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LUPIN LTD 2017-18 Annual Report Analysis

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LUPIN LTD 2017-18 Annual Report Analysis
Thu, 16 Aug

LUPIN LTD has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

LUPIN LTD Income Statement Analysis

  • Operating income during the year fell 9.7% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 29.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.9% in FY18 as against 25.7% in FY17.
  • Depreciation charges and finance costs increased by 19.0% YoY and 34.0% YoY, respectively.
  • Other income grew by 41.2% YoY.
  • Net profit for the year declined by 90.2% YoY.
  • Net profit margins during the year declined from 14.5% in FY17 to 1.6% in FY18.

LUPIN LTD Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 174,943 158,042 -9.7%
Other income Rs m 1,065 1,504 41.2%
Total Revenues Rs m 176,008 159,545 -9.4%
Gross profit Rs m 44,931 31,475 -29.9%
Depreciation Rs m 9,122 10,859 19.0%
Interest Rs m 1,525 2,044 34.0%
Profit before tax Rs m 35,349 20,076 -43.2%
Tax Rs m 9,785 2,885 -70.5%
Profit after tax Rs m 25,575 2,513 -90.2%
Gross profit margin % 25.7 19.9
Effective tax rate % 27.7 14.4
Net profit margin % 14.5 1.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



LUPIN LTD Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 51 billion as compared to Rs 61 billion in FY17, thereby witnessing an decrease of -16.7%.
  • Long-term debt stood at Rs 64 billion as compared to Rs 56 billion during FY17, a growth of 13.8%.
  • Current assets rose 2% and stood at Rs 122 billion, while fixed assets fell 1% and stood at Rs 130 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 263 billion as against Rs 266 billion during FY17, thereby witnessing a fall of 1%.

LUPIN LTD Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 134,976 135,771 0.6
 
Current Liabilities Rs m 61,206 50,956 -16.7
Long-term Debt Rs m 56,478 64,245 13.8
Total Liabilities Rs m 266,073 263,054 -1.1
 
Current assets Rs m 119,529 122,095 2.1
Fixed Assets Rs m 131,660 129,876 -1.4
Total Assets Rs m 266,073 263,054 -1.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



LUPIN LTD Cash Flow Statement Analysis

  • LUPIN LTD's cash flow from operating activities (CFO) during FY18 stood at Rs 18 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -14 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -15 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -11 billion from the Rs 20 billion net cash flows seen during FY17.

LUPIN LTD Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 41,135 17,512 -57.4%
Cash Flow from Investing Activities Rs m -25,274 -14,073 -
Cash Flow from Financing Activities Rs m 4,332 -14,921 -
Net Cash Flow Rs m 20,193 -11,482 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for LUPIN LTD

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.6, an decline from the EPS of Rs 56.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 850.6, stands at 27.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 3.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 28.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 387.4 349.6
TTM Earnings per share Rs 56.6 5.6
Diluted earnings per share Rs 56.7 5.6
Price to Cash Flow x 11.1 28.6
TTM P/E ratio x 27.0 27.0
Price / Book Value ratio x 5.2 3.6
Market Cap Rs m 384,114 383,739
Dividends per share (Unadj.) Rs 7.5 5.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for LUPIN LTD

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.4x during FY18, from 2.0x during FY17. 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 10.8x during FY18, from 24.2x during FY17. 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 1.9% during FY18, from 18.9% during FY18. 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 3.7% during FY18, from 19.3% during FY17. 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 1.7% during FY18, from 10.2% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 2.0 2.4
Debtors’ Days Days 90 120
Interest coverage x 24.2 10.8
Debt to equity ratio x 0.4 0.5
Return on assets % 10.2 1.7
Return on equity % 18.9 1.9
Return on capital employed % 19.3 3.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

LUPIN LTD Share Price Performance

Over the last one year, LUPIN LTD share price has moved up from Rs 962.2 to Rs 850.6, registering a loss of Rs 111.6 or around 11.6%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 14,832.7 (up 1.0%). Over the last one year it has moved up from 13,214.8 to 14,832.7, a gain of 1,618 points (up 12.2%).

Overall, the S&P BSE SENSEX is up 19.8% over the year.

(To know more, check out historical annual results for LUPIN LTD and quarterly results for LUPIN LTD)

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