1QFY2018 Result Update | Pharmaceutical
August 14, 2017
Aurobindo Pharma
BUY
CMP
`705
Performance Highlights
Target Price
`823
Y/E march (` cr)
1QFY18
4QFY17
% chg (QoQ)
1QFY17
% chg (yoy)
Investment Period
12 months
Net sales
3621
3582
1.1
3664
(1.2)
Other income
91
102
(10.8)
78
16.8
Stock Info
Operating profit
765
662
15.6
828
(7.5)
Sector
Pharmaceutical
Interest
17
14
18.1
14
24.0
Adj. Net profit
519
532
(2.6)
585
(11.4)
Market Cap (` cr)
41,293
Source: Company, Angel Research
Net debt (` cr)
3,265
Beta
1.3
For 1QFY2018 Aurobindo Pharma (APL) posted numbers lower than
52 Week High / Low
895/504
expectations on sales, OPM and net profit fronts. On sales front, the company
Avg. Daily Volume
67,116
posted sales of `3621cr (v/s. `3,900cr expected) v/s. `3,664cr in 1QFY2017,
Face Value (`)
1
posting a yoy de-growth of 1.2%. On the operating front, the EBITDA margin
came in at 21.1% (v/s. 22.9% expected) v/s. 22.6% in 1QFY2017. Consequently,
BSE Sensex
31,214
the Adj. PAT came in at `519cr (v/s. `641cr expected) v/s. `585cr in 1QFY2017,
Nifty
9,711
a yoy de-growth of 11.4%. We maintain our Buy rating on the stock.
Reuters Code
ARBN.BO
Bloomberg Code
[email protected]
Results less than expectation: Aurobindo Pharma posted numbers which were
lower than expectations on sales, OPM & net profit fronts. On sales front, the
company posted sales of `3621cr (v/s. `3,900cr expected) v/s. `3,664cr in
Shareholding Pattern (%)
1QFY2017, posting a yoy de-growth of 1.2%. The formulation sales (`3,051cr)
Promoters
51.9
posted a yoy growth of 0.6%, while API (`625cr) posted a yoy de-growth of
MF / Banks / Indian Fls
17.2
14.9%. Europe (`918cr), posted a yoy growth of 10.4%, while its key market USA
FII / NRIs / OCBs
20.1
(`1695cr), posted almost flat growth with a dip of 0.5% yoy. On the operating
front, the EBITDA margin came in at 21.1% (v/s. 22.9% expected) v/s. 22.6% in
Indian Public / Others
10.8
1QFY2017. Consequently, the Adj. PAT came in at
`519cr (v/s.
`641cr
expected) v/s. `585cr in 1QFY2017, a yoy de-growth of 11.4%.
Abs. (%)
3m 1yr
3yr
Outlook and valuation: We estimate the company’s net sales to log a CAGR of
Sensex
4.8
12.0
22.3
14.5% over FY2017-19E to `19,478cr on the back of US formulations, which
Aurobindo
7.4
(6.0)
82.7
will be supplemented through the acquisitions of the Western European
formulation businesses of Actavis and US’ Natrol. The acquisitions have also led
APL to become a >US$2bn sales company, with ~80% of sales being accounted
3-year daily price chart
by formulations. We recommend a Buy rating with a target price of `823.
