SHILPA MEDICARE 2020-21 Annual Report Analysis

Wed, 31 Mar

SHILPA MEDICARE 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.

SHILPA MEDICARE Income Statement Analysis

• Operating income during the year fell 0.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 8.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 25.8% in FY21 as against 23.6% in FY20.
• Depreciation charges increased by 23.3% and finance costs increased by 379.8% YoY, respectively.
• Other income grew by 80.4% YoY.
• Net profit for the year declined by 4.5% YoY.
• Net profit margins during the year declined from 17.1% in FY20 to 16.4% in FY21.

SHILPA MEDICARE Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	9,079	9,011	-0.7%
Other income	Rs m	222	401	80.4%
Total Revenues	Rs m	9,301	9,412	1.2%
Gross profit	Rs m	2,145	2,325	8.4%
Depreciation	Rs m	438	540	23.3%
Interest	Rs m	46	219	379.8%
Profit before tax	Rs m	1,884	1,968	4.5%
Tax	Rs m	335	488	45.8%
Profit after tax	Rs m	1,549	1,479	-4.5%
Gross profit margin	%	23.6	25.8
Effective tax rate	%	17.8	24.8
Net profit margin	%	17.1	16.4

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SHILPA MEDICARE Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 6 billion as compared to Rs 4 billion in FY20, thereby witnessing an increase of 46.6%.
• Long-term debt stood at Rs 5 billion as compared to Rs 2 billion during FY20, a growth of 191.2%.
• Current assets rose 47% and stood at Rs 9 billion, while fixed assets rose 26% and stood at Rs 17 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 26 billion as against Rs 20 billion during FY20, thereby witnessing a growth of 33%.

SHILPA MEDICARE Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	13,294	14,787	11.2
Current Liabilities	Rs m	4,108	6,022	46.6
Long-term Debt	Rs m	1,650	4,805	191.2
Total Liabilities	Rs m	19,892	26,376	32.6
Current assets	Rs m	6,239	9,181	47.2
Fixed Assets	Rs m	13,654	17,195	25.9
Total Assets	Rs m	19,892	26,376	32.6

SHILPA MEDICARE Cash Flow Statement Analysis

• SHILPA MEDICARE's cash flow from operating activities (CFO) during FY21 stood at Rs 471 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -4 billion, an improvement of 39.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 4 billion, an improvement of 149% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 790 million from the Rs 102 million net cash flows seen during FY20.

SHILPA MEDICARE 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	1,244	471	-62.2%
Cash Flow from Investing Activities	Rs m	-2,895	-4,043	-
Cash Flow from Financing Activities	Rs m	1,755	4,364	148.6%
Net Cash Flow	Rs m	102	790	676.0%

Current Valuations for SHILPA MEDICARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.1, an decline from the EPS of Rs 19.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 333.8, stands at 19.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 3.0 times.
• The company's price to cash flow (P/CF) ratio stood at 19.0 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	111.4	110.5
TTM Earnings per share	Rs	19.0	18.1
Diluted earnings per share	Rs	17.8	17.0
Price to Cash Flow	x	10.7	19.0
TTM P/E ratio	x	13.7	19.6
Price / Book Value ratio	x	2.2	2.6
Market Cap	Rs m	29,739	38,458
Dividends per share (Unadj.)	Rs	1.1	1.1

Ratio Analysis for SHILPA MEDICARE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x 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 deteriorated and stood at 10.0x during FY21, from 42.3x 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 10.0% during FY21, from 11.7% 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 11.2% during FY21, from 12.9% 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 6.4% during FY21, from 8.0% 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	1.5	1.5
Debtors’ Days	Days	992	902
Interest coverage	x	42.3	10.0
Debt to equity ratio	x	0.1	0.3
Return on assets	%	8.0	6.4
Return on equity	%	11.7	10.0
Return on capital employed	%	12.9	11.2

To see how SHILPA MEDICARE has performed over the last 5 years, please visit here.

SHILPA MEDICARE Share Price Performance

Over the last one year, SHILPA MEDICARE share price has moved up from Rs 244.5 to Rs 333.8, registering a gain of Rs 89.3 or around 36.5%.

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 SHILPA MEDICARE and quarterly results for SHILPA MEDICARE)

Read: Latest Annual Report Analysis of SHILPA MEDICARE