NEULAND LABS 2019-20 Annual Report Analysis

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NEULAND LABS 2019-20 Annual Report Analysis
Wed, 2 Sep

NEULAND LABS has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

NEULAND LABS Income Statement Analysis

  • Operating income during the year rose 14.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 74.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.4% in FY20 as against 8.8% in FY19.
  • Depreciation charges increased by 21.0% and finance costs increased by 37.7% YoY, respectively.
  • Other income grew by 11.3% YoY.
  • Net profit for the year declined by 1.4% YoY.
  • Net profit margins during the year declined from 2.5% in FY19 to 2.1% in FY20.

NEULAND LABS Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 6,668 7,627 14.4%
Other income Rs m 35 39 11.3%
Total Revenues Rs m 6,703 7,666 14.4%
Gross profit Rs m 584 1,019 74.6%
Depreciation Rs m 259 313 21.0%
Interest Rs m 157 216 37.7%
Profit before tax Rs m 203 529 160.2%
Tax Rs m 39 367 842.5%
Profit after tax Rs m 164 162 -1.4%
Gross profit margin % 8.8 13.4
Effective tax rate % 19.1 69.4
Net profit margin % 2.5 2.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Know More: Which way are the markets & the mutual fund industry headed?

NEULAND LABS Balance Sheet Analysis

  • The company's current liabilities during FY20 stood at Rs 4 billion as compared to Rs 3 billion in FY19, thereby witnessing an increase of 9.4%.
  • Long-term debt stood at Rs 774 million as compared to Rs 607 million during FY19, a growth of 27.4%.
  • Current assets rose 14% and stood at Rs 5 billion, while fixed assets rose 8% and stood at Rs 4 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 12 billion as against Rs 11 billion during FY19, thereby witnessing a growth of 9%.

NEULAND LABS Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 6,993 7,100 1.5
 
Current Liabilities Rs m 3,270 3,576 9.4
Long-term Debt Rs m 607 774 27.4
Total Liabilities Rs m 11,304 12,310 8.9
 
Current assets Rs m 4,535 5,152 13.6
Fixed Assets Rs m 3,665 3,969 8.3
Total Assets Rs m 11,304 12,310 8.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



NEULAND LABS Cash Flow Statement Analysis

  • NEULAND LABS's cash flow from operating activities (CFO) during FY20 stood at Rs 573 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -487 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -55 million on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs 33 million from the Rs 47 million net cash flows seen during FY19.

NEULAND LABS Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 699 573 -18.0%
Cash Flow from Investing Activities Rs m -772 -487 -
Cash Flow from Financing Activities Rs m 120 -55 -
Net Cash Flow Rs m 47 33 -29.9%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for NEULAND LABS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.6, an decline from the EPS of Rs 12.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,011.1, stands at 51.2 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 0.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 27.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 519.7 594.5
TTM Earnings per share Rs 12.8 12.6
Diluted earnings per share Rs 12.8 12.6
Price to Cash Flow x 30.7 27.3
TTM P/E ratio x 51.2 51.2
Price / Book Value ratio x 1.2 0.9
Market Cap Rs m 12,972 12,971
Dividends per share (Unadj.) Rs 1.2 2.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for NEULAND LABS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.4x during FY20, from 1.4x during FY19. 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 3.5x during FY20, from 2.3x during FY19. 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 2.3% during FY20, from 2.4% during FY20. 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 9.5% during FY20, from 4.7% during FY19. 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 3.1% during FY20, from 2.8% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 1.4 1.4
Debtors’ Days Days 90 91
Interest coverage x 2.3 3.5
Debt to equity ratio x 0.1 0.1
Return on assets % 2.8 3.1
Return on equity % 2.4 2.3
Return on capital employed % 4.7 9.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

NEULAND LABS Share Price Performance

Over the last one year, NEULAND LABS share price has moved up from Rs 461.3 to Rs 1,011.1, registering a gain of Rs 549.8 or around 119.2%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 18,890.8 (up 0.8%). Over the last one year it has moved up from 12,875.4 to 18,890.8, a gain of 6,015 points (up 46.7%).

Overall, the S&P BSE SENSEX is up 6.9% over the year.

(To know more, check out historical annual results for NEULAND LABS and quarterly results for NEULAND LABS)

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