ASTRAZENECA PHARMA 2022-23 Annual Report Analysis

Wed, 2 Aug

ASTRAZENECA PHARMA 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.

ASTRAZENECA PHARMA Income Statement Analysis

• Operating income during the year rose 24.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 44.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.5% in FY23 as against 10.7% in FY22.
• Depreciation charges decreased by 4.1% and finance costs decreased by 33.7% YoY, respectively.
• Other income grew by 76.8% YoY.
• Net profit for the year grew by 61.2% YoY.
• Net profit margins during the year grew from 7.6% in FY22 to 9.9% in FY23.

ASTRAZENECA PHARMA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	8,056	10,030	24.5%
Other income	Rs m	148	261	76.8%
Total Revenues	Rs m	8,204	10,291	25.4%
Gross profit	Rs m	862	1,249	44.9%
Depreciation	Rs m	170	163	-4.1%
Interest	Rs m	10	6	-33.7%
Profit before tax	Rs m	830	1,341	61.5%
Tax	Rs m	214	348	62.4%
Profit after tax	Rs m	616	993	61.2%
Gross profit margin	%	10.7	12.5
Effective tax rate	%	25.8	26.0
Net profit margin	%	7.6	9.9

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ASTRAZENECA PHARMA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 5 billion as compared to Rs 4 billion in FY22, thereby witnessing an increase of 23.5%.
• Current assets rose 22% and stood at Rs 9 billion, while fixed assets fell 3% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 11 billion as against Rs 10 billion during FY22, thereby witnessing a growth of 17%.

ASTRAZENECA PHARMA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,094	5,861	15.1
Current Liabilities	Rs m	3,923	4,844	23.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	9,773	11,421	16.9
Current assets	Rs m	7,653	9,359	22.3
Fixed Assets	Rs m	2,120	2,061	-2.8
Total Assets	Rs m	9,773	11,421	16.9

ASTRAZENECA PHARMA Cash Flow Statement Analysis

• ASTRAZENECA PHARMA's cash flow from operating activities (CFO) during FY23 stood at Rs 583 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 181 million, an improvement of 282.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -245 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 519 million from the Rs 961 million net cash flows seen during FY22.

ASTRAZENECA PHARMA 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	1,008	583	-42.2%
Cash Flow from Investing Activities	Rs m	47	181	282.1%
Cash Flow from Financing Activities	Rs m	-95	-245	-
Net Cash Flow	Rs m	961	519	-46.0%

Current Valuations for ASTRAZENECA PHARMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 39.7, an improvement from the EPS of Rs 24.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,825.2, stands at 96.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 16.3 times, while the price to sales ratio stands at 9.5 times.
• The company's price to cash flow (P/CF) ratio stood at 65.5 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	322.2	401.2
TTM Earnings per share	Rs	24.6	39.7
Diluted earnings per share	Rs	24.6	39.7
Price to Cash Flow	x	81.3	65.5
TTM P/E ratio	x	103.7	96.3
Price / Book Value ratio	x	17.4	12.9
Market Cap	Rs m	88,863	75,718
Dividends per share (Unadj.)	Rs	10.0	16.0

Ratio Analysis for ASTRAZENECA PHARMA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY23, from 2.0x 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 improved and stood at 213.9x during FY23, from 88.4x 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 improved and stood at 16.9% during FY23, from 12.1% 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 improved and stood at 23.0% during FY23, from 16.5% 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 improved and stood at 8.7% during FY23, from 6.4% 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	2.0	1.9
Debtors’ Days	Days	39	39
Interest coverage	x	88.4	213.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.4	8.7
Return on equity	%	12.1	16.9
Return on capital employed	%	16.5	23.0

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

ASTRAZENECA PHARMA Share Price Performance

Over the last one year, ASTRAZENECA PHARMA share price has moved up from Rs 3,132.7 to Rs 3,825.2, registering a gain of Rs 692.5 or around 22.1%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 27,485.7 (down 0.6%). Over the last one year it has moved up from 22,962.3 to 27,485.7, a gain of 4,523 points (up 19.7%).

Overall, the S&P BSE SENSEX is up 13.2% over the year.

(To know more, check out historical annual results for ASTRAZENECA PHARMA and quarterly results for ASTRAZENECA PHARMA)