CIPLA 2023-24 Annual Report Analysis

Wed, 31 Jul

CIPLA 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.

CIPLA Income Statement Analysis

• Operating income during the year rose 13.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 26.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.7% in FY24 as against 21.1% in FY23.
• Depreciation charges decreased by 10.3% and finance costs decreased by 17.9% YoY, respectively.
• Other income grew by 45.8% YoY.
• Net profit for the year grew by 46.5% YoY.
• Net profit margins during the year grew from 12.5% in FY23 to 16.1% in FY24.

CIPLA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	227,531	257,741	13.3%
Other income	Rs m	5,121	7,466	45.8%
Total Revenues	Rs m	232,653	265,207	14.0%
Gross profit	Rs m	48,079	60,962	26.8%
Depreciation	Rs m	11,721	10,510	-10.3%
Interest	Rs m	1,095	899	-17.9%
Profit before tax	Rs m	40,384	57,019	41.2%
Tax	Rs m	12,029	15,466	28.6%
Profit after tax	Rs m	28,355	41,553	46.5%
Gross profit margin	%	21.1	23.7
Effective tax rate	%	29.8	27.1
Net profit margin	%	12.5	16.1

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

CIPLA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 52 billion as compared to Rs 50 billion in FY23, thereby witnessing an increase of 4.2%.
• Current assets rose 15% and stood at Rs 194 billion, while fixed assets rose 8% and stood at Rs 127 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 321 billion as against Rs 290 billion during FY23, thereby witnessing a growth of 11%.

CIPLA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	233,460	266,199	14.0
Current Liabilities	Rs m	50,333	52,458	4.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	290,067	321,300	10.8
Current assets	Rs m	168,051	193,925	15.4
Fixed Assets	Rs m	117,318	126,886	8.2
Total Assets	Rs m	290,067	321,300	10.8

CIPLA Cash Flow Statement Analysis

• CIPLA's cash flow from operating activities (CFO) during FY24 stood at Rs 41 billion, an improvement of 27.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -30 billion, an improvement of 25.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -12 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -490 million from the Rs -968 million net cash flows seen during FY23.

CIPLA 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	32,377	41,339	27.7%
Cash Flow from Investing Activities	Rs m	-23,885	-29,880	-
Cash Flow from Financing Activities	Rs m	-9,583	-12,004	-
Net Cash Flow	Rs m	-968	-490	-

Current Valuations for CIPLA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 51.5, an improvement from the EPS of Rs 35.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,536.7, stands at 28.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.7 times, while the price to sales ratio stands at 4.8 times.
• The company's price to cash flow (P/CF) ratio stood at 18.6 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	281.9	319.3
TTM Earnings per share	Rs	35.1	51.5
Diluted earnings per share	Rs	35.1	51.5
Price to Cash Flow	x	18.1	18.6
TTM P/E ratio	x	25.7	28.6
Price / Book Value ratio	x	3.5	3.6
Market Cap	Rs m	822,164	970,457
Dividends per share (Unadj.)	Rs	8.5	13.0

Ratio Analysis for CIPLA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.7x during FY24, from 3.3x 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 improved and stood at 64.4x during FY24, from 37.9x 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 15.6% during FY24, from 12.1% 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 21.8% during FY24, from 17.8% 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 13.2% during FY24, from 10.2% 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	3.3	3.7
Debtors’ Days	Days	7	7
Interest coverage	x	37.9	64.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.2	13.2
Return on equity	%	12.1	15.6
Return on capital employed	%	17.8	21.8

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

CIPLA Share Price Performance

Over the last one year, CIPLA share price has moved up from Rs 1,175.9 to Rs 1,536.7, registering a gain of Rs 360.9 or around 30.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 40,507.8 (up 0.9%). Over the last one year it has moved up from 27,736.5 to 40,507.8, a gain of 12,771 points (up 46.0%).

Overall, the S&P BSE SENSEX is up 22.8% over the year.

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