CADILA HEALTHCARE 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.
CADILA HEALTHCARE Income Statement Analysis
- Operating income during the year rose 27.0% on a year-on-year (YoY) basis.
- The company's operating profit increased by 49.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.9% in FY18 as against 20.3% in FY17.
- Depreciation charges and finance costs increased by 44.3% YoY and 104.3% YoY, respectively.
- Other income declined by 11.8% YoY.
- Net profit for the year grew by 20.4% YoY.
- Net profit margins during the year declined from 16.0% in FY17 to 15.2% in FY18.
CADILA HEALTHCARE Income Statement 2017-18
| No. of Mths Year Ending | 12 Mar-17* | 12 Mar-18* | % Change | |
|---|---|---|---|---|
| Net Sales | Rs m | 93,765 | 119,049 | 27.0% |
| Other income | Rs m | 1,284 | 1,132 | -11.8% |
| Total Revenues | Rs m | 95,049 | 120,181 | 26.4% |
| Gross profit | Rs m | 19,044 | 28,475 | 49.5% |
| Depreciation | Rs m | 3,733 | 5,388 | 44.3% |
| Interest | Rs m | 446 | 911 | 104.3% |
| Profit before tax | Rs m | 16,149 | 23,308 | 44.3% |
| Tax | Rs m | 1,289 | 5,644 | 337.9% |
| Profit after tax | Rs m | 15,195 | 18,292 | 20.4% |
| Gross profit margin | % | 20.3 | 23.9 | |
| Effective tax rate | % | 8.0 | 24.2 | |
| Net profit margin | % | 16.0 | 15.2 | |
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster
CADILA HEALTHCARE Balance Sheet Analysis
- The company's current liabilities during FY18 stood at Rs 61 billion as compared to Rs 53 billion in FY17, thereby witnessing an increase of 14.4%.
- Long-term debt stood at Rs 26 billion as compared to Rs 25 billion during FY17, a growth of 3.5%.
- Current assets rose 36% and stood at Rs 82 billion, while fixed assets rose 15% and stood at Rs 84 billion in FY18.
- Overall, the total assets and liabilities for FY18 stood at Rs 181 billion as against Rs 152 billion during FY17, thereby witnessing a growth of 19%.
CADILA HEALTHCARE Balance Sheet as on March 2018
| No. of Mths Year Ending | 12 Mar-17* | 12 Mar-18* | % Change | |
|---|---|---|---|---|
| Networth | Rs m | 69,600 | 87,445 | 25.6 |
| Current Liabilities | Rs m | 53,058 | 60,720 | 14.4 |
| Long-term Debt | Rs m | 24,684 | 25,551 | 3.5 |
| Total Liabilities | Rs m | 152,207 | 180,653 | 18.7 |
| Current assets | Rs m | 60,223 | 82,005 | 36.2 |
| Fixed Assets | Rs m | 72,984 | 83,703 | 14.7 |
| Total Assets | Rs m | 152,207 | 180,653 | 18.7 |
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster
CADILA HEALTHCARE Cash Flow Statement Analysis
- CADILA HEALTHCARE's cash flow from operating activities (CFO) during FY18 stood at Rs 9 billion on a YoY basis.
- Cash flow from investing activities (CFI) during FY18 stood at Rs -10 billion on a YoY basis.
- Cash flow from financial activities (CFF) during FY18 stood at Rs 515 million on a YoY basis.
- Overall, net cash flows for the company during FY18 stood at Rs -29 million from the Rs 8 billion net cash flows seen during FY17.
CADILA HEALTHCARE 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 | 13,117 | 9,193 | -29.9% |
| Cash Flow from Investing Activities | Rs m | -28,719 | -9,737 | - |
| Cash Flow from Financing Activities | Rs m | 23,158 | 515 | -97.8% |
| Net Cash Flow | Rs m | 7,556 | -29 | - |
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster
Current Valuations for CADILA HEALTHCARE
- The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.9, an improvement from the EPS of Rs 14.8 recorded last year.
- The price to earnings (P/E) ratio, at the current price of Rs 334.8, stands at 16.5 times its trailing twelve months earnings.
- The price to book value (P/BV) ratio at current price levels stands at 5.4 times, while the price to sales ratio stands at 4.0 times.
- The company's price to cash flow (P/CF) ratio stood at 14.9 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 | 91.6 | 116.3 |
| TTM Earnings per share | Rs | 14.8 | 17.9 |
| Diluted earnings per share | Rs | 14.8 | 17.9 |
| Price to Cash Flow | x | 18.4 | 14.9 |
| TTM P/E ratio | x | 16.5 | 16.5 |
| Price / Book Value ratio | x | 5.6 | 5.4 |
| Market Cap | Rs m | 342,748 | 342,748 |
| Dividends per share (Unadj.) | Rs | 3.2 | 3.5 |
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster
Ratio Analysis for CADILA HEALTHCARE
Solvency Ratios
Profitability Ratios
Current Ratio: The company's current ratio improved and stood at 1.4x during FY18, from 1.1x 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 26.6x during FY18, from 37.2x 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.
Return on Equity (ROE): The ROE for the company declined and down at 20.9% during FY18, from 21.8% 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 22.0% during FY18, from 18.0% 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 10.6% during FY18, from 10.3% 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 | 1.1 | 1.4 |
| Debtors’ Days | Days | 89 | 98 |
| Interest coverage | x | 37.2 | 26.6 |
| Debt to equity ratio | x | 0.4 | 0.3 |
| Return on assets | % | 10.3 | 10.6 |
| Return on equity | % | 21.8 | 20.9 |
| Return on capital employed | % | 18.0 | 22.0 |
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster
To see how CADILA HEALTHCARE has performed over the last 5 years, please visit here.
CADILA HEALTHCARE Share Price Performance
Over the last one year, CADILA HEALTHCARE share price has moved up from Rs 483.6 to Rs 334.8, registering a loss of Rs 148.8 or around 30.8%.
Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 14,801.2 (up 0.8%). Over the last one year it has moved up from 13,214.8 to 14,801.2, a gain of 1,586 points (up 12.0%).
Overall, the S&P BSE SENSEX is up 20.2% over the year.
(To know more, check out historical annual results for CADILA HEALTHCARE and quarterly results for CADILA HEALTHCARE)
This article was originally published in English at www.equitymaster.com
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