SYNGENE INTERNATIONAL 2020-21 Annual Report Analysis

Wed, 31 Mar

SYNGENE INTERNATIONAL 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.

SYNGENE INTERNATIONAL Income Statement Analysis

• Operating income during the year rose 8.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 31.5% in FY21 as against 33.5% in FY20.
• Depreciation charges increased by 25.2% and finance costs decreased by 19.9% YoY, respectively.
• Other income declined by 13.3% YoY.
• Net profit for the year declined by 1.7% YoY.
• Net profit margins during the year declined from 20.5% in FY20 to 18.5% in FY21.

SYNGENE INTERNATIONAL Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	20,119	21,843	8.6%
Other income	Rs m	961	833	-13.3%
Total Revenues	Rs m	21,080	22,676	7.6%
Gross profit	Rs m	6,747	6,881	2.0%
Depreciation	Rs m	2,193	2,745	25.2%
Interest	Rs m	346	277	-19.9%
Profit before tax	Rs m	5,169	4,692	-9.2%
Tax	Rs m	1,048	643	-38.6%
Profit after tax	Rs m	4,121	4,049	-1.7%
Gross profit margin	%	33.5	31.5
Effective tax rate	%	20.3	13.7
Net profit margin	%	20.5	18.5

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SYNGENE INTERNATIONAL Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 11 billion as compared to Rs 15 billion in FY20, thereby witnessing an decrease of -26.4%.
• Long-term debt stood at Rs 5 billion as compared to Rs 0 million during FY20, a fall of 0.0%.
• Current assets rose 12% and stood at Rs 18 billion, while fixed assets rose 23% and stood at Rs 30 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 48 billion as against Rs 40 billion during FY20, thereby witnessing a growth of 19%.

SYNGENE INTERNATIONAL Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	21,369	27,444	28.4
Current Liabilities	Rs m	15,392	11,330	-26.4
Long-term Debt	Rs m	0	5,124	0.0
Total Liabilities	Rs m	40,402	47,941	18.7
Current assets	Rs m	16,126	18,067	12.0
Fixed Assets	Rs m	24,276	29,874	23.1
Total Assets	Rs m	40,402	47,941	18.7

SYNGENE INTERNATIONAL Cash Flow Statement Analysis

• SYNGENE INTERNATIONAL's cash flow from operating activities (CFO) during FY21 stood at Rs 7 billion, an improvement of 3.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -6 billion, an improvement of 46.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 580 million, an improvement of 126% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 1 billion from the Rs 278 million net cash flows seen during FY20.

SYNGENE INTERNATIONAL 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	6,771	7,012	3.6%
Cash Flow from Investing Activities	Rs m	-4,284	-6,281	-
Cash Flow from Financing Activities	Rs m	-2,255	580	-
Net Cash Flow	Rs m	278	1,303	368.7%

Current Valuations for SYNGENE INTERNATIONAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.1, an decline from the EPS of Rs 10.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 543.4, stands at 53.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.9 times, while the price to sales ratio stands at 10.0 times.
• The company's price to cash flow (P/CF) ratio stood at 25.7 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	50.3	54.6
TTM Earnings per share	Rs	10.3	10.1
Diluted earnings per share	Rs	10.3	10.1
Price to Cash Flow	x	15.4	25.7
TTM P/E ratio	x	23.5	53.9
Price / Book Value ratio	x	8.5	6.4
Market Cap	Rs m	180,820	174,930
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SYNGENE INTERNATIONAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY21, from 1.0x 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 17.9x during FY21, from 15.9x 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 14.8% during FY21, from 19.3% 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 15.3% during FY21, from 25.8% 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 9.0% during FY21, from 11.1% 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	1.0	1.6
Debtors’ Days	Days	72	57
Interest coverage	x	15.9	17.9
Debt to equity ratio	x	0.0	0.2
Return on assets	%	11.1	9.0
Return on equity	%	19.3	14.8
Return on capital employed	%	25.8	15.3

To see how SYNGENE INTERNATIONAL has performed over the last 5 years, please visit here.

SYNGENE INTERNATIONAL Share Price Performance

Over the last one year, SYNGENE INTERNATIONAL share price has moved up from Rs 241.6 to Rs 543.4, registering a gain of Rs 301.8 or around 124.9%.

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 SYNGENE INTERNATIONAL and quarterly results for SYNGENE INTERNATIONAL)

Read: Latest Annual Report Analysis of SYNGENE INTERNATIONAL