PANACEA BIOTECH 2022-23 Annual Report Analysis

Fri, 31 Mar

PANACEA BIOTECH 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.

PANACEA BIOTECH Income Statement Analysis

• Operating income during the year fell 30.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 99.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 1.0% in FY23 as against 251.5% in FY22.
• Depreciation charges decreased by 10.6% and finance costs decreased by 97.5% YoY, respectively.
• Other income grew by 371.0% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 163.1% in FY22 to 7.3% in FY23.

PANACEA BIOTECH Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	6,612	4,599	-30.4%
Other income	Rs m	110	517	371.0%
Total Revenues	Rs m	6,722	5,116	-23.9%
Gross profit	Rs m	16,630	47	-99.7%
Depreciation	Rs m	438	391	-10.6%
Interest	Rs m	1,808	44	-97.5%
Profit before tax	Rs m	14,494	128	-99.1%
Tax	Rs m	3,710	466	-87.5%
Profit after tax	Rs m	10,783	-337	NA
Gross profit margin	%	251.5	1.0
Effective tax rate	%	25.6	363.5
Net profit margin	%	163.1	-7.3

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PANACEA BIOTECH Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 3 billion as compared to Rs 8 billion in FY22, thereby witnessing an decrease of -57.4%.
• Long-term debt down at Rs 202 million as compared to Rs 341 million during FY22, a fall of 40.9%.
• Current assets fell 41% and stood at Rs 6 billion, while fixed assets fell 6% and stood at Rs 7 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 13 billion as against Rs 17 billion during FY22, thereby witnessing a fall of 27%.

PANACEA BIOTECH Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	8,766	8,436	-3.8
Current Liabilities	Rs m	7,738	3,297	-57.4
Long-term Debt	Rs m	341	202	-40.9
Total Liabilities	Rs m	17,351	12,712	-26.7
Current assets	Rs m	9,506	5,623	-40.8
Fixed Assets	Rs m	7,446	7,028	-5.6
Total Assets	Rs m	17,351	12,712	-26.7

PANACEA BIOTECH Cash Flow Statement Analysis

• PANACEA BIOTECH's cash flow from operating activities (CFO) during FY23 stood at Rs -4 billion, an improvement of 289.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -184 million, an improvement of 98% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -105 million from the Rs -17 million net cash flows seen during FY22.

PANACEA BIOTECH 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	-1,084	-4,225	-
Cash Flow from Investing Activities	Rs m	12,826	4,303	-66.4%
Cash Flow from Financing Activities	Rs m	-11,758	-184	-
Net Cash Flow	Rs m	-17	-105	-

Current Valuations for PANACEA BIOTECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -5.5, an decline from the EPS of Rs 176.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 108.4, stands at -19.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 170.0 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	108.0	75.1
TTM Earnings per share	Rs	176.1	-5.5
Diluted earnings per share	Rs	176.1	-5.5
Price to Cash Flow	x	0.8	170.0
TTM P/E ratio	x	0.8	-19.7
Price / Book Value ratio	x	2.1	1.1
Market Cap	Rs m	18,427	9,142
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PANACEA BIOTECH

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x 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 3.9x during FY23, from 9.0x 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 -4.0% during FY23, from 123.0% 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 2.0% during FY23, from 179.0% 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 -2.3% during FY23, from 72.6% 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	1.7
Debtors’ Days	Days	45	48
Interest coverage	x	9.0	3.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	72.6	-2.3
Return on equity	%	123.0	-4.0
Return on capital employed	%	179.0	2.0

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

PANACEA BIOTECH Share Price Performance

Over the last one year, PANACEA BIOTECH share price has moved down from Rs 148.3 to Rs 108.4, registering a loss of Rs 39.9 or around 26.9%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,883.5 (up 0.4%). Over the last one year it has moved down from 24,303.8 to 21,883.5, a loss of 2,420 points (down 10.0%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for PANACEA BIOTECH and quarterly results for PANACEA BIOTECH)