BIOCON 2021-22 Annual Report Analysis

Fri, 8 Jul

BIOCON 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.

BIOCON Income Statement Analysis

• Operating income during the year rose 14.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 5.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.9% in FY22 as against 18.4% in FY21.
• Depreciation charges increased by 13.9% and finance costs increased by 17.2% YoY, respectively.
• Other income grew by 13.9% YoY.
• Net profit for the year grew by 5.7% YoY.
• Net profit margins during the year declined from 13.0% in FY21 to 12.0% in FY22.

BIOCON Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	71,431	81,840	14.6%
Other income	Rs m	6,052	6,891	13.9%
Total Revenues	Rs m	77,483	88,731	14.5%
Gross profit	Rs m	13,147	13,827	5.2%
Depreciation	Rs m	7,151	8,142	13.9%
Interest	Rs m	577	676	17.2%
Profit before tax	Rs m	11,471	11,900	3.7%
Tax	Rs m	2,215	2,115	-4.5%
Profit after tax	Rs m	9,256	9,785	5.7%
Gross profit margin	%	18.4	16.9
Effective tax rate	%	19.3	17.8
Net profit margin	%	13.0	12.0

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BIOCON Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 38 billion as compared to Rs 42 billion in FY21, thereby witnessing an decrease of -9.1%.
• Long-term debt stood at Rs 40 billion as compared to Rs 30 billion during FY21, a growth of 35.0%.
• Current assets rose 10% and stood at Rs 84 billion, while fixed assets rose 10% and stood at Rs 117 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 201 billion as against Rs 182 billion during FY21, thereby witnessing a growth of 10%.

BIOCON Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	74,728	82,284	10.1
Current Liabilities	Rs m	42,101	38,280	-9.1
Long-term Debt	Rs m	29,616	39,985	35.0
Total Liabilities	Rs m	182,146	201,007	10.4
Current assets	Rs m	76,004	83,823	10.3
Fixed Assets	Rs m	106,142	117,184	10.4
Total Assets	Rs m	182,146	201,007	10.4

BIOCON Cash Flow Statement Analysis

• BIOCON 's cash flow from operating activities (CFO) during FY22 stood at Rs 12 billion, an improvement of 1.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -17 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 2 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -2 billion from the Rs 723 million net cash flows seen during FY21.

BIOCON 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	11,597	11,766	1.5%
Cash Flow from Investing Activities	Rs m	-36,247	-16,991	-
Cash Flow from Financing Activities	Rs m	25,640	2,421	-90.6%
Net Cash Flow	Rs m	723	-2,433	-

Current Valuations for BIOCON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.2, an improvement from the EPS of Rs 7.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 322.6, stands at 39.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.7 times, while the price to sales ratio stands at 4.7 times.
• The company's price to cash flow (P/CF) ratio stood at 24.7 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	59.5	68.2
TTM Earnings per share	Rs	7.7	8.2
Diluted earnings per share	Rs	7.7	8.2
Price to Cash Flow	x	29.9	24.7
TTM P/E ratio	x	53.0	39.6
Price / Book Value ratio	x	6.1	5.4
Market Cap	Rs m	457,350	443,622
Dividends per share (Unadj.)	Rs	0.0	0.5

Ratio Analysis for BIOCON

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x 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 18.6x during FY22, from 20.9x 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 11.9% during FY22, from 12.4% 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 10.3% during FY22, from 11.5% 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 5.2% during FY22, from 5.4% 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	2.2
Debtors’ Days	Days	77	92
Interest coverage	x	20.9	18.6
Debt to equity ratio	x	0.4	0.5
Return on assets	%	5.4	5.2
Return on equity	%	12.4	11.9
Return on capital employed	%	11.5	10.3

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 down from Rs 389.4 to Rs 322.6, registering a loss of Rs 66.8 or around 17.2%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 22,160.4 (up 0.4%). Over the last one year it has moved down from 25,727.8 to 22,160.4, a loss of 3,567 points (down 13.9%).

Overall, the S&P BSE SENSEX is up 3.1% over the year.

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

Read: Latest Annual Report Analysis of BIOCON