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ZYDUS LIFESCIENCES 2020-21 Annual Report Analysis
Wed, 31 Mar

ZYDUS LIFESCIENCES 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.

ZYDUS LIFESCIENCES 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 14.2% in FY21.

ZYDUS LIFESCIENCES 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 14.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

ZYDUS LIFESCIENCES 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%.

ZYDUS LIFESCIENCES 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



ZYDUS LIFESCIENCES Cash Flow Statement Analysis

  • ZYDUS LIFESCIENCES'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.

ZYDUS LIFESCIENCES 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 ZYDUS LIFESCIENCES

  • 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 440.9, stands at 21.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 3.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 13.7 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 14.6 13.7
TTM P/E ratio x 23.3 21.9
Price / Book Value ratio x 2.8 3.0
Market Cap Rs m 286,034 393,092
Dividends per share (Unadj.) Rs 3.5 3.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ZYDUS LIFESCIENCES

  • 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 ZYDUS LIFESCIENCES has performed over the last 5 years, please visit here.

ZYDUS LIFESCIENCES Share Price Performance

Over the last one year, ZYDUS LIFESCIENCES share price has moved up from Rs 267.1 to Rs 440.9, registering a gain of Rs 173.8 or around 65.1%.

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 ZYDUS LIFESCIENCES and quarterly results for ZYDUS LIFESCIENCES)

Annual Report FAQs

What is the current share price of ZYDUS LIFESCIENCES?

ZYDUS LIFESCIENCES currently trades at Rs 1,005.3 per share. You can check out the latest share price performance of ZYDUS LIFESCIENCES here...

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

The revenues of ZYDUS LIFESCIENCES stood at Rs 151,471 m in FY21, which was up 5.4% compared to Rs 143,702 m reported in FY20.

ZYDUS LIFESCIENCES' revenue has grown from Rs 93,278 m in FY17 to Rs 151,471 m in FY21.

Over the past 5 years, the revenue of ZYDUS LIFESCIENCES has grown at a CAGR of 12.9%.

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

The net profit of ZYDUS LIFESCIENCES stood at Rs 21,376 m in FY21, which was up 81.8% compared to Rs 11,756 m reported in FY20.

This compares to a net profit of Rs 18,518 m in FY19 and a net profit of Rs 17,476 m in FY18.

Over the past 5 years, ZYDUS LIFESCIENCES net profit has grown at a CAGR of 9.6%.

What does the cash flow statement of ZYDUS LIFESCIENCES 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 ZYDUS LIFESCIENCES reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 32,930 m as compared to Rs 29,315 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -7,225 m as compared to Rs -10,123 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -25,489 m as compared to Rs -15,282 m in FY20.

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

(Rs m)FY17FY18FY19FY20FY21
From Operations13,1179,19312,81929,31532,930
From Investments-28,719-9,737-42,387-10,123-7,225
From Financial Activity23,15851518,846-15,282-25,489
Net Cashflow7,556-29-8,1093,989-905

What does the Key Ratio analysis of ZYDUS LIFESCIENCES 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 ZYDUS LIFESCIENCES reveals:

  • Operating profit margins witnessed a fall and down at 20.7% in FY21 as against 17.0% in FY20.
  • Net profit margins grew from 8.2% in FY20 to 14.2% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.3 in FY20.

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

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)20.723.822.517.020.7
Net Profit Margin (%)16.214.714.18.214.2
Debt to Equity Ratio (x)0.40.30.40.30.0

Read: Latest Annual Report Analysis of ZYDUS LIFESCIENCES

 

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