LUPIN 2019-20 Annual Report Analysis
Mon, 7 Dec

LUPIN 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.

LUPIN Income Statement Analysis

  • Operating income during the year rose 4.8% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 6.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.2% in FY20 as against 18.1% in FY19.
  • Depreciation charges increased by 14.7% and finance costs increased by 20.0% YoY, respectively.
  • Other income grew by 45.3% YoY.
  • Net profit for the year declined by 144.4% YoY.
  • Net profit margins during the year declined from 4.0% in FY19 to 1.7% in FY20.

LUPIN Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 146,646 153,748 4.8%
Other income Rs m 3,330 4,838 45.3%
Total Revenues Rs m 149,976 158,585 5.7%
Gross profit Rs m 26,552 24,849 -6.4%
Depreciation Rs m 8,461 9,702 14.7%
Interest Rs m 3,025 3,630 20.0%
Profit before tax Rs m 18,397 16,355 -11.1%
Tax Rs m 8,879 11,571 30.3%
Profit after tax Rs m 6,066 -2,694 -144.4%
Gross profit margin % 18.1 16.2
Effective tax rate % 48.3 70.8
Net profit margin % 4.0 -1.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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LUPIN Balance Sheet Analysis

  • The company's current liabilities during FY20 stood at Rs 92 billion as compared to Rs 61 billion in FY19, thereby witnessing an increase of 50.5%.
  • Long-term debt down at Rs 18 billion as compared to Rs 66 billion during FY19, a fall of 73.0%.
  • Current assets rose 11% and stood at Rs 154 billion, while fixed assets fell 30% and stood at Rs 89 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 250 billion as against Rs 279 billion during FY19, thereby witnessing a fall of 11%.

LUPIN Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 137,422 125,367 -8.8
 
Current Liabilities Rs m 61,299 92,252 50.5
Long-term Debt Rs m 66,417 17,933 -73.0
Total Liabilities Rs m 279,494 249,839 -10.6
 
Current assets Rs m 138,536 154,132 11.3
Fixed Assets Rs m 127,516 89,082 -30.1
Total Assets Rs m 279,494 249,839 -10.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



LUPIN Cash Flow Statement Analysis

  • LUPIN's cash flow from operating activities (CFO) during FY20 stood at Rs 15 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs 11 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -9 billion on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs 17 billion from the Rs -9 billion net cash flows seen during FY19.

LUPIN 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 16,660 14,688 -11.8%
Cash Flow from Investing Activities Rs m -32,825 11,070 -
Cash Flow from Financing Activities Rs m 7,441 -8,906 -
Net Cash Flow Rs m -8,724 16,853 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for LUPIN

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -5.9, an decline from the EPS of Rs 13.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 967.5, stands at -268.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 2.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 62.9 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 324.1 339.4
TTM Earnings per share Rs 13.4 -5.9
Diluted earnings per share Rs 13.4 -6.0
Price to Cash Flow x 30.0 62.9
TTM P/E ratio x -268.1 -268.2
Price / Book Value ratio x 2.8 2.5
Market Cap Rs m 437,784 437,936
Dividends per share (Unadj.) Rs 5.0 6.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for LUPIN

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY20, from 2.3x 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 deteriorated and stood at 5.5x during FY20, from 7.1x 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 declined and down at -2.1% during FY20, from 4.4% 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 declined and down at 8.7% during FY20, from 8.8% 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 declined and down at 0.4% during FY20, from 3.3% 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 2.3 1.7
Debtors’ Days Days 128 129
Interest coverage x 7.1 5.5
Debt to equity ratio x 0.5 0.1
Return on assets % 3.3 0.4
Return on equity % 4.4 -2.1
Return on capital employed % 8.8 8.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

LUPIN Share Price Performance

Over the last one year, LUPIN share price has moved up from Rs 762.8 to Rs 967.5, registering a gain of Rs 204.7 or around 26.8%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,310.7 (up 1.6%). Over the last one year it has moved up from 13,348.7 to 21,310.7, a gain of 7,962 points (up 59.6%).

Overall, the S&P BSE SENSEX is up 11.7% over the year.

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