UNICHEM LAB 2018-19 Annual Report Analysis

Sun, 31 Mar

UNICHEM LAB has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

UNICHEM LAB Income Statement Analysis

• Operating income during the year fell 13.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 473.6% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 6.8% in FY19 as against 1.6% in FY18.
• Depreciation charges increased by 33.4% and finance costs decreased by 6.1% YoY, respectively.
• Other income declined by 97.0% YoY.
• Net profit for the year declined by 100.9% YoY.
• Net profit margins during the year declined from 184.5% in FY18 to 2.0% in FY19.

UNICHEM LAB Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	13,795	11,882	-13.9%
Other income	Rs m	32,782	984	-97.0%
Total Revenues	Rs m	46,577	12,866	-72.4%
Gross profit	Rs m	217	-810	-473.6%
Depreciation	Rs m	505	674	33.4%
Interest	Rs m	80	75	-6.1%
Profit before tax	Rs m	32,414	-575	-101.8%
Tax	Rs m	6,962	-336	-104.8%
Profit after tax	Rs m	25,451	-239	-100.9%
Gross profit margin	%	1.6	-6.8
Effective tax rate	%	21.5	58.5
Net profit margin	%	184.5	-2.0

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UNICHEM LAB Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 5 billion as compared to Rs 5 billion in FY18, thereby witnessing an increase of 8.5%.
• Current assets fell 13% and stood at Rs 20 billion, while fixed assets rose 28% and stood at Rs 11 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 31 billion as against Rs 32 billion during FY18, thereby witnessing a fall of 2%.

UNICHEM LAB Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	26,795	26,161	-2.4
Current Liabilities	Rs m	4,635	5,029	8.5
Long-term Debt	Rs m	3	0	-100.0
Total Liabilities	Rs m	31,901	31,329	-1.8
Current assets	Rs m	23,365	20,393	-12.7
Fixed Assets	Rs m	8,536	10,936	28.1
Total Assets	Rs m	31,901	31,329	-1.8

UNICHEM LAB Cash Flow Statement Analysis

• UNICHEM LAB's cash flow from operating activities (CFO) during FY19 stood at Rs -3 billion, an improvement of 191.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -24 million, an improvement of 100% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -5 billion from the Rs 7 billion net cash flows seen during FY18.

UNICHEM LAB Cash Flow Statement 2018-19

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-18	Mar-19
Cash Flow from Operating Activities	Rs m	-1,123	-3,278	-
Cash Flow from Investing Activities	Rs m	16,483	-2,860	-
Cash Flow from Financing Activities	Rs m	-8,811	-24	-
Net Cash Flow	Rs m	6,549	-4,690	-

Current Valuations for UNICHEM LAB

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.4, an decline from the EPS of Rs 361.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 194.6, stands at 194.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 38.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Sales per share (Unadj.)	Rs	196.1	168.9
TTM Earnings per share	Rs	361.8	-3.4
Diluted earnings per share	Rs	361.5	-3.4
Price to Cash Flow	x	0.8	38.3
TTM P/E ratio	x	-256.9	194.5
Price / Book Value ratio	x	0.8	0.6
Market Cap	Rs m	21,667	16,670
Dividends per share (Unadj.)	Rs	5.0	4.0

Ratio Analysis for UNICHEM LAB

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 4.1x during FY19, from 5.0x during FY18. 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 -6.6x during FY19, from 405.8x during FY18. 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 -0.9% during FY19, from 95.0% during FY19. 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 -1.9% during FY19, from 121.3% during FY18. 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 -0.5% during FY19, from 80.0% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Current ratio	x	5.0	4.1
Debtors’ Days	Days	733	1,339
Interest coverage	x	405.8	-6.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	80.0	-0.5
Return on equity	%	95.0	-0.9
Return on capital employed	%	121.3	-1.9

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

UNICHEM LAB Share Price Performance

Over the last one year, UNICHEM LAB share price has moved down from Rs 286.1 to Rs 194.6, registering a loss of Rs 91.5 or around 32.0%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 14,407.9 (up 1.4%). Over the last one year it has moved up from 13,157.6 to 14,407.9, a gain of 1,250 points (up 9.5%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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

Read: Latest Annual Report Analysis of UNICHEM LAB