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SUVEN LIFE 2017-18 Annual Report Analysis

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SUVEN LIFE 2017-18 Annual Report Analysis
Tue, 14 Aug

SUVEN LIFE has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

SUVEN LIFE Income Statement Analysis

  • Operating income during the year rose 15.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 53.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 31.7% in FY18 as against 23.7% in FY17.
  • Depreciation charges and finance costs decreased by 0.5% YoY and 18.5% YoY, respectively.
  • Other income grew by 10.3% YoY.
  • Net profit for the year grew by 41.9% YoY.
  • Net profit margins during the year grew from 15.4% in FY17 to 19.1% in FY18.

SUVEN LIFE Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 5,435 6,253 15.0%
Other income Rs m 211 233 10.3%
Total Revenues Rs m 5,646 6,485 14.9%
Gross profit Rs m 1,291 1,982 53.5%
Depreciation Rs m 214 213 -0.5%
Interest Rs m 57 46 -18.5%
Profit before tax Rs m 1,231 1,955 58.9%
Tax Rs m 359 718 100.2%
Profit after tax Rs m 872 1,237 41.9%
Gross profit margin % 23.7 31.7
Effective tax rate % 29.2 36.7
Net profit margin % 15.4 19.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SUVEN LIFE Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 1 billion as compared to Rs 1 billion in FY17, thereby witnessing an decrease of -1.6%.
  • Long-term debt down at Rs 14 million as compared to Rs 259 million during FY17, a fall of 94.6%.
  • Current assets rose 14% and stood at Rs 6 billion, while fixed assets rose 5% and stood at Rs 3 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 9 billion as against Rs 8 billion during FY17, thereby witnessing a growth of 12%.

SUVEN LIFE Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 6,670 7,674 15.1
 
Current Liabilities Rs m 1,186 1,168 -1.6
Long-term Debt Rs m 259 14 -94.6
Total Liabilities Rs m 8,157 9,135 12.0
 
Current assets Rs m 4,917 5,622 14.3
Fixed Assets Rs m 3,154 3,325 5.4
Total Assets Rs m 8,157 9,135 12.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SUVEN LIFE Cash Flow Statement Analysis

  • SUVEN LIFE's cash flow from operating activities (CFO) during FY18 stood at Rs 699 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -6 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -577 million on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 116 million from the Rs -2 billion net cash flows seen during FY17.

SUVEN LIFE Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 1,092 699 -35.9%
Cash Flow from Investing Activities Rs m -3,107 -6 -
Cash Flow from Financing Activities Rs m -304 -577 -
Net Cash Flow Rs m -2,319 116 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for SUVEN LIFE

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.7, an improvement from the EPS of Rs 6.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 236.4, stands at 17.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 4.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 19.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 42.7 49.1
TTM Earnings per share Rs 6.9 9.7
Diluted earnings per share Rs 7.5 10.6
Price to Cash Flow x 27.7 19.0
TTM P/E ratio x 19.0 17.4
Price / Book Value ratio x 3.6 3.4
Market Cap Rs m 30,089 27,619
Dividends per share (Unadj.) Rs 1.0 1.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for SUVEN LIFE

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 4.8x during FY18, from 4.1x during FY17. 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 43.2x during FY18, from 22.7x during FY17. 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 16.1% during FY18, from 13.1% during FY18. 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 26.0% during FY18, from 18.6% during FY17. 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 14.0% during FY18, from 11.4% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 4.1 4.8
Debtors’ Days Days 31 36
Interest coverage x 22.7 43.2
Debt to equity ratio x 0.0 0.0
Return on assets % 11.4 14.0
Return on equity % 13.1 16.1
Return on capital employed % 18.6 26.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

SUVEN LIFE Share Price Performance

Over the last one year, SUVEN LIFE share price has moved up from Rs 160.2 to Rs 236.4, registering a gain of Rs 76.2 or around 47.6%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 14,664.5 (up 2.3%). Over the last one year it has moved up from 13,090.9 to 14,664.5, a gain of 1,574 points (up 12.0%).

Overall, the S&P BSE SENSEX is up 20.4% over the year.

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

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