INDOCO REMEDIES 2020-21 Annual Report Analysis

Wed, 31 Mar

INDOCO REMEDIES 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.

INDOCO REMEDIES Income Statement Analysis

• Operating income during the year rose 12.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 80.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.6% in FY21 as against 10.9% in FY20.
• Depreciation charges increased by 3.3% and finance costs decreased by 15.2% YoY, respectively.
• Other income grew by 88.8% YoY.
• Net profit for the year grew by 285.8% YoY.
• Net profit margins during the year grew from 2.2% in FY20 to 7.5% in FY21.

INDOCO REMEDIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	11,066	12,415	12.2%
Other income	Rs m	48	91	88.8%
Total Revenues	Rs m	11,114	12,506	12.5%
Gross profit	Rs m	1,208	2,183	80.7%
Depreciation	Rs m	708	731	3.3%
Interest	Rs m	263	223	-15.2%
Profit before tax	Rs m	286	1,320	362.0%
Tax	Rs m	45	390	774.3%
Profit after tax	Rs m	241	930	285.8%
Gross profit margin	%	10.9	17.6
Effective tax rate	%	15.6	29.5
Net profit margin	%	2.2	7.5

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INDOCO REMEDIES Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 4 billion as compared to Rs 5 billion in FY20, thereby witnessing an decrease of -11.3%.
• Long-term debt stood at Rs 969 million as compared to Rs 969 million during FY20, a growth of 0.0%.
• Current assets rose 11% and stood at Rs 6 billion, while fixed assets rose 5% and stood at Rs 7 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 13 billion as against Rs 12 billion during FY20, thereby witnessing a growth of 8%.

INDOCO REMEDIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	6,796	7,690	13.2
Current Liabilities	Rs m	4,590	4,069	-11.3
Long-term Debt	Rs m	969	969	0.0
Total Liabilities	Rs m	12,396	13,343	7.6
Current assets	Rs m	5,631	6,225	10.6
Fixed Assets	Rs m	6,764	7,117	5.2
Total Assets	Rs m	12,396	13,343	7.6

INDOCO REMEDIES Cash Flow Statement Analysis

• INDOCO REMEDIES's cash flow from operating activities (CFO) during FY21 stood at Rs 822 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -667 million, an improvement of 19.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -299 million, an improvement of 53% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -143 million from the Rs 30 million net cash flows seen during FY20.

INDOCO REMEDIES 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	1,228	822	-33.1%
Cash Flow from Investing Activities	Rs m	-559	-667	-
Cash Flow from Financing Activities	Rs m	-639	-299	-
Net Cash Flow	Rs m	30	-143	-

Current Valuations for INDOCO REMEDIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.1, an improvement from the EPS of Rs 2.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 288.5, stands at 28.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 2.1 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	120.1	134.7
TTM Earnings per share	Rs	2.6	10.1
Diluted earnings per share	Rs	2.6	10.1
Price to Cash Flow	x	20.3	14.6
TTM P/E ratio	x	80.0	28.6
Price / Book Value ratio	x	2.7	3.1
Market Cap	Rs m	18,683	24,215
Dividends per share (Unadj.)	Rs	0.3	1.5

Ratio Analysis for INDOCO REMEDIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY21, from 1.2x 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 6.9x during FY21, from 2.1x 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 12.1% during FY21, from 3.5% 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 17.8% during FY21, from 7.1% 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 8.6% during FY21, from 4.1% 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	1.2	1.5
Debtors’ Days	Days	693	687
Interest coverage	x	2.1	6.9
Debt to equity ratio	x	0.1	0.1
Return on assets	%	4.1	8.6
Return on equity	%	3.5	12.1
Return on capital employed	%	7.1	17.8

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

INDOCO REMEDIES Share Price Performance

Over the last one year, INDOCO REMEDIES share price has moved up from Rs 209.4 to Rs 288.5, registering a gain of Rs 79.2 or around 37.8%.

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 INDOCO REMEDIES and quarterly results for INDOCO REMEDIES)

Read: Latest Annual Report Analysis of INDOCO REMEDIES