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BIOCON 2020-21 Annual Report Analysis
Wed, 31 Mar

BIOCON 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.

BIOCON Income Statement Analysis

  • Operating income during the year rose 12.8% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 0.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.5% in FY21 as against 21.0% in FY20.
  • Depreciation charges increased by 29.5% and finance costs decreased by 11.1% YoY, respectively.
  • Other income grew by 19.3% YoY.
  • Net profit for the year grew by 2.8% YoY.
  • Net profit margins during the year declined from 14.3% in FY20 to 13.0% in FY21.

BIOCON Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 63,005 71,058 12.8%
Other income Rs m 5,075 6,052 19.3%
Total Revenues Rs m 68,080 77,110 13.3%
Gross profit Rs m 13,245 13,145 -0.8%
Depreciation Rs m 5,522 7,151 29.5%
Interest Rs m 649 577 -11.1%
Profit before tax Rs m 12,149 11,469 -5.6%
Tax Rs m 3,151 2,215 -29.7%
Profit after tax Rs m 8,998 9,254 2.8%
Gross profit margin % 21.0 18.5
Effective tax rate % 25.9 19.3
Net profit margin % 14.3 13.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

BIOCON Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 42 billion as compared to Rs 40 billion in FY20, thereby witnessing an increase of 5.0%.
  • Long-term debt stood at Rs 30 billion as compared to Rs 12 billion during FY20, a growth of 142.3%.
  • Current assets rose 43% and stood at Rs 76 billion, while fixed assets rose 21% and stood at Rs 106 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 182 billion as against Rs 141 billion during FY20, thereby witnessing a growth of 29%.

BIOCON Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 65,970 74,728 13.3
 
Current Liabilities Rs m 40,080 42,101 5.0
Long-term Debt Rs m 12,222 29,616 142.3
Total Liabilities Rs m 140,758 182,146 29.4
 
Current assets Rs m 53,250 76,004 42.7
Fixed Assets Rs m 87,508 106,142 21.3
Total Assets Rs m 140,758 182,146 29.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



BIOCON Cash Flow Statement Analysis

  • BIOCON 's cash flow from operating activities (CFO) during FY21 stood at Rs 12 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -36 billion, an improvement of 132.5% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 26 billion, an improvement of 562% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 723 million from the Rs 2 billion net cash flows seen during FY20.

BIOCON 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 12,831 11,597 -9.6%
Cash Flow from Investing Activities Rs m -15,589 -36,247 -
Cash Flow from Financing Activities Rs m 3,876 25,640 561.5%
Net Cash Flow Rs m 1,654 723 -56.3%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for BIOCON

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.7, an improvement from the EPS of Rs 7.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 408.8, stands at 53.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 6.6 times, while the price to sales ratio stands at 6.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 27.9 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 52.5 59.2
TTM Earnings per share Rs 7.5 7.7
Diluted earnings per share Rs 7.5 7.7
Price to Cash Flow x 22.4 27.9
TTM P/E ratio x 36.1 53.0
Price / Book Value ratio x 7.7 6.1
Market Cap Rs m 508,380 457,350
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for BIOCON

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.8x during FY21, from 1.3x 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 20.9x during FY21, from 19.7x 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 declined and down at 12.4% during FY21, from 13.6% 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 11.5% during FY21, from 16.4% 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 5.4% during FY21, from 6.9% 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 1.3 1.8
Debtors’ Days Days 71 63
Interest coverage x 19.7 20.9
Debt to equity ratio x 0.2 0.4
Return on assets % 6.9 5.4
Return on equity % 13.6 12.4
Return on capital employed % 16.4 11.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

BIOCON Share Price Performance

Over the last one year, BIOCON share price has moved up from Rs 270.6 to Rs 408.8, registering a gain of Rs 138.2 or around 51.1%.

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 BIOCON and quarterly results for BIOCON )

Annual Report FAQs

What is the current share price of BIOCON ?

BIOCON currently trades at Rs 264.1 per share. You can check out the latest share price performance of BIOCON here...

What was the revenue of BIOCON in FY21? How does it compare to earlier years?

The revenues of BIOCON stood at Rs 77,110 m in FY21, which was up 13.3% compared to Rs 68,080 m reported in FY20.

BIOCON 's revenue has grown from Rs 40,177 m in FY17 to Rs 77,110 m in FY21.

Over the past 5 years, the revenue of BIOCON has grown at a CAGR of 17.7%.

What was the net profit of BIOCON in FY21? How does it compare to earlier years?

The net profit of BIOCON stood at Rs 9,254 m in FY21, which was up 2.8% compared to Rs 8,998 m reported in FY20.

This compares to a net profit of Rs 10,017 m in FY19 and a net profit of Rs 4,318 m in FY18.

Over the past 5 years, BIOCON net profit has grown at a CAGR of 8.3%.

What does the cash flow statement of BIOCON reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of BIOCON reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 11,597 m as compared to Rs 12,831 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -36,247 m as compared to Rs -15,589 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs 25,640 m as compared to Rs 3,876 m in FY20.

Here's the cash flow statement of BIOCON for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations6,4006,62111,54612,83111,597
From Investments-4,985-6,840-7,138-15,589-36,247
From Financial Activity-1,775-2,397-2,4173,87625,640
Net Cashflow-473-2,6122,1031,654723

What does the Key Ratio analysis of BIOCON reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of BIOCON reveals:

  • Operating profit margins witnessed a fall and stood at 18.5% in FY21 as against 21.0% in FY20.
  • Net profit margins declined from 14.3% in FY20 to 13.0% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.4 as compared to 0.2 in FY20.

Here's the ratio/financial analysis of BIOCON for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)25.420.123.921.018.5
Net Profit Margin (%)17.410.518.214.313.0
Debt to Equity Ratio (x)0.40.40.30.20.4

Read: Latest Annual Report Analysis of BIOCON

 

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