ASTRAZENECA PHARMA 2021-22 Annual Report Analysis

Wed, 20 Jul

ASTRAZENECA PHARMA has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

ASTRAZENECA PHARMA Income Statement Analysis

• Operating income during the year fell 1.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 36.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.7% in FY22 as against 16.7% in FY21.
• Depreciation charges decreased by 15.8% and finance costs decreased by 12.8% YoY, respectively.
• Other income grew by 15.0% YoY.
• Net profit for the year declined by 34.0% YoY.
• Net profit margins during the year declined from 11.5% in FY21 to 7.6% in FY22.

ASTRAZENECA PHARMA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	8,136	8,056	-1.0%
Other income	Rs m	128	148	15.0%
Total Revenues	Rs m	8,264	8,204	-0.7%
Gross profit	Rs m	1,355	862	-36.4%
Depreciation	Rs m	201	170	-15.8%
Interest	Rs m	11	10	-12.8%
Profit before tax	Rs m	1,271	830	-34.7%
Tax	Rs m	338	214	-36.5%
Profit after tax	Rs m	933	616	-34.0%
Gross profit margin	%	16.7	10.7
Effective tax rate	%	26.6	25.8
Net profit margin	%	11.5	7.6

Revealing on April 30: Are You Ready for the Upcoming Election Surprise?

ASTRAZENECA PHARMA Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 4 billion as compared to Rs 4 billion in FY21, thereby witnessing an increase of 5.1%.
• Current assets rose 11% and stood at Rs 8 billion, while fixed assets rose 14% and stood at Rs 2 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 10 billion as against Rs 9 billion during FY21, thereby witnessing a growth of 12%.

ASTRAZENECA PHARMA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	4,546	5,094	12.1
Current Liabilities	Rs m	3,734	3,923	5.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	8,742	9,773	11.8
Current assets	Rs m	6,887	7,653	11.1
Fixed Assets	Rs m	1,855	2,120	14.3
Total Assets	Rs m	8,742	9,773	11.8

ASTRAZENECA PHARMA Cash Flow Statement Analysis

• ASTRAZENECA PHARMA's cash flow from operating activities (CFO) during FY22 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 47 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -95 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 961 million from the Rs 3 billion net cash flows seen during FY21.

ASTRAZENECA PHARMA Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	1,048	1,008	-3.8%
Cash Flow from Investing Activities	Rs m	1,730	47	-97.3%
Cash Flow from Financing Activities	Rs m	-90	-95	-
Net Cash Flow	Rs m	2,688	961	-64.3%

Current Valuations for ASTRAZENECA PHARMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.6, an decline from the EPS of Rs 37.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,034.0, stands at 123.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 14.9 times, while the price to sales ratio stands at 9.4 times.
• The company's price to cash flow (P/CF) ratio stood at 113.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	325.4	322.2
TTM Earnings per share	Rs	37.3	24.6
Diluted earnings per share	Rs	37.3	24.6
Price to Cash Flow	x	66.3	113.1
TTM P/E ratio	x	80.7	123.1
Price / Book Value ratio	x	20.1	17.4
Market Cap	Rs m	91,478	88,863
Dividends per share (Unadj.)	Rs	2.0	10.0

Ratio Analysis for ASTRAZENECA PHARMA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY22, from 1.8x during FY21. 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 deteriorated and stood at 88.4x during FY22, from 117.6x during FY21. 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 12.1% during FY22, from 20.5% during FY22. 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 16.5% during FY22, from 28.2% during FY21. 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 6.4% during FY22, from 10.8% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.8	2.0
Debtors’ Days	Days	38	39
Interest coverage	x	117.6	88.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.8	6.4
Return on equity	%	20.5	12.1
Return on capital employed	%	28.2	16.5

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 down from Rs 3,491.1 to Rs 3,034.0, registering a loss of Rs 457.1 or around 13.1%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 22,748.7 (up 0.4%). Over the last one year it has moved down from 26,064.3 to 22,748.7, a loss of 3,316 points (down 12.7%).

Overall, the S&P BSE SENSEX is up 5.7% 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