JUBILANT PHARMOVA 2020-21 Annual Report Analysis

Wed, 31 Mar

JUBILANT PHARMOVA has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

JUBILANT PHARMOVA Income Statement Analysis

• Operating income during the year fell 2.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 2.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.0% in FY21 as against 20.9% in FY20.
• Depreciation charges decreased by 2.2% and finance costs decreased by 14.0% YoY, respectively.
• Other income declined by 37.1% YoY.
• Net profit for the year declined by 8.2% YoY.
• Net profit margins during the year declined from 9.8% in FY20 to 9.3% in FY21.

JUBILANT PHARMOVA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	91,544	89,055	-2.7%
Other income	Rs m	474	298	-37.1%
Total Revenues	Rs m	92,018	89,354	-2.9%
Gross profit	Rs m	19,124	18,699	-2.2%
Depreciation	Rs m	4,619	4,516	-2.2%
Interest	Rs m	2,874	2,473	-14.0%
Profit before tax	Rs m	12,105	12,008	-0.8%
Tax	Rs m	3,123	3,764	20.5%
Profit after tax	Rs m	8,982	8,244	-8.2%
Gross profit margin	%	20.9	21.0
Effective tax rate	%	25.8	31.3
Net profit margin	%	9.8	9.3

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JUBILANT PHARMOVA Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 10 billion as compared to Rs 26 billion in FY20, thereby witnessing an decrease of -60.0%.
• Long-term debt down at Rs 26 billion as compared to Rs 37 billion during FY20, a fall of 31.4%.
• Current assets fell 41% and stood at Rs 30 billion, while fixed assets fell 20% and stood at Rs 58 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 88 billion as against Rs 123 billion during FY20, thereby witnessing a fall of 29%.

JUBILANT PHARMOVA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	56,039	47,407	-15.4
Current Liabilities	Rs m	26,190	10,488	-60.0
Long-term Debt	Rs m	37,397	25,640	-31.4
Total Liabilities	Rs m	123,104	87,634	-28.8
Current assets	Rs m	50,383	29,525	-41.4
Fixed Assets	Rs m	72,721	58,109	-20.1
Total Assets	Rs m	123,104	87,634	-28.8

JUBILANT PHARMOVA Cash Flow Statement Analysis

• JUBILANT PHARMOVA 's cash flow from operating activities (CFO) during FY21 stood at Rs 18 billion, an improvement of 15.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -7 billion, an improvement of 126.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -17 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -7 billion from the Rs 2 billion net cash flows seen during FY20.

JUBILANT PHARMOVA Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	15,429	17,843	15.6%
Cash Flow from Investing Activities	Rs m	-3,270	-7,390	-
Cash Flow from Financing Activities	Rs m	-10,504	-17,094	-
Net Cash Flow	Rs m	2,254	-7,289	-

Current Valuations for JUBILANT PHARMOVA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 51.8, an decline from the EPS of Rs 56.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 680.4, stands at 16.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 8.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	574.7	559.1
TTM Earnings per share	Rs	56.4	51.8
Diluted earnings per share	Rs	56.4	51.8
Price to Cash Flow	x	2.9	8.1
TTM P/E ratio	x	4.4	16.9
Price / Book Value ratio	x	1.4	2.2
Market Cap	Rs m	76,220	103,365
Dividends per share (Unadj.)	Rs	5.0	5.0

Ratio Analysis for JUBILANT PHARMOVA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.8x during FY21, from 1.9x during FY20. 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 5.9x during FY21, from 5.2x during FY20. 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 17.4% during FY21, from 16.0% during FY21. 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 19.8% during FY21, from 16.0% during FY20. 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 improved and stood at 12.2% during FY21, from 9.6% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.9	2.8
Debtors’ Days	Days	52	34
Interest coverage	x	5.2	5.9
Debt to equity ratio	x	0.7	0.5
Return on assets	%	9.6	12.2
Return on equity	%	16.0	17.4
Return on capital employed	%	16.0	19.8

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 248.9 to Rs 680.4, registering a gain of Rs 431.6 or around 173.4%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,328.2 (up 0.4%). Over the last one year it has moved up from 12,148.6 to 21,328.2, a gain of 9,180 points (up 75.6%).

Overall, the S&P BSE SENSEX is up 74.1% 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