DSIJ.in JULY 22 - AUG 4, 2019 I DALAL STREET INVESTMENT JOURNAL (^99)
facilities has been reduced to boost investments and business
opportunities in the sector. The government has also
introduced mechanisms such as the Drug Price Control Order
and National Pharmaceutical Pricing Authority so as to deal
with the issues of affordability and easy availability of medicines
in the markets.
The country’s pharma industry is forecasted to expand at a
CAGR of 22.4 per cent over 2015–20 to reach US$ 55 billion.
Receiving warning letters from USFDA stalls the business of
the companies, but new product launches boost the revenues as
has happened with some companies such as Sun
Pharmaceutical Industries, Cipla, Lupin, Alembic
Pharmaceuticals, etc. A double digit growth is expected in
Q1FY20, with more focus on specialty business. As branded
drugs receive patents, the sector's exports receive a boost. By
2020, the Government of India has aimed to make India a
global leader in end-to-end drug manufacturing. The country’s
biotechnology industry, which comprises of bio-
pharmaceuticals, bio-services, bio-agriculture, bio-industry
and bio-informatics, is forecasted to grow at an average growth
rate of approximately 30 per cent per year and will reach US$
100 billion by 2025. The medical device market is expected to
grow by around US $50 billion by 2025. Having the potential
to reach US$ 70 billion is thought to be an aggressive growth
scenario by the market.
We have analysed data of 62 companies base on market cap to
compare and comment about the financial performance.
Considering the entire pharmaceutical sector, the total net sales
increased by 13.82 per cent to 240430.51 crore in FY19 from 211246.71 crore in FY18. For FY19, the total operating profit
for all 62 companies combined rose by 17.21 per cent to
49833.27 crore as compared to42515.77 crore for FY18.
Their aggregate net income was 22705.48 crore in FY19 which is an increase by 7.55 per cent as against the aggregate net income of21112.24 crore in FY18.
Valiant Organics, which is a company having business in
pharmaceuticals and drugs, posted net sales of 605.98 crore for FY19, which is the highest YoY net sales growth by 402.28 per cent among the 62 companies. For the same fiscal, the company's operating profit was177.71 crore having YoY
growth of 572.99 per cent and PAT YoY growth of 642.26 per
cent. Following it, Solara Active Pharma Science reported a
YoY net sales growth by 147.44 per cent with net sales of
1386.68 crore in FY19 and560.40 crore in FY18. Kilitch
Drugs (India), a small company having market cap of
223.40 crore, posted net sales of82.49 crore in FY19, a YoY
growth of 61.71 per cent. For FY19, the company’s operating
profit was 7.01 crore, a YoY growth 32.82 per cent. It registered net income of3.83 crore. In FY19, the net sales of Nectar
Lifesciences grew by 46.39 per cent YoY to 2782.95 crore from 1901.09 crore in FY18. The company in FY19 made an
operating profit of 264.26 crore and net income of 47.60 crore, a YoY growth by 46.39 per cent and 11.69 per
cent, respectively. Sun Pharmaceutical Industries has the
highest market cap of 89999.05 crore amongst the pharma companies in the data set, which has reported net sales of 29065.91 crore in FY19, an increase by 9.73 per cent YoY. The
company’s net income for the same fiscal was 3209.32 crore and its operating profit grew by 12.47 per cent YoY to 6307.59 crore. Cipla is another globally well-known
pharmaceutical company whose net sales for FY19 increased by
7.51 per cent YoY to 16362.41 crore. For the same financial year, Cipla’s operating profit rose by 9.59 per cent YoY to 3097.31 crore and net income increased by 6.36 per cent to
1509.61 crore. 9.01 29.03 18.89 9.73 12.47 24.98 -68.96 7.05 22.51 19.32 239.93 239.93 239.93 17.52 12.51 16.93 7.51 9.59 6.36 40.05 10.65 8.72 12.61 161.14 161.02 160.90 117.47 57.04 77.93 8.17 35.17 108.92 105.96 14.42 7.40 10.20 83.00 83.00 82.90 33.04 39.95 42.41 26.41 48.36 54.24 -17.30 15.55 21.98 28.91 53.09 53.09 53.09 79.86 284.13 72.58 24.21 37.50 -76.23 -71.89 4.28 23.36 7.78 36.89 36.05 34.51 41.36 39.28 34.61 18.57 3.18 -2.40 5.28 22.99 27.57 32.51 58.59 58.59 58.59 5.56 56.63 50.17 5.78 -8.43 140.05 -90.19 1.91 20.98 22.80 90.50 90.42 90.32 15.09 6.21 30.61 33.53 68.10 131.98 143.10 18.00 8.74 15.26 300.00 300.00 100.00 25.78 40.07 55.16 28.96 47.07 -35.69 -35.66 9.34 15.12 23.80 84.62 84.62 84.62 17.34 14.53 18.89 10.13 4.41 4.83 19.37 22.26 23.43 38.62 102.40 102.40 102.40 52.78 74.62 62.03 14.94 10.49 21.18 -29.27 13.69 22.18 22.47 23.91 23.91 23.91 26.29 41.41 39.76 8.03 18.78 26.99 -36.50 21.22 17.26 16.08 169.41 84.70 84.70 8.44 15.88 16.99 16.67 34.10 235.73 -46.87 1.81 2.68 6.41 69.56 69.56 69.56 28.49 39.30 26.34 8.38 -1.83 15.07 -27.51 16.67 27.31 27.46 28.22 28.22 28.22 18.97 15.42 7.38 14.91 52.16 82.24 23.07 9.47 8.60 4.31 25.27 25.24 25.24 31.00 21.89 21.39 25.68 35.84 40.78 41.62 24.00 20.42 23.25 37.70 37.70 37.70 -19.46 8.14 0.40 -2.01 -17.54 NA NA -21.56 -0.15 -0.75 754.95 518.66 517.73 37.73 27.85 9.03 -4.88 -14.39 -7.59 35.49 29.70 33.21 14.62 36.50 36.90 34.90 20.49 18.61 15.99 13.86 11.21 16.77 10.11 25.26 28.45 32.45 83.30 83.30 83.10 EPS () YoY Growth FY19 (%) RoNW (%) Equity (` in Cr.)
FY19 FY18 FY17 Sales Operating Profit PAT EPS FY19 FY18 FY17 FY19 FY18 FY17
martin jones
(Martin Jones)
#1