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LUPIN 2020-21 Annual Report Analysis
Wed, 31 Mar

LUPIN has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

LUPIN Income Statement Analysis

  • Operating income during the year fell 9.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 49.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.9% in FY21 as against 10.2% in FY20.
  • Depreciation charges decreased by 8.5% and finance costs decreased by 61.3% YoY, respectively.
  • Other income declined by 71.8% YoY.
  • Net profit for the year declined by 548.1% YoY.
  • Net profit margins during the year grew from 1.6% in FY20 to 8.1% in FY21.

LUPIN Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 168,366 151,630 -9.9%
Other income Rs m 4,838 1,363 -71.8%
Total Revenues Rs m 173,203 152,993 -11.7%
Gross profit Rs m 17,223 25,669 49.0%
Depreciation Rs m 9,702 8,874 -8.5%
Interest Rs m 3,630 1,406 -61.3%
Profit before tax Rs m 8,728 16,751 91.9%
Tax Rs m 11,466 4,485 -60.9%
Profit after tax Rs m -2,737 12,266 -548.1%
Gross profit margin % 10.2 16.9
Effective tax rate % 131.4 26.8
Net profit margin % -1.6 8.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Must See: These Segments are Witnessing Incredible Growth with Modi's Push

LUPIN Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 84 billion as compared to Rs 92 billion in FY20, thereby witnessing an decrease of -8.6%.
  • Long-term debt down at Rs 161 million as compared to Rs 18 billion during FY20, a fall of 99.1%.
  • Current assets fell 9% and stood at Rs 140 billion, while fixed assets rose 1% and stood at Rs 94 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 234 billion as against Rs 248 billion during FY20, thereby witnessing a fall of 6%.

LUPIN Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 123,220 136,136 10.5
 
Current Liabilities Rs m 92,252 84,361 -8.6
Long-term Debt Rs m 17,933 161 -99.1
Total Liabilities Rs m 248,095 234,302 -5.6
 
Current assets Rs m 154,132 139,864 -9.3
Fixed Assets Rs m 93,963 94,439 0.5
Total Assets Rs m 248,095 234,302 -5.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



LUPIN Cash Flow Statement Analysis

  • LUPIN's cash flow from operating activities (CFO) during FY21 stood at Rs 18 billion, an improvement of 24.0% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -12 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -19 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -13 billion from the Rs 17 billion net cash flows seen during FY20.

LUPIN Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m 14,688 18,218 24.0%
Cash Flow from Investing Activities Rs m 11,070 -12,396 -
Cash Flow from Financing Activities Rs m -8,906 -18,853 -
Net Cash Flow Rs m 16,853 -13,031 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for LUPIN

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 27.0, an improvement from the EPS of Rs -6.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,021.0, stands at 37.8 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 3.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 18.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 371.7 334.2
TTM Earnings per share Rs -6.0 27.0
Diluted earnings per share Rs -6.0 27.0
Price to Cash Flow x 38.5 18.2
TTM P/E ratio x -73.3 37.8
Price / Book Value ratio x 2.5 2.8
Market Cap Rs m 314,199 385,072
Dividends per share (Unadj.) Rs 6.0 6.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for LUPIN

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY21, from 1.7x during FY20. 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 12.9x during FY21, from 3.4x during FY20. 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 9.0% during FY21, from -2.2% during FY21. 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 13.3% during FY21, from 8.8% during FY20. 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 5.8% during FY21, from 0.4% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 1.7 1.7
Debtors’ Days Days 118 108
Interest coverage x 3.4 12.9
Debt to equity ratio x 0.1 0.0
Return on assets % 0.4 5.8
Return on equity % -2.2 9.0
Return on capital employed % 8.8 13.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 589.7 to Rs 1,021.0, registering a gain of Rs 431.3 or around 73.1%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,328.2 (up 0.4%). Over the last one year it has moved up from 12,148.6 to 21,328.2, a gain of 9,180 points (up 75.6%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Annual Report FAQs

What is the current share price of LUPIN?

LUPIN currently trades at Rs 2,070.0 per share. You can check out the latest share price performance of LUPIN here...

What was the revenue of LUPIN in FY21? How does it compare to earlier years?

The revenues of LUPIN stood at Rs 152,993 m in FY21, which was down -11.7% compared to Rs 173,203 m reported in FY20.

LUPIN's revenue has fallen from Rs 174,922 m in FY17 to Rs 152,993 m in FY21.

Over the past 5 years, the revenue of LUPIN has grown at a CAGR of -3.3%.

What was the net profit of LUPIN in FY21? How does it compare to earlier years?

The net profit of LUPIN stood at Rs 12,266 m in FY21, which was down -548.1% compared to Rs -2,737 m reported in FY20.

This compares to a net profit of Rs 6,117 m in FY19 and a net profit of Rs 2,548 m in FY18.

Over the past 5 years, LUPIN net profit has grown at a CAGR of -16.8%.

What does the cash flow statement of LUPIN reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of LUPIN reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 18,218 m as compared to Rs 14,688 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -12,396 m as compared to Rs 11,070 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -18,853 m as compared to Rs -8,906 m in FY20.

Here's the cash flow statement of LUPIN for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations41,13517,51216,66014,68818,218
From Investments-25,2744,699-32,82511,070-12,396
From Financial Activity4,332-14,9217,441-8,906-18,853
Net Cashflow20,1937,290-8,72416,853-13,031

What does the Key Ratio analysis of LUPIN reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of LUPIN reveals:

  • Operating profit margins witnessed a fall and down at 16.9% in FY21 as against 10.2% in FY20.
  • Net profit margins grew from 1.6% in FY20 to 8.1% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.1 in FY20.

Here's the ratio/financial analysis of LUPIN for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)25.810.713.910.216.9
Net Profit Margin (%)14.71.63.7-1.68.1
Debt to Equity Ratio (x)0.40.50.50.10.0

Read: Latest Annual Report Analysis of LUPIN

 

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