SYNGENE INTERNATIONAL 2021-22 Annual Report Analysis

Wed, 29 Jun

SYNGENE INTERNATIONAL has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

SYNGENE INTERNATIONAL Income Statement Analysis

• Operating income during the year rose 19.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 3.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 27.3% in FY22 as against 31.5% in FY21.
• Depreciation charges increased by 12.8% and finance costs decreased by 13.0% YoY, respectively.
• Other income grew by 30.1% YoY.
• Net profit for the year declined by 2.2% YoY.
• Net profit margins during the year declined from 18.5% in FY21 to 15.2% in FY22.

SYNGENE INTERNATIONAL Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	21,843	26,042	19.2%
Other income	Rs m	833	1,084	30.1%
Total Revenues	Rs m	22,676	27,126	19.6%
Gross profit	Rs m	6,881	7,098	3.2%
Depreciation	Rs m	2,745	3,097	12.8%
Interest	Rs m	277	241	-13.0%
Profit before tax	Rs m	4,692	4,844	3.2%
Tax	Rs m	643	886	37.8%
Profit after tax	Rs m	4,049	3,958	-2.2%
Gross profit margin	%	31.5	27.3
Effective tax rate	%	13.7	18.3
Net profit margin	%	18.5	15.2

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

SYNGENE INTERNATIONAL Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 12 billion as compared to Rs 11 billion in FY21, thereby witnessing an increase of 8.5%.
• Long-term debt stood at Rs 5 billion as compared to Rs 5 billion during FY21, a growth of 3.7%.
• Current assets rose 22% and stood at Rs 22 billion, while fixed assets rose 10% and stood at Rs 33 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 55 billion as against Rs 48 billion during FY21, thereby witnessing a growth of 15%.

SYNGENE INTERNATIONAL Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	27,444	32,101	17.0
Current Liabilities	Rs m	11,330	12,289	8.5
Long-term Debt	Rs m	5,124	5,315	3.7
Total Liabilities	Rs m	47,941	54,982	14.7
Current assets	Rs m	18,067	22,059	22.1
Fixed Assets	Rs m	29,874	32,923	10.2
Total Assets	Rs m	47,941	54,982	14.7

SYNGENE INTERNATIONAL Cash Flow Statement Analysis

• SYNGENE INTERNATIONAL's cash flow from operating activities (CFO) during FY22 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -6 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -313 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -615 million from the Rs 1 billion net cash flows seen during FY21.

SYNGENE INTERNATIONAL Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	7,012	5,806	-17.2%
Cash Flow from Investing Activities	Rs m	-6,281	-6,115	-
Cash Flow from Financing Activities	Rs m	580	-313	-
Net Cash Flow	Rs m	1,303	-615	-

Current Valuations for SYNGENE INTERNATIONAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.9, an decline from the EPS of Rs 10.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 570.9, stands at 57.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.1 times, while the price to sales ratio stands at 8.8 times.
• The company's price to cash flow (P/CF) ratio stood at 34.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	54.6	65.0
TTM Earnings per share	Rs	10.1	9.9
Diluted earnings per share	Rs	10.1	9.9
Price to Cash Flow	x	32.1	34.3
TTM P/E ratio	x	53.9	57.9
Price / Book Value ratio	x	6.4	7.5
Market Cap	Rs m	174,930	242,091
Dividends per share (Unadj.)	Rs	0.0	1.0

Ratio Analysis for SYNGENE INTERNATIONAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY22, from 1.6x during FY21. 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 21.1x during FY22, from 17.9x during FY21. 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 12.3% during FY22, from 14.8% during FY22. 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 13.6% during FY22, from 15.3% during FY21. 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 7.6% during FY22, from 9.0% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.6	1.8
Debtors’ Days	Days	79	71
Interest coverage	x	17.9	21.1
Debt to equity ratio	x	0.2	0.2
Return on assets	%	9.0	7.6
Return on equity	%	14.8	12.3
Return on capital employed	%	15.3	13.6

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 down from Rs 584.0 to Rs 570.9, registering a loss of Rs 13.2 or around 2.3%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,661.4 (down 0.3%). Over the last one year it has moved down from 25,548.3 to 21,661.4, a loss of 3,887 points (down 15.2%).

Overall, the S&P BSE SENSEX is up 0.6% 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