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LUPIN 2018-19 Annual Report Analysis
Sun, 31 Mar

LUPIN 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.

LUPIN Income Statement Analysis

  • Operating income during the year rose 6.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 38.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.9% in FY19 as against 10.7% in FY18.
  • Depreciation charges decreased by 22.1% and finance costs increased by 48.0% YoY, respectively.
  • Other income grew by 121.5% YoY.
  • Net profit for the year grew by 140.1% YoY.
  • Net profit margins during the year grew from 1.6% in FY18 to 3.7% in FY19.

LUPIN Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 157,765 167,514 6.2%
Other income Rs m 1,504 3,330 121.5%
Total Revenues Rs m 159,269 170,844 7.3%
Gross profit Rs m 16,832 23,290 38.4%
Depreciation Rs m 10,859 8,461 -22.1%
Interest Rs m 2,044 3,025 48.0%
Profit before tax Rs m 5,433 15,134 178.6%
Tax Rs m 2,885 9,017 212.6%
Profit after tax Rs m 2,548 6,117 140.1%
Gross profit margin % 10.7 13.9
Effective tax rate % 53.1 59.6
Net profit margin % 1.6 3.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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LUPIN Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 61 billion as compared to Rs 51 billion in FY18, thereby witnessing an increase of 20.3%.
  • Long-term debt stood at Rs 66 billion as compared to Rs 64 billion during FY18, a growth of 3.4%.
  • Current assets rose 13% and stood at Rs 139 billion, while fixed assets fell 0% and stood at Rs 134 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 272 billion as against Rs 256 billion during FY18, thereby witnessing a growth of 6%.

LUPIN Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 133,657 135,238 1.2
 
Current Liabilities Rs m 50,956 61,299 20.3
Long-term Debt Rs m 64,245 66,417 3.4
Total Liabilities Rs m 255,888 272,154 6.4
 
Current assets Rs m 122,095 138,536 13.5
Fixed Assets Rs m 133,793 133,618 -0.1
Total Assets Rs m 255,888 272,154 6.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



LUPIN Cash Flow Statement Analysis

  • LUPIN's cash flow from operating activities (CFO) during FY19 stood at Rs 17 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -33 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 7 billion, an improvement of 150% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -9 billion from the Rs 7 billion net cash flows seen during FY18.

LUPIN 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 17,512 16,660 -4.9%
Cash Flow from Investing Activities Rs m 4,699 -32,825 -
Cash Flow from Financing Activities Rs m -14,921 7,441 -
Net Cash Flow Rs m 7,290 -8,724 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for LUPIN

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.5, an improvement from the EPS of Rs 5.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 739.1, stands at 55.5 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 2.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 26.5 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 349.0 370.2
TTM Earnings per share Rs 5.6 13.5
Diluted earnings per share Rs 5.6 13.5
Price to Cash Flow x 25.0 26.5
TTM P/E ratio x 24.9 55.5
Price / Book Value ratio x 3.7 2.9
Market Cap Rs m 495,505 386,068
Dividends per share (Unadj.) Rs 5.0 5.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for LUPIN

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.3x during FY19, from 2.4x 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 6.0x during FY19, from 3.7x 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 improved and stood at 4.5% during FY19, from 1.9% 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 improved and stood at 9.0% during FY19, from 3.8% 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 improved and stood at 3.4% during FY19, from 1.8% 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 2.4 2.3
Debtors’ Days Days 120 112
Interest coverage x 3.7 6.0
Debt to equity ratio x 0.5 0.5
Return on assets % 1.8 3.4
Return on equity % 1.9 4.5
Return on capital employed % 3.8 9.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

LUPIN Share Price Performance

Over the last one year, LUPIN share price has moved up from Rs 736.4 to Rs 739.1, registering a gain of Rs 2.7 or around 0.4%.

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 LUPIN and quarterly results for LUPIN)

Annual Report FAQs

What is the current share price of LUPIN?

LUPIN currently trades at Rs 1,617.9 per share. You can check out the latest share price performance of LUPIN here...

What was the revenue of LUPIN in FY19? How does it compare to earlier years?

The revenues of LUPIN stood at Rs 170,844 m in FY19, which was up 7.3% compared to Rs 159,269 m reported in FY18.

LUPIN's revenue has grown from Rs 129,163 m in FY15 to Rs 170,844 m in FY19.

Over the past 5 years, the revenue of LUPIN has grown at a CAGR of 7.2%.

What was the net profit of LUPIN in FY19? How does it compare to earlier years?

The net profit of LUPIN stood at Rs 6,117 m in FY19, which was up 140.1% compared to Rs 2,548 m reported in FY18.

This compares to a net profit of Rs 25,564 m in FY17 and a net profit of Rs 22,646 m in FY16.

Over the past 5 years, LUPIN net profit has grown at a CAGR of -29.3%.

What does the cash flow statement of LUPIN 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 LUPIN reveals:

  • Cash flow from operations decreased in FY19 and stood at Rs 16,660 m as compared to Rs 17,512 m in FY18.
  • Cash flow from investments decreased in FY19 and stood at Rs -32,825 m as compared to Rs 4,699 m in FY18.
  • Cash flow from financial activity increased in FY19 and stood at Rs 7,441 m as compared to Rs -14,921 m in FY18.

Here's the cash flow statement of LUPIN for the past 5 years.

(Rs m)FY15FY16FY17FY18FY19
From Operations27,331-3,82441,13517,51216,660
From Investments-10,545-69,617-25,2744,699-32,825
From Financial Activity-1,96958,3644,332-14,9217,441
Net Cashflow15,018-13,14820,1937,290-8,724

What does the Key Ratio analysis of LUPIN 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 LUPIN reveals:

  • Operating profit margins witnessed a fall and down at 13.9% in FY19 as against 10.7% in FY18.
  • Net profit margins grew from 1.6% in FY18 to 3.7% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.5 as compared to 0.5 in FY18.

Here's the ratio/financial analysis of LUPIN for the past 5 years.

 FY15FY16FY17FY18FY19
Operating Profit Margin (%)28.626.325.810.713.9
Net Profit Margin (%)19.316.114.71.63.7
Debt to Equity Ratio (x)0.00.50.40.50.5

Read: Latest Annual Report Analysis of LUPIN

 

Equitymaster requests your view! Post a comment on "LUPIN 2018-19 Annual Report Analysis". Click here!

1 Responses to "LUPIN 2018-19 Annual Report Analysis"

Rakesh Sinha

Jul 26, 2019

We have been sitting on Lupin shares for quite a while and value has been eroding consistently. Is there any recommended action? Should we buy more to average the price or just sell it and take the loss?

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