JUBILANT PHARMOVA 2017-18 Annual Report Analysis

Sat, 31 Mar

JUBILANT PHARMOVA 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.

JUBILANT PHARMOVA Income Statement Analysis

• Operating income during the year rose 30.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 12.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.3% in FY18 as against 23.5% in FY17.
• Depreciation charges increased by 42.4% and finance costs decreased by 16.7% YoY, respectively.
• Other income grew by 61.0% YoY.
• Net profit for the year grew by 10.4% YoY.
• Net profit margins during the year declined from 10.1% in FY17 to 8.5% in FY18.

JUBILANT PHARMOVA Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	57,165	74,779	30.8%
Other income	Rs m	249	400	61.0%
Total Revenues	Rs m	57,414	75,179	30.9%
Gross profit	Rs m	13,453	15,184	12.9%
Depreciation	Rs m	2,914	4,150	42.4%
Interest	Rs m	3,411	2,843	-16.7%
Profit before tax	Rs m	7,376	8,591	16.5%
Tax	Rs m	1,630	2,247	37.8%
Profit after tax	Rs m	5,746	6,344	10.4%
Gross profit margin	%	23.5	20.3
Effective tax rate	%	22.1	26.2
Net profit margin	%	10.1	8.5

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JUBILANT PHARMOVA Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 20 billion as compared to Rs 17 billion in FY17, thereby witnessing an increase of 19.0%.
• Long-term debt down at Rs 30 billion as compared to Rs 35 billion during FY17, a fall of 13.0%.
• Current assets rose 8% and stood at Rs 32 billion, while fixed assets rose 5% and stood at Rs 63 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 95 billion as against Rs 89 billion during FY17, thereby witnessing a growth of 6%.

JUBILANT PHARMOVA Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	34,356	40,864	18.9
Current Liabilities	Rs m	16,840	20,047	19.0
Long-term Debt	Rs m	35,050	30,478	-13.0
Total Liabilities	Rs m	88,987	94,572	6.3
Current assets	Rs m	29,481	31,898	8.2
Fixed Assets	Rs m	59,506	62,674	5.3
Total Assets	Rs m	88,987	94,572	6.3

JUBILANT PHARMOVA Cash Flow Statement Analysis

• JUBILANT PHARMOVA 's cash flow from operating activities (CFO) during FY18 stood at Rs 13 billion, an improvement of 2.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -6 billion, an improvement of 37.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -9 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -2 billion from the Rs 1 billion net cash flows seen during FY17.

JUBILANT PHARMOVA 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	12,685	13,032	2.7%
Cash Flow from Investing Activities	Rs m	-4,504	-6,177	-
Cash Flow from Financing Activities	Rs m	-6,859	-9,011	-
Net Cash Flow	Rs m	1,172	-2,123	-

Current Valuations for JUBILANT PHARMOVA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 39.8, an improvement from the EPS of Rs 36.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 839.8, stands at 21.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 12.4 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	358.9	469.5
TTM Earnings per share	Rs	36.1	39.8
Diluted earnings per share	Rs	36.1	39.8
Price to Cash Flow	x	14.7	12.4
TTM P/E ratio	x	22.1	21.1
Price / Book Value ratio	x	2.6	3.2
Market Cap	Rs m	89,528	130,531
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for JUBILANT PHARMOVA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY18, from 1.8x 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 improved and stood at 4.0x during FY18, from 3.2x 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 15.5% during FY18, from 16.7% 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 improved and stood at 16.0% during FY18, from 15.5% 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 9.7% during FY18, from 10.3% 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	1.8	1.6
Debtors’ Days	Days	64	55
Interest coverage	x	3.2	4.0
Debt to equity ratio	x	1.0	0.7
Return on assets	%	10.3	9.7
Return on equity	%	16.7	15.5
Return on capital employed	%	15.5	16.0

To see how JUBILANT PHARMOVA has performed over the last 5 years, please visit here.

JUBILANT PHARMOVA Share Price Performance

Over the last one year, JUBILANT PHARMOVA share price has moved up from Rs 798.5 to Rs 839.8, registering a gain of Rs 41.4 or around 5.2%.

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 JUBILANT PHARMOVA and quarterly results for JUBILANT PHARMOVA )

Read: Latest Annual Report Analysis of JUBILANT PHARMOVA