ASTEC LIFESCIENCES 2020-21 Annual Report Analysis

Wed, 31 Mar

ASTEC LIFESCIENCES 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.

ASTEC LIFESCIENCES Income Statement Analysis

• Operating income during the year rose 6.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 30.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.1% in FY21 as against 16.3% in FY20.
• Depreciation charges increased by 10.8% and finance costs decreased by 62.3% YoY, respectively.
• Other income declined by 32.7% YoY.
• Net profit for the year grew by 36.9% YoY.
• Net profit margins during the year grew from 9.1% in FY20 to 11.7% in FY21.

ASTEC LIFESCIENCES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	5,226	5,549	6.2%
Other income	Rs m	119	80	-32.7%
Total Revenues	Rs m	5,345	5,629	5.3%
Gross profit	Rs m	852	1,115	30.8%
Depreciation	Rs m	232	257	10.8%
Interest	Rs m	126	48	-62.3%
Profit before tax	Rs m	614	891	45.2%
Tax	Rs m	138	240	73.6%
Profit after tax	Rs m	475	651	36.9%
Gross profit margin	%	16.3	20.1
Effective tax rate	%	22.5	26.9
Net profit margin	%	9.1	11.7

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ASTEC LIFESCIENCES Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 3 billion as compared to Rs 3 billion in FY20, thereby witnessing an increase of 1.2%.
• Long-term debt stood at Rs 400 million as compared to Rs 0 million during FY20, a fall of 0.0%.
• Current assets fell 0% and stood at Rs 3 billion, while fixed assets rose 45% and stood at Rs 3 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 7 billion as against Rs 6 billion during FY20, thereby witnessing a growth of 19%.

ASTEC LIFESCIENCES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	2,459	3,088	25.6
Current Liabilities	Rs m	3,184	3,223	1.2
Long-term Debt	Rs m	0	400	0.0
Total Liabilities	Rs m	5,717	6,776	18.5
Current assets	Rs m	3,318	3,304	-0.4
Fixed Assets	Rs m	2,400	3,472	44.7
Total Assets	Rs m	5,717	6,776	18.5

ASTEC LIFESCIENCES Cash Flow Statement Analysis

• ASTEC LIFESCIENCES's cash flow from operating activities (CFO) during FY21 stood at Rs -82 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -731 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 813 million, an improvement of 186% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 0 million from the Rs 1 million net cash flows seen during FY20.

ASTEC LIFESCIENCES 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	1,684	-82	-
Cash Flow from Investing Activities	Rs m	-738	-731	-
Cash Flow from Financing Activities	Rs m	-945	813	-
Net Cash Flow	Rs m	1	0	-67.7%

Current Valuations for ASTEC LIFESCIENCES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.2, an improvement from the EPS of Rs 24.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,000.3, stands at 30.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.3 times, while the price to sales ratio stands at 3.5 times.
• The company's price to cash flow (P/CF) ratio stood at 18.9 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	267.0	283.2
TTM Earnings per share	Rs	24.3	33.2
Diluted earnings per share	Rs	24.3	33.2
Price to Cash Flow	x	11.1	18.9
TTM P/E ratio	x	16.5	30.1
Price / Book Value ratio	x	3.4	5.5
Market Cap	Rs m	8,483	17,110
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for ASTEC LIFESCIENCES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY21, from 1.0x 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 19.7x during FY21, from 5.9x 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 improved and stood at 21.1% during FY21, from 19.3% 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 26.9% during FY21, from 30.1% 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 10.3% during FY21, from 10.5% 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	1.0	1.0
Debtors’ Days	Days	1,123	1,231
Interest coverage	x	5.9	19.7
Debt to equity ratio	x	0.0	0.1
Return on assets	%	10.5	10.3
Return on equity	%	19.3	21.1
Return on capital employed	%	30.1	26.9

To see how ASTEC LIFESCIENCES has performed over the last 5 years, please visit here.

ASTEC LIFESCIENCES Share Price Performance

Over the last one year, ASTEC LIFESCIENCES share price has moved up from Rs 400.0 to Rs 1,000.3, registering a gain of Rs 600.4 or around 150.1%.

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

(To know more, check out historical annual results for ASTEC LIFESCIENCES and quarterly results for ASTEC LIFESCIENCES)

Read: Latest Annual Report Analysis of ASTEC LIFESCIENCES