JUBILANT LIFE SCIENCES 2018-19 Annual Report Analysis

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JUBILANT LIFE SCIENCES 2018-19 Annual Report Analysis
Thu, 5 Sep

JUBILANT LIFE SCIENCES 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 LIFE SCIENCES Income Statement Analysis

  • Operating income during the year rose 21.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 14.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.1% in FY19 as against 20.2% 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 8.4% in FY18 to 6.3% in FY19.

JUBILANT LIFE SCIENCES Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 75,178 91,108 21.2%
Other income Rs m 400 357 -10.7%
Total Revenues Rs m 75,579 91,466 21.0%
Gross profit Rs m 15,184 17,390 14.5%
Depreciation Rs m 4,151 3,709 -10.6%
Interest Rs m 2,843 2,198 -22.7%
Profit before tax Rs m 8,591 11,840 37.8%
Tax Rs m 2,247 3,268 45.5%
Profit after tax Rs m 6,344 5,770 -9.0%
Gross profit margin % 20.2 19.1
Effective tax rate % 26.2 27.6
Net profit margin % 8.4 6.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



JUBILANT LIFE SCIENCES 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 8% and stood at Rs 65 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 115 billion as against Rs 96 billion during FY18, thereby witnessing a growth of 19%.

JUBILANT LIFE SCIENCES Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 40,865 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 96,176 114,685 19.2
 
Current assets Rs m 31,898 45,848 43.7
Fixed Assets Rs m 60,715 65,498 7.9
Total Assets Rs m 96,176 114,685 19.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



JUBILANT LIFE SCIENCES Cash Flow Statement Analysis

  • JUBILANT LIFE SCIENCES'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 LIFE SCIENCES 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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for JUBILANT LIFE SCIENCES

  • 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 447.0, stands at 12.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 1.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 7.5 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 472.0 572.0
TTM Earnings per share Rs 39.8 36.2
Diluted earnings per share Rs 39.8 36.2
Price to Cash Flow x 6.8 7.5
TTM P/E ratio x 12.7 12.7
Price / Book Value ratio x 3.2 2.5
Market Cap Rs m 71,198 71,198
Dividends per share (Unadj.) Rs 3.0 4.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for JUBILANT LIFE SCIENCES

  • 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 6.4x 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 6.9% during FY19, from 9.6% 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 6.4
Debt to equity ratio x 0.7 0.9
Return on assets % 9.6 6.9
Return on equity % 15.5 12.0
Return on capital employed % 16.0 12.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

JUBILANT LIFE SCIENCES Share Price Performance

Over the last one year, JUBILANT LIFE SCIENCES share price has moved down from Rs 759.3 to Rs 447.0, registering a loss of Rs 312.3 or around 41.1%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 13,412.6 (up 3.5%). Over the last one year it has moved down from 14,686.2 to 13,412.6, a loss of 1,274 points (down 8.7%).

Overall, the S&P BSE SENSEX is down 3.4% over the year.

(To know more, check out historical annual results for JUBILANT LIFE SCIENCES and quarterly results for JUBILANT LIFE SCIENCES)

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JUBILANT LIFE SCIENCES Announces Quarterly Results (1QFY20); Net Profit Down 7.7% (Quarterly Result Update)

Jul 29, 2019 | Updated on Jul 29, 2019

For the quarter ended June 2019, JUBILANT LIFE SCIENCES has posted a net profit of Rs 2 bn (down 7.7% YoY). Sales on the other hand came in at Rs 22 bn (up 5.0% YoY). Read on for a complete analysis of JUBILANT LIFE SCIENCES's quarterly results.

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May 21, 2019 | Updated on May 21, 2019

For the quarter ended March 2019, JUBILANT LIFE SCIENCES has posted a net profit of Rs 1 bn (down 166.0% YoY). Sales on the other hand came in at Rs 24 bn (up 5.9% YoY). Read on for a complete analysis of JUBILANT LIFE SCIENCES's quarterly results.

JUBILANT LIFE SCIENCES 2017-18 Annual Report Analysis (Annual Result Update)

Mar 28, 2019 | Updated on Mar 28, 2019

Here's an analysis of the annual report of JUBILANT LIFE SCIENCES for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of JUBILANT LIFE SCIENCES. Also includes updates on the valuation of JUBILANT LIFE SCIENCES.

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