Financial analysis of Cadila Healthcare company.

1. Financial Analysis of
Cadila Healthcare
Presented By:
Snehal Nemane
Rahul Gautam

2. Overview on Company
 Cadila Healthcare is an Indian pharmaceutical company
headquartered at Ahmedabad in Gujarat state of
western India. The company is the fourth largest
pharmaceutical company in India,[2] with INR 54.7 Billion
revenue (2015).
 Plants Location :-
Ankleshwar plants, Vadodara plant, Patalganga plant, Navi
Mumbai plan, Goa plants, Baddi plant , Sikkim plant, Dabhasa
plant, Vatva plant, Changodar plant.
 Cadila was founded in 1952 by Ramanbhai Patel.
 Share Price on 4th November,2017 :-
NSE : 496.45
 Market Capital : 50,823.57.

3. Overview on Company
Listing Details - Cadila
Listing Information
BSE Code-532321
NSE Code-CADILAHC
Whether The Company Forms A Part Of The Following Indices –
Sensex-No
Nifty-No
BSE-100 –Yes
BSE-200 – Yes
S&P CNX 500 –Yes
CNX Midcap –Yes
CNX FMCG – No
Listed On :-The Stock Exchange, Mumbai, National Stock Exchange of India Ltd.

4. Balance Sheet
(Rs in Crore) Change
Financial Year 2016 2017 Actual
EQUITY AND LIABILITIES
Shareholders' Funds 6,137.40 6,618.30 480.90
a) Share Capital 102.4 102.4 0
- Preference Share Capital
b) Reserves and Surplus 6,035.00 6,515.90 480.90
- Revaluation Reserves
Non Current Liabilities 695.3 1,415.20 719.90
a) Long Term Borrowings 430 1,239.40 809.40
b) Deferred Tax Liabilities (Net) 152.1 105.5 -46.6
c) Other Long Term Liabilities 16.7 8.2 -8.5
d) Long Term Provisions 96.5 62.1 -34.4
e) Others
Current Liabilities 1920.3 3,013.90 1,093.60
a) Short Term Borrowings 604.3 1,545.60 941.30
b) Trade Payables 898.2 1,112.90 214.70
c) Other Current Liabilities 362.9 328.1 -34.8
- Current Maturities of Long Term Borrowings 1,885 1,548 -337
d) Short Term Provisions 54.9 27.3 -27.60
TOTAL EQUITY & LIABILITIES 8753 11,047.40 2,294.40

5. Balance Sheet(Contd)
ASSETS
Non Current Assets 5,829.50 8,908.00 3,078.50
a) Fixed Assets 2,452.70 3,030.40 577.70
i) Tangible Assets 1,999.70 2,205.00 205.30
ii) Intangible Assets 156.2 147 -9.2
iii) Capital work-in-progress 296.8 678.4 381.60
b) Non Current Investments 2,012.20 3,923.70 1,911.50
c) Long Term Loans and Advances 1,364.60 1,427.10 62.50
d)Other Non-current assets 0.00 526.8 526.80
Current Assets 2923.5 2139.4 -784.10
a) Current Investments 100.8 0 -100.80
b) Inventories 657.5 932.9 275.40
c) Trade Receivables 1,703.30 929 -774.30
d) Cash & Bank Balances 163.3 16.8 -146.50
e) Short Term Loans and Advances 180.4 37.1 -143.30
f) Other Current Assets 118.2 223.6 105.40
TOTAL ASSETS 8,753.00 11,047.40 2,294.40

6. Balance Sheet Ratios
Balance Sheet Ratios
Networth 6,137.40 6,618.30
Total Long Term Borrowings 2,315 2,787.40
Debt Equity Ratio 0.377 0.421
Current Ratio 1.522 0.710
Quick Ratio 1.180 0.400

