BAFNA PHARMA 2021-22 Annual Report Analysis

Thu, 25 Aug

BAFNA 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.

BAFNA PHARMA Income Statement Analysis

• Operating income during the year rose 19.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 9.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.0% in FY22 as against 14.5% in FY21.
• Depreciation charges increased by 22.7% and finance costs increased by 7.0% YoY, respectively.
• Other income grew by 180.6% YoY.
• Net profit for the year declined by 11.6% YoY.
• Net profit margins during the year declined from 8.2% in FY21 to 6.1% in FY22.

BAFNA PHARMA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	712	851	19.5%
Other income	Rs m	7	21	180.6%
Total Revenues	Rs m	720	872	21.2%
Gross profit	Rs m	103	93	-9.3%
Depreciation	Rs m	45	55	22.7%
Interest	Rs m	7	8	7.0%
Profit before tax	Rs m	58	52	-11.6%
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	58	52	-11.6%
Gross profit margin	%	14.5	11.0
Effective tax rate	%	0.0	0.0
Net profit margin	%	8.2	6.1

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BAFNA PHARMA Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 164 million as compared to Rs 243 million in FY21, thereby witnessing an decrease of -32.6%.
• Long-term debt stood at Rs 79 million as compared to Rs 25 million during FY21, a growth of 215.7%.
• Current assets rose 3% and stood at Rs 514 million, while fixed assets rose 6% and stood at Rs 388 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 902 million as against Rs 865 million during FY21, thereby witnessing a growth of 4%.

BAFNA PHARMA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	568	629	10.8
Current Liabilities	Rs m	243	164	-32.6
Long-term Debt	Rs m	25	79	215.7
Total Liabilities	Rs m	865	902	4.4
Current assets	Rs m	497	514	3.5
Fixed Assets	Rs m	368	388	5.6
Total Assets	Rs m	865	902	4.4

BAFNA PHARMA Cash Flow Statement Analysis

• BAFNA PHARMA's cash flow from operating activities (CFO) during FY22 stood at Rs 80 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -54 million, an improvement of 1.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -42 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -16 million from the Rs -67 million net cash flows seen during FY21.

BAFNA 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	-136	80	-
Cash Flow from Investing Activities	Rs m	-53	-54	-
Cash Flow from Financing Activities	Rs m	123	-42	-
Net Cash Flow	Rs m	-67	-16	-

Current Valuations for BAFNA PHARMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.2, an decline from the EPS of Rs 2.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 118.9, stands at 63.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.5 times, while the price to sales ratio stands at 3.3 times.
• The company's price to cash flow (P/CF) ratio stood at 34.0 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	30.1	36.0
TTM Earnings per share	Rs	2.5	2.2
Diluted earnings per share	Rs	2.5	2.2
Price to Cash Flow	x	31.5	34.0
TTM P/E ratio	x	55.8	63.6
Price / Book Value ratio	x	4.3	5.8
Market Cap	Rs m	2,428	3,616
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BAFNA PHARMA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.1x during FY22, from 2.0x 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 7.5x during FY22, from 8.9x 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 8.2% during FY22, from 10.3% 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 8.4% during FY22, from 11.1% 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 6.6% during FY22, from 7.6% 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	2.0	3.1
Debtors’ Days	Days	490	634
Interest coverage	x	8.9	7.5
Debt to equity ratio	x	0.0	0.1
Return on assets	%	7.6	6.6
Return on equity	%	10.3	8.2
Return on capital employed	%	11.1	8.4

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

BAFNA PHARMA Share Price Performance

Over the last one year, BAFNA PHARMA share price has moved down from Rs 131.6 to Rs 118.9, registering a loss of Rs 12.7 or around 9.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 22,761.9 (down 0.3%). Over the last one year it has moved down from 25,723.6 to 22,761.9, a loss of 2,962 points (down 11.5%).

Overall, the S&P BSE SENSEX is up 5.8% over the year.

(To know more, check out historical annual results for BAFNA PHARMA and quarterly results for BAFNA PHARMA)

Read: Latest Annual Report Analysis of BAFNA PHARMA