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LUPIN 2021-22 Annual Report Analysis
Thu, 14 Jul

LUPIN has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

LUPIN Income Statement Analysis

  • Operating income during the year rose 8.2% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 91.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 1.3% in FY22 as against 16.9% in FY21.
  • Depreciation charges increased by 86.9% and finance costs increased by 1.5% YoY, respectively.
  • Other income grew by 56.8% YoY.
  • Net profit for the year declined by 223.1% YoY.
  • Net profit margins during the year declined from 8.1% in FY21 to 9.2% in FY22.

LUPIN Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 151,630 164,055 8.2%
Other income Rs m 1,363 2,137 56.8%
Total Revenues Rs m 152,993 166,192 8.6%
Gross profit Rs m 25,669 2,152 -91.6%
Depreciation Rs m 8,874 16,587 86.9%
Interest Rs m 1,406 1,428 1.5%
Profit before tax Rs m 16,751 -13,726 -181.9%
Tax Rs m 4,485 1,372 -69.4%
Profit after tax Rs m 12,266 -15,097 -223.1%
Gross profit margin % 16.9 1.3
Effective tax rate % 26.8 -10.0
Net profit margin % 8.1 -9.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

LUPIN Balance Sheet Analysis

  • The company's current liabilities during FY22 down at Rs 83 billion as compared to Rs 84 billion in FY21, thereby witnessing an decrease of -1.9%.
  • Long-term debt stood at Rs 1 billion as compared to Rs 161 million during FY21, a growth of 780.0%.
  • Current assets fell 11% and stood at Rs 125 billion, while fixed assets fell 3% and stood at Rs 92 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 217 billion as against Rs 234 billion during FY21, thereby witnessing a fall of 8%.

LUPIN Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 136,136 119,915 -11.9
 
Current Liabilities Rs m 84,361 82,764 -1.9
Long-term Debt Rs m 161 1,419 780.0
Total Liabilities Rs m 234,302 216,515 -7.6
 
Current assets Rs m 139,864 124,577 -10.9
Fixed Assets Rs m 94,439 91,938 -2.6
Total Assets Rs m 234,302 216,515 -7.6
* 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 FY22 stood at Rs 4 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs 13 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -16 billion, an improvement of 17% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs 872 million from the Rs -13 billion net cash flows seen during FY21.

LUPIN Cash Flow Statement 2021-22

Particulars No. of months 12 12 % Change
Year Ending Mar-21 Mar-22
Cash Flow from Operating Activities Rs m 18,218 3,673 -79.8%
Cash Flow from Investing Activities Rs m -12,396 12,922 -
Cash Flow from Financing Activities Rs m -18,853 -15,723 -
Net Cash Flow Rs m -13,031 872 -
* 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 -33.2, an decline from the EPS of Rs 27.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 643.7, stands at -19.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 1.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 296.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Sales per share (Unadj.) Rs 334.2 361.0
TTM Earnings per share Rs 27.0 -33.2
Diluted earnings per share Rs 27.0 -33.2
Price to Cash Flow x 22.0 296.8
TTM P/E ratio x 37.8 -19.4
Price / Book Value ratio x 2.8 3.7
Market Cap Rs m 385,072 442,238
Dividends per share (Unadj.) Rs 6.5 4.0
* 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 1.5x during FY22, from 1.7x during FY21. 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 -8.6x during FY22, from 12.9x during FY21. 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 -12.6% during FY22, from 9.0% during FY22. 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 -10.1% during FY22, from 13.3% during FY21. 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 -6.3% during FY22, from 5.8% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Current ratio x 1.7 1.5
Debtors’ Days Days 108 95
Interest coverage x 12.9 -8.6
Debt to equity ratio x 0.0 0.0
Return on assets % 5.8 -6.3
Return on equity % 9.0 -12.6
Return on capital employed % 13.3 -10.1
* 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 1,172.1 to Rs 643.7, registering a loss of Rs 528.4 or around 45.1%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 22,553.9 (up 0.8%). Over the last one year it has moved down from 26,059.1 to 22,553.9, a loss of 3,505 points (down 13.5%).

Overall, the S&P BSE SENSEX is up 2.1% 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 FY22? How does it compare to earlier years?

The revenues of LUPIN stood at Rs 166,192 m in FY22, which was up 8.6% compared to Rs 152,993 m reported in FY21.

LUPIN's revenue has grown from Rs 159,269 m in FY18 to Rs 166,192 m in FY22.

Over the past 5 years, the revenue of LUPIN has grown at a CAGR of 1.1%.

What was the net profit of LUPIN in FY22? How does it compare to earlier years?

The net loss of LUPIN stood at Rs -15,097 m in FY22, which was down -223.1% compared to Rs 12,266 m reported in FY21.

This compares to a net loss of Rs -2,737 m in FY20 and a net profit of Rs 6,117 m in FY19.

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 FY22 and stood at Rs 3,673 m as compared to Rs 18,218 m in FY21.
  • Cash flow from investments increased in FY22 and stood at Rs 12,922 m as compared to Rs -12,396 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs -15,723 m as compared to Rs -18,853 m in FY21.

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

(Rs m)FY18FY19FY20FY21FY22
From Operations17,51216,66014,68818,2183,673
From Investments4,699-32,82511,070-12,39612,922
From Financial Activity-14,9217,441-8,906-18,853-15,723
Net Cashflow7,290-8,72416,853-13,031872

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 1.3% in FY22 as against 16.9% in FY21.
  • Net profit margins declined from 8.1% in FY21 to 9.2% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.0 as compared to 0.0 in FY21.

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

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)10.713.910.216.91.3
Net Profit Margin (%)1.63.7-1.68.1-9.2
Debt to Equity Ratio (x)0.50.50.10.00.0

Read: Latest Annual Report Analysis of LUPIN

 

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