SUN PHARMA 2019-20 Annual Report Analysis

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SUN PHARMA 2019-20 Annual Report Analysis
Fri, 11 Dec

SUN PHARMA has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

SUN PHARMA Income Statement Analysis

  • Operating income during the year rose 13.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 10.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.3% in FY20 as against 21.7% in FY19.
  • Depreciation charges increased by 17.1% and finance costs decreased by 45.5% YoY, respectively.
  • Other income declined by 38.0% YoY.
  • Net profit for the year grew by 30.5% YoY.
  • Net profit margins during the year grew from 10.7% in FY19 to 12.5% in FY20.

SUN PHARMA Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 290,659 328,375 13.0%
Other income Rs m 10,255 6,360 -38.0%
Total Revenues Rs m 300,914 334,735 11.2%
Gross profit Rs m 63,076 69,898 10.8%
Depreciation Rs m 17,533 20,528 17.1%
Interest Rs m 5,553 3,027 -45.5%
Profit before tax Rs m 50,246 52,702 4.9%
Tax Rs m 6,009 8,228 36.9%
Profit after tax Rs m 32,093 41,868 30.5%
Gross profit margin % 21.7 21.3
Effective tax rate % 12.0 15.6
Net profit margin % 10.7 12.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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SUN PHARMA Balance Sheet Analysis

  • The company's current liabilities during FY20 down at Rs 157 billion as compared to Rs 173 billion in FY19, thereby witnessing an decrease of -9.4%.
  • Long-term debt stood at Rs 20 billion as compared to Rs 15 billion during FY19, a growth of 33.3%.
  • Current assets rose 2% and stood at Rs 317 billion, while fixed assets rose 5% and stood at Rs 243 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 683 billion as against Rs 647 billion during FY19, thereby witnessing a growth of 6%.

SUN PHARMA Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 414,091 452,645 9.3
 
Current Liabilities Rs m 173,396 157,064 -9.4
Long-term Debt Rs m 15,226 20,289 33.3
Total Liabilities Rs m 646,938 682,525 5.5
 
Current assets Rs m 310,692 316,542 1.9
Fixed Assets Rs m 232,477 243,102 4.6
Total Assets Rs m 646,938 682,525 5.5
* 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 FY20 stood at Rs 66 billion, an improvement of 198.4% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -26 billion, an improvement of 280.0% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -57 billion on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs -14 billion from the Rs -8 billion net cash flows seen during FY19.

SUN PHARMA Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 21,965 65,548 198.4%
Cash Flow from Investing Activities Rs m -6,813 -25,888 -
Cash Flow from Financing Activities Rs m -27,305 -57,151 -
Net Cash Flow Rs m -8,442 -13,857 -
* 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 17.5, an improvement from the EPS of Rs 13.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 568.6, stands at 132.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 2.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 21.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 121.1 136.9
TTM Earnings per share Rs 13.4 17.5
Diluted earnings per share Rs 13.3 17.4
Price to Cash Flow x 27.5 21.9
TTM P/E ratio x 131.6 132.0
Price / Book Value ratio x 3.1 2.1
Market Cap Rs m 1,364,219 1,368,480
Dividends per share (Unadj.) Rs 2.8 4.0
* 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 2.0x during FY20, from 1.8x during FY19. 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 18.4x during FY20, from 10.0x during FY19. 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 9.2% during FY20, from 7.8% during FY20. 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 11.2% during FY20, from 10.2% during FY19. 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 6.6% during FY20, from 5.8% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 1.8 2.0
Debtors’ Days Days 112 105
Interest coverage x 10.0 18.4
Debt to equity ratio x 0.0 0.0
Return on assets % 5.8 6.6
Return on equity % 7.8 9.2
Return on capital employed % 10.2 11.2
* 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 up from Rs 429.4 to Rs 568.6, registering a gain of Rs 139.2 or around 32.4%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,134.1 (up 0.1%). Over the last one year it has moved up from 13,278.7 to 21,134.1, a gain of 7,855 points (up 59.2%).

Overall, the S&P BSE SENSEX is up 14.1% over the year.

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

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SUN PHARMA Announces Quarterly Results (3QFY21); Net Profit Up 87.4% (Quarterly Result Update)

Feb 1, 2021 | Updated on Feb 1, 2021

For the quarter ended December 2020, SUN PHARMA has posted a net profit of Rs 19 bn (up 87.4% YoY). Sales on the other hand came in at Rs 88 bn (up 8.4% YoY). Read on for a complete analysis of SUN PHARMA's quarterly results.

SUN PHARMA Announces Quarterly Results (2QFY21); Net Profit Up 66.9% (Quarterly Result Update)

Nov 6, 2020 | Updated on Nov 6, 2020

For the quarter ended September 2020, SUN PHARMA has posted a net profit of Rs 19 bn (up 66.9% YoY). Sales on the other hand came in at Rs 86 bn (up 5.3% YoY). Read on for a complete analysis of SUN PHARMA's quarterly results.

SUN PHARMA 2018-19 Annual Report Analysis (Annual Result Update)

Aug 6, 2019 | Updated on Aug 6, 2019

Here's an analysis of the annual report of SUN PHARMA for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of SUN PHARMA. Also includes updates on the valuation of SUN PHARMA.

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