VENUS REMEDIES 2020-21 Annual Report Analysis

Wed, 31 Mar

VENUS REMEDIES 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.

VENUS REMEDIES Income Statement Analysis

• Operating income during the year rose 61.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 141.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.1% in FY21 as against 9.4% in FY20.
• Depreciation charges increased by 10.2% and finance costs decreased by 2.4% YoY, respectively.
• Other income grew by 269.8% YoY.
• Net profit for the year declined by 717.7% YoY.
• Net profit margins during the year grew from 2.9% in FY20 to 11.3% in FY21.

VENUS REMEDIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	3,393	5,481	61.5%
Other income	Rs m	53	196	269.8%
Total Revenues	Rs m	3,446	5,678	64.7%
Gross profit	Rs m	320	772	141.3%
Depreciation	Rs m	320	353	10.2%
Interest	Rs m	133	130	-2.4%
Profit before tax	Rs m	-80	486	-704.3%
Tax	Rs m	20	-132	-772.7%
Profit after tax	Rs m	-100	618	-717.7%
Gross profit margin	%	9.4	14.1
Effective tax rate	%	-24.4	-27.2
Net profit margin	%	-2.9	11.3

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VENUS REMEDIES Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 974 million as compared to Rs 2 billion in FY20, thereby witnessing an decrease of -56.6%.
• Long-term debt down at Rs 468 million as compared to Rs 721 million during FY20, a fall of 35.0%.
• Current assets fell 21% and stood at Rs 2 billion, while fixed assets fell 7% and stood at Rs 3 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 6 billion as against Rs 6 billion during FY20, thereby witnessing a fall of 14%.

VENUS REMEDIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	3,234	3,865	19.5
Current Liabilities	Rs m	2,246	974	-56.6
Long-term Debt	Rs m	721	468	-35.0
Total Liabilities	Rs m	6,438	5,559	-13.7
Current assets	Rs m	2,940	2,316	-21.2
Fixed Assets	Rs m	3,498	3,243	-7.3
Total Assets	Rs m	6,438	5,559	-13.7

VENUS REMEDIES Cash Flow Statement Analysis

• VENUS REMEDIES's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion, an improvement of 70.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 557 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 269 million from the Rs -1 million net cash flows seen during FY20.

VENUS REMEDIES 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	776	1,326	70.9%
Cash Flow from Investing Activities	Rs m	-47	557	-
Cash Flow from Financing Activities	Rs m	-730	-1,622	-
Net Cash Flow	Rs m	-1	269	-

Current Valuations for VENUS REMEDIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 50.1, an improvement from the EPS of Rs -8.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 274.6, stands at 5.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 2.1 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	275.0	444.2
TTM Earnings per share	Rs	-8.1	50.1
Diluted earnings per share	Rs	-7.5	46.2
Price to Cash Flow	x	1.4	2.1
TTM P/E ratio	x	-3.0	5.9
Price / Book Value ratio	x	0.1	0.5
Market Cap	Rs m	351	2,075
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for VENUS REMEDIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY21, from 1.3x 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 4.7x during FY21, from 0.4x 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 16.0% during FY21, from -3.1% 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 14.2% during FY21, from 1.3% 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 13.5% during FY21, from 0.5% 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	1.3	2.4
Debtors’ Days	Days	330	213
Interest coverage	x	0.4	4.7
Debt to equity ratio	x	0.2	0.1
Return on assets	%	0.5	13.5
Return on equity	%	-3.1	16.0
Return on capital employed	%	1.3	14.2

To see how VENUS REMEDIES has performed over the last 5 years, please visit here.

VENUS REMEDIES Share Price Performance

Over the last one year, VENUS REMEDIES share price has moved up from Rs 22.5 to Rs 274.6, registering a gain of Rs 252.1 or around 1120.4%.

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 VENUS REMEDIES and quarterly results for VENUS REMEDIES)

Read: Latest Annual Report Analysis of VENUS REMEDIES