BIOCON 2020-21 Annual Report Analysis

Wed, 31 Mar

BIOCON 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.

BIOCON Income Statement Analysis

• Operating income during the year rose 12.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 0.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.5% in FY21 as against 21.0% in FY20.
• Depreciation charges increased by 29.5% and finance costs decreased by 11.1% YoY, respectively.
• Other income grew by 19.3% YoY.
• Net profit for the year grew by 2.8% YoY.
• Net profit margins during the year declined from 14.3% in FY20 to 13.0% in FY21.

BIOCON Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	63,005	71,058	12.8%
Other income	Rs m	5,075	6,052	19.3%
Total Revenues	Rs m	68,080	77,110	13.3%
Gross profit	Rs m	13,245	13,145	-0.8%
Depreciation	Rs m	5,522	7,151	29.5%
Interest	Rs m	649	577	-11.1%
Profit before tax	Rs m	12,149	11,469	-5.6%
Tax	Rs m	3,151	2,215	-29.7%
Profit after tax	Rs m	8,998	9,254	2.8%
Gross profit margin	%	21.0	18.5
Effective tax rate	%	25.9	19.3
Net profit margin	%	14.3	13.0

Don't Miss: Key Information for Long-term Investors

BIOCON Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 42 billion as compared to Rs 40 billion in FY20, thereby witnessing an increase of 5.0%.
• Long-term debt stood at Rs 30 billion as compared to Rs 12 billion during FY20, a growth of 142.3%.
• Current assets rose 43% and stood at Rs 76 billion, while fixed assets rose 21% and stood at Rs 106 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 182 billion as against Rs 141 billion during FY20, thereby witnessing a growth of 29%.

BIOCON Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	65,970	74,728	13.3
Current Liabilities	Rs m	40,080	42,101	5.0
Long-term Debt	Rs m	12,222	29,616	142.3
Total Liabilities	Rs m	140,758	182,146	29.4
Current assets	Rs m	53,250	76,004	42.7
Fixed Assets	Rs m	87,508	106,142	21.3
Total Assets	Rs m	140,758	182,146	29.4

BIOCON Cash Flow Statement Analysis

• BIOCON 's cash flow from operating activities (CFO) during FY21 stood at Rs 12 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -36 billion, an improvement of 132.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 26 billion, an improvement of 562% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 723 million from the Rs 2 billion net cash flows seen during FY20.

BIOCON 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	12,831	11,597	-9.6%
Cash Flow from Investing Activities	Rs m	-15,589	-36,247	-
Cash Flow from Financing Activities	Rs m	3,876	25,640	561.5%
Net Cash Flow	Rs m	1,654	723	-56.3%

Current Valuations for BIOCON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.7, an improvement from the EPS of Rs 7.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 408.8, stands at 53.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.6 times, while the price to sales ratio stands at 6.9 times.
• The company's price to cash flow (P/CF) ratio stood at 27.9 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	52.5	59.2
TTM Earnings per share	Rs	7.5	7.7
Diluted earnings per share	Rs	7.5	7.7
Price to Cash Flow	x	22.4	27.9
TTM P/E ratio	x	36.1	53.0
Price / Book Value ratio	x	7.7	6.1
Market Cap	Rs m	508,380	457,350
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BIOCON

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x 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 20.9x during FY21, from 19.7x 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 12.4% during FY21, from 13.6% 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 11.5% during FY21, from 16.4% 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 5.4% during FY21, from 6.9% 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	1.8
Debtors’ Days	Days	71	63
Interest coverage	x	19.7	20.9
Debt to equity ratio	x	0.2	0.4
Return on assets	%	6.9	5.4
Return on equity	%	13.6	12.4
Return on capital employed	%	16.4	11.5

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

BIOCON Share Price Performance

Over the last one year, BIOCON share price has moved up from Rs 270.6 to Rs 408.8, registering a gain of Rs 138.2 or around 51.1%.

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 BIOCON and quarterly results for BIOCON )

Read: Latest Annual Report Analysis of BIOCON