DR. LAL PATHLABS 2020-21 Annual Report Analysis

Wed, 31 Mar

DR. LAL PATHLABS 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.

DR. LAL PATHLABS Income Statement Analysis

• Operating income during the year rose 18.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 27.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 27.6% in FY21 as against 25.8% in FY20.
• Depreciation charges increased by 6.0% and finance costs increased by 4.5% YoY, respectively.
• Other income declined by 6.7% YoY.
• Net profit for the year grew by 30.3% YoY.
• Net profit margins during the year grew from 17.1% in FY20 to 18.7% in FY21.

DR. LAL PATHLABS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	13,304	15,813	18.9%
Other income	Rs m	550	513	-6.7%
Total Revenues	Rs m	13,854	16,326	17.8%
Gross profit	Rs m	3,436	4,363	27.0%
Depreciation	Rs m	728	772	6.0%
Interest	Rs m	153	160	4.5%
Profit before tax	Rs m	3,105	3,944	27.0%
Tax	Rs m	829	979	18.1%
Profit after tax	Rs m	2,276	2,965	30.3%
Gross profit margin	%	25.8	27.6
Effective tax rate	%	26.7	24.8
Net profit margin	%	17.1	18.7

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DR. LAL PATHLABS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 3 billion as compared to Rs 2 billion in FY20, thereby witnessing an increase of 20.7%.
• Long-term debt stood at Rs 1 million as compared to Rs 0 million during FY20, a fall of 0.0%.
• Current assets rose 28% and stood at Rs 11 billion, while fixed assets rose 6% and stood at Rs 5 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 16 billion as against Rs 14 billion during FY20, thereby witnessing a growth of 21%.

DR. LAL PATHLABS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	9,999	12,053	20.5
Current Liabilities	Rs m	2,273	2,743	20.7
Long-term Debt	Rs m	0	1	0.0
Total Liabilities	Rs m	13,515	16,333	20.9
Current assets	Rs m	8,926	11,452	28.3
Fixed Assets	Rs m	4,588	4,881	6.4
Total Assets	Rs m	13,515	16,333	20.9

DR. LAL PATHLABS Cash Flow Statement Analysis

• DR. LAL PATHLABS's cash flow from operating activities (CFO) during FY21 stood at Rs 4 billion, an improvement of 40.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion, an improvement of 711.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -1 billion, an improvement of 27% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 476 million from the Rs 673 million net cash flows seen during FY20.

DR. LAL PATHLABS 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	2,839	3,982	40.2%
Cash Flow from Investing Activities	Rs m	-261	-2,120	-
Cash Flow from Financing Activities	Rs m	-1,904	-1,386	-
Net Cash Flow	Rs m	673	476	-29.3%

Current Valuations for DR. LAL PATHLABS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 35.6, an improvement from the EPS of Rs 27.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,707.5, stands at 76.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 18.7 times, while the price to sales ratio stands at 14.3 times.
• The company's price to cash flow (P/CF) ratio stood at 45.1 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	159.6	189.7
TTM Earnings per share	Rs	27.3	35.6
Diluted earnings per share	Rs	27.3	35.6
Price to Cash Flow	x	38.9	45.1
TTM P/E ratio	x	51.3	76.1
Price / Book Value ratio	x	11.7	14.0
Market Cap	Rs m	116,512	168,365
Dividends per share (Unadj.)	Rs	12.0	20.0

Ratio Analysis for DR. LAL PATHLABS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.2x during FY21, from 3.9x 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 25.6x during FY21, from 21.3x 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 24.6% during FY21, from 22.8% 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 34.0% during FY21, from 32.6% 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 19.1% during FY21, from 18.0% 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	3.9	4.2
Debtors’ Days	Days	14	15
Interest coverage	x	21.3	25.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	18.0	19.1
Return on equity	%	22.8	24.6
Return on capital employed	%	32.6	34.0

To see how DR. LAL PATHLABS has performed over the last 5 years, please visit here.

DR. LAL PATHLABS Share Price Performance

Over the last one year, DR. LAL PATHLABS share price has moved up from Rs 1,401.4 to Rs 2,707.5, registering a gain of Rs 1,306.1 or around 93.2%.

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 DR. LAL PATHLABS and quarterly results for DR. LAL PATHLABS)

Read: Latest Annual Report Analysis of DR. LAL PATHLABS