1,000
800
Key financials (Consolidated)
Y/E March (` cr)
FY2016
FY2017
FY2018E
FY2019E
600
Net sales
13,710
14,845
17,086
19,478
400
% chg
13.8
8.3
15.1
14.0
200
Adj. Net profit
2,025
2,302
2,611
3,004
% chg
25.1
13.7
13.5
15.0
0
EPS (`)
34.7
39.4
44.7
51.4
EBITDA margin (%)
20.3
21.5
22.1
22.0
P/E (x)
20.3
17.9
15.8
13.7
Source: Company, Angel Research
RoE (%)
32.5
27.6
24.7
22.7
RoCE (%)
22.9
23.1
24.3
25.3
P/BV (x)
5.7
4.4
3.5
2.8
EV/Sales (x)
3.3
3.0
2.5
2.1
Sarabjit Kour Nangra
EV/EBITDA (x)
16.1
13.7
11.5
9.6
+91 22 3935 7800 Ext: 6806
Source: Company, Angel Research; Note: CMP as of August 11, 2017
[email protected]
Please refer to important disclosures at the end of this report
1
Aurobindo Pharma | 1QFY2018 Result Update
Exhibit 1: 1QFY2018 performance (Consolidated)
Y/E March (` cr)
1QFY2018
4QFY2017
% chg (qoq)
1QFY2017
% chg (yoy)
FY2017
FY2016
% chg (yoy)
Net sales
3,621
3,582
1.1
3,664
(1.2)
14,845
13,710
8.3
Other income
91
102
(10.8)
78
16.8
366
451
(18.8)
Total income
3,712
3,684
0.8
3,742
(0.8)
15,211
14,160
7.4
Gross profit
2,123
2,079
2.1
2,027
4.8
8,411
7,548
11.4
Gross margins
58.6
58.0
55.3
56.7
55.1
Operating profit
765
662
15.6
828
(7.5)
3,189
2,779
14.8
OPM (%)
21.1
18.5
22.6
21.5
20.3
Interest
17
14
18.1
14
24.0
67
93
(28.0)
Dep & amortisation
131
100
31.1
106
23.5
428
392
9.0
PBT
708
649
9.0
786
(9.9)
3,061
2,744
11.5
Provision for taxation
191
117
63.0
201
(4.9)
760
721
5.4
Net profit
518
532
(2.6)
585
(11.4)
2,301
2,024
13.7
Less : Exceptional items (gains)/loss
-
-
-
-
-
-
MI & share in associates
(0)
(0)
(0)
(0)
(2)
-
PAT after Exceptional items
519
532
(2.6)
585
(11.4)
2,301
2,025
13.7
Adjusted PAT
519
532
(2.6)
585
(11.4)
2,301
2,025
13.7
EPS (`)
8.9
9.1
10.0
39.4
34.7
Source: Company, Angel Research
Exhibit 2: Actual v/s Estimate
(` cr)
Actual
Estimate
Variation %
Net sales
3621
3900
(7.2)
Other operating income
91
78
16.8
Operating profit
765
895
(14.5)
Tax
191
213
(10.4)
Adj. Net profit
519
641
(19.1)
Source: Company, Angel Research
Revenue down 1.2% yoy; marginally lower than our expectation: On sales front,
the company posted sales of `3621cr (v/s. `3,900cr expected) v/s. `3,664cr in
1QFY2017, a yoy de-growth of 1.2%. The formulation sales (`3,051cr) posted a
yoy growth of 0.6%, while API (`625cr) posted a yoy de-growth of 14.9%. The US
business, which contributed 46% to the gross sales, witnessed a yoy de-growth of
0.5% in 1QFY2017.
In the formulation segment, the US (`1,695cr) posted a yoy de-growth of 0.5%,
while Europe & ROW (`1,112cr) posted a yoy growth of 8.4%. ARV (`245cr)
posted a yoy de-growth of 19.3%. In USA, on constant currency basis, sales grew
by 3.2% yoy and 7.2% yoy. Overall, formulations now contribute around 82.9% of
sales, while the balance is accounted by APIs. The company has 329 approved
ANDAs including 37 tentative approvals.
In Europe, on constant currency basis, sales grew by 17.7% yoy. The acquired
Actavis business continues to witness improvement in profitability. During the
quarter, Agile Pharma B.V., Netherlands, a wholly owned step-down subsidiary of
the Company has successfully completed the acquisition of Generis Farmaceutica
August 14, 2017
2
Aurobindo Pharma | 1QFY2018 Result Update
S.A. As on 30th June, 2017, and has transferred manufacturing of 71 products
from Europe to India.
During 1QFY2018, the company filed 13 ANDAs with the USFDA, i.e. 9 in the oral
category and 4 in the injectable category. The company received 17 ANDA
approvals from the USFDA including 16 final approvals and 3 tentative approvals
during the quarter. As on 30th June, 2017, on a cumulative basis, the company
filed 442 ANDAs with USFDA and received approval for 329 ANDAs including 37
tentative approvals. The company has launched
15 products including
3
injectables during the quarter.
