Let’s break down the provided financial data and analysis for the companies Sanofi India Ltd., Torrent Pharma, and Eris Lifesciences. The information is presented in various tables that include growth metrics, balance sheet data, profit and loss accounts, cash flow statements, and key financial ratios. I will explain each section, define the technical terms, and provide a brief analysis.
Growth Table
Metrics:
- Share Price CAGR (Compound Annual Growth Rate): This measures the annual growth rate of the share price over a specified period.
- 1yr: -5.57% indicates a decline in the share price over the past year.
- 3yr: -7.52% shows a decline over three years.
- 10yr: 8.57% shows a positive growth over ten years.
- TTM EPS CAGR (Trailing Twelve Months Earnings Per Share CAGR): This measures the growth rate of earnings per share over time.
- 1yr: -7.95% indicates a decrease in EPS over the last year.
- 3yr: -3.90% suggests a slight decline over three years.
- 10yr: 6.84% indicates positive growth over a decade.
- PE CAGR (Price to Earnings CAGR): The growth rate of the PE ratio over time.
- 1yr: 2.58% shows a slight increase in the PE ratio.
- 3yr: -3.77% indicates a decrease over three years.
- 10yr: 1.62% suggests moderate growth over ten years.
- CFO CAGR (Cash Flow from Operations CAGR): Growth rate of cash generated from operations.
- 1yr: -42.21% shows a significant decline in cash flow from operations over the last year.
- 3yr: -27.76% indicates a substantial decline over three years.
- 10yr: -1.67% suggests a slight decrease over ten years.
Balance Sheet
The balance sheet provides a snapshot of a company’s financial position, including assets, liabilities, and equity.
Assets
- Total Assets: Total resources owned by the company.
- Dec’15: 2,405 Cr. indicates the total asset value in December 2015.
- Jun’24: 1,360 Cr. shows a decrease in total assets as of June 2024.
- Non-Current Assets: Long-term investments and physical assets.
- Dec’15: 1,041 Cr. to Jun’24: 484 Cr. shows a significant reduction.
- Current Assets: Assets expected to be converted to cash within a year.
- Dec’15: 1,244 Cr. to Jun’24: 877 Cr. indicates fluctuations in liquidity.
Liabilities
- Total Liabilities: Obligations the company must pay.
- Remains consistent with the total assets over the years, indicating balanced accounting.
Profit & Loss Statement
This statement provides insights into the company’s revenue, expenses, and profitability over time.
Key Figures:
- Sales: Revenue from goods/services.
- Dec’15: 2,193 Cr. to TTM: 2,604 Cr. indicates growth in sales.
- Operating Expenses: Costs associated with running the business.
- Dec’15: 1,734 Cr. to TTM: 1,874 Cr. shows a controlled increase in costs.
- Operating Profit: Earnings from core operations.
- Dec’15: 459 Cr. to TTM: 731 Cr. reflects improved operational efficiency.
- Net Profit: The bottom line profit after all expenses.
- Dec’15: 322 Cr. to TTM: 530 Cr. indicates an overall increase in profitability.
Cash Flow Statement
The cash flow statement highlights the inflows and outflows of cash, categorized by operating, investing, and financing activities.
Key Metrics:
- Cash from Operating Activity: Cash generated from core operations.
- Dec’15: 213 Cr. to Jun’24: 334 Cr. suggests fluctuating cash generation.
- Cash from Investing Activity: Cash used for investments.
- Dec’15: 35.9 Cr. to Jun’24: -18 Cr. shows varying investment activity.
- Cash from Financing Activity: Cash raised through financing.
- Dec’15: -147 Cr. to Jun’24: -393 Cr. indicates financing outflows, possibly for debt repayment or dividends.
- Net Cash Flow: Overall cash movement.
- Dec’15: 102 Cr. to Jun’24: -77.6 Cr. suggests periods of cash inflow and outflow.
Ratios
Ratios provide a quantitative analysis of financial performance and health.
Operational Ratios:
- Quick Ratio: Measures short-term liquidity.
- Dec’15: 1.20 to Dec’23: 0.97 indicates declining liquidity.
- Current Ratio: Measures the ability to pay short-term obligations.
- Dec’15: 1.93 to Dec’23: 1.23 suggests potential liquidity issues.
- Interest Coverage Ratio: Ability to meet interest payments.
- Dec’15: 777 to Dec’23: 499 shows decreased ability to cover interest.
- Fixed Asset Turnover: Efficiency in using fixed assets to generate sales.
- Dec’15: 1.75 to Dec’23: 5.17 indicates improved asset utilization.
- Cash Conversion Cycle: Efficiency in converting inventory and receivables into cash.
- Dec’15: 41.66 to Dec’23: -16.41 suggests better cash management.
- Debt to Equity Ratio: Proportion of debt to shareholder equity.
- Consistently 0.00 shows no reliance on debt.
Profitability Ratios:
- Gross Margin (%): Profitability after direct costs.
- Dec’15: 56.01% to Dec’23: 57.88% indicates stable gross profit.
- Op Profit Margin (%): Profitability from operations.
- Dec’15: 20.39% to Dec’23: 30.49% reflects improved operational efficiency.
- Net Profit Margin (%): Overall profitability.
- Dec’15: 13.33% to Dec’23: 21.16% indicates stronger net profit.
- ROCE (%): Return on capital employed.
- Dec’15: 19.50% to Dec’23: 38.26% shows efficient capital use.
- Return on Assets (%): Return on total assets.
- Dec’15: 11.83% to Dec’23: 12.83% reflects consistent asset profitability.
- ROE (%): Return on equity.
- Dec’15: 17.74% to Dec’23: 59.40% indicates strong equity returns.
Valuation Ratios:
- P/E (Price to Earnings): Valuation based on earnings.
- Dec’15: 31.39 to Dec’23: 30.76 shows slight changes in market valuation.
- Price to Book: Valuation based on book value.
- Dec’15: 5.58 to Dec’23: 19.59 indicates increased market valuation.
- EV/EBITDA: Valuation of enterprise value to earnings.
- Dec’15: 19.36 to Dec’23: 20.88 shows stable valuation.
- Dividend Yield (%): Dividend income relative to share price.
- Dec’15: 1.25% to Dec’23: 2.07% suggests moderate dividend returns.
Conclusion
The financial analysis of Sanofi India Ltd., Torrent Pharma, and Eris Lifesciences shows a mixed performance over the years:
- Growth Metrics: Indicate fluctuating growth in share price and EPS, with cash flow challenges.
- Balance Sheet: Assets and liabilities show a reduction over time, impacting financial stability.
- Profit & Loss: Sales and net profit have generally improved, indicating effective cost management and profitability.
- Cash Flow: Cash flow from operations has been inconsistent, with cash flow challenges in recent years.
- Ratios: Profitability and operational efficiency have improved, but liquidity ratios suggest potential short-term challenges.
This analysis suggests that while the companies have shown resilience and profitability improvements, there are areas such as liquidity and cash flow management that require attention.
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