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SUN PHARMA 2021-22 Annual Report Analysis
Sun, 7 Aug

SUN PHARMA has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

SUN PHARMA Income Statement Analysis

  • Operating income during the year rose 15.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 27.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.7% in FY22 as against 12.4% in FY21.
  • Depreciation charges increased by 3.1% and finance costs decreased by 10.0% YoY, respectively.
  • Other income grew by 67.3% YoY.
  • Net profit for the year grew by 49.1% YoY.
  • Net profit margins during the year grew from 6.8% in FY21 to 8.8% in FY22.

SUN PHARMA Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 334,981 386,545 15.4%
Other income Rs m 8,592 14,374 67.3%
Total Revenues Rs m 343,573 400,919 16.7%
Gross profit Rs m 41,616 53,150 27.7%
Depreciation Rs m 20,800 21,437 3.1%
Interest Rs m 1,414 1,274 -10.0%
Profit before tax Rs m 27,994 44,813 60.1%
Tax Rs m 5,147 10,755 109.0%
Profit after tax Rs m 22,847 34,058 49.1%
Gross profit margin % 12.4 13.7
Effective tax rate % 18.4 24.0
Net profit margin % 6.8 8.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

SUN PHARMA Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 172 billion as compared to Rs 161 billion in FY21, thereby witnessing an increase of 6.5%.
  • Long-term debt down at Rs 2 billion as compared to Rs 7 billion during FY21, a fall of 64.9%.
  • Current assets rose 15% and stood at Rs 350 billion, while fixed assets fell 5% and stood at Rs 319 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 669 billion as against Rs 641 billion during FY21, thereby witnessing a growth of 4%.

SUN PHARMA Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 464,628 480,112 3.3
 
Current Liabilities Rs m 161,456 172,006 6.5
Long-term Debt Rs m 6,547 2,299 -64.9
Total Liabilities Rs m 641,103 669,032 4.4
 
Current assets Rs m 304,421 350,150 15.0
Fixed Assets Rs m 336,682 318,882 -5.3
Total Assets Rs m 641,103 669,032 4.4
* 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 FY22 stood at Rs 90 billion, an improvement of 45.6% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -57 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -52 billion, an improvement of 13% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs -18 billion from the Rs 6 billion net cash flows seen during FY21.

SUN PHARMA Cash Flow Statement 2021-22

Particulars No. of months 12 12 % Change
Year Ending Mar-21 Mar-22
Cash Flow from Operating Activities Rs m 61,704 89,845 45.6%
Cash Flow from Investing Activities Rs m 5,362 -57,247 -
Cash Flow from Financing Activities Rs m -59,805 -51,935 -
Net Cash Flow Rs m 5,964 -17,648 -
* 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 14.2, an improvement from the EPS of Rs 9.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 915.2, stands at 53.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.6 times, while the price to sales ratio stands at 5.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 32.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Sales per share (Unadj.) Rs 139.6 161.1
TTM Earnings per share Rs 9.5 14.2
Diluted earnings per share Rs 9.5 14.2
Price to Cash Flow x 32.9 32.9
TTM P/E ratio x 62.8 53.6
Price / Book Value ratio x 2.6 3.8
Market Cap Rs m 1,190,430 1,827,693
Dividends per share (Unadj.) Rs 7.5 10.0
* 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 2.0x during FY22, from 1.9x during FY21. 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 36.2x during FY22, from 20.8x during FY21. 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 7.1% during FY22, from 4.9% during FY22. 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 9.6% during FY22, from 6.2% during FY21. 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 5.3% during FY22, from 3.8% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Current ratio x 1.9 2.0
Debtors’ Days Days 99 100
Interest coverage x 20.8 36.2
Debt to equity ratio x 0.0 0.0
Return on assets % 3.8 5.3
Return on equity % 4.9 7.1
Return on capital employed % 6.2 9.6
* 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 785.2 to Rs 915.2, registering a gain of Rs 130.1 or around 16.6%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 23,184.7 (down 0.3%). Over the last one year it has moved down from 26,369.7 to 23,184.7, a loss of 3,185 points (down 12.1%).

Overall, the S&P BSE SENSEX is up 7.4% 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 FY22? How does it compare to earlier years?

The revenues of SUN PHARMA stood at Rs 400,919 m in FY22, which was up 16.7% compared to Rs 343,573 m reported in FY21.

SUN PHARMA's revenue has grown from Rs 272,537 m in FY18 to Rs 400,919 m in FY22.

Over the past 5 years, the revenue of SUN PHARMA has grown at a CAGR of 10.1%.

What was the net profit of SUN PHARMA in FY22? How does it compare to earlier years?

The net profit of SUN PHARMA stood at Rs 34,058 m in FY22, which was up 49.1% compared to Rs 22,847 m reported in FY21.

This compares to a net profit of Rs 41,868 m in FY20 and a net profit of Rs 32,093 m in FY19.

Over the past 5 years, SUN PHARMA net profit has grown at a CAGR of 7.3%.

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 increased in FY22 and stood at Rs 89,845 m as compared to Rs 61,704 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -57,247 m as compared to Rs 5,362 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs -51,935 m as compared to Rs -59,805 m in FY21.

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

(Rs m)FY18FY19FY20FY21FY22
From Operations39,07221,96565,54861,70489,845
From Investments-33,708-6,813-25,8885,362-57,247
From Financial Activity-15,393-27,305-57,151-59,805-51,935
Net Cashflow-7,359-8,442-13,8575,964-17,648

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 13.7% in FY22 as against 12.4% in FY21.
  • Net profit margins grew from 6.8% in FY21 to 8.8% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.0 as compared to 0.0 in FY21.

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

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)17.417.420.412.413.7
Net Profit Margin (%)9.711.012.86.88.8
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of SUN PHARMA

 

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