Exhibit 3: Sales break-up (Consolidated)
(` cr)
1QFY2018
4QFY2017
% chg (qoq)
1QFY2017
% chg (yoy)
FY2017
FY2016
% chg
Formulations
3051
2879
6.0
3032
0.6
12045
11064
8.9
US
1695
1643
3.1
1704
(0.5)
6827
6079
12.3
Europe & ROW
1112
974
14.1
1025
8.4
4033
3777
6.8
ARV
245
262
(6.6)
303
(19.3)
1185
1209
(2.0)
API
625
763
(18.0)
735
(14.9)
3042
2893
5.2
SSP
409
512
(20.2)
495
(17.4)
2043
1866
9.5
Cephs
216
251
(13.7)
240
(9.8)
999
1027
(2.8)
Total Sales
3676
3642
0.9
3767
(2.4)
15087
13957
8.1
Source: Company, Angel Research
OPM comes in at 21.1%: On the operating front, the EBITDA margin came in at
21.1% (v/s. 22.9% expected) v/s. 22.6% in 1QFY2017. The gross margin came in
at 58.6% in 1QFY2018 v/s. 55.3% in 1QFY2017. Lower sales coupled with 13.5%
and 13.1% rise in the staff and other expenses respectively aided the contraction in
margins despite the gross margin expansion.
Exhibit 4: OPM Trend
24.0
23.0
22.6
22.0
23.4
21.1
21.0
21.7
20.0
18.5
19.0
18.0
17.0
16.0
15.0
1QFY2017 2QFY2017 3QFY2017 4QFY2017 1QFY2018
Source: Company, Angel Research
Net profit lower than estimate: Consequently, the Adj. PAT came in at `519cr (v/s.
`641cr expected) v/s. `585cr in 1QFY2017, a yoy de-growth of 11.4%. The lower
than estimated net profit growth was aided by lower than expected sales and
August 14, 2017
3
Aurobindo Pharma | 1QFY2018 Result Update
OPM. Also, depreciation & interest expenses during the quarter rose by 23.5% and
24.0% yoy respectively.
Exhibit 5: Adj. net profit
620
606
600
585
579
580
560
540
532
519
520
500
480
460
1QFY2017 2QFY2017 3QFY2017 4QFY2017 1QFY2018
Source: Company, Angel Research
Management takeaways
At the end of 1QFY2018, the company had filed 442 ANDAs, with 329 final
approvals, and 37 tentative approvals.
High-single-digit to low-double-digit price erosion expected in FY2018.
gRenvela tablet launch in July-17 (market size: ~USD800m; currently ARBP is
the only generic player) is expected to lead to strong growth sequentially.
R&D as % of sales to be ~5/6% in FY2018/FY2019 respectively.
Tax rate guidance of ~27% in FY2018 and lower in FY2019.
EU business delivered EBITDA margin in double-digits.
Capex guidance of US$100m for FY2018.
Recommendation rationale
US and ARV formulation segments - the key drivers for base business: APL’s
business will primarily be driven by the US and ARV segments on the
formulation front. The company has been an aggressive filer in the US market
with 421 ANDAs filed until 3QFY2017. Amongst peers, APL has emerged as
one of the top ANDA filers. The company has aggressively filed ANDAs in the
last few years and is now geared to reap benefits, even though most of the
filings are for highly competitive products. Going ahead, with US$70bn going
off-patent in the US over the next three years, we believe APL is well placed to
tap this opportunity and is one of the largest generic suppliers. The company
enjoys high market share, as it is fully integrated in all its products apart from
having a larger product basket. Also, the company plans to launch
18
injectables in the next 2 years, which would drive its growth and profitability.
The US revenue has grown at a CAGR of 31% over FY2009-2015 to
`4,832cr. Going forward, the US business of the company is expected to post
a CAGR of 15% over FY2016-18E.
August 14, 2017
4
Aurobindo Pharma | 1QFY2018 Result Update
Acquisitions to augment growth and improve sales mix: APL announced the
signing of a binding offer to acquire commercial operations in seven Western
European countries from Actavis. The net sales from the acquired businesses
were around EUR320mn in 2013 with a growth rate of over 10% yoy. With
this, the European sales of the company would now be ~EUR400mn.
Although these businesses are currently loss-making (by around EUR20mn),
APL expects them to return to profitability in combination with its vertically
integrated platform and existing commercial infrastructure.
The acquisition will make APL one of the leading Indian pharmaceutical
companies in Europe with a position in the top 10 in several key markets,
which it plans to leverage to supply or widen its product portfolio through
introduction of its own products, especially high margin products like
injectiables.
Also, in December 2014, Aurobindo USA, spent US$132.5mn to acquire the
assets of Natrol with an agreement to take on certain liabilities. With this
acquisition, the company gets an entry into the nutraceutical markets.
Aurobindo USA believes that Natrol is an excellent strategic fit and provides
the right platform for creating a fully-integrated OTC platform in the USA and
in other international markets. Natrol, which manufactures and sells nutritional
supplements in USA and other international markets, provides Aurobindo
with-strong brand reputation and presence in a variety of attractive
supplement markets. Natrol has a proven performance in the mass market,
health food and specialty channels, and has existing long term relationships
with key distribution and retail partners. It addresses a broad range of
consumers and has an effective growth strategy to expand market penetration.
