STRIDES PHARMA SCIENCE 2020-21 Annual Report Analysis

Wed, 31 Mar

STRIDES PHARMA SCIENCE 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.

STRIDES PHARMA SCIENCE Income Statement Analysis

• Operating income during the year rose 11.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 54.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.2% in FY21 as against 14.5% in FY20.
• Depreciation charges increased by 9.8% and finance costs decreased by 3.6% YoY, respectively.
• Other income grew by 10.0% YoY.
• Net profit for the year grew by 158.0% YoY.
• Net profit margins during the year grew from 4.6% in FY20 to 10.7% in FY21.

STRIDES PHARMA SCIENCE Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	29,811	33,159	11.2%
Other income	Rs m	667	734	10.0%
Total Revenues	Rs m	30,478	33,893	11.2%
Gross profit	Rs m	4,325	6,702	54.9%
Depreciation	Rs m	1,878	2,063	9.8%
Interest	Rs m	1,557	1,501	-3.6%
Profit before tax	Rs m	1,557	3,872	148.6%
Tax	Rs m	179	317	76.7%
Profit after tax	Rs m	1,378	3,555	158.0%
Gross profit margin	%	14.5	20.2
Effective tax rate	%	11.5	8.2
Net profit margin	%	4.6	10.7

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STRIDES PHARMA SCIENCE Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 27 billion as compared to Rs 25 billion in FY20, thereby witnessing an increase of 7.6%.
• Long-term debt stood at Rs 9 billion as compared to Rs 6 billion during FY20, a growth of 46.1%.
• Current assets rose 19% and stood at Rs 28 billion, while fixed assets rose 12% and stood at Rs 40 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 68 billion as against Rs 60 billion during FY20, thereby witnessing a growth of 15%.

STRIDES PHARMA SCIENCE Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	25,217	27,719	9.9
Current Liabilities	Rs m	25,449	27,383	7.6
Long-term Debt	Rs m	6,039	8,826	46.1
Total Liabilities	Rs m	59,532	68,168	14.5
Current assets	Rs m	23,721	28,172	18.8
Fixed Assets	Rs m	35,810	39,996	11.7
Total Assets	Rs m	59,532	68,168	14.5

STRIDES PHARMA SCIENCE Cash Flow Statement Analysis

• STRIDES PHARMA SCIENCE's cash flow from operating activities (CFO) during FY21 stood at Rs 5 billion, an improvement of 135.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -158 million, an improvement of 99% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -564 million from the Rs -2 billion net cash flows seen during FY20.

STRIDES PHARMA SCIENCE 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	2,048	4,814	135.1%
Cash Flow from Investing Activities	Rs m	13,062	-5,208	-
Cash Flow from Financing Activities	Rs m	-17,094	-158	-
Net Cash Flow	Rs m	-1,837	-564	-

Current Valuations for STRIDES PHARMA SCIENCE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 39.6, an improvement from the EPS of Rs 15.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 844.5, stands at 22.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 10.4 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	332.8	369.7
TTM Earnings per share	Rs	15.4	39.6
Diluted earnings per share	Rs	15.3	39.6
Price to Cash Flow	x	8.9	10.4
TTM P/E ratio	x	19.2	22.2
Price / Book Value ratio	x	1.5	2.1
Market Cap	Rs m	36,648	58,465
Dividends per share (Unadj.)	Rs	14.0	2.5

Ratio Analysis for STRIDES PHARMA SCIENCE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY21, from 0.9x 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 3.6x during FY21, from 2.0x 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 12.8% during FY21, from 5.5% 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 14.7% during FY21, from 10.0% 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 improved and stood at 7.4% during FY21, from 4.9% 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	0.9	1.0
Debtors’ Days	Days	114	122
Interest coverage	x	2.0	3.6
Debt to equity ratio	x	0.2	0.3
Return on assets	%	4.9	7.4
Return on equity	%	5.5	12.8
Return on capital employed	%	10.0	14.7

To see how STRIDES PHARMA SCIENCE has performed over the last 5 years, please visit here.

STRIDES PHARMA SCIENCE Share Price Performance

Over the last one year, STRIDES PHARMA SCIENCE share price has moved up from Rs 322.6 to Rs 844.5, registering a gain of Rs 522.0 or around 161.8%.

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 STRIDES PHARMA SCIENCE and quarterly results for STRIDES PHARMA SCIENCE)

Read: Latest Annual Report Analysis of STRIDES PHARMA SCIENCE