DIVIS LABORATORIES 2021-22 Annual Report Analysis

Wed, 27 Jul

DIVIS LABORATORIES has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

DIVIS LABORATORIES Income Statement Analysis

• Operating income during the year rose 28.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 35.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 43.3% in FY22 as against 41.1% in FY21.
• Depreciation charges increased by 21.9% and finance costs decreased by 4.8% YoY, respectively.
• Other income grew by 84.9% YoY.
• Net profit for the year grew by 49.2% YoY.
• Net profit margins during the year grew from 28.5% in FY21 to 33.0% in FY22.

DIVIS LABORATORIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	69,694	89,598	28.6%
Other income	Rs m	627	1,159	84.9%
Total Revenues	Rs m	70,321	90,757	29.1%
Gross profit	Rs m	28,611	38,811	35.7%
Depreciation	Rs m	2,556	3,115	21.9%
Interest	Rs m	21	20	-4.8%
Profit before tax	Rs m	26,660	36,835	38.2%
Tax	Rs m	6,818	7,231	6.1%
Profit after tax	Rs m	19,843	29,605	49.2%
Gross profit margin	%	41.1	43.3
Effective tax rate	%	25.6	19.6
Net profit margin	%	28.5	33.0

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DIVIS LABORATORIES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 25 billion as compared to Rs 17 billion in FY21, thereby witnessing an increase of 42.0%.
• Current assets rose 42% and stood at Rs 96 billion, while fixed assets rose 9% and stood at Rs 50 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 146 billion as against Rs 114 billion during FY21, thereby witnessing a growth of 28%.

DIVIS LABORATORIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	92,946	117,282	26.2
Current Liabilities	Rs m	17,284	24,544	42.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	113,869	146,191	28.4
Current assets	Rs m	67,906	96,104	41.5
Fixed Assets	Rs m	45,963	50,087	9.0
Total Assets	Rs m	113,869	146,191	28.4

DIVIS LABORATORIES Cash Flow Statement Analysis

• DIVIS LABORATORIES's cash flow from operating activities (CFO) during FY22 stood at Rs 19 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -22 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -8 billion from the Rs 20 billion net cash flows seen during FY21.

DIVIS LABORATORIES Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	19,469	19,118	-1.8%
Cash Flow from Investing Activities	Rs m	751	-21,949	-
Cash Flow from Financing Activities	Rs m	-349	-5,324	-
Net Cash Flow	Rs m	19,872	-8,156	-

Current Valuations for DIVIS LABORATORIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 111.5, an improvement from the EPS of Rs 74.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,772.5, stands at 33.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.5 times, while the price to sales ratio stands at 11.2 times.
• The company's price to cash flow (P/CF) ratio stood at 36.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	262.5	337.5
TTM Earnings per share	Rs	74.7	111.5
Diluted earnings per share	Rs	74.7	111.5
Price to Cash Flow	x	43.0	36.5
TTM P/E ratio	x	48.6	33.8
Price / Book Value ratio	x	8.2	10.2
Market Cap	Rs m	761,517	1,192,890
Dividends per share (Unadj.)	Rs	20.0	30.0

Ratio Analysis for DIVIS LABORATORIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.9x during FY22, from 3.9x during FY21. 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 1,842.8x during FY22, from 1,270.5x during FY21. 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 25.2% during FY22, from 21.3% during FY22. 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 31.4% during FY22, from 28.7% during FY21. 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 20.3% during FY22, from 17.4% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	3.9	3.9
Debtors’ Days	Days	878	987
Interest coverage	x	1,270.5	1,842.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.4	20.3
Return on equity	%	21.3	25.2
Return on capital employed	%	28.7	31.4

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

DIVIS LABORATORIES Share Price Performance

Over the last one year, DIVIS LABORATORIES share price has moved down from Rs 4,793.9 to Rs 3,772.5, registering a loss of Rs 1,021.4 or around 21.3%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 22,484.6 (up 1.2%). Over the last one year it has moved down from 25,723.5 to 22,484.6, a loss of 3,239 points (down 12.6%).

Overall, the S&P BSE SENSEX is up 5.2% over the year.

(To know more, check out historical annual results for DIVIS LABORATORIES and quarterly results for DIVIS LABORATORIES)

Read: Latest Annual Report Analysis of DIVIS LABORATORIES