NATH BIO GENES 2021-22 Annual Report Analysis

Tue, 14 Jun

NATH BIO GENES has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

NATH BIO GENES Income Statement Analysis

• Operating income during the year fell 9.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 177.2% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 18.5% in FY22 as against 21.7% in FY21.
• Depreciation charges increased by 9.5% and finance costs increased by 20.1% YoY, respectively.
• Other income grew by 11.1% YoY.
• Net profit for the year declined by 221.0% YoY.
• Net profit margins during the year declined from 18.1% in FY21 to 24.2% in FY22.

NATH BIO GENES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	3,076	2,784	-9.5%
Other income	Rs m	17	19	11.1%
Total Revenues	Rs m	3,092	2,802	-9.4%
Gross profit	Rs m	668	-515	-177.2%
Depreciation	Rs m	28	31	9.5%
Interest	Rs m	89	106	20.1%
Profit before tax	Rs m	568	-634	-211.7%
Tax	Rs m	11	40	262.6%
Profit after tax	Rs m	557	-673	-221.0%
Gross profit margin	%	21.7	-18.5
Effective tax rate	%	1.9	-6.2
Net profit margin	%	18.1	-24.2

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NATH BIO GENES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 2 billion as compared to Rs 2 billion in FY21, thereby witnessing an increase of 13.7%.
• Long-term debt stood at Rs 7 million as compared to Rs 7 million during FY21, a growth of 1.8%.
• Current assets fell 12% and stood at Rs 5 billion, while fixed assets rose 7% and stood at Rs 3 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 7 billion as against Rs 8 billion during FY21, thereby witnessing a fall of 6%.

NATH BIO GENES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	6,133	5,420	-11.6
Current Liabilities	Rs m	1,730	1,967	13.7
Long-term Debt	Rs m	7	7	1.8
Total Liabilities	Rs m	7,895	7,419	-6.0
Current assets	Rs m	5,361	4,702	-12.3
Fixed Assets	Rs m	2,534	2,717	7.2
Total Assets	Rs m	7,895	7,419	-6.0

NATH BIO GENES Cash Flow Statement Analysis

• NATH BIO GENES's cash flow from operating activities (CFO) during FY22 stood at Rs 170 million, an improvement of 1,431.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -199 million, an improvement of 93.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -222 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -250 million from the Rs 72 million net cash flows seen during FY21.

NATH BIO GENES Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	11	170	1,431.5%
Cash Flow from Investing Activities	Rs m	-103	-199	-
Cash Flow from Financing Activities	Rs m	164	-222	-
Net Cash Flow	Rs m	72	-250	-

Current Valuations for NATH BIO GENES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -35.4, an decline from the EPS of Rs 29.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 177.0, stands at -5.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at -9.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	161.9	146.5
TTM Earnings per share	Rs	29.3	-35.4
Diluted earnings per share	Rs	29.3	-35.4
Price to Cash Flow	x	9.7	-9.9
TTM P/E ratio	x	10.2	-5.0
Price / Book Value ratio	x	0.9	1.2
Market Cap	Rs m	5,253	6,341
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for NATH BIO GENES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.4x during FY22, from 3.1x during FY21. 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 -5.0x during FY22, from 7.4x during FY21. 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 -12.4% during FY22, from 9.1% during FY22. 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 declined and down at -9.7% during FY22, from 10.7% during FY21. 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 declined and down at -7.6% during FY22, from 8.2% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	3.1	2.4
Debtors’ Days	Days	1,298	1,153
Interest coverage	x	7.4	-5.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.2	-7.6
Return on equity	%	9.1	-12.4
Return on capital employed	%	10.7	-9.7

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 down from Rs 403.4 to Rs 177.0, registering a loss of Rs 226.4 or around 56.1%.

Overall, the S&P BSE SENSEX is up 1.0% 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