Outlook and valuation
We estimate the company’s net sales to log a CAGR of 14.5% over FY2017-19E to
`19,478cr on the back of US, which accounts for the largest portion of its product
pipeline. This, along with the recent acquisitions of the Western European
formulation businesses of Actavis and US’ Natrol, will lead APL to become a
>US$2bn sales company, with ~ 80% of sales being accounted by formulations.
We maintain our Buy rating on the stock.
Exhibit 6: Key assumptions
FY2018E
FY2019E
Sales Growth (%)
15.1
14.0
Operating Margins (%)
22.1
22.0
Capex (`cr)
500
500
Source: Company, Angel Research
August 14, 2017
5
Aurobindo Pharma | 1QFY2018 Result Update
Exhibit 7: One-year forward PE
900
800
700
600
500
400
300
200
100
0
5x
10x
15x
20x
Source: Company, Angel Research
Exhibit 8: Recommendation summary
Company
Reco
CMP
Tgt. price
Upside
FY2019E
FY17-19E
FY2019E
(`)
(`)
% PE (x) EV/Sales (x) EV/EBITDA (x) CAGR in EPS (%) RoCE (%) RoE (%)
Alembic Pharma
Buy
512
600
17.3
18.8
2.1
11.0
12.8
24.3
20.6
Aurobindo Pharma
Buy
705
823
16.8
13.7
2.1
9.6
14.2
25.3
22.7
Cadila Healthcare
Reduce
483
420
(13.0)
22.7
3.7
18.0
21.0
17.3
22.9
Cipla
Sell
543
461
(15.1)
22.4
2.4
14.5
39.2
11.0
13.2
Dr Reddy's
Accumulate
2,011
2,219
10.4
19.0
2.3
12.3
23.6
11.2
13.0
Dishman Pharma
Under Review
301
-
-
18.9
1.3
10.1
(7.2)
2.9
2.5
GSK Pharma
Neutral
2,368
-
-
40.4
5.4
30.3
30.6
28.9
26.5
Indoco Remedies
Sell
191
153
(20.0)
15.0
1.5
10.0
23.0
11.3
15.6
Ipca labs
Buy
412
620
50.5
16.3
1.3
8.4
27.9
12.8
11.2
Lupin
Buy
942
1,467
55.7
14.1
1.9
8.2
8.2
20.5
17.5
Sanofi India*
Reduce
4,104
3,845
(6.3)
26.7
2.8
16.4
9.2
23.9
25.8
Sun Pharma
Buy
451
712
57.8
13.9
2.5
10.0
1.2
15.1
18.8
Source: Company, Angel Research; Note: *December year ending
August 14, 2017
6
Aurobindo Pharma | 1QFY2018 Result Update
Company background
Aurobindo Pharma manufactures generic pharmaceuticals and APIs. The
company’s manufacturing facilities are approved by several leading regulatory
agencies like the USFDA, UK MHRA, WHO, Health Canada, MCC South Africa
and ANVISA Brazil among others. The company’s robust product portfolio is
spread over six major therapeutic/product areas encompassing antibiotics,
antiretrovirals, CVS, CNS, gastroenterological, and anti-allergics. The company
has acquired the generic business of Actavis, which has made it a US$2bn
company and a leading company in Europe. With this acquisition, formulations
now contribute around 80% to the company’s sales (as in FY2016).
August 14, 2017
7
Aurobindo Pharma | 1QFY2018 Result Update
Profit & loss statement (Consolidated)
Y/E March (` cr)
FY2014
FY2015
FY2016
FY2017
FY2018E
FY2019E
Gross sales
8,198
12,221
13,937
15,084
17,346
19,775
Less: Excise duty
159
178
227
239
260
297
Net Sales
8,038
12,043
13,710
14,845
17,086
19,478
Other operating income
61
77
245
245
245
245
Total operating income
8,100
12,121
13,955
15,090
17,331
19,723
% chg
38.3
49.6
15.1
8.1
14.9
13.8
Total Expenditure
5,968
9,557
10,931
11,656
13,310
15,193
Net Raw Materials
3,606
5,506
6,162
6,434
7,005
7,986
Other Mfg costs
804
1,204
1,371
1,484
1,709
1,948
Personnel
832
1,302
1,543
1,768
2,033
2,338
Other
726
1,545
1,855
1,969
2,563
2,922
EBITDA
2,071
2,486
2,779
3,189
3,776
4,285
% chg
153.5
20.1
11.8
14.8
18.4
13.5
(% of Net Sales)
25.8
20.6
20.3
21.5
22.1
22.0
Depreciation& Amort.
