GUFIC BIOSCIENCE 2020-21 Annual Report Analysis

Wed, 31 Mar

GUFIC BIOSCIENCE 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.

GUFIC BIOSCIENCE Income Statement Analysis

• Operating income during the year rose 28.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 61.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.2% in FY21 as against 13.8% in FY20.
• Depreciation charges increased by 17.6% and finance costs decreased by 2.0% YoY, respectively.
• Other income declined by 35.5% YoY.
• Net profit for the year grew by 95.0% YoY.
• Net profit margins during the year grew from 6.0% in FY20 to 9.1% in FY21.

GUFIC BIOSCIENCE Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	3,788	4,877	28.7%
Other income	Rs m	58	37	-35.5%
Total Revenues	Rs m	3,846	4,914	27.8%
Gross profit	Rs m	521	839	61.0%
Depreciation	Rs m	139	163	17.6%
Interest	Rs m	139	136	-2.0%
Profit before tax	Rs m	301	577	91.6%
Tax	Rs m	74	135	81.2%
Profit after tax	Rs m	227	442	95.0%
Gross profit margin	%	13.8	17.2
Effective tax rate	%	24.7	23.4
Net profit margin	%	6.0	9.1

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GUFIC BIOSCIENCE Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 2 billion as compared to Rs 3 billion in FY20, thereby witnessing an decrease of -32.5%.
• Long-term debt stood at Rs 354 million as compared to Rs 195 million during FY20, a growth of 81.3%.
• Current assets fell 12% and stood at Rs 3 billion, while fixed assets fell 2% and stood at Rs 1 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 4 billion as against Rs 5 billion during FY20, thereby witnessing a fall of 9%.

GUFIC BIOSCIENCE Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	1,293	1,734	34.1
Current Liabilities	Rs m	3,256	2,198	-32.5
Long-term Debt	Rs m	195	354	81.3
Total Liabilities	Rs m	4,927	4,482	-9.0
Current assets	Rs m	3,591	3,168	-11.8
Fixed Assets	Rs m	1,336	1,315	-1.6
Total Assets	Rs m	4,927	4,482	-9.0

GUFIC BIOSCIENCE Cash Flow Statement Analysis

• GUFIC BIOSCIENCE's cash flow from operating activities (CFO) during FY21 stood at Rs 891 million, an improvement of 89.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -85 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -786 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 19 million from the Rs 4 million net cash flows seen during FY20.

GUFIC BIOSCIENCE 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	471	891	89.1%
Cash Flow from Investing Activities	Rs m	-425	-85	-
Cash Flow from Financing Activities	Rs m	-42	-786	-
Net Cash Flow	Rs m	4	19	431.5%

Current Valuations for GUFIC BIOSCIENCE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.6, an improvement from the EPS of Rs 2.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 114.3, stands at 25.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.4 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 14.6 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	39.1	50.3
TTM Earnings per share	Rs	2.3	4.6
Diluted earnings per share	Rs	2.3	4.6
Price to Cash Flow	x	12.5	14.6
TTM P/E ratio	x	19.8	25.1
Price / Book Value ratio	x	4.9	5.1
Market Cap	Rs m	6,372	8,832
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for GUFIC BIOSCIENCE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x 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 5.2x during FY21, from 3.2x 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 25.5% during FY21, from 17.5% 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 34.2% during FY21, from 29.6% 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 12.9% during FY21, from 7.4% 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	1.4
Debtors’ Days	Days	1,031	932
Interest coverage	x	3.2	5.2
Debt to equity ratio	x	0.2	0.2
Return on assets	%	7.4	12.9
Return on equity	%	17.5	25.5
Return on capital employed	%	29.6	34.2

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

GUFIC BIOSCIENCE Share Price Performance

Over the last one year, GUFIC BIOSCIENCE share price has moved up from Rs 47.2 to Rs 114.3, registering a gain of Rs 67.2 or around 142.4%.

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 GUFIC BIOSCIENCE and quarterly results for GUFIC BIOSCIENCE)

Read: Latest Annual Report Analysis of GUFIC BIOSCIENCE