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HESTER BIOSCIENCES 2020-21 Annual Report Analysis
Wed, 31 Mar

HESTER BIOSCIENCES 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.

HESTER BIOSCIENCES Income Statement Analysis

  • Operating income during the year rose 17.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 17.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 30.5% in FY21 as against 30.2% in FY20.
  • Depreciation charges increased by 1.9% and finance costs decreased by 10.4% YoY, respectively.
  • Other income declined by 26.4% YoY.
  • Net profit for the year grew by 11.9% YoY.
  • Net profit margins during the year declined from 16.9% in FY20 to 16.2% in FY21.

HESTER BIOSCIENCES Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 1,833 2,143 17.0%
Other income Rs m 64 47 -26.4%
Total Revenues Rs m 1,896 2,190 15.5%
Gross profit Rs m 554 653 17.9%
Depreciation Rs m 131 133 1.9%
Interest Rs m 74 66 -10.4%
Profit before tax Rs m 413 501 21.2%
Tax Rs m 103 154 49.2%
Profit after tax Rs m 310 347 11.9%
Gross profit margin % 30.2 30.5
Effective tax rate % 25.0 30.7
Net profit margin % 16.9 16.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

HESTER BIOSCIENCES Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 614 million as compared to Rs 835 million in FY20, thereby witnessing an decrease of -26.5%.
  • Long-term debt stood at Rs 828 million as compared to Rs 765 million during FY20, a growth of 8.3%.
  • Current assets rose 1% and stood at Rs 2 billion, while fixed assets rose 10% and stood at Rs 2 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 4 billion as against Rs 4 billion during FY20, thereby witnessing a growth of 6%.

HESTER BIOSCIENCES Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 2,011 2,283 13.5
 
Current Liabilities Rs m 835 614 -26.5
Long-term Debt Rs m 765 828 8.3
Total Liabilities Rs m 3,866 4,110 6.3
 
Current assets Rs m 1,593 1,615 1.4
Fixed Assets Rs m 2,273 2,495 9.8
Total Assets Rs m 3,866 4,110 6.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



HESTER BIOSCIENCES Cash Flow Statement Analysis

  • HESTER BIOSCIENCES's cash flow from operating activities (CFO) during FY21 stood at Rs 581 million, an improvement of 57.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -384 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -182 million on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -23 million from the Rs -171 million net cash flows seen during FY20.

HESTER BIOSCIENCES 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 368 581 57.9%
Cash Flow from Investing Activities Rs m -745 -384 -
Cash Flow from Financing Activities Rs m 187 -182 -
Net Cash Flow Rs m -171 -23 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for HESTER BIOSCIENCES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 40.8, an improvement from the EPS of Rs 36.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,916.8, stands at 47.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 7.1 times, while the price to sales ratio stands at 7.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 28.5 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 215.4 251.9
TTM Earnings per share Rs 36.4 40.8
Diluted earnings per share Rs 36.4 40.8
Price to Cash Flow x 17.9 28.5
TTM P/E ratio x 25.4 47.0
Price / Book Value ratio x 6.2 6.0
Market Cap Rs m 12,396 13,661
Dividends per share (Unadj.) Rs 6.6 10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for HESTER BIOSCIENCES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.6x during FY21, from 1.9x 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 8.6x during FY21, from 6.6x 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 declined and down at 15.2% during FY21, from 15.4% 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 18.2% during FY21, from 17.5% 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 10.0% during FY21, from 9.9% 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 1.9 2.6
Debtors’ Days Days 116 84
Interest coverage x 6.6 8.6
Debt to equity ratio x 0.4 0.4
Return on assets % 9.9 10.0
Return on equity % 15.4 15.2
Return on capital employed % 17.5 18.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

HESTER BIOSCIENCES Share Price Performance

Over the last one year, HESTER BIOSCIENCES share price has moved up from Rs 925.1 to Rs 1,916.8, registering a gain of Rs 991.7 or around 107.2%.

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 HESTER BIOSCIENCES and quarterly results for HESTER BIOSCIENCES)

Annual Report FAQs

What is the current share price of HESTER BIOSCIENCES?

HESTER BIOSCIENCES currently trades at Rs 1,389.3 per share. You can check out the latest share price performance of HESTER BIOSCIENCES here...

What was the revenue of HESTER BIOSCIENCES in FY21? How does it compare to earlier years?

The revenues of HESTER BIOSCIENCES stood at Rs 2,190 m in FY21, which was up 15.5% compared to Rs 1,896 m reported in FY20.

HESTER BIOSCIENCES' revenue has grown from Rs 1,212 m in FY17 to Rs 2,190 m in FY21.

Over the past 5 years, the revenue of HESTER BIOSCIENCES has grown at a CAGR of 15.9%.

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

The net profit of HESTER BIOSCIENCES stood at Rs 347 m in FY21, which was up 11.9% compared to Rs 310 m reported in FY20.

This compares to a net profit of Rs 407 m in FY19 and a net profit of Rs 231 m in FY18.

Over the past 5 years, HESTER BIOSCIENCES net profit has grown at a CAGR of 11.1%.

What does the cash flow statement of HESTER BIOSCIENCES 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 HESTER BIOSCIENCES reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 581 m as compared to Rs 368 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -384 m as compared to Rs -745 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -182 m as compared to Rs 187 m in FY20.

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

(Rs m)FY17FY18FY19FY20FY21
From Operations348380467368581
From Investments-302-258-217-745-384
From Financial Activity18-11127187-182
Net Cashflow6411283-171-23

What does the Key Ratio analysis of HESTER BIOSCIENCES 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 HESTER BIOSCIENCES reveals:

  • Operating profit margins witnessed a fall and down at 30.5% in FY21 as against 30.2% in FY20.
  • Net profit margins declined from 16.9% in FY20 to 16.2% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.4 as compared to 0.4 in FY20.

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

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)33.934.938.230.230.5
Net Profit Margin (%)18.917.022.916.916.2
Debt to Equity Ratio (x)0.40.30.30.40.4

Read: Latest Annual Report Analysis of HESTER BIOSCIENCES

 

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