SUN PHARMA 2023-24 Annual Report Analysis

Tue, 9 Jul

SUN 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.

SUN PHARMA Income Statement Analysis

• Operating income during the year fell 53.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 53.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 26.0% in FY24 as against 25.7% in FY23.
• Depreciation charges decreased by 36.7% and finance costs increased by 355.9% YoY, respectively.
• Other income declined by 32.5% YoY.
• Net profit for the year declined by 66.6% YoY.
• Net profit margins during the year declined from 19.5% in FY23 to 14.1% in FY24.

SUN PHARMA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	438,857	202,752	-53.8%
Other income	Rs m	8,199	5,535	-32.5%
Total Revenues	Rs m	447,055	208,287	-53.4%
Gross profit	Rs m	112,900	52,809	-53.2%
Depreciation	Rs m	25,294	16,006	-36.7%
Interest	Rs m	1,720	7,841	355.9%
Profit before tax	Rs m	94,084	34,497	-63.3%
Tax	Rs m	8,476	5,915	-30.2%
Profit after tax	Rs m	85,608	28,582	-66.6%
Gross profit margin	%	25.7	26.0
Effective tax rate	%	9.0	17.1
Net profit margin	%	19.5	14.1

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SUN PHARMA Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 44 billion as compared to Rs 199 billion in FY23, thereby witnessing an decrease of -77.7%.
• Long-term debt stood at Rs 110 billion as compared to Rs 0 million during FY23, a fall of 0.0%.
• Current assets fell 63% and stood at Rs 149 billion, while fixed assets fell 28% and stood at Rs 270 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 420 billion as against Rs 776 billion during FY23, thereby witnessing a fall of 46%.

SUN PHARMA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	559,954	236,944	-57.7
Current Liabilities	Rs m	199,064	44,445	-77.7
Long-term Debt	Rs m	0	110,360	0.0
Total Liabilities	Rs m	775,794	419,853	-45.9
Current assets	Rs m	398,619	149,125	-62.6
Fixed Assets	Rs m	376,960	270,309	-28.3
Total Assets	Rs m	775,794	419,853	-45.9

SUN PHARMA Cash Flow Statement Analysis

• SUN PHARMA's cash flow from operating activities (CFO) during FY24 stood at Rs -3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 5 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -838 million from the Rs 1 billion net cash flows seen during FY23.

SUN 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	49,593	-2,924	-
Cash Flow from Investing Activities	Rs m	-79,437	-2,629	-
Cash Flow from Financing Activities	Rs m	23,761	4,740	-80.1%
Net Cash Flow	Rs m	1,155	-838	-

Current Valuations for SUN PHARMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.9, an decline from the EPS of Rs 35.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,555.7, stands at 38.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 15.8 times, while the price to sales ratio stands at 18.4 times.
• The company's price to cash flow (P/CF) ratio stood at 68.8 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	182.9	84.5
TTM Earnings per share	Rs	35.7	11.9
Diluted earnings per share	Rs	35.7	11.9
Price to Cash Flow	x	21.3	68.8
TTM P/E ratio	x	27.6	38.7
Price / Book Value ratio	x	4.0	12.9
Market Cap	Rs m	2,233,361	3,067,070
Dividends per share (Unadj.)	Rs	11.5	13.5

Ratio Analysis for SUN PHARMA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.4x during FY24, from 2.0x 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 5.4x during FY24, from 55.7x 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 declined and down at 12.1% during FY24, from 15.3% 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 declined and down at 12.2% during FY24, from 17.1% 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 declined and down at 8.7% during FY24, from 11.3% 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	2.0	3.4
Debtors’ Days	Days	95	159
Interest coverage	x	55.7	5.4
Debt to equity ratio	x	0.0	0.5
Return on assets	%	11.3	8.7
Return on equity	%	15.3	12.1
Return on capital employed	%	17.1	12.2

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

SUN PHARMA Share Price Performance

Over the last one year, SUN PHARMA share price has moved up from Rs 1,035.5 to Rs 1,555.7, registering a gain of Rs 520.2 or around 50.2%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 38,068.0 (down 0.5%). Over the last one year it has moved up from 25,944.1 to 38,068.0, a gain of 12,124 points (up 46.7%).

Overall, the S&P BSE SENSEX is up 22.2% over the year.

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