LUPIN 2020-21 Annual Report Analysis

Wed, 31 Mar

LUPIN 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.

LUPIN Income Statement Analysis

• Operating income during the year fell 9.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 49.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.9% in FY21 as against 10.2% in FY20.
• Depreciation charges decreased by 8.5% and finance costs decreased by 61.3% YoY, respectively.
• Other income declined by 71.8% YoY.
• Net profit for the year declined by 548.1% YoY.
• Net profit margins during the year grew from 1.6% in FY20 to 8.1% in FY21.

LUPIN Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	168,366	151,630	-9.9%
Other income	Rs m	4,838	1,363	-71.8%
Total Revenues	Rs m	173,203	152,993	-11.7%
Gross profit	Rs m	17,223	25,669	49.0%
Depreciation	Rs m	9,702	8,874	-8.5%
Interest	Rs m	3,630	1,406	-61.3%
Profit before tax	Rs m	8,728	16,751	91.9%
Tax	Rs m	11,466	4,485	-60.9%
Profit after tax	Rs m	-2,737	12,266	-548.1%
Gross profit margin	%	10.2	16.9
Effective tax rate	%	131.4	26.8
Net profit margin	%	-1.6	8.1

Revealing on April 30: Are You Ready for the Upcoming Election Surprise?

LUPIN Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 84 billion as compared to Rs 92 billion in FY20, thereby witnessing an decrease of -8.6%.
• Long-term debt down at Rs 161 million as compared to Rs 18 billion during FY20, a fall of 99.1%.
• Current assets fell 9% and stood at Rs 140 billion, while fixed assets rose 1% and stood at Rs 94 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 234 billion as against Rs 248 billion during FY20, thereby witnessing a fall of 6%.

LUPIN Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	123,220	136,136	10.5
Current Liabilities	Rs m	92,252	84,361	-8.6
Long-term Debt	Rs m	17,933	161	-99.1
Total Liabilities	Rs m	248,095	234,302	-5.6
Current assets	Rs m	154,132	139,864	-9.3
Fixed Assets	Rs m	93,963	94,439	0.5
Total Assets	Rs m	248,095	234,302	-5.6

LUPIN Cash Flow Statement Analysis

• LUPIN's cash flow from operating activities (CFO) during FY21 stood at Rs 18 billion, an improvement of 24.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -12 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -19 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -13 billion from the Rs 17 billion net cash flows seen during FY20.

LUPIN 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	14,688	18,218	24.0%
Cash Flow from Investing Activities	Rs m	11,070	-12,396	-
Cash Flow from Financing Activities	Rs m	-8,906	-18,853	-
Net Cash Flow	Rs m	16,853	-13,031	-

Current Valuations for LUPIN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 27.0, an improvement from the EPS of Rs -6.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,021.0, stands at 37.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 3.1 times.
• The company's price to cash flow (P/CF) ratio stood at 18.2 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	371.7	334.2
TTM Earnings per share	Rs	-6.0	27.0
Diluted earnings per share	Rs	-6.0	27.0
Price to Cash Flow	x	38.5	18.2
TTM P/E ratio	x	-73.3	37.8
Price / Book Value ratio	x	2.5	2.8
Market Cap	Rs m	314,199	385,072
Dividends per share (Unadj.)	Rs	6.0	6.5

Ratio Analysis for LUPIN

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY21, from 1.7x 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 12.9x during FY21, from 3.4x 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 9.0% during FY21, from -2.2% 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 13.3% during FY21, from 8.8% 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 5.8% during FY21, from 0.4% 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	1.7	1.7
Debtors’ Days	Days	118	108
Interest coverage	x	3.4	12.9
Debt to equity ratio	x	0.1	0.0
Return on assets	%	0.4	5.8
Return on equity	%	-2.2	9.0
Return on capital employed	%	8.8	13.3

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 589.7 to Rs 1,021.0, registering a gain of Rs 431.3 or around 73.1%.

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 LUPIN and quarterly results for LUPIN)

Read: Latest Annual Report Analysis of LUPIN