IOL CHEMICALS & PHARM. 2020-21 Annual Report Analysis

Wed, 31 Mar

IOL CHEMICALS & PHARM. 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.

IOL CHEMICALS & PHARM. Income Statement Analysis

• Operating income during the year rose 3.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 3.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 30.1% in FY21 as against 30.3% in FY20.
• Depreciation charges increased by 8.9% and finance costs decreased by 72.1% YoY, respectively.
• Other income grew by 51.7% YoY.
• Net profit for the year grew by 23.0% YoY.
• Net profit margins during the year grew from 19.1% in FY20 to 22.6% in FY21.

IOL CHEMICALS & PHARM. Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	18,945	19,670	3.8%
Other income	Rs m	160	243	51.7%
Total Revenues	Rs m	19,105	19,913	4.2%
Gross profit	Rs m	5,739	5,918	3.1%
Depreciation	Rs m	357	389	8.9%
Interest	Rs m	209	58	-72.1%
Profit before tax	Rs m	5,332	5,714	7.2%
Tax	Rs m	1,720	1,268	-26.2%
Profit after tax	Rs m	3,613	4,446	23.0%
Gross profit margin	%	30.3	30.1
Effective tax rate	%	32.2	22.2
Net profit margin	%	19.1	22.6

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IOL CHEMICALS & PHARM. Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 4 billion as compared to Rs 5 billion in FY20, thereby witnessing an decrease of -4.6%.
• Current assets rose 37% and stood at Rs 12 billion, while fixed assets rose 18% and stood at Rs 6 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 18 billion as against Rs 13 billion during FY20, thereby witnessing a growth of 30%.

IOL CHEMICALS & PHARM. Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	8,042	12,604	56.7
Current Liabilities	Rs m	4,536	4,328	-4.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	13,469	17,523	30.1
Current assets	Rs m	8,479	11,645	37.3
Fixed Assets	Rs m	4,990	5,878	17.8
Total Assets	Rs m	13,469	17,523	30.1

IOL CHEMICALS & PHARM. Cash Flow Statement Analysis

• IOL CHEMICALS & PHARM.'s cash flow from operating activities (CFO) during FY21 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -3 billion, an improvement of 72.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -583 million, an improvement of 79% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 43 million from the Rs 147 million net cash flows seen during FY20.

IOL CHEMICALS & PHARM. 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	4,708	3,798	-19.3%
Cash Flow from Investing Activities	Rs m	-1,842	-3,173	-
Cash Flow from Financing Activities	Rs m	-2,719	-583	-
Net Cash Flow	Rs m	147	43	-71.0%

Current Valuations for IOL CHEMICALS & PHARM.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 75.7, an improvement from the EPS of Rs 63.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 550.6, stands at 7.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 6.5 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	333.0	335.0
TTM Earnings per share	Rs	63.5	75.7
Diluted earnings per share	Rs	61.5	75.7
Price to Cash Flow	x	2.6	6.5
TTM P/E ratio	x	2.9	7.3
Price / Book Value ratio	x	1.6	2.5
Market Cap	Rs m	13,202	31,493
Dividends per share (Unadj.)	Rs	3.0	6.0

Ratio Analysis for IOL CHEMICALS & PHARM.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.7x 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 99.0x during FY21, from 26.5x 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 35.3% during FY21, from 44.9% 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 45.8% during FY21, from 68.9% 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 25.7% during FY21, from 28.4% 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	1.9	2.7
Debtors’ Days	Days	5	6
Interest coverage	x	26.5	99.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	28.4	25.7
Return on equity	%	44.9	35.3
Return on capital employed	%	68.9	45.8

To see how IOL CHEMICALS & PHARM. has performed over the last 5 years, please visit here.

IOL CHEMICALS & PHARM. Share Price Performance

Over the last one year, IOL CHEMICALS & PHARM. share price has moved up from Rs 176.2 to Rs 550.6, registering a gain of Rs 374.5 or around 212.6%.

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 IOL CHEMICALS & PHARM. and quarterly results for IOL CHEMICALS & PHARM.)

Read: Latest Annual Report Analysis of IOL CHEMICALS & PHARM.