Company Update Dr. Reddy's Lab - Myiris.com - Personal finance ...

Financials
Income Statement Balance Sheet
Sun Pharma Confluence: Pharma; Pre-conference note
Y/E, Mar (Rs. mn) FY10 FY11 FY12E FY13E Y/E, Mar (Rs. mn) FY10 FY11P FY12E FY13E
Net Sales 40,103 57,214 73,135 90,360 Equity share capital 1,036 1,036 1,036 1,036
Growth (%) -4.2 42.7 27.8 23.6 Reserves & surplus 77,254 94,173 112,406 136,483
Expenditure 26,441 37,324 47,932 56,524 Net worth 78,289 95,208 113,442 137,519
Raw Materials 10,977 14,607 19,399 24,578 Minority Interest 1,932 8,472 9,649 11,203
SGA 9,146 11,695 15,197 16,925 Secured Loans 479 1,179 679 179
Employee Cost 4,008 7,996 9,115 10,482 Unsecured Loans 1,233 3,077 2,577 2,077
Other Exp 2,311 3,027 4,221 4,539 Loan Funds 1,712 4,256 3,256 2,256
EBITDA 13,662 19,890 25,204 33,836 Net deferred tax liability -890 -3,652 -3,652 -3,652
Growth (%) -26.8 45.6 26.7 34.2 Total Liabilities 81,042 104,284 122,694 147,325
EBITDA margin (%) 34.1 34.8 34.5 37.4
Depreciation 1,533 2,041 2,557 2,871 Gross Block 27,401 43,947 48,447 53,447
EBIT 12,129 17,850 22,647 30,965 Less: Depreciation 8,013 10,287 12,844 15,715
EBIT margin (%) 30.2 31.2 31.0 34.3 Net block 19,388 33,660 35,603 37,732
Other Income 1,686 2,733 2,942 2,825 Capital work in progress 1,448 2,000 2,000 1,000
Interest expenses 0 0 0 0 Investment 30,664 22,310 22,310 22,310
PBT 14,148 20,583 25,589 33,790 Current Assets 37,121 60,622 79,507 105,306
Tax 679 1,284 2,047 2,703 Inventories 10,739 14,794 18,284 26,204
Effective tax rate (%) 4.8 6.2 8.0 8.0 Sundry debtors 11,748 11,716 24,135 32,529
Adjusted PAT 13,552 17,472 21,188 27,978 Cash & bank balance 6,073 22,387 22,388 29,263
(Profit)/loss from JV's/Ass/MI 962 -913 -1,177 -1,554 Loans & advances 8,562 11,726 14,701 17,310
Adjusted PAT after MI 12,590 18,386 22,365 29,533 Other current assets 0 0 0 0
Growth (%) -30.7 46.0 21.6 32.0 Current liab & Prov 7,579 14,308 16,726 19,023
Net Margin (%) 31.4 32.1 30.6 32.7 Current liabilities 4,095 9,203 10,783 12,148
E/O items 334 0 0 0 Provisions 3,484 5,105 5,943 6,875
Reported PAT 13,511 18,386 22,365 29,533 Net current assets 29,542 46,314 62,781 86,283
Growth (%) -25.7 36.1 21.6 32.0 Total Assets 0 0 0 0
Cash Flow Key Ratios
Y/E, Mar (Rs. mn) FY10 FY11P FY12E FY13E Y/E, Mar FY10 FY11P FY12E FY13E
PBT (Ex-Other income) 12,462 17,850 22,647 30,965 Profitability (%)
Depreciation 1,533 2,041 2,557 2,871 EBITDA Margin 34.1 34.8 34.5 37.4
Interest Provided 0 0 0 0 Net Margin 31.4 32.1 30.6 32.7
Other Non-Cash items 0 0 0 0 ROCE 18 22 22 24
Chg in working cap -4,675 -458 -16,466 -16,627 ROE 18 22 23 25
Tax paid -1,106 -1,284 -2,047 -2,703 RoIC 29.9 34.0 32.1 34.8
Operating Cashflow 8,214 18,147 6,691 14,506 Per Share Data (Rs)
Capital expenditure -2,920 -13,205 -4,500 -4,000 EPS 12.2 17.8 21.6 28.5
Free Cash Flow 5,295 4,943 2,191 10,506 CEPS 13.3 19.7 24.1 31.3
Other income 1,686 2,733 2,942 2,825 BVPS 75.6 91.9 109.5 132.8
Investments -12,069 8,354 0 0 DPS 3.2 4.7 5.4 6.2
Investing Cashflow -13,302 -2,117 -1,558 -1,175 Valuations (x)
Equity Capital Raised 0 0 0 0 PER 41.5 28.4 23.3 17.7
Loans Taken / (Repaid) -77 2,544 -1,000 -1,000 P/CEPS 37.9 25.6 20.9 16.1
Interest Paid 0 0 0 0 P/BV 6.7 5.5 4.6 3.8
Dividend paid (incl tax) -3,321 -3,387 -4,132 -5,456 EV / Sales 12.9 8.8 6.9 5.5
Others 0 0 0 0 EV / EBITDA 37.9 25.3 19.9 14.6
Financing Cashflow -5,529 283 -5,132 -6,456 Dividend Yield (%) 0.6 0.9 1.1 1.2
Net chg in cash -10,618 16,314 1 6,875 Gearing Ratio (x)
Opening cash position 16,690 6,073 22,387 22,388 Net Debt/ Equity -0.1 -0.2 -0.2 -0.2
Closing cash position 6,073 22,387 22,388 29,263 Net Debt/EBIDTA -0.3 -0.8 -0.7 -0.7
Emkay Research 16 November 2011 46