MOREPEN LABS 2020-21 Annual Report Analysis

Wed, 31 Mar

MOREPEN LABS 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.

MOREPEN LABS Income Statement Analysis

• Operating income during the year rose 39.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 73.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.0% in FY21 as against 8.0% in FY20.
• Depreciation charges decreased by 17.9% and finance costs decreased by 9.9% YoY, respectively.
• Other income grew by 27.3% YoY.
• Net profit for the year grew by 189.1% YoY.
• Net profit margins during the year grew from 3.9% in FY20 to 8.2% in FY21.

MOREPEN LABS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	8,531	11,881	39.3%
Other income	Rs m	95	121	27.3%
Total Revenues	Rs m	8,626	12,001	39.1%
Gross profit	Rs m	685	1,185	73.0%
Depreciation	Rs m	369	303	-17.9%
Interest	Rs m	20	18	-9.9%
Profit before tax	Rs m	391	985	151.9%
Tax	Rs m	55	14	-74.3%
Profit after tax	Rs m	336	971	189.1%
Gross profit margin	%	8.0	10.0
Effective tax rate	%	14.1	1.4
Net profit margin	%	3.9	8.2

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MOREPEN LABS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 4 billion as compared to Rs 4 billion in FY20, thereby witnessing an increase of 14.9%.
• Long-term debt down at Rs 8 million as compared to Rs 9 million during FY20, a fall of 10.5%.
• Current assets rose 42% and stood at Rs 5 billion, while fixed assets rose 14% and stood at Rs 3 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 9 billion as against Rs 7 billion during FY20, thereby witnessing a growth of 29%.

MOREPEN LABS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	2,841	3,810	34.1
Current Liabilities	Rs m	3,514	4,038	14.9
Long-term Debt	Rs m	9	8	-10.5
Total Liabilities	Rs m	6,635	8,581	29.3
Current assets	Rs m	3,722	5,268	41.5
Fixed Assets	Rs m	2,913	3,314	13.8
Total Assets	Rs m	6,635	8,581	29.3

MOREPEN LABS Cash Flow Statement Analysis

• MOREPEN LABS's cash flow from operating activities (CFO) during FY21 stood at Rs 508 million, an improvement of 361.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -704 million, an improvement of 464.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 473 million, an improvement of 761% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 277 million from the Rs 40 million net cash flows seen during FY20.

MOREPEN LABS 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	110	508	361.3%
Cash Flow from Investing Activities	Rs m	-125	-704	-
Cash Flow from Financing Activities	Rs m	55	473	761.4%
Net Cash Flow	Rs m	40	277	586.2%

Current Valuations for MOREPEN LABS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.2, an improvement from the EPS of Rs 0.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 32.2, stands at 16.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.2 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 8.5 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	19.0	26.4
TTM Earnings per share	Rs	0.7	2.2
Diluted earnings per share	Rs	0.7	1.9
Price to Cash Flow	x	6.8	8.5
TTM P/E ratio	x	14.2	16.5
Price / Book Value ratio	x	2.5	2.8
Market Cap	Rs m	7,020	10,809
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MOREPEN LABS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY21, from 1.1x 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 56.1x during FY21, from 20.7x 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 25.5% during FY21, from 11.8% 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 26.3% during FY21, from 14.4% 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 11.5% during FY21, from 5.4% 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	1.1	1.3
Debtors’ Days	Days	589	559
Interest coverage	x	20.7	56.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.4	11.5
Return on equity	%	11.8	25.5
Return on capital employed	%	14.4	26.3

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

MOREPEN LABS Share Price Performance

Over the last one year, MOREPEN LABS share price has moved up from Rs 9.5 to Rs 32.2, registering a gain of Rs 22.6 or around 237.0%.

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 MOREPEN LABS and quarterly results for MOREPEN LABS)

Read: Latest Annual Report Analysis of MOREPEN LABS