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DIVIS LABORATORIES 2021-22 Annual Report Analysis
Wed, 27 Jul

DIVIS LABORATORIES 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.

DIVIS LABORATORIES Income Statement Analysis

  • Operating income during the year rose 28.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 35.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 43.3% in FY22 as against 41.1% in FY21.
  • Depreciation charges increased by 21.9% and finance costs decreased by 4.8% YoY, respectively.
  • Other income grew by 84.9% YoY.
  • Net profit for the year grew by 49.2% YoY.
  • Net profit margins during the year grew from 28.5% in FY21 to 33.0% in FY22.

DIVIS LABORATORIES Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 69,694 89,598 28.6%
Other income Rs m 627 1,159 84.9%
Total Revenues Rs m 70,321 90,757 29.1%
Gross profit Rs m 28,611 38,811 35.7%
Depreciation Rs m 2,556 3,115 21.9%
Interest Rs m 21 20 -4.8%
Profit before tax Rs m 26,660 36,835 38.2%
Tax Rs m 6,818 7,231 6.1%
Profit after tax Rs m 19,843 29,605 49.2%
Gross profit margin % 41.1 43.3
Effective tax rate % 25.6 19.6
Net profit margin % 28.5 33.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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DIVIS LABORATORIES Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 25 billion as compared to Rs 17 billion in FY21, thereby witnessing an increase of 42.0%.
  • Current assets rose 42% and stood at Rs 96 billion, while fixed assets rose 9% and stood at Rs 50 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 146 billion as against Rs 114 billion during FY21, thereby witnessing a growth of 28%.

DIVIS LABORATORIES Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 92,946 117,282 26.2
 
Current Liabilities Rs m 17,284 24,544 42.0
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 113,869 146,191 28.4
 
Current assets Rs m 67,906 96,104 41.5
Fixed Assets Rs m 45,963 50,087 9.0
Total Assets Rs m 113,869 146,191 28.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



DIVIS LABORATORIES Cash Flow Statement Analysis

  • DIVIS LABORATORIES's cash flow from operating activities (CFO) during FY22 stood at Rs 19 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -22 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -5 billion on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs -8 billion from the Rs 20 billion net cash flows seen during FY21.

DIVIS LABORATORIES 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 19,469 19,118 -1.8%
Cash Flow from Investing Activities Rs m 751 -21,949 -
Cash Flow from Financing Activities Rs m -349 -5,324 -
Net Cash Flow Rs m 19,872 -8,156 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for DIVIS LABORATORIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 111.5, an improvement from the EPS of Rs 74.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 3,772.5, stands at 33.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 8.5 times, while the price to sales ratio stands at 11.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 36.5 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 262.5 337.5
TTM Earnings per share Rs 74.7 111.5
Diluted earnings per share Rs 74.7 111.5
Price to Cash Flow x 43.0 36.5
TTM P/E ratio x 48.6 33.8
Price / Book Value ratio x 8.2 10.2
Market Cap Rs m 761,517 1,192,890
Dividends per share (Unadj.) Rs 20.0 30.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for DIVIS LABORATORIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 3.9x during FY22, from 3.9x 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 1,842.8x during FY22, from 1,270.5x 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 improved and stood at 25.2% during FY22, from 21.3% 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 improved and stood at 31.4% during FY22, from 28.7% 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 improved and stood at 20.3% during FY22, from 17.4% 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 3.9 3.9
Debtors’ Days Days 878 987
Interest coverage x 1,270.5 1,842.8
Debt to equity ratio x 0.0 0.0
Return on assets % 17.4 20.3
Return on equity % 21.3 25.2
Return on capital employed % 28.7 31.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how DIVIS LABORATORIES has performed over the last 5 years, please visit here.

DIVIS LABORATORIES Share Price Performance

Over the last one year, DIVIS LABORATORIES share price has moved down from Rs 4,793.9 to Rs 3,772.5, registering a loss of Rs 1,021.4 or around 21.3%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 22,484.6 (up 1.2%). Over the last one year it has moved down from 25,723.5 to 22,484.6, a loss of 3,239 points (down 12.6%).

Overall, the S&P BSE SENSEX is up 5.2% over the year.

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

Annual Report FAQs

What is the current share price of DIVIS LABORATORIES?

DIVIS LABORATORIES currently trades at Rs 3,741.3 per share. You can check out the latest share price performance of DIVIS LABORATORIES here...

What was the revenue of DIVIS LABORATORIES in FY22? How does it compare to earlier years?

The revenues of DIVIS LABORATORIES stood at Rs 90,757 m in FY22, which was up 29.1% compared to Rs 70,321 m reported in FY21.

DIVIS LABORATORIES' revenue has grown from Rs 39,836 m in FY18 to Rs 90,757 m in FY22.

Over the past 5 years, the revenue of DIVIS LABORATORIES has grown at a CAGR of 22.9%.

What was the net profit of DIVIS LABORATORIES in FY22? How does it compare to earlier years?

The net profit of DIVIS LABORATORIES stood at Rs 29,605 m in FY22, which was up 49.2% compared to Rs 19,843 m reported in FY21.

This compares to a net profit of Rs 13,765 m in FY20 and a net profit of Rs 13,527 m in FY19.

Over the past 5 years, DIVIS LABORATORIES net profit has grown at a CAGR of 35.5%.

What does the cash flow statement of DIVIS LABORATORIES 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 DIVIS LABORATORIES reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs 19,118 m as compared to Rs 19,469 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -21,949 m as compared to Rs 751 m in FY21.
  • Cash flow from financial activity decreased in FY22 and stood at Rs -5,324 m as compared to Rs -349 m in FY21.

Here's the cash flow statement of DIVIS LABORATORIES for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations7,7599,54312,15919,46919,118
From Investments-4,783-6,854-835751-21,949
From Financial Activity-3,142-2,459-10,914-349-5,324
Net Cashflow-16623041119,872-8,156

What does the Key Ratio analysis of DIVIS LABORATORIES 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 DIVIS LABORATORIES reveals:

  • Operating profit margins witnessed a fall and down at 43.3% in FY22 as against 41.1% in FY21.
  • Net profit margins grew from 28.5% in FY21 to 33.0% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.0 as compared to 0.0 in FY21.

Here's the ratio/financial analysis of DIVIS LABORATORIES for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)32.637.933.841.143.3
Net Profit Margin (%)22.727.325.528.533.0
Debt to Equity Ratio (x)0.00.00.00.00.0

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