ASTRAZENECA PHARMA 2020-21 Annual Report Analysis

Wed, 31 Mar

ASTRAZENECA PHARMA 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.

ASTRAZENECA PHARMA Income Statement Analysis

• Operating income during the year fell 2.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 12.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.7% in FY21 as against 14.5% in FY20.
• Depreciation charges increased by 8.3% and finance costs decreased by 4.4% YoY, respectively.
• Other income declined by 1.2% YoY.
• Net profit for the year grew by 29.2% YoY.
• Net profit margins during the year grew from 8.7% in FY20 to 11.5% in FY21.

ASTRAZENECA PHARMA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	8,318	8,136	-2.2%
Other income	Rs m	130	128	-1.2%
Total Revenues	Rs m	8,448	8,264	-2.2%
Gross profit	Rs m	1,207	1,355	12.2%
Depreciation	Rs m	186	201	8.3%
Interest	Rs m	11	11	-4.4%
Profit before tax	Rs m	1,140	1,271	11.5%
Tax	Rs m	418	338	-19.1%
Profit after tax	Rs m	722	933	29.2%
Gross profit margin	%	14.5	16.7
Effective tax rate	%	36.6	26.6
Net profit margin	%	8.7	11.5

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ASTRAZENECA PHARMA Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 4 billion as compared to Rs 4 billion in FY20, thereby witnessing an increase of 1.7%.
• Current assets rose 18% and stood at Rs 7 billion, while fixed assets fell 4% and stood at Rs 2 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 9 billion as against Rs 8 billion during FY20, thereby witnessing a growth of 13%.

ASTRAZENECA PHARMA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	3,629	4,546	25.3
Current Liabilities	Rs m	3,671	3,734	1.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	7,757	8,742	12.7
Current assets	Rs m	5,822	6,887	18.3
Fixed Assets	Rs m	1,935	1,855	-4.1
Total Assets	Rs m	7,757	8,742	12.7

ASTRAZENECA PHARMA Cash Flow Statement Analysis

• ASTRAZENECA PHARMA's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion, an improvement of 19.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -90 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 3 billion from the Rs -897 million net cash flows seen during FY20.

ASTRAZENECA PHARMA 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	874	1,048	19.9%
Cash Flow from Investing Activities	Rs m	-1,708	1,730	-
Cash Flow from Financing Activities	Rs m	-64	-90	-
Net Cash Flow	Rs m	-897	2,688	-

Current Valuations for ASTRAZENECA PHARMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 37.3, an improvement from the EPS of Rs 28.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,010.2, stands at 80.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 16.6 times, while the price to sales ratio stands at 9.3 times.
• The company's price to cash flow (P/CF) ratio stood at 80.6 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	332.7	325.4
TTM Earnings per share	Rs	28.9	37.3
Diluted earnings per share	Rs	28.9	37.3
Price to Cash Flow	x	65.9	80.6
TTM P/E ratio	x	82.8	80.7
Price / Book Value ratio	x	15.8	20.1
Market Cap	Rs m	57,197	91,478
Dividends per share (Unadj.)	Rs	1.0	2.0

Ratio Analysis for ASTRAZENECA PHARMA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY21, from 1.6x 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 117.6x during FY21, from 101.0x 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 improved and stood at 20.5% during FY21, from 19.9% 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 28.2% during FY21, from 31.7% 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 improved and stood at 10.8% during FY21, from 9.5% 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	1.6	1.8
Debtors’ Days	Days	37	38
Interest coverage	x	101.0	117.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.5	10.8
Return on equity	%	19.9	20.5
Return on capital employed	%	31.7	28.2

To see how ASTRAZENECA PHARMA has performed over the last 5 years, please visit here.

ASTRAZENECA PHARMA Share Price Performance

Over the last one year, ASTRAZENECA PHARMA share price has moved up from Rs 2,391.6 to Rs 3,010.2, registering a gain of Rs 618.7 or around 25.9%.

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 ASTRAZENECA PHARMA and quarterly results for ASTRAZENECA PHARMA)

Read: Latest Annual Report Analysis of ASTRAZENECA PHARMA