The top 30 Indian pharmaceutical companies, with net sales of above Rs. 1,000 crore, have built up strong reserves and surplus position during 2015-16. The reserves and surplus increased by 20.4 per cent to Rs. 1,36,455 crore from Rs. 1,13,072 crore in the previous year. The total assets of 30 companies worked out to Rs. 2,70,769 crore as against Rs. 2,20,284 crore. The debt equity ratio of these 30 companies worked out to 0.30:1 as against 0.24:1 in the previous year. However, the return on investment of these companies declined to 17.6 per cent during 2015-16 from 19.8 per cent in the previous year.
The equity capital of these companies increased to Rs. 2,112 crore from Rs. 1,990 crore and their full market capitalisation worked out Rs. 7,18,622 crore on BSE.
Sun Pharmaceutical Industries' market capitalisation remained highest at Rs. 1,85,123 crore and was followed by Lupin Rs. 74,272 crore, Dr Reddy's Laboratories (DRL) Rs. 61,018 crore, Aurobinndo Pharma Rs. 45,433 crore and Cipla Rs. 41,084 crore. Out of 30 companies, 19 companies' market capitalisation crossed Rs. 10,000 crore mark. The market capitalisation of four multinational companies (MNCs) from Pharmabiz study viz, GlaxoSmithKline Pharma (GSK), Sanofi India, Abbott India and Pfizer worked out to Rs. 59,099 crore as against their equity capital of Rs. 174.70 crore.
Out of 30 companies, five companies viz., Sun Pharma, DRL, Lupin, Cipla and Piramal Enterprises registered reserves above 10,000 crore. Reserves & surplus of Sun Pharma increased by 22.8 per cent to Rs. 31,164 crore during 2015-16 from Rs. 25,383 crore in the previous year. DRL's reserves moved up by 18.9 per cent to Rs. 11,616 crore and that of Lupin improved by 24 per cent to Rs. 10,894 crore. Cipla's reserves went up by 10 per cent to Rs. 11,697 crore and that of Piramal Enterprises increased by 5.9 per cent to Rs. 12,288 crore.
With merger of Sashun Pharmaceutical with Strides Arcolab and now known as Strides Shasun Ltd, achieved strong growth of 156 per cent to Rs. 2,774 crore from Rs. 1,085 crore. Alembic Pharmaceuticals also registered strong growth in reserves of 85 per cent to Rs. 1,563 crore from Rs. 847 crore. Granules India, pushed its reserves by 50.3 per cent to Rs. 617 crore and Ajanta Pharma's reserves increased by 44 per cent to Rs. 1,107 crore from Rs. 768 crore. Glenmark Pharmaceutical by 42.7 per cent to Rs. 4,242 crore.
Piramal Enterprises, Wockhardt, Ipca Laboratories, Sanofi India, Pfizer, Nectar Lifesciences and Vivimed Labs registered only single digit growth in reserves during 2015-16. The reserves of GSK declined by 7.6 per cent to Rs. 1,611 crore from Rs. 1,744 crore. Aurobindo Pharma, Torrent Pharmaceuticals, Syngene International registered growth of over 35 per cent in reserves during 2015-16.
The long-term borrowings of Pharmabiz 30 companies increased significantly by 59.7 per cent during 2015-16 despite several companies reduced borrowings figure. The long-term borrowings of Lupin increased to Rs. 5,374 crore during 2015-16 from Rs. 102 crore in the previous year and that of Syngene International moved up to Rs. 725 crore from just Rs. 19 crore. Similarly, Piramal Enterprises' long-term borrowings doubled to Rs. 7,581 crore from Rs. 3,787 crore, Alkem Laboratories to Rs. 121 crore from Rs. 33 crore, Biocon to Rs. 2,072 crore from Rs. 770 crore and Sun Pharma to Rs. 3,117 crore from Rs. 1,368 crore. Strides Shasun's long-term borrowings increased jumped to Rs. 2,745 crore from Rs. 267 crore.
Four MNCs are almost debt free companies and Indian companies like Divi's Laboratories, Alembic Pharma and J B Chemicals also join these MNCs. Other majors like DRL, Aurobindo, Cipla, Cadila Healthcare, Torrent Pharma, Glenmark, Jubilant Life Sciences, Nectar Lifesciences, Granules India and Vivimed Labs reduced there long-term borrowings during 2015-16.
The short-term borrowings of 30 companies went up by 39.1 per cent to Rs. 32,441 crore from Rs. 23,315 crore in the previous year. The short-term borrowings of Lupin, Cipla, Piramal Enterpriese, Strides Shasun, Ajanta Pharma and Unichem Laboratories increased by over 100 per cent during 2015-16. However, Sun Pharma, Torrent Pharma, Alkem Laboratories and Alembic Pharma reduced their short-term borrowings.
The fixed assets, including capital work-in-progress and goodwill, of 30 companies increased by 29 per cent during 2015-16 to Rs. 1,06,769 crore from Rs. 82,746 crore in the previous year. Sun Pharm's fixed assets increased by 19.2 per cent to Rs. 17,542 crore, which includes goodwill of Rs. 4,181 crore. The fixed assets of Lupin went up sharply by 135 per cent to Rs. 11,602 crore from Rs. 4,944 crore and that of Cipla moved up by 49.5 per cent to Rs. 11,079 crore from Rs. 7,411 crore. GSK's fixed assets moved up by 98 per cent to Rs. 472 crore from Rs. 238 crore. Ajanta Pharma and J B Chemicals added significantly to their fixed assets which increased by 52.3 per cent and 48.9 per cent respectively. Strides Shasun's fixed assets, after merger, went up to Rs. 3,625 crore from Rs. 873 crore.
These 30 companies maintained inventory level at better position and their inventories increased only by 11.4 per cent to Rs. 36,850 crore as against Rs. 33,087 crore. Loans and advances increased by 26.7 per cent to Rs. 25,788 crore from Rs. 20,361 crore and trade receivables increased by 20.4 per cent to Rs. 37,850 crore from Rs. 31,448 crore. Cash and cash equivalent increased by 27.5 per cent to Rs. 31,412 crore from Rs. 24,641 crore.
Thus, these companies have built strong financial position and created strong fixed assets base for future growth. MNC's managed their funds more lucrative way and offering higher returns as their total liabilities as well as total assets are relatively low level compared to Indian companies.
Highlights of 30 top pharma companies