7. Profit and Loss Statement
Financial Year 2016 2017
INCOME :
Gross Sales 6,532.90 3,098.00
Less : Excise duty 96.4 43.8
Net Sales 6,436.50 3,054.20
Other Operating Revenue 598.8 176.5
Revenue from Operations (net) 7,035.30 3,230.70
Other Income 134.1 583.1
Total Revenue 7,169.40 3,813.80
EXPENSES : 4,735.90 3171.6
Cost of raw material consumed 1,332.00 926.7
Purchases of traded goods 509.6 228.8
(Inc) / dec in inventories of FG,WIP, Traded goods 50.2 -147
Employees benefits expense 717.4 620.8
Stores and spares consumed 22.4 11.1
Power and Fuel 221.2 250.9
Other Expenses 1,883.10 1,280.30
EBITDA (Earnings before Interest, Depreciation, Tax) 2,433.50 642.20
Depreciation & amortisation expenses 221.2 250.9
EBIT (Operating Income) 2,212.30 391.30
Finance costs 22.4 11.1
Profit before Exceptional Items and Tax 0 0
Exceptional Items 0 0
Profit Before Tax (PBT) 2,433.50 642.20
Tax expenses : 456.2 -19.7
Current Tax 428.2 59.4
Deferred Tax 28 -79.1
Others 0.00 0
Profit after Tax (PAT) 1,977.30 661.90

8. P&L Ratios
EBITDA Margin 38% 21%
PAT Margin (Net Profit Margin) 28% 17%
Interest Coverage Ratio 98.76 35.25
General Ratios
ROCE (Return on Capital Employed) 32% 5%
RONW/ ROE (Return on Equity) 32% 10%
ROA (Return on Assets) 23% 6%
Stock Market Data
No. of Shares 1,02,37,42,600
Current Market Price (CMP) (Rs) 496.45
Market Capilisation (Rs Cr) 2062126.297
Earnings Per Share (EPS) 6.47
PE Ratio 76.78
BV per share 64.64808635

9. Analysis of Independent Audit Report
Particulars Remarks
Opinion: Are company accounts true and fair Yes
Proper books of account as required by law
have been kept by the Company
Yes
Physical verification of inventory has been
conducted at reasonable intervals by the
management
Yes
Has Company accepted any deposits No
Any unpaid statutory dues No
Any fraud on the Company by its officers or
employees noticed
No
Any preferential allotment or private
placement of shares or fully or partly
convertible debentures during the year
No

10. Accounting and Valuation methods followed
Particulars Remarks
Financial statements are based on historical
cost?
Yes
Valuation of Fixed Assets. At cost or any
other method used?
Written down value
Depreciation Method used by the Company Straight Line Method
Inventory valuation method used by the
company
FIFO
Does the company has:
a) Subsidiaries
b) Joint Venture
c) Associates
a) Yes
b) Yes
c) Yes
Has the company published Consolidated
Accounts in the Annual Report
Yes

11. Ratio Analysis
Ratio FY2016 FY2017 Remarks
Liquidity Ratio
a) Current Ratio
1.522 0.710
(Short remarks,
if any)
b) Quick Ratio 1.180 0.400
Leverage Ratio
a) Debt Equity Ratio 0.377 0.421
b) Interest Coverage Ratio 98.76 35.25
Profitability Ratios
a) EBITDA Margin 38% 21%
b)Operating Profit Margin 34% 13%
c)Net Profit Margin 28% 17%
Profitability related to Investment
a) Return on Assets 23% 6%
b) Return on Capital Employed 32% 5%
c) Return on Equity 32% 10%

12. Ratio Analysis
Ratio FY2016 FY2017 Remarks
Profitability related to Equity
a) Earnings Per Share
19.31 6.47
b) PE Ratio - no-
76.78
Turnover Ratios
a) Asset Turnover 0.74 0.28
b) Inventory Turnover 3.51 10.85
c) Debtor Turnover 2.45 5.10

13. Conclusion/Recommendations
 As most of the ratios have decreased which shows that
company has not been performing efficiently and not
earning good returns. And that isn’t a good sign, so as of
now, by looking at the financial condition, we can say that
the company cannot be considered good for investment.

14. Questions

15. Annexures
Put Balance Sheet and PL of your company as
Annexure to the presentation.