SUN PHARMA 2020-21 Annual Report Analysis

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SUN PHARMA 2020-21 Annual Report Analysis
Fri, 22 Oct

SUN PHARMA has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

SUN PHARMA Income Statement Analysis

  • Operating income during the year rose 2.0% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 38.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.4% in FY21 as against 20.4% in FY20.
  • Depreciation charges increased by 1.3% and finance costs decreased by 53.3% YoY, respectively.
  • Other income grew by 31.9% YoY.
  • Net profit for the year declined by 45.4% YoY.
  • Net profit margins during the year declined from 12.5% in FY20 to 6.6% in FY21.

SUN PHARMA Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 328,375 334,981 2.0%
Other income Rs m 6,516 8,592 31.9%
Total Revenues Rs m 334,891 343,573 2.6%
Gross profit Rs m 67,135 41,616 -38.0%
Depreciation Rs m 20,528 20,800 1.3%
Interest Rs m 3,027 1,414 -53.3%
Profit before tax Rs m 50,096 27,994 -44.1%
Tax Rs m 8,228 5,147 -37.4%
Profit after tax Rs m 41,868 22,847 -45.4%
Gross profit margin % 20.4 12.4
Effective tax rate % 16.4 18.4
Net profit margin % 12.5 6.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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SUN PHARMA Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 161 billion as compared to Rs 157 billion in FY20, thereby witnessing an increase of 2.8%.
  • Long-term debt down at Rs 9 billion as compared to Rs 20 billion during FY20, a fall of 55.7%.
  • Current assets fell 4% and stood at Rs 304 billion, while fixed assets rose 1% and stood at Rs 337 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 641 billion as against Rs 651 billion during FY20, thereby witnessing a fall of 1%.

SUN PHARMA Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 452,645 464,628 2.6
 
Current Liabilities Rs m 157,064 161,456 2.8
Long-term Debt Rs m 20,289 8,981 -55.7
Total Liabilities Rs m 650,772 641,103 -1.5
 
Current assets Rs m 316,542 304,421 -3.8
Fixed Assets Rs m 334,230 336,682 0.7
Total Assets Rs m 650,772 641,103 -1.5
* 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 FY21 stood at Rs 62 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs 5 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -60 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 6 billion from the Rs -14 billion net cash flows seen during FY20.

SUN PHARMA Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m 65,548 61,704 -5.9%
Cash Flow from Investing Activities Rs m -25,888 5,362 -
Cash Flow from Financing Activities Rs m -57,151 -59,805 -
Net Cash Flow Rs m -13,857 5,964 -
* 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 9.5, an decline from the EPS of Rs 17.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 814.3, stands at 31.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 3.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 44.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 136.9 139.6
TTM Earnings per share Rs 17.4 9.5
Diluted earnings per share Rs 17.4 9.5
Price to Cash Flow x 31.3 44.8
TTM P/E ratio x 31.9 31.9
Price / Book Value ratio x 2.1 2.6
Market Cap Rs m 1,953,659 1,953,659
Dividends per share (Unadj.) Rs 4.0 7.5
* 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 deteriorated and stood at 1.9x during FY21, from 2.0x during FY20. 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 20.8x during FY21, from 17.5x during FY20. 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 4.9% during FY21, from 9.2% during FY21. 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 6.2% during FY21, from 11.2% during FY20. 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 3.8% during FY21, from 6.9% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 2.0 1.9
Debtors’ Days Days 105 99
Interest coverage x 17.5 20.8
Debt to equity ratio x 0.0 0.0
Return on assets % 6.9 3.8
Return on equity % 9.2 4.9
Return on capital employed % 11.2 6.2
* 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 up from Rs 485.7 to Rs 814.3, registering a gain of Rs 328.6 or around 67.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 25,072.5 (down 1.6%). Over the last one year it has moved up from 19,670.6 to 25,072.5, a gain of 5,402 points (up 27.5%).

Overall, the S&P BSE SENSEX is up 50.0% over the year.

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

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Related Views on News

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 2019-20 Annual Report Analysis (Annual Result Update)

Dec 11, 2020 | Updated on Dec 11, 2020

Here's an analysis of the annual report of SUN PHARMA for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of SUN PHARMA. Also includes updates on the valuation of SUN PHARMA.

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.

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