313
333
392
428
551
586
EBIT
1,758
2,154
2,386
2,762
3,225
3,699
% chg
209.5
22.5
10.8
15.7
16.8
14.7
(% of Net Sales)
21.9
17.9
17.4
18.6
18.9
19.0
Interest & other Charges
108
84
93
67
112
60
Other Income
23
81
205
121
121
121
(% of PBT)
1.3
3.6
7.5
4.0
3.5
3.0
Share in profit of Asso.
-
-
-
-
-
-
Recurring PBT
1,735
2,227
2,744
3,061
3,479
4,004
% chg
222.7
28.4
23.2
11.5
13.7
15.1
Extraordinary Exp./(Inc.)
203.1
59.6
-
-
-
-
PBT (reported)
1,532
2,168
2,744
3,061
3,479
4,004
Tax
363.5
596.6
720.7
759.6
869.9
1,001.1
(% of PBT)
23.7
27.5
26.3
24.8
25.0
25.0
PAT (reported)
1,168
1,571
2,024
2,301
2,610
3,003
Less: Minority int. (MI)
(4)
(5)
(2)
(0)
(2)
(1)
PAT after MI (reported)
1,172
1,576
2,025
2,302
2,611
3,004
ADJ. PAT
1,333
1,619
2,025
2,302
2,611
3,004
% chg
208.6
21.5
25.1
13.7
13.5
15.0
(% of Net Sales)
14.6
13.1
14.8
15.5
15.3
15.4
Basic EPS (`)
22.8
27.7
34.6
39.3
44.6
51.3
% chg
208.6
21.5
25.1
13.7
13.5
15.0
August 14, 2017
8
Aurobindo Pharma | 1QFY2018 Result Update
Balance sheet (Consolidated)
Y/E March (` cr)
FY2014
FY2015
FY2016
FY2017
FY2018E
FY2019E
SOURCES OF FUNDS
Equity Share Capital
29
29
59
59
59
59
Share Application Money
-
-
-
-
-
-
Reserves & Surplus
3,721
5,127
7,229
9,313
11,754
14,587
Shareholders Funds
3,750
5,156
7,287
9,372
11,812
14,646
Minority Interest
26
26
3
2
0
(0)
Long-term provisions
9
24
23
22
22
22
Total Loans
3,769
3,864
4,415
3,084
2,500
500
Deferred Tax Liability
205
211
(182)
(118)
(118)
(118)
Total Liabilities
7,760
9,280
11,546
12,362
14,194
15,027
APPLICATION OF FUNDS
Gross Block
4,107
6,095
6,093
7,625
8,125
8,625
Less: Acc. Depreciation
1,461
1,794
2,186
2,614
3,165
3,751
Net Block
2,645
3,752
3,907
5,011
4,959
4,873
Capital Work-in-Progress
310
310
310
310
310
310
Goodwill
76
64
812
971
971
971
Investments
20
20
123
246
246
246
Long-term loans and adv.
