AUROBINDO PHARMA

FINANCIAL ANALYSIS
AUROBINDO PHARMA…
Founded in 1986, listed as
Public in 1995

Consistently in top 3 Indian

Pharma cos., Operating in >125
markets worldwide, Over 20,000
employees

Averaged 17% CAGR in the last 5

years, clocked 42% y.o.y growth
in 2005-06

Faced drop in valuation post the ban on

Indian drugs by US FDA in 2011, recovered
since then through strategic investments
and R&D

Focus on volume driven

growth & innovative products,
diversification in EU and
international market
 SUN PHARMA CIPLA
Founded in 1983, listed as public in 1997.
Founded in 1935, listed as public in 1995.

Market share of 5.6% as per AIOCD AWACS - 2015

Ranked 5th in US/ Largest Indian Pharma Company in US. Market capitalization : US$ 44.3Bn (FY 17)

Market capitalization : US$ 22Bn (FY 17)

CAGR around 8.47% during 2016-19

CAGR around 8% during 2012-17
 COST-STRUCTURE (Balance-Sheet)
Current Assets Non-Current Assets Fixed Assets
60.0% 58.1% 57.7% 60.0% 58.1% 45.0%
58.0% 56.7% 55.0% 40.3%
40.0%
56.0% 52.7% 35.5%
52.0% 35.2%
54.0% 53.7% 35.0% 36.2%
50.0% 46.3% 34.5%
52.0% 51.9% 48.1% 50.8% 30.9%
49.2% 30.0%
50.0% 45.0%
48.0% 25.0% 26.7%
48.0% 43.3% 24.4% 24.3%
46.0% 40.0% 42.3%
47.3% 41.9% 20.0%
44.0% 35.0%
41.9% 15.0%
42.0%
40.0% 30.0% 10.0%
Mar-19 Mar-18 Mar-17 Mar-19 Mar-18 Mar-17 Mar-19 Mar-18 Mar-17
Aurbindo Pharma Aurbindo Pharma Aurbindo Pharma
Cipla Cipla Cipla
Sunpharma Sunpharma Sunpharma
COST-STRUCTURE (Balance-Sheet)[Contd.]
Current Liabilities Total Share Capital
50.0%
45.5% 0.90%
0.70% 0.76%
45.0%
0.80%
0.67%
40.0% 40.7% 0.70%
41.1%
35.0% 0.60%
30.0% 0.50% 0.37% 0.37%
0.40% 0.39%
25.0% 30.9% 29.1%
0.30% 0.36%
20.0% 26.8%
0.20% 0.28%
15.0% 16.0% 0.22%
15.7% 0.10%
16.8%
10.0% 0.00%
Mar-19 Mar-18 Mar-17 Mar-19 Mar-18 Mar-17
Aurbindo Pharma Cipla Sunpharma Aurbindo Pharma Cipla Sunpharma
 COST-STRUCTURE (Income Statement)
COGS Employee Benefit Total Expense
70%
58%
Expenses 120.0%
60% 54% 92.4% 93.7% 95.4%
49% 51% 25.0% 100.0%
44% 20.8% 20.6% 87.4% 87.8% 76.3%
50% 41% 17.9% 18.3% 18.8%
20.0% 16.3% 80.0%
40% 83.9% 80.5% 79.7%
15.0% 13.1% 12.9% 11.8% 60.0%
30% 24%
20% 19%
10.0% 40.0%
20%
10% 5.0% 20.0%
0% 0.0% 0.0%
Mar-19 Mar-18 Mar-17 Mar-19 Mar-18 Mar-17 Mar-19 Mar-18 Mar-17
Aurbindo Pharma Aurbindo Pharma Aurbindo Pharma
Cipla Cipla Cipla
Sunpharma Sunpharma Sunpharma
COST-STRUCTURE (Income Statement)

