ZYDUS LIFESCIENCES 2021-22 Annual Report Analysis

Wed, 20 Jul

ZYDUS LIFESCIENCES 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.

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 8.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.6% in FY22 as against 22.1% in FY21.
• Depreciation charges increased by 6.5% and finance costs decreased by 20.0% YoY, respectively.
• Other income grew by 396.6% YoY.
• Net profit for the year grew by 5.5% YoY.
• Net profit margins during the year declined from 15.3% in FY21 to 15.2% in FY22.

ZYDUS LIFESCIENCES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	144,035	152,652	6.0%
Other income	Rs m	474	2,354	396.6%
Total Revenues	Rs m	144,509	155,006	7.3%
Gross profit	Rs m	31,802	34,427	8.3%
Depreciation	Rs m	6,696	7,130	6.5%
Interest	Rs m	1,588	1,270	-20.0%
Profit before tax	Rs m	23,992	28,381	18.3%
Tax	Rs m	1,936	5,117	164.3%
Profit after tax	Rs m	22,056	23,264	5.5%
Gross profit margin	%	22.1	22.6
Effective tax rate	%	8.1	18.0
Net profit margin	%	15.3	15.2

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ZYDUS LIFESCIENCES Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 78 billion as compared to Rs 79 billion in FY21, thereby witnessing an decrease of -0.3%.
• Long-term debt down at Rs 4 billion as compared to Rs 6 billion during FY21, a fall of 40.6%.
• Current assets rose 41% and stood at Rs 123 billion, while fixed assets rose 2% and stood at Rs 144 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 267 billion as against Rs 228 billion during FY21, thereby witnessing a growth of 17%.

ZYDUS LIFESCIENCES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	129,923	169,996	30.8
Current Liabilities	Rs m	78,613	78,394	-0.3
Long-term Debt	Rs m	6,095	3,621	-40.6
Total Liabilities	Rs m	228,103	266,996	17.1
Current assets	Rs m	87,160	122,614	40.7
Fixed Assets	Rs m	140,943	144,382	2.4
Total Assets	Rs m	228,103	266,996	17.1

ZYDUS LIFESCIENCES Cash Flow Statement Analysis

• ZYDUS LIFESCIENCES's cash flow from operating activities (CFO) during FY22 stood at Rs 21 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 12 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -9 billion, an improvement of 66% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 24 billion from the Rs -905 million net cash flows seen during FY21.

ZYDUS LIFESCIENCES 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	32,939	21,041	-36.1%
Cash Flow from Investing Activities	Rs m	-7,246	11,544	-
Cash Flow from Financing Activities	Rs m	-25,477	-8,683	-
Net Cash Flow	Rs m	-905	23,729	-

Current Valuations for ZYDUS LIFESCIENCES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.7, an improvement from the EPS of Rs 21.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 360.0, stands at 17.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 16.9 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	140.7	149.1
TTM Earnings per share	Rs	21.5	22.7
Diluted earnings per share	Rs	21.5	22.7
Price to Cash Flow	x	15.7	16.9
TTM P/E ratio	x	21.7	17.8
Price / Book Value ratio	x	3.0	3.0
Market Cap	Rs m	393,092	514,277
Dividends per share (Unadj.)	Rs	3.5	2.5

Ratio Analysis for ZYDUS LIFESCIENCES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY22, from 1.1x 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 improved and stood at 23.3x during FY22, from 16.1x 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 13.7% during FY22, from 17.0% 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 17.1% during FY22, from 18.8% 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 9.2% during FY22, from 10.4% 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	1.1	1.6
Debtors’ Days	Days	79	80
Interest coverage	x	16.1	23.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.4	9.2
Return on equity	%	17.0	13.7
Return on capital employed	%	18.8	17.1

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 down from Rs 622.8 to Rs 360.0, registering a loss of Rs 262.8 or around 42.2%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 22,742.3 (up 0.4%). Over the last one year it has moved down from 26,064.3 to 22,742.3, a loss of 3,322 points (down 12.7%).

Overall, the S&P BSE SENSEX is up 5.7% over the year.

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

Read: Latest Annual Report Analysis of ZYDUS LIFESCIENCES