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SUN PHARMA 2018-19 Annual Report Analysis
Sun, 31 Mar

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 10.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 10.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.4% in FY19 as against 17.4% in FY18.
  • Depreciation charges increased by 16.9% and finance costs increased by 7.3% YoY, respectively.
  • Other income grew by 16.2% YoY.
  • Net profit for the year grew by 25.0% YoY.
  • Net profit margins during the year grew from 9.7% in FY18 to 11.0% in FY19.

SUN PHARMA Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 263,416 290,659 10.3%
Other income Rs m 9,121 10,594 16.2%
Total Revenues Rs m 272,537 301,254 10.5%
Gross profit Rs m 45,843 50,593 10.4%
Depreciation Rs m 14,998 17,533 16.9%
Interest Rs m 5,176 5,553 7.3%
Profit before tax Rs m 34,790 38,102 9.5%
Tax Rs m 9,110 6,009 -34.0%
Profit after tax Rs m 25,679 32,093 25.0%
Gross profit margin % 17.4 17.4
Effective tax rate % 26.2 15.8
Net profit margin % 9.7 11.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

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 2% and stood at Rs 311 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 621 billion as against Rs 621 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 621,090 621,389 0.0
 
Current assets Rs m 316,359 310,692 -1.8
Fixed Assets Rs m 304,731 310,698 2.0
Total Assets Rs m 621,090 621,389 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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: Accord Fintech, 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 479.3, stands at 36.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 4.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 25.5 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 109.8 121.1
TTM Earnings per share Rs 10.7 13.4
Diluted earnings per share Rs 10.7 13.4
Price to Cash Flow x 29.2 25.5
TTM P/E ratio x 45.1 36.1
Price / Book Value ratio x 3.5 3.1
Market Cap Rs m 1,360,056 1,264,689
Dividends per share (Unadj.) Rs 2.0 2.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 7.9x during FY19, from 7.7x 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 6.1% during FY19, from 5.0% 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 7.7 7.9
Debt to equity ratio x 0.0 0.0
Return on assets % 5.0 6.1
Return on equity % 6.7 7.8
Return on capital employed % 10.0 10.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 495.4 to Rs 479.3, registering a loss of Rs 16.2 or around 3.3%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 14,407.9 (up 1.4%). Over the last one year it has moved up from 13,157.6 to 14,407.9, a gain of 1,250 points (up 9.5%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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

Annual Report FAQs

What is the current share price of SUN PHARMA?

SUN PHARMA currently trades at Rs 1,620.5 per share. You can check out the latest share price performance of SUN PHARMA here...

What was the revenue of SUN PHARMA in FY19? How does it compare to earlier years?

The revenues of SUN PHARMA stood at Rs 301,254 m in FY19, which was up 10.5% compared to Rs 272,537 m reported in FY18.

SUN PHARMA's revenue has grown from Rs 277,568 m in FY15 to Rs 301,254 m in FY19.

Over the past 5 years, the revenue of SUN PHARMA has grown at a CAGR of 2.1%.

What was the net profit of SUN PHARMA in FY19? How does it compare to earlier years?

The net profit of SUN PHARMA stood at Rs 32,093 m in FY19, which was up 25.0% compared to Rs 25,679 m reported in FY18.

This compares to a net profit of Rs 78,363 m in FY17 and a net profit of Rs 56,569 m in FY16.

Over the past 5 years, SUN PHARMA net profit has grown at a CAGR of -12.6%.

What does the cash flow statement of SUN PHARMA 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 SUN PHARMA reveals:

  • Cash flow from operations decreased in FY19 and stood at Rs 21,965 m as compared to Rs 39,072 m in FY18.
  • Cash flow from investments increased in FY19 and stood at Rs -6,813 m as compared to Rs -33,708 m in FY18.
  • Cash flow from financial activity decreased in FY19 and stood at Rs -27,305 m as compared to Rs -15,393 m in FY18.

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

(Rs m)FY15FY16FY17FY18FY19
From Operations56,15766,85970,82239,07221,965
From Investments-28,657-43,716-42,216-33,708-6,813
From Financial Activity-11,865-18,885-22,854-15,393-27,305
Net Cashflow29,2698,4826,107-7,359-8,442

What does the Key Ratio analysis of SUN PHARMA 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 SUN PHARMA reveals:

  • Operating profit margins witnessed a fall and down at 17.4% in FY19 as against 17.4% in FY18.
  • Net profit margins grew from 9.7% in FY18 to 11.0% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.0 as compared to 0.0 in FY18.

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

 FY15FY16FY17FY18FY19
Operating Profit Margin (%)27.826.931.217.417.4
Net Profit Margin (%)20.220.425.29.711.0
Debt to Equity Ratio (x)0.10.10.00.00.0

Read: Latest Annual Report Analysis of SUN PHARMA

 

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2 Responses to "SUN PHARMA 2018-19 Annual Report Analysis"

ASHISH GHOSH

May 2, 2020

PLEASE SEND ME YOUR LAST FIVE YEAR FINANCIAL STATEMENT AND ANALYSIS REPORT

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ASHISH GHOSH

May 2, 2020

PLEASE SEND ME YOUR LAST FIVE YEAR FINANCIAL STATEMENT AND ANALYSIS REPORT

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