PANACEA BIOTECH 2017-18 Annual Report Analysis

Sat, 31 Mar

PANACEA BIOTECH 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.

PANACEA BIOTECH Income Statement Analysis

• Operating income during the year rose 11.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 54.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.3% in FY18 as against 10.3% in FY17.
• Depreciation charges decreased by 13.9% and finance costs decreased by 0.3% YoY, respectively.
• Other income declined by 82.3% YoY.
• Net profit for the year grew by 34.9% YoY.
• Net profit margins during the year declined from 10.7% in FY17 to 12.9% in FY18.

PANACEA BIOTECH Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	5,301	5,894	11.2%
Other income	Rs m	466	82	-82.3%
Total Revenues	Rs m	5,767	5,977	3.6%
Gross profit	Rs m	548	845	54.2%
Depreciation	Rs m	680	585	-13.9%
Interest	Rs m	1,009	1,006	-0.3%
Profit before tax	Rs m	-675	-663	-1.6%
Tax	Rs m	-110	99	-189.8%
Profit after tax	Rs m	-565	-762	34.9%
Gross profit margin	%	10.3	14.3
Effective tax rate	%	16.3	-14.9
Net profit margin	%	-10.7	-12.9

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PANACEA BIOTECH Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 7 billion as compared to Rs 7 billion in FY17, thereby witnessing an increase of 0.9%.
• Long-term debt down at Rs 6 billion as compared to Rs 7 billion during FY17, a fall of 20.1%.
• Current assets fell 20% and stood at Rs 6 billion, while fixed assets fell 4% and stood at Rs 10 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 16 billion as against Rs 18 billion during FY17, thereby witnessing a fall of 10%.

PANACEA BIOTECH Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	3,557	3,087	-13.2
Current Liabilities	Rs m	6,891	6,955	0.9
Long-term Debt	Rs m	7,141	5,707	-20.1
Total Liabilities	Rs m	17,741	15,924	-10.2
Current assets	Rs m	7,032	5,648	-19.7
Fixed Assets	Rs m	10,709	10,275	-4.0
Total Assets	Rs m	17,741	15,924	-10.2

PANACEA BIOTECH Cash Flow Statement Analysis

• PANACEA BIOTECH's cash flow from operating activities (CFO) during FY18 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 553 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 90 million from the Rs -21 million net cash flows seen during FY17.

PANACEA BIOTECH 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	1,307	1,180	-9.7%
Cash Flow from Investing Activities	Rs m	-258	553	-
Cash Flow from Financing Activities	Rs m	-1,070	-1,643	-
Net Cash Flow	Rs m	-21	90	-

Current Valuations for PANACEA BIOTECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -12.4, an decline from the EPS of Rs -9.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 267.1, stands at -22.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.3 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at -85.5 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	86.5	96.2
TTM Earnings per share	Rs	-9.2	-12.4
Diluted earnings per share	Rs	-9.2	-12.4
Price to Cash Flow	x	85.7	-85.5
TTM P/E ratio	x	-11.4	-22.8
Price / Book Value ratio	x	2.3	4.9
Market Cap	Rs m	8,079	15,101
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PANACEA BIOTECH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY18, from 1.0x 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 improved and stood at 0.3x during FY18, from 0.3x 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 -24.7% during FY18, from -15.9% 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 improved and stood at 3.9% during FY18, from 3.1% 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 1.5% during FY18, from 2.5% 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	1.0	0.8
Debtors’ Days	Days	98	84
Interest coverage	x	0.3	0.3
Debt to equity ratio	x	2.0	1.8
Return on assets	%	2.5	1.5
Return on equity	%	-15.9	-24.7
Return on capital employed	%	3.1	3.9

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

PANACEA BIOTECH Share Price Performance

Over the last one year, PANACEA BIOTECH share price has moved up from Rs 160.7 to Rs 267.1, registering a gain of Rs 106.4 or around 66.2%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 13,157.6 (down 1.1%). Over the last one year it has moved down from 15,312.4 to 13,157.6, a loss of 2,155 points (down 14.1%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for PANACEA BIOTECH and quarterly results for PANACEA BIOTECH)

Read: Latest Annual Report Analysis of PANACEA BIOTECH