IOL CHEMICALS & PHARM. 2020-21 Annual Report Analysis
Mon, 6 Sep

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 18.9% in FY20 to 22.3% 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 % 18.9 22.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



FREE REPLAY: Discover What Richa Revealed in Her Smallcaps Summit

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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 559.7, stands at 8.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 1.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.8 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 8.0 6.8
TTM P/E ratio x 8.3 8.6
Price / Book Value ratio x 1.6 2.5
Market Cap Rs m 31,837 32,855
Dividends per share (Unadj.) Rs 3.0 6.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 down from Rs 751.6 to Rs 559.7, registering a loss of Rs 192.0 or around 25.5%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 26,760.0 (up 0.0%). Over the last one year it has moved up from 18,734.2 to 26,760.0, a gain of 8,026 points (up 42.8%).

Overall, the S&P BSE SENSEX is up 49.2% over the year.

(To know more, check out historical annual results for IOL CHEMICALS & PHARM. and quarterly results for IOL CHEMICALS & PHARM.)