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HIKAL. 2020-21 Annual Report Analysis
Wed, 31 Mar

HIKAL. 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.

HIKAL. Income Statement Analysis

  • Operating income during the year rose 14.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 25.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.8% in FY21 as against 17.1% in FY20.
  • Depreciation charges increased by 3.4% and finance costs decreased by 30.9% YoY, respectively.
  • Other income grew by 34.6% YoY.
  • Net profit for the year grew by 57.7% YoY.
  • Net profit margins during the year grew from 5.6% in FY20 to 7.7% in FY21.

HIKAL. Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 15,073 17,204 14.1%
Other income Rs m 37 50 34.6%
Total Revenues Rs m 15,110 17,254 14.2%
Gross profit Rs m 2,578 3,229 25.3%
Depreciation Rs m 825 852 3.4%
Interest Rs m 524 362 -30.9%
Profit before tax Rs m 1,266 2,064 63.1%
Tax Rs m 421 733 73.9%
Profit after tax Rs m 844 1,331 57.7%
Gross profit margin % 17.1 18.8
Effective tax rate % 33.3 35.5
Net profit margin % 5.6 7.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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HIKAL. Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 7 billion as compared to Rs 7 billion in FY20, thereby witnessing an increase of 7.7%.
  • Long-term debt down at Rs 3 billion as compared to Rs 3 billion during FY20, a fall of 13.4%.
  • Current assets rose 11% and stood at Rs 9 billion, while fixed assets rose 4% and stood at Rs 11 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 20 billion as against Rs 19 billion during FY20, thereby witnessing a growth of 7%.

HIKAL. Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 8,165 9,334 14.3
 
Current Liabilities Rs m 6,528 7,033 7.7
Long-term Debt Rs m 3,034 2,629 -13.4
Total Liabilities Rs m 18,794 20,157 7.3
 
Current assets Rs m 8,312 9,251 11.3
Fixed Assets Rs m 10,482 10,906 4.0
Total Assets Rs m 18,794 20,157 7.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



HIKAL. Cash Flow Statement Analysis

  • HIKAL.'s cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -969 million, an improvement of 4% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -240 million from the Rs 203 million net cash flows seen during FY20.

HIKAL. 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 2,849 2,290 -19.6%
Cash Flow from Investing Activities Rs m -1,638 -1,562 -
Cash Flow from Financing Activities Rs m -1,009 -969 -
Net Cash Flow Rs m 203 -240 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for HIKAL.

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.8, an improvement from the EPS of Rs 6.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 143.5, stands at 13.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 1.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 7.7 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 122.2 139.5
TTM Earnings per share Rs 6.8 10.8
Diluted earnings per share Rs 6.8 10.8
Price to Cash Flow x 5.2 7.7
TTM P/E ratio x 10.2 13.3
Price / Book Value ratio x 1.8 1.8
Market Cap Rs m 15,052 16,738
Dividends per share (Unadj.) Rs 1.2 2.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for HIKAL.

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.3x during FY21, from 1.3x 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 6.7x during FY21, from 3.4x 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 14.3% during FY21, from 10.3% 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 20.3% during FY21, from 16.0% 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 8.4% during FY21, from 7.3% 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 1.3 1.3
Debtors’ Days Days 82 103
Interest coverage x 3.4 6.7
Debt to equity ratio x 0.4 0.3
Return on assets % 7.3 8.4
Return on equity % 10.3 14.3
Return on capital employed % 16.0 20.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

HIKAL. Share Price Performance

Over the last one year, HIKAL. share price has moved up from Rs 70.0 to Rs 143.5, registering a gain of Rs 73.5 or around 105.0%.

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 HIKAL. and quarterly results for HIKAL.)

Annual Report FAQs

What is the current share price of HIKAL.?

HIKAL. currently trades at Rs 336.2 per share. You can check out the latest share price performance of HIKAL. here...

What was the revenue of HIKAL. in FY21? How does it compare to earlier years?

The revenues of HIKAL. stood at Rs 17,254 m in FY21, which was up 14.2% compared to Rs 15,110 m reported in FY20.

HIKAL.'s revenue has grown from Rs 9,973 m in FY17 to Rs 17,254 m in FY21.

Over the past 5 years, the revenue of HIKAL. has grown at a CAGR of 14.7%.

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

The net profit of HIKAL. stood at Rs 1,331 m in FY21, which was up 57.7% compared to Rs 844 m reported in FY20.

This compares to a net profit of Rs 1,031 m in FY19 and a net profit of Rs 772 m in FY18.

Over the past 5 years, HIKAL. net profit has grown at a CAGR of 18.4%.

What does the cash flow statement of HIKAL. 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 HIKAL. reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 2,290 m as compared to Rs 2,849 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -1,562 m as compared to Rs -1,638 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -969 m as compared to Rs -1,009 m in FY20.

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

(Rs m)FY17FY18FY19FY20FY21
From Operations1,6351,3881,8562,8492,290
From Investments-1,022-1,101-1,246-1,638-1,562
From Financial Activity-633-248-554-1,009-969
Net Cashflow-203956203-240

What does the Key Ratio analysis of HIKAL. 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 HIKAL. reveals:

  • Operating profit margins witnessed a fall and down at 18.8% in FY21 as against 17.1% in FY20.
  • Net profit margins grew from 5.6% in FY20 to 7.7% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.3 as compared to 0.4 in FY20.

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

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)19.518.718.817.118.8
Net Profit Margin (%)6.86.06.55.67.7
Debt to Equity Ratio (x)0.50.40.40.40.3

Read: Latest Annual Report Analysis of HIKAL.

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