CADILA HEALTHCARE 2020-21 Annual Report Analysis

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CADILA HEALTHCARE 2020-21 Annual Report Analysis
Tue, 10 Aug

CADILA HEALTHCARE 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.

CADILA HEALTHCARE Income Statement Analysis

  • Operating income during the year rose 6.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 29.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.7% in FY21 as against 17.0% in FY20.
  • Depreciation charges increased by 4.1% and finance costs decreased by 50.6% YoY, respectively.
  • Other income declined by 61.7% YoY.
  • Net profit for the year grew by 81.8% YoY.
  • Net profit margins during the year grew from 8.2% in FY20 to 14.1% in FY21.

CADILA HEALTHCARE Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 142,531 151,022 6.0%
Other income Rs m 1,171 449 -61.7%
Total Revenues Rs m 143,702 151,471 5.4%
Gross profit Rs m 24,166 31,335 29.7%
Depreciation Rs m 6,965 7,248 4.1%
Interest Rs m 3,418 1,688 -50.6%
Profit before tax Rs m 14,954 22,848 52.8%
Tax Rs m 3,198 1,472 -54.0%
Profit after tax Rs m 11,756 21,376 81.8%
Gross profit margin % 17.0 20.7
Effective tax rate % 21.4 6.4
Net profit margin % 8.2 14.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Check Out: Why Millions of Dollars are Getting Pumped into this Sector?

CADILA HEALTHCARE Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 79 billion as compared to Rs 83 billion in FY20, thereby witnessing an decrease of -4.9%.
  • Long-term debt down at Rs 6 billion as compared to Rs 32 billion during FY20, a fall of 81.0%.
  • Current assets rose 0% and stood at Rs 87 billion, while fixed assets fell 0% and stood at Rs 141 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 228 billion as against Rs 228 billion during FY20, thereby witnessing a fall of 0%.

CADILA HEALTHCARE Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 103,757 129,923 25.2
 
Current Liabilities Rs m 82,694 78,613 -4.9
Long-term Debt Rs m 32,146 6,095 -81.0
Total Liabilities Rs m 228,337 228,103 -0.1
 
Current assets Rs m 87,154 87,160 0.0
Fixed Assets Rs m 141,183 140,943 -0.2
Total Assets Rs m 228,337 228,103 -0.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



CADILA HEALTHCARE Cash Flow Statement Analysis

  • CADILA HEALTHCARE's cash flow from operating activities (CFO) during FY21 stood at Rs 33 billion, an improvement of 12.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -7 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -25 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -905 million from the Rs 4 billion net cash flows seen during FY20.

CADILA HEALTHCARE 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 29,315 32,930 12.3%
Cash Flow from Investing Activities Rs m -10,123 -7,225 -
Cash Flow from Financing Activities Rs m -15,282 -25,489 -
Net Cash Flow Rs m 3,989 -905 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for CADILA HEALTHCARE

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.9, an improvement from the EPS of Rs 11.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 576.4, stands at 27.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 2.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 20.6 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 139.2 147.5
TTM Earnings per share Rs 11.5 20.9
Diluted earnings per share Rs 11.5 20.9
Price to Cash Flow x 31.5 20.6
TTM P/E ratio x 27.6 27.6
Price / Book Value ratio x 2.8 3.0
Market Cap Rs m 590,034 590,034
Dividends per share (Unadj.) Rs 3.5 3.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for CADILA HEALTHCARE

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.1x during FY21, from 1.1x 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 14.5x during FY21, from 5.4x 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 16.5% during FY21, from 11.3% 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 improved and stood at 18.0% during FY21, from 13.5% 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 improved and stood at 10.1% during FY21, from 6.6% 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 1.1 1.1
Debtors’ Days Days 94 76
Interest coverage x 5.4 14.5
Debt to equity ratio x 0.3 0.0
Return on assets % 6.6 10.1
Return on equity % 11.3 16.5
Return on capital employed % 13.5 18.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

CADILA HEALTHCARE Share Price Performance

Over the last one year, CADILA HEALTHCARE share price has moved up from Rs 405.0 to Rs 576.4, registering a gain of Rs 171.4 or around 42.3%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 26,364.3 (up 0.0%). Over the last one year it has moved up from 19,641.6 to 26,364.3, a gain of 6,723 points (up 34.2%).

Overall, the S&P BSE SENSEX is up 43.5% over the year.

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

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Related Views on News

CADILA HEALTHCARE Announces Quarterly Results (1QFY22); Net Profit Up 35.0% (Quarterly Result Update)

Aug 16, 2021 | Updated on Aug 16, 2021

For the quarter ended June 2021, CADILA HEALTHCARE has posted a net profit of Rs 6 bn (up 35.0% YoY). Sales on the other hand came in at Rs 40 bn (up 14.5% YoY). Read on for a complete analysis of CADILA HEALTHCARE's quarterly results.

CADILA HEALTHCARE Announces Quarterly Results (3QFY21); Net Profit Up 40.6% (Quarterly Result Update)

Feb 10, 2021 | Updated on Feb 10, 2021

For the quarter ended December 2020, CADILA HEALTHCARE has posted a net profit of Rs 5 bn (up 40.6% YoY). Sales on the other hand came in at Rs 38 bn (up 4.3% YoY). Read on for a complete analysis of CADILA HEALTHCARE's quarterly results.

CADILA HEALTHCARE 2019-20 Annual Report Analysis (Annual Result Update)

Oct 26, 2020 | Updated on Oct 26, 2020

Here's an analysis of the annual report of CADILA HEALTHCARE for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of CADILA HEALTHCARE. Also includes updates on the valuation of CADILA HEALTHCARE.

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