JUBILANT PHARMOVA 2018-19 Annual Report Analysis

Sun, 31 Mar

JUBILANT PHARMOVA has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

JUBILANT PHARMOVA Income Statement Analysis

• Operating income during the year rose 21.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 3.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.0% in FY19 as against 20.3% in FY18.
• Depreciation charges decreased by 10.6% and finance costs decreased by 22.7% YoY, respectively.
• Other income declined by 10.7% YoY.
• Net profit for the year declined by 9.0% YoY.
• Net profit margins during the year declined from 8.5% in FY18 to 6.3% in FY19.

JUBILANT PHARMOVA Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	74,779	91,108	21.8%
Other income	Rs m	400	357	-10.7%
Total Revenues	Rs m	75,179	91,466	21.7%
Gross profit	Rs m	15,184	14,588	-3.9%
Depreciation	Rs m	4,150	3,709	-10.6%
Interest	Rs m	2,843	2,198	-22.7%
Profit before tax	Rs m	8,591	9,038	5.2%
Tax	Rs m	2,247	3,268	45.5%
Profit after tax	Rs m	6,344	5,770	-9.0%
Gross profit margin	%	20.3	16.0
Effective tax rate	%	26.2	36.2
Net profit margin	%	8.5	6.3

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JUBILANT PHARMOVA Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 21 billion as compared to Rs 20 billion in FY18, thereby witnessing an increase of 4.2%.
• Long-term debt stood at Rs 42 billion as compared to Rs 30 billion during FY18, a growth of 39.2%.
• Current assets rose 44% and stood at Rs 46 billion, while fixed assets rose 7% and stood at Rs 67 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 113 billion as against Rs 95 billion during FY18, thereby witnessing a growth of 20%.

JUBILANT PHARMOVA Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	40,864	48,089	17.7
Current Liabilities	Rs m	20,047	20,897	4.2
Long-term Debt	Rs m	30,478	42,429	39.2
Total Liabilities	Rs m	94,572	113,190	19.7
Current assets	Rs m	31,898	45,848	43.7
Fixed Assets	Rs m	62,674	67,342	7.4
Total Assets	Rs m	94,572	113,190	19.7

JUBILANT PHARMOVA Cash Flow Statement Analysis

• JUBILANT PHARMOVA 's cash flow from operating activities (CFO) during FY19 stood at Rs 11 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -10 billion, an improvement of 63.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs 7 billion, an improvement of 173% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 8 billion from the Rs -2 billion net cash flows seen during FY18.

JUBILANT PHARMOVA Cash Flow Statement 2018-19

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-18	Mar-19
Cash Flow from Operating Activities	Rs m	13,032	11,215	-13.9%
Cash Flow from Investing Activities	Rs m	-6,177	-10,118	-
Cash Flow from Financing Activities	Rs m	-9,011	6,574	-
Net Cash Flow	Rs m	-2,123	7,612	-

Current Valuations for JUBILANT PHARMOVA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 36.2, an decline from the EPS of Rs 39.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 664.2, stands at 18.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 12.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Sales per share (Unadj.)	Rs	469.5	572.0
TTM Earnings per share	Rs	39.8	36.2
Diluted earnings per share	Rs	39.8	36.2
Price to Cash Flow	x	12.7	12.7
TTM P/E ratio	x	21.1	18.3
Price / Book Value ratio	x	3.2	2.5
Market Cap	Rs m	130,531	120,691
Dividends per share (Unadj.)	Rs	3.0	4.5

Ratio Analysis for JUBILANT PHARMOVA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY19, from 1.6x during FY18. 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 5.1x during FY19, from 4.0x during FY18. 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 12.0% during FY19, from 15.5% during FY19. 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 12.4% during FY19, from 16.0% during FY18. 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 7.0% during FY19, from 9.7% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Current ratio	x	1.6	2.2
Debtors’ Days	Days	55	51
Interest coverage	x	4.0	5.1
Debt to equity ratio	x	0.7	0.9
Return on assets	%	9.7	7.0
Return on equity	%	15.5	12.0
Return on capital employed	%	16.0	12.4

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 down from Rs 839.8 to Rs 664.2, registering a loss of Rs 175.6 or around 20.9%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 14,407.9 (up 1.4%). Over the last one year it has moved up from 13,157.6 to 14,407.9, a gain of 1,250 points (up 9.5%).

Overall, the S&P BSE SENSEX is up 16.3% 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