THYROCARE TECHNOLOGIES 2020-21 Annual Report Analysis

Wed, 31 Mar

THYROCARE TECHNOLOGIES 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.

THYROCARE TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 13.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 34.6% in FY21 as against 38.5% in FY20.
• Depreciation charges decreased by 5.1% and finance costs decreased by 53.0% YoY, respectively.
• Other income grew by 86.4% YoY.
• Net profit for the year grew by 28.8% YoY.
• Net profit margins during the year grew from 20.2% in FY20 to 22.9% in FY21.

THYROCARE TECHNOLOGIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	4,343	4,946	13.9%
Other income	Rs m	67	124	86.4%
Total Revenues	Rs m	4,409	5,071	15.0%
Gross profit	Rs m	1,670	1,713	2.6%
Depreciation	Rs m	319	303	-5.1%
Interest	Rs m	19	9	-53.0%
Profit before tax	Rs m	1,399	1,525	9.0%
Tax	Rs m	520	393	-24.4%
Profit after tax	Rs m	879	1,132	28.8%
Gross profit margin	%	38.5	34.6
Effective tax rate	%	37.2	25.8
Net profit margin	%	20.2	22.9

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THYROCARE TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 951 million as compared to Rs 817 million in FY20, thereby witnessing an increase of 16.4%.
• Current assets rose 56% and stood at Rs 2 billion, while fixed assets fell 5% and stood at Rs 3 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 5 billion as against Rs 5 billion during FY20, thereby witnessing a growth of 15%.

THYROCARE TECHNOLOGIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	3,629	4,243	16.9
Current Liabilities	Rs m	817	951	16.4
Long-term Debt	Rs m	25	0	-100.0
Total Liabilities	Rs m	4,689	5,402	15.2
Current assets	Rs m	1,523	2,381	56.4
Fixed Assets	Rs m	3,166	3,020	-4.6
Total Assets	Rs m	4,689	5,402	15.2

THYROCARE TECHNOLOGIES Cash Flow Statement Analysis

• THYROCARE TECHNOLOGIES's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -502 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -616 million, an improvement of 63% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 42 million from the Rs 41 million net cash flows seen during FY20.

THYROCARE TECHNOLOGIES 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	1,679	1,160	-30.9%
Cash Flow from Investing Activities	Rs m	10	-502	-
Cash Flow from Financing Activities	Rs m	-1,648	-616	-
Net Cash Flow	Rs m	41	42	4.7%

Current Valuations for THYROCARE TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.4, an improvement from the EPS of Rs 16.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 903.0, stands at 42.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.3 times, while the price to sales ratio stands at 9.7 times.
• The company's price to cash flow (P/CF) ratio stood at 31.3 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	82.2	93.6
TTM Earnings per share	Rs	16.6	21.4
Diluted earnings per share	Rs	16.6	21.4
Price to Cash Flow	x	21.9	31.3
TTM P/E ratio	x	29.8	42.1
Price / Book Value ratio	x	8.0	10.6
Market Cap	Rs m	28,955	44,869
Dividends per share (Unadj.)	Rs	5.0	25.0

Ratio Analysis for THYROCARE TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY21, from 1.9x 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 176.3x during FY21, from 76.6x 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 26.7% during FY21, from 24.2% 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 36.2% during FY21, from 38.8% 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 improved and stood at 21.1% during FY21, from 19.1% 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	1.9	2.5
Debtors’ Days	Days	1	3
Interest coverage	x	76.6	176.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	19.1	21.1
Return on equity	%	24.2	26.7
Return on capital employed	%	38.8	36.2

To see how THYROCARE TECHNOLOGIES has performed over the last 5 years, please visit here.

THYROCARE TECHNOLOGIES Share Price Performance

Over the last one year, THYROCARE TECHNOLOGIES share price has moved up from Rs 495.6 to Rs 903.0, registering a gain of Rs 407.4 or around 82.2%.

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 THYROCARE TECHNOLOGIES and quarterly results for THYROCARE TECHNOLOGIES)

Read: Latest Annual Report Analysis of THYROCARE TECHNOLOGIES