ADVANCED ENZYME TECHNOLOGIES 2020-21 Annual Report Analysis

Wed, 31 Mar

ADVANCED ENZYME TECHNOLOGIES has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

ADVANCED ENZYME TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 13.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 14.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 46.3% in FY21 as against 45.8% in FY20.
• Depreciation charges increased by 10.2% and finance costs decreased by 37.3% YoY, respectively.
• Other income grew by 50.5% YoY.
• Net profit for the year grew by 13.8% YoY.
• Net profit margins during the year grew from 30.0% in FY20 to 30.2% in FY21.

ADVANCED ENZYME TECHNOLOGIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	4,440	5,018	13.0%
Other income	Rs m	59	88	50.5%
Total Revenues	Rs m	4,499	5,107	13.5%
Gross profit	Rs m	2,031	2,325	14.5%
Depreciation	Rs m	258	284	10.2%
Interest	Rs m	41	26	-37.3%
Profit before tax	Rs m	1,792	2,104	17.4%
Tax	Rs m	461	589	27.8%
Profit after tax	Rs m	1,330	1,515	13.8%
Gross profit margin	%	45.8	46.3
Effective tax rate	%	25.7	28.0
Net profit margin	%	30.0	30.2

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ADVANCED ENZYME TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 676 million as compared to Rs 595 million in FY20, thereby witnessing an increase of 13.5%.
• Long-term debt stood at Rs 99 million as compared to Rs 42 million during FY20, a growth of 137.6%.
• Current assets rose 37% and stood at Rs 5 billion, while fixed assets rose 6% and stood at Rs 6 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 11 billion as against Rs 10 billion during FY20, thereby witnessing a growth of 18%.

ADVANCED ENZYME TECHNOLOGIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	8,360	9,680	15.8
Current Liabilities	Rs m	595	676	13.5
Long-term Debt	Rs m	42	99	137.6
Total Liabilities	Rs m	9,712	11,458	18.0
Current assets	Rs m	3,756	5,161	37.4
Fixed Assets	Rs m	5,956	6,297	5.7
Total Assets	Rs m	9,712	11,458	18.0

ADVANCED ENZYME TECHNOLOGIES Cash Flow Statement Analysis

• ADVANCED ENZYME TECHNOLOGIES's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 15.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -260 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -263 million, an improvement of 32% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 1 billion from the Rs 596 million net cash flows seen during FY20.

ADVANCED ENZYME TECHNOLOGIES Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	1,409	1,629	15.6%
Cash Flow from Investing Activities	Rs m	-445	-260	-
Cash Flow from Financing Activities	Rs m	-386	-263	-
Net Cash Flow	Rs m	596	1,093	83.3%

Current Valuations for ADVANCED ENZYME TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.6, an improvement from the EPS of Rs 11.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 344.9, stands at 25.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 7.7 times.
• The company's price to cash flow (P/CF) ratio stood at 17.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	39.8	44.9
TTM Earnings per share	Rs	11.9	13.6
Diluted earnings per share	Rs	11.9	13.5
Price to Cash Flow	x	10.1	17.0
TTM P/E ratio	x	12.0	25.5
Price / Book Value ratio	x	2.1	3.1
Market Cap	Rs m	17,648	30,491
Dividends per share (Unadj.)	Rs	0.6	0.6

Ratio Analysis for ADVANCED ENZYME TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 7.6x during FY21, from 6.3x during FY20. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 83.3x during FY21, from 44.9x during FY20. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 15.6% during FY21, from 15.9% during FY21. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 21.8% during FY21, from 21.8% during FY20. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 13.4% during FY21, from 14.1% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	6.3	7.6
Debtors’ Days	Days	61	63
Interest coverage	x	44.9	83.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.1	13.4
Return on equity	%	15.9	15.6
Return on capital employed	%	21.8	21.8

To see how ADVANCED ENZYME TECHNOLOGIES has performed over the last 5 years, please visit here.

ADVANCED ENZYME TECHNOLOGIES Share Price Performance

Over the last one year, ADVANCED ENZYME TECHNOLOGIES share price has moved up from Rs 143.2 to Rs 344.9, registering a gain of Rs 201.7 or around 140.9%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,328.2 (up 0.4%). Over the last one year it has moved up from 12,148.6 to 21,328.2, a gain of 9,180 points (up 75.6%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for ADVANCED ENZYME TECHNOLOGIES and quarterly results for ADVANCED ENZYME TECHNOLOGIES)

Read: Latest Annual Report Analysis of ADVANCED ENZYME TECHNOLOGIES