AUROBINDO PHARMA 2023-24 Annual Report Analysis

Wed, 7 Aug

AUROBINDO PHARMA has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

AUROBINDO PHARMA Income Statement Analysis

• Operating income during the year rose 16.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 52.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.4% in FY24 as against 14.9% in FY23.
• Depreciation charges increased by 22.3% and finance costs increased by 106.2% YoY, respectively.
• Other income grew by 91.8% YoY.
• Net profit for the year grew by 64.4% YoY.
• Net profit margins during the year grew from 7.8% in FY23 to 10.9% in FY24.

AUROBINDO PHARMA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	248,554	290,019	16.7%
Other income	Rs m	2,906	5,574	91.8%
Total Revenues	Rs m	251,460	295,593	17.6%
Gross profit	Rs m	37,070	56,340	52.0%
Depreciation	Rs m	12,446	15,217	22.3%
Interest	Rs m	1,405	2,897	106.2%
Profit before tax	Rs m	26,125	43,800	67.7%
Tax	Rs m	6,849	12,110	76.8%
Profit after tax	Rs m	19,277	31,690	64.4%
Gross profit margin	%	14.9	19.4
Effective tax rate	%	26.2	27.6
Net profit margin	%	7.8	10.9

Don't Miss: Key Information for Long-term Investors

AUROBINDO PHARMA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 122 billion as compared to Rs 115 billion in FY23, thereby witnessing an increase of 6.1%.
• Long-term debt stood at Rs 21 billion as compared to Rs 6 billion during FY23, a growth of 244.9%.
• Current assets rose 11% and stood at Rs 238 billion, while fixed assets rose 11% and stood at Rs 197 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 439 billion as against Rs 392 billion during FY23, thereby witnessing a growth of 12%.

AUROBINDO PHARMA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	268,399	298,428	11.2
Current Liabilities	Rs m	114,938	121,991	6.1
Long-term Debt	Rs m	6,190	21,349	244.9
Total Liabilities	Rs m	392,125	438,589	11.8
Current assets	Rs m	214,599	237,719	10.8
Fixed Assets	Rs m	176,668	196,532	11.2
Total Assets	Rs m	392,125	438,589	11.8

AUROBINDO PHARMA Cash Flow Statement Analysis

• AUROBINDO PHARMA's cash flow from operating activities (CFO) during FY24 stood at Rs 24 billion, an improvement of 2.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -43 billion, an improvement of 7.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 8 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -10 billion from the Rs 2 billion net cash flows seen during FY23.

AUROBINDO PHARMA Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	23,868	24,345	2.0%
Cash Flow from Investing Activities	Rs m	-39,778	-42,560	-
Cash Flow from Financing Activities	Rs m	18,144	8,004	-55.9%
Net Cash Flow	Rs m	2,298	-10,068	-

Current Valuations for AUROBINDO PHARMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 54.1, an improvement from the EPS of Rs 32.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,446.0, stands at 26.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 2.9 times.
• The company's price to cash flow (P/CF) ratio stood at 10.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	424.2	495.0
TTM Earnings per share	Rs	32.9	54.1
Diluted earnings per share	Rs	32.9	54.1
Price to Cash Flow	x	9.6	10.6
TTM P/E ratio	x	15.7	26.6
Price / Book Value ratio	x	1.2	1.7
Market Cap	Rs m	325,753	496,290
Dividends per share (Unadj.)	Rs	3.0	4.5

Ratio Analysis for AUROBINDO PHARMA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY24, from 1.9x during FY23. 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 16.1x during FY24, from 19.6x during FY23. 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 10.6% during FY24, from 7.2% during FY24. 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 14.6% during FY24, from 10.0% during FY23. 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 7.9% during FY24, from 5.3% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.9	1.9
Debtors’ Days	Days	66	61
Interest coverage	x	19.6	16.1
Debt to equity ratio	x	0.0	0.1
Return on assets	%	5.3	7.9
Return on equity	%	7.2	10.6
Return on capital employed	%	10.0	14.6

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

AUROBINDO PHARMA Share Price Performance

Over the last one year, AUROBINDO PHARMA share price has moved up from Rs 867.8 to Rs 1,446.0, registering a gain of Rs 578.2 or around 66.6%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 40,697.7 (up 1.7%). Over the last one year it has moved up from 28,300.0 to 40,697.7, a gain of 12,398 points (up 43.8%).

Overall, the S&P BSE SENSEX is up 20.2% over the year.

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