year it has moved down from 15,312.4 to 13,157.6, a loss of 2,155 points (down 14.1%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for INDOCO REMEDIES and quarterly results for INDOCO REMEDIES)

Annual Report FAQs

What is the current share price of INDOCO REMEDIES?

INDOCO REMEDIES currently trades at Rs 330.0 per share. You can check out the latest share price performance of INDOCO REMEDIES here...

What was the revenue of INDOCO REMEDIES in FY18? How does it compare to earlier years?

The revenues of INDOCO REMEDIES stood at Rs 10,466 m in FY18, which was down -1.1% compared to Rs 10,587 m reported in FY17.

INDOCO REMEDIES' revenue has grown from Rs 10,121 m in FY16 to Rs 10,466 m in FY18.

Over the past 3 years, the revenue of INDOCO REMEDIES has grown at a CAGR of 1.7%.

What was the net profit of INDOCO REMEDIES in FY18? How does it compare to earlier years?

The net profit of INDOCO REMEDIES stood at Rs 412 m in FY18, which was down -46.6% compared to Rs 771 m reported in FY17.

This compares to a net profit of Rs 819 m in FY16.

Over the past 3 years, INDOCO REMEDIES net profit has grown at a CAGR of -29.1%.

What does the cash flow statement of INDOCO REMEDIES reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of INDOCO REMEDIES reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 1,227 m as compared to Rs 886 m in FY17.
  • Cash flow from investments increased in FY18 and stood at Rs -1,354 m as compared to Rs -1,706 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs -388 m as compared to Rs 1,316 m in FY17.

Here's the cash flow statement of INDOCO REMEDIES for the past 3 years.

(Rs m)FY16FY17FY18
From Operations1,1228861,227
From Investments-1,107-1,706-1,354
From Financial Activity-161,316-388
Net Cashflow-1497-515

What does the Key Ratio analysis of INDOCO REMEDIES reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of INDOCO REMEDIES reveals:

  • Operating profit margins witnessed a fall and stood at 12.7% in FY18 as against 14.7% in FY17.
  • Net profit margins declined from 7.3% in FY17 to 4.0% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.2 as compared to 0.2 in FY17.

Here's the ratio/financial analysis of INDOCO REMEDIES for the past 3 years.

 FY16FY17FY18
Operating Profit Margin (%)16.714.712.7
Net Profit Margin (%)8.17.34.0
Debt to Equity Ratio (x)0.10.20.2

Read: Latest Annual Report Analysis of INDOCO REMEDIES

 

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