BAYER CROPSCIENCE 2020-21 Annual Report Analysis

Wed, 31 Mar

BAYER CROPSCIENCE 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.

BAYER CROPSCIENCE Income Statement Analysis

• Operating income during the year rose 18.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 36.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.1% in FY21 as against 16.5% in FY20.
• Depreciation charges increased by 12.6% and finance costs decreased by 8.7% YoY, respectively.
• Other income declined by 1.2% YoY.
• Net profit for the year grew by 3.9% YoY.
• Net profit margins during the year declined from 13.1% in FY20 to 11.6% in FY21.

BAYER CROPSCIENCE Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	36,094	42,613	18.1%
Other income	Rs m	667	659	-1.2%
Total Revenues	Rs m	36,761	43,272	17.7%
Gross profit	Rs m	5,955	8,147	36.8%
Depreciation	Rs m	653	735	12.6%
Interest	Rs m	138	126	-8.7%
Profit before tax	Rs m	5,831	7,945	36.3%
Tax	Rs m	1,086	3,014	177.5%
Profit after tax	Rs m	4,745	4,931	3.9%
Gross profit margin	%	16.5	19.1
Effective tax rate	%	18.6	37.9
Net profit margin	%	13.1	11.6

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BAYER CROPSCIENCE Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 23 billion as compared to Rs 18 billion in FY20, thereby witnessing an increase of 27.9%.
• Current assets rose 16% and stood at Rs 42 billion, while fixed assets rose 3% and stood at Rs 24 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 66 billion as against Rs 59 billion during FY20, thereby witnessing a growth of 11%.

BAYER CROPSCIENCE Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	25,725	25,503	-0.9
Current Liabilities	Rs m	17,651	22,582	27.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	59,278	65,916	11.2
Current assets	Rs m	36,401	42,315	16.2
Fixed Assets	Rs m	22,877	23,601	3.2
Total Assets	Rs m	59,278	65,916	11.2

BAYER CROPSCIENCE Cash Flow Statement Analysis

• BAYER CROPSCIENCE's cash flow from operating activities (CFO) during FY21 stood at Rs 7 billion, an improvement of 3.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 67 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -6 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 1 billion from the Rs 5 billion net cash flows seen during FY20.

BAYER CROPSCIENCE 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	6,659	6,867	3.1%
Cash Flow from Investing Activities	Rs m	-289	67	-
Cash Flow from Financing Activities	Rs m	-1,483	-5,558	-
Net Cash Flow	Rs m	4,887	1,376	-71.8%

Current Valuations for BAYER CROPSCIENCE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 109.7, an improvement from the EPS of Rs 105.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 5,305.5, stands at 48.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.3 times, while the price to sales ratio stands at 5.6 times.
• The company's price to cash flow (P/CF) ratio stood at 38.5 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	803.2	948.2
TTM Earnings per share	Rs	105.6	109.7
Diluted earnings per share	Rs	105.6	109.7
Price to Cash Flow	x	28.8	38.5
TTM P/E ratio	x	39.0	48.4
Price / Book Value ratio	x	6.6	8.6
Market Cap	Rs m	171,050	218,082
Dividends per share (Unadj.)	Rs	25.0	115.0

Ratio Analysis for BAYER CROPSCIENCE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY21, from 2.1x 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 64.1x during FY21, from 43.3x 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 19.3% during FY21, from 18.4% 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 improved and stood at 31.6% during FY21, from 23.2% 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 7.7% during FY21, from 8.2% 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	2.1	1.9
Debtors’ Days	Days	73	65
Interest coverage	x	43.3	64.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.2	7.7
Return on equity	%	18.4	19.3
Return on capital employed	%	23.2	31.6

To see how BAYER CROPSCIENCE has performed over the last 5 years, please visit here.

BAYER CROPSCIENCE Share Price Performance

Over the last one year, BAYER CROPSCIENCE share price has moved up from Rs 3,458.8 to Rs 5,305.5, registering a gain of Rs 1,846.8 or around 53.4%.

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

(To know more, check out historical annual results for BAYER CROPSCIENCE and quarterly results for BAYER CROPSCIENCE)

Read: Latest Annual Report Analysis of BAYER CROPSCIENCE