RPG LIFE SCIENCES 2020-21 Annual Report Analysis

Wed, 31 Mar

RPG LIFE SCIENCES 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.

RPG LIFE SCIENCES Income Statement Analysis

• Operating income during the year rose 3.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 29.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.2% in FY21 as against 14.5% in FY20.
• Depreciation charges increased by 0.7% and finance costs decreased by 35.1% YoY, respectively.
• Other income grew by 8.1% YoY.
• Net profit for the year grew by 37.9% YoY.
• Net profit margins during the year grew from 7.7% in FY20 to 10.3% in FY21.

RPG LIFE SCIENCES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	3,756	3,891	3.6%
Other income	Rs m	10	11	8.1%
Total Revenues	Rs m	3,766	3,902	3.6%
Gross profit	Rs m	546	708	29.7%
Depreciation	Rs m	164	165	0.7%
Interest	Rs m	28	18	-35.1%
Profit before tax	Rs m	365	536	47.0%
Tax	Rs m	74	136	82.5%
Profit after tax	Rs m	290	400	37.9%
Gross profit margin	%	14.5	18.2
Effective tax rate	%	20.4	25.3
Net profit margin	%	7.7	10.3

RPG LIFE SCIENCES Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 797 million as compared to Rs 826 million in FY20, thereby witnessing an decrease of -3.5%.
• Long-term debt down at Rs 7 million as compared to Rs 15 million during FY20, a fall of 51.3%.
• Current assets rose 40% and stood at Rs 2 billion, while fixed assets fell 4% and stood at Rs 1 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 3 billion as against Rs 3 billion during FY20, thereby witnessing a growth of 17%.

RPG LIFE SCIENCES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	1,766	2,165	22.6
Current Liabilities	Rs m	826	797	-3.5
Long-term Debt	Rs m	15	7	-51.3
Total Liabilities	Rs m	2,679	3,123	16.6
Current assets	Rs m	1,258	1,759	39.8
Fixed Assets	Rs m	1,421	1,365	-4.0
Total Assets	Rs m	2,679	3,123	16.6

RPG LIFE SCIENCES Cash Flow Statement Analysis

• RPG LIFE SCIENCES's cash flow from operating activities (CFO) during FY21 stood at Rs 583 million, an improvement of 16.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -80 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -105 million, an improvement of 73% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 398 million from the Rs 2 million net cash flows seen during FY20.

RPG LIFE SCIENCES 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	502	583	16.1%
Cash Flow from Investing Activities	Rs m	-107	-80	-
Cash Flow from Financing Activities	Rs m	-393	-105	-
Net Cash Flow	Rs m	2	398	23,323.5%

Current Valuations for RPG LIFE SCIENCES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.2, an improvement from the EPS of Rs 17.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 387.1, stands at 16.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 9.2 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	227.1	235.3
TTM Earnings per share	Rs	17.5	24.2
Diluted earnings per share	Rs	17.5	24.2
Price to Cash Flow	x	6.2	9.2
TTM P/E ratio	x	9.7	16.0
Price / Book Value ratio	x	2.3	2.4
Market Cap	Rs m	4,110	5,171
Dividends per share (Unadj.)	Rs	4.0	7.2

Ratio Analysis for RPG LIFE SCIENCES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY21, from 1.5x 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 30.9x during FY21, from 14.2x 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 18.5% during FY21, from 16.4% 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 25.5% during FY21, from 22.0% 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 13.4% during FY21, from 11.9% 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	1.5	2.2
Debtors’ Days	Days	615	539
Interest coverage	x	14.2	30.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.9	13.4
Return on equity	%	16.4	18.5
Return on capital employed	%	22.0	25.5

To see how RPG LIFE SCIENCES has performed over the last 5 years, please visit here.

RPG LIFE SCIENCES Share Price Performance

Over the last one year, RPG LIFE SCIENCES share price has moved up from Rs 170.5 to Rs 387.1, registering a gain of Rs 216.7 or around 127.1%.

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 RPG LIFE SCIENCES and quarterly results for RPG LIFE SCIENCES)

Read: Latest Annual Report Analysis of RPG LIFE SCIENCES