789
486
269
338
338
338
Current Assets
5,631
8,279
10,294
9,206
11,651
13,169
Cash
179
469
834
513
492
674
Loans & Advances
789
692
831
409
1,625
1,626
Other
4,664
7,118
8,629
8,284
9,534
10,869
Current liabilities
1,730
3,634
4,168
3,720
4,281
4,881
Net Current Assets
3,901
4,645
6,127
5,487
7,370
8,289
Mis. Exp. not written off
18
5
-
-
-
-
Total Assets
7,760
9,280
11,546
12,362
14,194
15,027
August 14, 2017
9
Aurobindo Pharma | 1QFY2018 Result Update
Cash flow statement (Consolidated)
Y/E March (` cr)
FY2014
FY2015
FY2016
FY2017
FY2018E FY2019E
Profit before tax
1,532
2,168
2,744
3,061
3,479
4,004
Depreciation
313
333
392
428
551
586
(Inc)/Dec in Working Capital
(457)
(757)
(1,333)
388
(1,905)
(736)
Less: Other income
23
81
205
121
121
121
Direct taxes paid
(363)
(597)
(721)
(760)
(870)
(1,001)
Cash Flow from Operations
1,001
1,066
877
2,996
1,135
2,732
(Inc.)/Dec.in Fixed Assets
(455)
(1,989)
3
(1,532)
(500)
(500)
(Inc.)/Dec. in Investments
(2)
-
103
123
-
-
Other income
23
81
205
121
121
121
Cash Flow from Investing
(435)
(1,908)
311
(1,288)
(379)
(379)
Issue of Equity
-
-
-
-
-
-
Inc./(Dec.) in loans
385
94
552
(1,331)
(584)
(2,000)
Dividend Paid (Incl. Tax)
(102)
(171)
(171)
(171)
(171)
(171)
Others
(879)
1,209
(1,159)
(527)
(22)
-
Cash Flow from Financing
(596)
1,133
(778)
(2,029)
(777)
(2,171)
Inc./(Dec.) in Cash
(30)
291
410
(321)
(21)
182
Opening Cash balances
208
179
469
834
513
492
Closing Cash balances
179
469
834
513
492
674
August 14, 2017
10
Aurobindo Pharma | 1QFY2018 Result Update
Key ratios
Y/E March
FY2014
FY2015
FY2016
FY2017 FY2018E FY2019E
Valuation Ratio (x)
P/E (on FDEPS)
30.9
25.5
20.4
17.9
15.8
13.7
P/CEPS
13.8
10.8
17.1
15.1
13.0
11.5
P/BV
5.5
4.0
5.7
4.4
3.5
2.8
Dividend yield (%)
0.1
0.1
0.1
0.1
0.1
0.1
EV/Sales
3.0
2.0
3.3
3.0
2.5
2.1
EV/EBITDA
11.7
9.7
16.1
13.7
11.5
9.6
EV / Total Assets
3.1
2.6
3.9
3.5
3.0
2.7
Per Share Data (`)
EPS (Basic)
22.8
27.7
34.6
39.3
44.6
51.3
EPS (fully diluted)
22.8
27.7
34.6
39.3
44.6
51.3
Cash EPS
51.0
65.4
41.3
46.6
54.0
61.4
DPS
0.5
0.5
0.5
0.5
0.5
0.5
Book Value
128.8
176.6
124.5
160.1
201.9
250.3
Dupont Analysis
EBIT margin
21.9
17.9
17.4
18.6
18.9
19.0
Tax retention ratio
76.3
72.5
73.7
75.2
75.0
75.0
Asset turnover (x)
1.2
1.5
1.4
1.3
1.4
1.4
ROIC (Post-tax)
20.1
19.2
18.3
18.7
19.2
20.0
Cost of Debt (Post Tax)
2.3
1.6
1.7
1.3
3.0
3.0
Leverage (x)
1.1
0.8
0.6
0.4
0.2
0.1
Operating ROE
39.5
33.4
27.9
25.4
22.8
21.4
Returns (%)
ROCE (Pre-tax)
25.4
25.3
22.9
23.1
24.3
25.3
Angel ROIC (Pre-tax)
28.5
27.6
26.5
27.4
28.1
29.0
ROE
41.9
36.4
32.5
27.6
24.7
22.7
Turnover ratios (x)
Asset Turnover (Gross Block)
2.2
2.4
2.3
2.2
2.2
2.4
Inventory / Sales (days)
49
90
97
80
88
88
Receivables (days)
95
93
93
76
77
77
Payables (days)
73
114
114
96
96
96
WC cycle (ex-cash) (days)
145
119
124
124
125
134
Solvency ratios (x)
Net debt to equity
1.0
0.7
0.5
0.3
0.2
(0.0)
Net debt to EBITDA
1.7
1.4
1.3
0.8
0.5
(0.0)
Interest Coverage (EBIT / Int.)
16.3
25.5
25.8
41.4
28.9
61.6
August 14, 2017
11
Aurobindo Pharma | 1QFY2018 Result Update
Research Team Tel: 022 - 39357800
E-mail: [email protected]
Website: www.angelbroking.com
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Disclosure of Interest Statement
Aurobindo Pharma
1. Financial interest of research analyst or Angel or his Associate or his relative
No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives
No
3. Served as an officer, director or employee of the company covered under Research
No
4. Broking relationship with company covered under Research
No
Ratings (Based on expected returns
Buy (> 15%)
Accumulate (5% to 15%)
Neutral (-5 to 5%)
over 12 months investment period):
Reduce (-5% to -15%)
Sell (< -15)
August 14, 2017
12