NATH BIO GENES 2020-21 Annual Report Analysis

Wed, 31 Mar

NATH BIO GENES 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.

NATH BIO GENES Income Statement Analysis

• Operating income during the year rose 9.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.7% in FY21 as against 19.6% in FY20.
• Depreciation charges increased by 93.8% and finance costs increased by 33.2% YoY, respectively.
• Other income declined by 8.4% YoY.
• Net profit for the year grew by 10.3% YoY.
• Net profit margins during the year grew from 18.0% in FY20 to 18.1% in FY21.

NATH BIO GENES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	2,799	3,076	9.9%
Other income	Rs m	18	17	-8.4%
Total Revenues	Rs m	2,817	3,092	9.8%
Gross profit	Rs m	548	668	21.8%
Depreciation	Rs m	15	28	93.8%
Interest	Rs m	67	89	33.2%
Profit before tax	Rs m	485	568	17.0%
Tax	Rs m	-20	11	-155.1%
Profit after tax	Rs m	505	557	10.3%
Gross profit margin	%	19.6	21.7
Effective tax rate	%	-4.1	1.9
Net profit margin	%	18.0	18.1

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NATH BIO GENES Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 2 billion as compared to Rs 2 billion in FY20, thereby witnessing an increase of 2.0%.
• Long-term debt stood at Rs 7 million as compared to Rs 3 million during FY20, a growth of 117.7%.
• Current assets rose 11% and stood at Rs 5 billion, while fixed assets rose 3% and stood at Rs 3 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 8 billion as against Rs 7 billion during FY20, thereby witnessing a growth of 8%.

NATH BIO GENES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	5,576	6,133	10.0
Current Liabilities	Rs m	1,696	1,730	2.0
Long-term Debt	Rs m	3	7	117.7
Total Liabilities	Rs m	7,293	7,895	8.3
Current assets	Rs m	4,723	5,239	10.9
Fixed Assets	Rs m	2,569	2,656	3.4
Total Assets	Rs m	7,293	7,895	8.3

NATH BIO GENES Cash Flow Statement Analysis

• NATH BIO GENES's cash flow from operating activities (CFO) during FY21 stood at Rs 11 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -103 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 164 million, an improvement of 195% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 72 million from the Rs 6 million net cash flows seen during FY20.

NATH BIO GENES 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	95	11	-88.3%
Cash Flow from Investing Activities	Rs m	-144	-103	-
Cash Flow from Financing Activities	Rs m	56	164	194.8%
Net Cash Flow	Rs m	6	72	1,095.2%

Current Valuations for NATH BIO GENES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 29.3, an improvement from the EPS of Rs 26.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 299.9, stands at 10.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 9.0 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	147.3	161.9
TTM Earnings per share	Rs	26.6	29.3
Diluted earnings per share	Rs	26.6	29.3
Price to Cash Flow	x	5.0	9.0
TTM P/E ratio	x	5.1	10.2
Price / Book Value ratio	x	1.0	0.9
Market Cap	Rs m	5,798	5,253
Dividends per share (Unadj.)	Rs	0.0	2.0

Ratio Analysis for NATH BIO GENES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.0x during FY21, from 2.8x 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 deteriorated and stood at 7.4x during FY21, from 8.3x 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 9.1% during FY21, from 9.1% 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 10.7% during FY21, from 9.9% 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 8.2% during FY21, from 7.8% 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	2.8	3.0
Debtors’ Days	Days	139,533,671	129,822,546
Interest coverage	x	8.3	7.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.8	8.2
Return on equity	%	9.1	9.1
Return on capital employed	%	9.9	10.7

To see how NATH BIO GENES has performed over the last 5 years, please visit here.

NATH BIO GENES Share Price Performance

Over the last one year, NATH BIO GENES share price has moved up from Rs 136.1 to Rs 299.9, registering a gain of Rs 163.8 or around 120.4%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for NATH BIO GENES and quarterly results for NATH BIO GENES)

Read: Latest Annual Report Analysis of NATH BIO GENES