MARKSANS PHARMA. 2020-21 Annual Report Analysis

Wed, 31 Mar

MARKSANS PHARMA. 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.

MARKSANS PHARMA. Income Statement Analysis

• Operating income during the year rose 21.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 76.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 24.7% in FY21 as against 17.0% in FY20.
• Depreciation charges increased by 35.6% and finance costs decreased by 8.7% YoY, respectively.
• Other income grew by 1940.9% YoY.
• Net profit for the year grew by 97.5% YoY.
• Net profit margins during the year grew from 10.6% in FY20 to 17.3% in FY21.

MARKSANS PHARMA. Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	11,342	13,762	21.3%
Other income	Rs m	3	67	1,940.9%
Total Revenues	Rs m	11,345	13,829	21.9%
Gross profit	Rs m	1,923	3,396	76.6%
Depreciation	Rs m	267	362	35.6%
Interest	Rs m	87	80	-8.7%
Profit before tax	Rs m	1,572	3,022	92.3%
Tax	Rs m	364	636	74.7%
Profit after tax	Rs m	1,208	2,385	97.5%
Gross profit margin	%	17.0	24.7
Effective tax rate	%	23.2	21.1
Net profit margin	%	10.6	17.3

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MARKSANS PHARMA. Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 3 billion as compared to Rs 2 billion in FY20, thereby witnessing an increase of 30.4%.
• Current assets rose 52% and stood at Rs 9 billion, while fixed assets rose 5% and stood at Rs 3 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 12 billion as against Rs 9 billion during FY20, thereby witnessing a growth of 36%.

MARKSANS PHARMA. Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	6,360	8,865	39.4
Current Liabilities	Rs m	2,288	2,984	30.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	9,020	12,275	36.1
Current assets	Rs m	5,936	9,023	52.0
Fixed Assets	Rs m	3,084	3,252	5.4
Total Assets	Rs m	9,020	12,275	36.1

MARKSANS PHARMA. Cash Flow Statement Analysis

• MARKSANS PHARMA.'s cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -449 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -153 million, an improvement of 87% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 1 billion from the Rs 602 million net cash flows seen during FY20.

MARKSANS PHARMA. 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	2,333	1,787	-23.4%
Cash Flow from Investing Activities	Rs m	-596	-449	-
Cash Flow from Financing Activities	Rs m	-1,136	-153	-
Net Cash Flow	Rs m	602	1,186	97.0%

Current Valuations for MARKSANS PHARMA.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.8, an improvement from the EPS of Rs 3.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 50.0, stands at 8.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 5.9 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	27.7	33.6
TTM Earnings per share	Rs	3.0	5.8
Diluted earnings per share	Rs	3.0	5.8
Price to Cash Flow	x	3.9	5.9
TTM P/E ratio	x	4.7	8.6
Price / Book Value ratio	x	1.2	1.8
Market Cap	Rs m	7,521	16,188
Dividends per share (Unadj.)	Rs	0.1	0.3

Ratio Analysis for MARKSANS PHARMA.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.0x during FY21, from 2.6x 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 38.8x during FY21, from 19.0x 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 26.9% during FY21, from 19.0% 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 35.0% during FY21, from 26.1% 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 20.1% during FY21, from 14.4% 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	2.6	3.0
Debtors’ Days	Days	78,313,067	71,977,516
Interest coverage	x	19.0	38.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.4	20.1
Return on equity	%	19.0	26.9
Return on capital employed	%	26.1	35.0

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

MARKSANS PHARMA. Share Price Performance

Over the last one year, MARKSANS PHARMA. share price has moved up from Rs 13.9 to Rs 50.0, registering a gain of Rs 36.1 or around 259.4%.

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 MARKSANS PHARMA. and quarterly results for MARKSANS PHARMA.)

Read: Latest Annual Report Analysis of MARKSANS PHARMA.