Finance Costs Depriciation &

2.50% Amortization Expenses
10.0% 9.4%
1.94% 9.0%
2.00% 9.0% 8.3%
1.99% 8.0%
1.50% 1.33% 7.0% 6.1%
5.8%
6.0%
1.13% 5.0% 4.2%
1.00% 1.05%
0.78% 4.0% 3.4% 3.4%
2.8%
3.0%
0.50% 0.83% 2.0%
0.47% 0.44% 1.0%
0.00% 0.0%
Mar-19 Mar-18 Mar-17 Mar-19 Mar-18 Mar-17
Aurbindo Pharma Cipla Sunpharma Aurbindo Pharma Cipla Sunpharma
 Liquidity Ratios
Current Ratio Quick Ratio Cash Ratio
3.50 3.29 2.50 2.24 6.00
2.82 4.90
3.00 2.61 5.00
2.00 1.77 4.05
2.50 1.58 3.77
4.00
1.79 1.84 1.50 1.26
2.00 1.59 1.16 2.76
1.10 3.00
1.28 1.40 1.39
1.50 1.00 1.90
2.00 1.70
1.00 0.45 0.50 0.50
0.50 1.00
0.50 0.16 0.25 0.19
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Aurbindo Pharma Aurbindo Pharma Aurbindo Pharma

Cipla Cipla Cipla
Sunpharma Sunpharma Sunpharma
 Coverage Ratio
Interest Coverage Fixed Charge Cash Coverage
Ratio Coverage Ratio Ratio
50.00 46.80 60.00 60.00
42.66 53.21 53.21
49.84 49.84
40.00 50.00 50.00

40.00 40.00
30.00 23.63 27.20 26.79 24.09 27.20 26.79
19.99 30.00 24.09 30.00
15.61 21.22 21.22
20.00 13.34 16.97 16.97
20.00 20.00
7.86 7.72 8.67 11.02 10.62 11.02 10.62
10.00 10.00 10.00

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Aurbindo Pharma Aurbindo Pharma Aurbindo Pharma
Cipla Cipla Cipla
Sunpharma Sunpharma Sunpharma
 Leverage Ratios
Total Debt to Total Total Asset to Total Total Debt to Total
Assets Equity (Equity Equity
Aurbindo Pharma Multiplier) Aurbindo Pharma
Cipla Aurbindo Pharma Cipla
Sunpharma Cipla Sunpharma
0.30 Sunpharma 0.60
0.26 0.49
0.21 0.19
2.00 0.38
0.20 0.18 0.18 0.20 1.71 0.40
0.15 1.80 1.66 1.72 0.33
0.33
0.15 0.29 0.29
0.13 1.60 1.60
1.60 1.68 0.24 0.22
1.57 1.61
0.10 1.40 0.20 0.26

1.20 1.06
- 1.00 -
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 Efficiency Ratios
Inventory Turnover Ratio Day's Sales Inventory
2.00 400.00
300.00

1.00 200.00
100.00
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Aurbindo Pharma Cipla Sunpharma Aurbindo Pharma Cipla Sunpharma

Accounts Receivable Turnover Days Sales Outstanding

Ratio 150.00

8.00 100.00

4.00 50.00
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Aurbindo Pharma Cipla Sunpharma Aurbindo Pharma Cipla Sunpharma
 Asset Turnover Ratios

Total Asset Turnover Fixed Asset Turnover

Ratio Ratio
1.00 4.00
0.80 3.00
0.60
2.00
0.40
1.00
0.20
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Aurbindo Pharma Cipla Sunpharma Aurbindo Pharma Cipla Sunpharma

 Profitability Ratios
Gross Profit Ratio Operating Profit Margin
100.00% 60.00%
40.00%
50.00%
20.00%
0.00% 0.00%
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Aurbindo Pharma Cipla Sunpharma Aurbindo Pharma Cipla Sunpharma

Net Profit Margin Return on Assets Ratio

30.00% 30.00%

20.00% 20.00%
10.00% 10.00%
0.00% 0.00%
Mar-19 Mar-18 Mar-17 Mar-19 Mar-18 Mar-17
Aurbindo Pharma Cipla Sunpharma Aurbindo Pharma Cipla Sunpharma
 Market Value Ratio

Earning per Share Price-Earning Ratio

50.00 60.00 55.01
40.31 41.30 39.19
50.00 43.22 46.15
40.00
29.00 40.00
30.00 28.00 30.91
18.75 17.63 30.00 23.69
20.00 19.46 17.14
11.00 12.96 20.00 13.51
9.00
10.00 10.00
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Mar-19 Mar-18 Mar-17 Mar-19 Mar-18 Mar-17
Aurbindo Pharma Cipla Sunpharma Aurbindo Pharma Cipla Sunpharma
THANKYOU