NECTAR LIFESCIENCE 2020-21 Annual Report Analysis

Wed, 31 Mar

NECTAR LIFESCIENCE 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.

NECTAR LIFESCIENCE Income Statement Analysis

• Operating income during the year fell 36.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 65.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.8% in FY21 as against 10.5% in FY20.
• Depreciation charges decreased by 0.8% and finance costs decreased by 11.0% YoY, respectively.
• Other income grew by 161.0% YoY.
• Net profit for the year declined by 330.5% YoY.
• Net profit margins during the year declined from 1.5% in FY20 to 5.5% in FY21.

NECTAR LIFESCIENCE Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	20,899	13,229	-36.7%
Other income	Rs m	44	114	161.0%
Total Revenues	Rs m	20,943	13,342	-36.3%
Gross profit	Rs m	2,197	761	-65.3%
Depreciation	Rs m	608	603	-0.8%
Interest	Rs m	1,258	1,120	-11.0%
Profit before tax	Rs m	375	-848	-326.2%
Tax	Rs m	57	-115	-302.4%
Profit after tax	Rs m	318	-733	-330.5%
Gross profit margin	%	10.5	5.8
Effective tax rate	%	15.2	13.6
Net profit margin	%	1.5	-5.5

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NECTAR LIFESCIENCE Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 12 billion as compared to Rs 12 billion in FY20, thereby witnessing an decrease of -4.8%.
• Long-term debt stood at Rs 1 billion as compared to Rs 1 billion during FY20, a growth of 5.6%.
• Current assets fell 23% and stood at Rs 12 billion, while fixed assets rose 21% and stood at Rs 12 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 25 billion as against Rs 26 billion during FY20, thereby witnessing a fall of 6%.

NECTAR LIFESCIENCE Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	11,361	10,620	-6.5
Current Liabilities	Rs m	12,479	11,874	-4.8
Long-term Debt	Rs m	1,215	1,282	5.6
Total Liabilities	Rs m	26,333	24,711	-6.2
Current assets	Rs m	16,152	12,388	-23.3
Fixed Assets	Rs m	10,181	12,323	21.0
Total Assets	Rs m	26,333	24,711	-6.2

NECTAR LIFESCIENCE Cash Flow Statement Analysis

• NECTAR LIFESCIENCE's cash flow from operating activities (CFO) during FY21 stood at Rs 214 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -286 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 115 million, an improvement of 105% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 42 million from the Rs 0 million net cash flows seen during FY20.

NECTAR LIFESCIENCE 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	2,850	214	-92.5%
Cash Flow from Investing Activities	Rs m	-331	-286	-
Cash Flow from Financing Activities	Rs m	-2,519	115	-
Net Cash Flow	Rs m	0	42	-

Current Valuations for NECTAR LIFESCIENCE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.3, an decline from the EPS of Rs 1.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 18.6, stands at -5.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at -34.2 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	93.2	59.0
TTM Earnings per share	Rs	1.4	-3.3
Diluted earnings per share	Rs	1.4	-3.3
Price to Cash Flow	x	2.4	-34.2
TTM P/E ratio	x	7.0	-5.7
Price / Book Value ratio	x	0.3	0.4
Market Cap	Rs m	3,145	4,452
Dividends per share (Unadj.)	Rs	0.1	0.0

Ratio Analysis for NECTAR LIFESCIENCE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY21, from 1.3x 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 0.2x during FY21, from 1.3x 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 declined and down at -6.9% during FY21, from 2.8% 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 declined and down at 2.3% during FY21, from 13.0% 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 declined and down at 1.6% during FY21, from 6.0% 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	1.3	1.0
Debtors’ Days	Days	69	103
Interest coverage	x	1.3	0.2
Debt to equity ratio	x	0.1	0.1
Return on assets	%	6.0	1.6
Return on equity	%	2.8	-6.9
Return on capital employed	%	13.0	2.3

To see how NECTAR LIFESCIENCE has performed over the last 5 years, please visit here.

NECTAR LIFESCIENCE Share Price Performance

Over the last one year, NECTAR LIFESCIENCE share price has moved up from Rs 9.9 to Rs 18.6, registering a gain of Rs 8.7 or around 88.1%.

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 NECTAR LIFESCIENCE and quarterly results for NECTAR LIFESCIENCE)

Read: Latest Annual Report Analysis of NECTAR LIFESCIENCE