SUN PHARMA 2018-19 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

SUN PHARMA 2018-19 Annual Report Analysis
Tue, 6 Aug

SUN PHARMA has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

SUN PHARMA Income Statement Analysis

  • Operating income during the year rose 9.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 12.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.7% in FY19 as against 21.2% in FY18.
  • Depreciation charges increased by 16.9% and finance costs increased by 7.3% YoY, respectively.
  • Other income grew by 22.3% YoY.
  • Net profit for the year grew by 25.0% YoY.
  • Net profit margins during the year grew from 9.4% in FY18 to 10.7% in FY19.

SUN PHARMA Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 264,895 290,659 9.7%
Other income Rs m 8,388 10,255 22.3%
Total Revenues Rs m 273,282 300,914 10.1%
Gross profit Rs m 56,081 63,076 12.5%
Depreciation Rs m 14,998 17,533 16.9%
Interest Rs m 5,176 5,553 7.3%
Profit before tax Rs m 44,295 50,246 13.4%
Tax Rs m 9,110 6,009 -34.0%
Profit after tax Rs m 25,679 32,093 25.0%
Gross profit margin % 21.2 21.7
Effective tax rate % 20.6 12.0
Net profit margin % 9.4 10.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SUN PHARMA Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 173 billion as compared to Rs 199 billion in FY18, thereby witnessing an decrease of -12.7%.
  • Long-term debt down at Rs 15 billion as compared to Rs 18 billion during FY18, a fall of 14.1%.
  • Current assets fell 2% and stood at Rs 311 billion, while fixed assets rose 9% and stood at Rs 232 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 647 billion as against Rs 645 billion during FY18, thereby witnessing a growth of 0%.

SUN PHARMA Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 383,141 414,091 8.1
 
Current Liabilities Rs m 198,643 173,396 -12.7
Long-term Debt Rs m 17,721 15,226 -14.1
Total Liabilities Rs m 645,164 646,938 0.3
 
Current assets Rs m 316,359 310,692 -1.8
Fixed Assets Rs m 213,178 232,477 9.1
Total Assets Rs m 645,164 646,938 0.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SUN PHARMA Cash Flow Statement Analysis

  • SUN PHARMA's cash flow from operating activities (CFO) during FY19 stood at Rs 22 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -7 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -27 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -8 billion from the Rs -7 billion net cash flows seen during FY18.

SUN PHARMA Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 39,072 21,965 -43.8%
Cash Flow from Investing Activities Rs m -33,708 -6,813 -
Cash Flow from Financing Activities Rs m -15,393 -27,305 -
Net Cash Flow Rs m -7,359 -8,442 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for SUN PHARMA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.4, an improvement from the EPS of Rs 10.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 418.4, stands at 31.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 4.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 20.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 110.4 121.1
TTM Earnings per share Rs 10.7 13.4
Diluted earnings per share Rs 10.7 13.3
Price to Cash Flow x 24.7 20.3
TTM P/E ratio x 31.5 31.6
Price / Book Value ratio x 3.5 3.1
Market Cap Rs m 1,003,850 1,006,985
Dividends per share (Unadj.) Rs 2.0 2.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for SUN PHARMA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.8x during FY19, from 1.6x during FY18. 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 10.0x during FY19, from 9.6x during FY18. 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 7.8% during FY19, from 6.7% during FY19. 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 10.2% during FY19, from 10.0% during FY18. 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 FY19, from 4.8% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 1.6 1.8
Debtors’ Days Days 108 112
Interest coverage x 9.6 10.0
Debt to equity ratio x 0.0 0.0
Return on assets % 4.8 5.8
Return on equity % 6.7 7.8
Return on capital employed % 10.0 10.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how SUN PHARMA has performed over the last 5 years, please visit here.

SUN PHARMA Share Price Performance

Over the last one year, SUN PHARMA share price has moved down from Rs 575.6 to Rs 418.4, registering a loss of Rs 157.2 or around 27.3%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 12,541.7 (up 0.8%). Over the last one year it has moved down from 14,613.6 to 12,541.7, a loss of 2,072 points (down 14.2%).

Overall, the S&P BSE SENSEX is down 2.3% over the year.

(To know more, check out historical annual results for SUN PHARMA and quarterly results for SUN PHARMA)

Equitymaster requests your view! Post a comment on "SUN PHARMA 2018-19 Annual Report Analysis". Click here!

  

Related Views on News

SUN PHARMA Announces Quarterly Results (3QFY20); Net Profit Down 29.8% (Quarterly Result Update)

Feb 7, 2020 | Updated on Feb 7, 2020

For the quarter ended December 2019, SUN PHARMA has posted a net profit of Rs 10 bn (down 29.8% YoY). Sales on the other hand came in at Rs 82 bn (up 5.4% YoY). Read on for a complete analysis of SUN PHARMA's quarterly results.

SUN PHARMA Announces Quarterly Results (1QFY20); Net Profit Up 35.3% (Quarterly Result Update)

Aug 14, 2019 | Updated on Aug 14, 2019

For the quarter ended June 2019, SUN PHARMA has posted a net profit of Rs 15 bn (up 35.3% YoY). Sales on the other hand came in at Rs 84 bn (up 15.9% YoY). Read on for a complete analysis of SUN PHARMA's quarterly results.

SUN PHARMA 2017-18 Annual Report Analysis (Annual Result Update)

Dec 20, 2018 | Updated on Dec 20, 2018

Here's an analysis of the annual report of SUN PHARMA for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of SUN PHARMA. Also includes updates on the valuation of SUN PHARMA.

More Views on News

Most Popular

This Crorepati Stock Could Be the Best Vaccine for Your Portfolio Against Coronavirus(Profit Hunter)

Mar 17, 2020

If there is one stock I had to recommend you amid Coronavirus outbreak, this would be it.

If I Were to Recommend One Stock Amid Coronavirus Outbreak, This Would be It.(Profit Hunter)

Mar 19, 2020

Coronavirus outbreak has made no impact on the long term prospects of my favourite smallcap. What it has indeed done is brought the company below my buy price, making it even more attractive investment at current price.

Why India Will Be the Biggest Winner in a Post-Coronavirus World(The 5 Minute Wrapup)

Mar 19, 2020

The way businesses operate will change in a major way post the coronavirus impact. Here's why India stands to benefit from this change...

A Big Trading Opportunity is Coming Your Way Soon(Fast Profits Daily)

Mar 25, 2020

I see a big opportunity to make fast profits on the horizon.

The Biggest Trading Opportunity of 2020 is Here...

Mar 26, 2020

India's #1 trader, Vijay Bhambwani, talks about a hugely profitable trading opportunity which you must know about today!

More

How to Trade the
Coronavirus Crash

Coronavirus Crash
Get this special report, authored by Equitymaster's top analysts, now.
We will never sell or rent your email id.
Please read our Terms

TRACK SUN PHARMA

  • Track your investment in SUN PHARMA with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

SUN PHARMA 8-QTR ANALYSIS

COMPARE SUN PHARMA WITH

MARKET STATS