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LUPIN 2019-20 Annual Report Analysis
Tue, 31 Mar

LUPIN has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

LUPIN Income Statement Analysis

  • Operating income during the year rose 0.5% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 26.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.2% in FY20 as against 13.9% in FY19.
  • Depreciation charges increased by 14.7% and finance costs increased by 20.0% YoY, respectively.
  • Other income grew by 45.3% YoY.
  • Net profit for the year declined by 144.7% YoY.
  • Net profit margins during the year declined from 3.7% in FY19 to 1.6% in FY20.

LUPIN Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 167,514 168,366 0.5%
Other income Rs m 3,330 4,838 45.3%
Total Revenues Rs m 170,844 173,203 1.4%
Gross profit Rs m 23,290 17,223 -26.0%
Depreciation Rs m 8,461 9,702 14.7%
Interest Rs m 3,025 3,630 20.0%
Profit before tax Rs m 15,134 8,728 -42.3%
Tax Rs m 9,017 11,466 27.2%
Profit after tax Rs m 6,117 -2,737 -144.7%
Gross profit margin % 13.9 10.2
Effective tax rate % 59.6 131.4
Net profit margin % 3.7 -1.6
* 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 FY20 stood at Rs 92 billion as compared to Rs 61 billion in FY19, thereby witnessing an increase of 50.5%.
  • Long-term debt down at Rs 18 billion as compared to Rs 66 billion during FY19, a fall of 73.0%.
  • Current assets rose 11% and stood at Rs 154 billion, while fixed assets fell 30% and stood at Rs 94 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 248 billion as against Rs 272 billion during FY19, thereby witnessing a fall of 9%.

LUPIN Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 135,238 123,220 -8.9
 
Current Liabilities Rs m 61,299 92,252 50.5
Long-term Debt Rs m 66,417 17,933 -73.0
Total Liabilities Rs m 272,154 248,095 -8.8
 
Current assets Rs m 138,536 154,132 11.3
Fixed Assets Rs m 133,618 93,963 -29.7
Total Assets Rs m 272,154 248,095 -8.8
* 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 FY20 stood at Rs 15 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs 11 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -9 billion on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs 17 billion from the Rs -9 billion net cash flows seen during FY19.

LUPIN Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 16,660 14,688 -11.8%
Cash Flow from Investing Activities Rs m -32,825 11,070 -
Cash Flow from Financing Activities Rs m 7,441 -8,906 -
Net Cash Flow Rs m -8,724 16,853 -
* 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 -6.0, an decline from the EPS of Rs 13.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 589.7, stands at -73.3 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 1.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 45.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 370.2 371.7
TTM Earnings per share Rs 13.5 -6.0
Diluted earnings per share Rs 13.5 -6.0
Price to Cash Flow x 23.0 45.1
TTM P/E ratio x 55.5 -73.3
Price / Book Value ratio x 2.9 2.5
Market Cap Rs m 386,068 314,199
Dividends per share (Unadj.) Rs 5.0 6.0
* 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 1.7x during FY20, from 2.3x during FY19. 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 deteriorated and stood at 3.4x during FY20, from 6.0x during FY19. 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 -2.2% during FY20, from 4.5% during FY20. 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 8.8% during FY20, from 9.0% during FY19. 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 0.4% during FY20, from 3.4% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 2.3 1.7
Debtors’ Days Days 112 118
Interest coverage x 6.0 3.4
Debt to equity ratio x 0.5 0.1
Return on assets % 3.4 0.4
Return on equity % 4.5 -2.2
Return on capital employed % 9.0 8.8
* 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 down from Rs 739.1 to Rs 589.7, registering a loss of Rs 149.4 or around 20.2%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 12,148.6 (up 3.4%). Over the last one year it has moved down from 14,407.9 to 12,148.6, a loss of 2,259 points (down 15.7%).

Overall, the S&P BSE SENSEX is down 24.2% 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 0.0 per share. You can check out the latest share price performance of LUPIN here...

What was the revenue of LUPIN in FY20? How does it compare to earlier years?

The revenues of LUPIN stood at Rs 173,203 m in FY20, which was up 1.4% compared to Rs 170,844 m reported in FY19.

LUPIN's revenue has grown from Rs 142,077 m in FY16 to Rs 173,203 m in FY20.

Over the past 5 years, the revenue of LUPIN has grown at a CAGR of 5.1%.

What was the net profit of LUPIN in FY20? How does it compare to earlier years?

The net loss of LUPIN stood at Rs -2,737 m in FY20, which was down -144.7% compared to Rs 6,117 m reported in FY19.

This compares to a net profit of Rs 2,548 m in FY18 and a net profit of Rs 25,564 m in FY17.

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

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 FY20 and stood at Rs 14,688 m as compared to Rs 16,660 m in FY19.
  • Cash flow from investments increased in FY20 and stood at Rs 11,070 m as compared to Rs -32,825 m in FY19.
  • Cash flow from financial activity decreased in FY20 and stood at Rs -8,906 m as compared to Rs 7,441 m in FY19.

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

(Rs m)FY16FY17FY18FY19FY20
From Operations-3,82441,13517,51216,66014,688
From Investments-69,617-25,2744,699-32,82511,070
From Financial Activity58,3644,332-14,9217,441-8,906
Net Cashflow-13,14820,1937,290-8,72416,853

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 stood at 10.2% in FY20 as against 13.9% in FY19.
  • Net profit margins declined from 3.7% in FY19 to 1.6% in FY20.
  • Debt to Equity ratio for FY20 stood at 0.1 as compared to 0.5 in FY19.

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

 FY16FY17FY18FY19FY20
Operating Profit Margin (%)26.325.810.713.910.2
Net Profit Margin (%)16.114.71.63.7-1.6
Debt to Equity Ratio (x)0.50.40.50.50.1

Read: Latest Annual Report Analysis of LUPIN

 

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