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GUJ.TERC LAB 2022-23 Annual Report Analysis

Thu, 14 Sep

GUJ.TERC LAB has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

GUJ.TERC LAB Income Statement Analysis

• Operating income during the year rose 16.6% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 4.6% in FY23 as against 2.8% in FY22.
• Depreciation charges increased by 32.2% and finance costs increased by 79.8% YoY, respectively.
• Other income grew by 16.0% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 2.2% in FY22 to 3.6% in FY23.

GUJ.TERC LAB Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	401	468	16.6%
Other income	Rs m	3	4	16.0%
Total Revenues	Rs m	404	471	16.6%
Gross profit	Rs m	11	-22	NA
Depreciation	Rs m	3	4	32.2%
Interest	Rs m	4	7	79.8%
Profit before tax	Rs m	7	-29	NA
Tax	Rs m	-1	-12	NA
Profit after tax	Rs m	9	-17	NA
Gross profit margin	%	2.8	-4.6
Effective tax rate	%	-16.9	42.2
Net profit margin	%	2.2	-3.6

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GUJ.TERC LAB Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 166 million as compared to Rs 132 million in FY22, thereby witnessing an increase of 25.7%.
• Long-term debt down at Rs 15 million as compared to Rs 23 million during FY22, a fall of 36.5%.
• Current assets rose 4% and stood at Rs 160 million, while fixed assets fell 6% and stood at Rs 110 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 270 million as against Rs 271 million during FY22, thereby witnessing a fall of 0%.

GUJ.TERC LAB Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	85	69	-19.6
Current Liabilities	Rs m	132	166	25.7
Long-term Debt	Rs m	23	15	-36.5
Total Liabilities	Rs m	271	270	-0.3
Current assets	Rs m	155	160	3.7
Fixed Assets	Rs m	116	110	-5.7
Total Assets	Rs m	271	270	-0.3

GUJ.TERC LAB Cash Flow Statement Analysis

• GUJ.TERC LAB's cash flow from operating activities (CFO) during FY23 stood at Rs 0 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 6 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 5 million from the Rs -13 million net cash flows seen during FY22.

GUJ.TERC LAB Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-4	0	-
Cash Flow from Investing Activities	Rs m	-24	6	-
Cash Flow from Financing Activities	Rs m	15	-1	-
Net Cash Flow	Rs m	-13	5	-

Current Valuations for GUJ.TERC LAB

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -2.3, an decline from the EPS of Rs 1.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 21.0, stands at -14.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at -16.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	54.1	63.0
TTM Earnings per share	Rs	1.2	-2.3
Diluted earnings per share	Rs	1.2	-2.3
Price to Cash Flow	x	16.9	-16.5
TTM P/E ratio	x	22.2	-14.2
Price / Book Value ratio	x	1.5	3.1
Market Cap	Rs m	131	215
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GUJ.TERC LAB

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY23, from 1.2x during FY22. 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 deteriorated and stood at -3.0x during FY23, from 2.9x during FY22. 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 -24.4% during FY23, from 10.2% during FY23. 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 -26.1% during FY23, from 10.6% during FY22. 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 -3.5% during FY23, from 4.7% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.2	1.0
Debtors’ Days	Days	498	623
Interest coverage	x	2.9	-3.0
Debt to equity ratio	x	0.3	0.2
Return on assets	%	4.7	-3.5
Return on equity	%	10.2	-24.4
Return on capital employed	%	10.6	-26.1

To see how GUJ.TERC LAB has performed over the last 5 years, please visit here.

GUJ.TERC LAB Share Price Performance

Over the last one year, GUJ.TERC LAB share price has moved down from Rs 21.4 to Rs 21.0, registering a loss of Rs 0.4 or around 1.9%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 28,531.5 (up 0.3%). Over the last one year it has moved up from 23,198.0 to 28,531.5, a gain of 5,334 points (up 23.0%).

Overall, the S&P BSE SENSEX is up 12.2% over the year.

(To know more, check out historical annual results for GUJ.TERC LAB and quarterly results for GUJ.TERC LAB)